People voluntarily wear SpaceX merchandise, unlike telecom giants like Verizon. This powerful consumer brand affinity, validated by the "t-shirt test," suggests SpaceX could successfully enter and compete in the wireless phone market, an industry built on recurring revenue and consumer choice, even without a prior presence.
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The ultimate PLG companies are consumer brands like shampoo, which sell on brand affinity, not commoditized features. As software becomes more commoditized, B2B companies must similarly build a strong brand theme that inspires users to associate with them, creating a more durable moat than features alone.
Established industries often operate like cartels with unwritten rules, such as avoiding aggressive marketing. New entrants gain a significant edge by deliberately violating these norms, forcing incumbents to react to a game they don't want to play. This creates differentiation beyond the core product or service.
The sign of a truly âcultyâ brand is when customers integrate it into their core identity. A simple test is to ask: would a user proudly display their affiliation with your company in their social media bio? This signifies a shift from a transactional customer relationship to one where users are members and evangelists of a movement.
The pinnacle of branding is achieving "tribal belonging." At this stage, customers don't just consume the brand; they co-own it and become its most powerful advocates. The brand's community can sustain its power even in the absence of the core product.
A brand's strength can be measured by its "durability"âthe permission customers grant it to enter new categories. For example, a "Nike hotel" is conceivable, but a "Hilton shoe" is not. This mental model tests whether your brand is defined by a narrow function or a broad customer relationship.
