Can Uber survive their own disasters?

Posted on 5 CommentsPosted in Beloved Brands Explained

IMG_0713.0.0We’d all likely agree that Uber thrust itself into the marketplace with one of the most recent disruptive technologies. It was such a brilliant idea, where you can order a car, track exactly where it is and when it will pick you up and then pay for it via your smart phone. But will they even survive?  This week, Apple announced that they had purchased Didi for $1 Billion, Uber’s biggest rival in China. While I’m a huge Apple fan, they never really invent stuff, they look to enter categories with easy entry and where consumers are being under-served. Maybe this is just a sign that Apple has too much cash or they want to replace lost sales in China.

While Uber might have launched a great App, they sure are bad at managing their brand. Here are mistakes they have made the past year.

Brands have four choices: better, different, cheaper or not around for long

When Uber first came out, I thought “wow, that’s so much better than a Taxi cab”.  Yet the fixation on price has treated ride-sharing like a commodity. In Uber’s mind, they want to use the efficiency of the App to drive out the weak. Just like Twitter, they are yet to figure out the way to become profitable. However, what is their long-term vision for becoming a profitable brand?

Here’s a quote from an Uber spokesperson: “Shock, horror, Uber makes a loss. This is hardly news and old news at that. It’s the case of business 101: you raise money, you invest money, you grow (hopefully), you make a profit and that generates a return for investors.”  That’s more like Business Arrogance 101, sounding like Twitter, who after 10 years has yet to convince us that it will be around for 15 or 20 years.

The risk here for Uber is you treat yourself like a commodity, yes, you will drive every other competitor out of the market. But after you do, you will be a commodity.

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Uber has yet to define their brand, and exactly what their core strength will be

There are four options for what CORE STRENGTH your brand can win on: product, promise, experience or price. Many brand leaders have their marketing strategy wrong, when it comes to aligning everything behind the right strength. 

  • Product: your main strategy should focus on being better. You have to invest in Innovation to stays ahead of competitors, remaining the superior choice in the category.
  • Promise: your strategy should focus on being different. To tell that story, you need to invest in emotional brand communication. You want to connect consumers on a deep emotional level with the concept.
  • Experience: your strategy and organization should focus on linking culture very closely to your brand. After all, your people are your product. As you go to market, invest in influencer and social media that can help support and spread the word of your experience.
  • Price: focus on efficiency and drive low-cost into the products you sell and high turns and high volume. You have to be better at the fundamentals around production and sourcing.
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I keep trying to figure out where Uber should play. At first, I thought what an amazing EXPERIENCE. I love ordering, love watching the little car on my phone and love getting out of the car. Just like Netflix, the Uber brand could have been all about the brand experience. However, while Netflix has created their own content (House of Cards) while Uber has had a hard time recruiting higher quality drivers, hurting the experience. In the last month, I’ve had two Uber drivers get lost and one car in disastrous smelly condition, really questioning the whole brand experience.  The Airbnb brand would be a role model of a brand that has taken the experience to new levels. But, that leaves me to say Uber is a price brand, similar to how we’d peg Expedia. I can use a car-sharing app to get Uber, Lyft, Juno, or a taxi. I don’t see any significant difference between any of the services, each of which arrives quickly, charges similar fares, and offers clean cars and knowledgeable drivers. Sounds like Uber is fast becoming a commodity, focused on price. Maybe they will end up being the Expedia, who competes as a price-commodity with about 15 other hotel/travel brands.

Don’t go to war with City Hall

Of course, all these disruptive technologies are going to upset someone. Netflix had to work directly with governments around the world to gain entry. Netflix stayed patient and tried to work behind the scenes market by market. Still a work in progress. Uber took on the completely different tact, continuing to directly challenge City Hall. In Toronto recently, Uber took out a very aggressive Petition Campaign, pitting voters against City Hall. In the end, the Toronto City counsel voted to keep Uber, but with 3 major stipulations: 1) Uber had to charge the same price as Taxis. 2) Uber had to pay a licensing fee 3) Uber had to do a better job in regulating their drivers. After those 3 stipulations, that leaves Uber without any competitive advantage.  The taxis have apps, and now with everything equal, the Taxi companies have a long list of experienced drivers, a local brand name and service values. Uber might have won the approval of City Hall, but they just lost big time.

While Toronto is just one city, Uber is going head to head with City Hall around the world. Even the wins are turning out to be losses. While all my Facebook friends were happy with the win for Uber, I was sitting there with my mouth open thinking “what a destruction of the Uber brand”.

Uber has not created Service Values

Uber’s President recently re-designed his own logo. The old logo seemed good enough. What he should have been doing is working hard to create an Uber culture, backed by service values that the company could have built a superior brand experience. With Experience Brands, your strategy and organization should focus on linking culture very closely to your brand. After all, your people are your product. As you go to market, invest in influencer and social media that can help support and spread the word  of your experience. Wells Fargo bank offers comfortable banking, Ritz-Carlton uses impeccable customer service to really separate itself, Emirates Airlines who take service to new heights (and prices accordingly) and Starbucks creates an escape with indie-music, cool servers, leather chairs and a touch of Europe. Each of these brands operate in high commodity type businesses, yet they each use precision based service guided by tight service values that line up to a brand purpose.

Uber is forgetting that a brand is a reputation

Every week, there seems to be a bad story about Uber. When that Uber driver went on a shooting rampage last month, I must have heard “Uber driver” 50x a day. Uber, Uber, Uber. Every time I hear Uber executives quoted, they seem mad at the entire Universe.

When a woman tweeted Uber, claiming that she had been choked by her driver. According to an email leaked to Gawker, Kalanick immediately emailed his PR team, blaming the media for suggesting that Uber is “somehow liable for these incidents that aren’t even real in the first place,” and then instructing them to “make sure these writers don’t come away thinking we are responsible even when these things do go bad.”

You are supposed to manage these stories, not get just get angry at them.

The race to convergence of the Automobile market

It’s still hard to imagine what driving will be like in the year 2030. I have no clue, so it’s safe to say my only input will be to say “Wow, this is really cool”.  When markets converge, there are many sub-categories working really hard in the hopes that they will be the ultimate winner. Here are the various sub-categories that are converging:

  • Electric Automobiles. (Tesla)
  • Self-Driving Automobile Software. (Apple or Google or Microsoft)
  • Self-Driving Automobiles. (Mercedes, BMW, Audi, Toyota, Honda)
  • Efficient production of mass produced automobiles. (Toyota, Honda)
  • Design and Styling of the inside of automobiles. (Mercedes, BMW)
  • Ride sharing Apps. (Who cares)

 

I have put in brackets who might win. This convergence could set up partnerships you could imagine, such as Apple and Tesla or Google and Toyota. A year ago, I would have thought that the ride-sharing Apps would be at the centre of the power structure of the market. BTW, the real winner of this convergence might be 15 years old and designing cool things in his garage. Unless Uber can stop treating this like a commodity, they will just end up the next Expedia where no one really cares what App you use.

Uber has no competitive advantage. They have a hyper focus on price, not the experience potential. They lack any service values that will establish a brand culture. And they have an arrogant attitude that will make many cheer on their demise. Maybe Apple really does know something. Or maybe they just had a spare billion sitting around doing nothing.

Uber is one more cool App, with bad management of the execution. I’m predicting Uber becomes the next Pet Rock that we will soon forget.

 

Beloved Brands: Who are we?

At Beloved Brands, we promise that we will make your brand stronger and your brand leaders smarter. We can help you come up with your brand’s Brand Positioning, Big Idea and Brand Concept. We also can help create Brand Plans that everyone in your organization can follow and helps to focus your Marketing Execution. We provide a new way to look at Brand Management, that uses a provocative approach to align your brand to the sound fundamentals of brand management. 

We will make your team of Brand Leaders smarter so they can produce exceptional work that drives stronger brand results. We offer brand training on every subject in marketing, related to strategic thinking, analytics, brand planning, positioning, creative briefs, customer marketing and marketing execution. 

To contact us, email us at graham@beloved-brands.com or call us at 416-885-3911. You can also find us on Twitter @belovedbrands. 

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Forget the 4 P’s. Focus on the 5 touch-points of consumer connectivity

Posted on 2 CommentsPosted in Beloved Brands Explained

 

The 4 P’s

Most of us started learning about marketing by looking at the 4 P’s:  Product, Price, Promotion and Place. While I’ve seen people adding P’s, a fifth one and even have seen up to eight P’s. I guess it’s a fairly easy way to teach marketing. It’s an OK way to learn, but it seems to treat marketing like an activity and not really a strategy. The 4 Ps are obsessed with what you do, and start you on the path of always thinking about YOU YOU YOU!  The 4 P’s almost ignore the consumer.   Over my 20 years, I learned that the only source of revenue was the consumer, not the product. Sure, we sell the product. Or, better yet, someone buys our brand. It’s just about mindset of how you wish to run your brand. I believe that everything had to start and end with the consumer in mind. We will show you below how we start with the consumer and map out the 5 touch-points of consumer connectivity–the promise, brand story, innovation, purchase moment and brand experience.

 

The natural evolution of brands

It’s true that most brands do start off as a product or service that helps to address some type of problem the consumer has in their lives. Early on it’s about a selling activity where you push your brand onto the target market and hope they buy. As the brand evolves, you start to establish an identity for the brand that gets well-known, you start narrowing what you’re naturally best at down to a promise and begin executing and building your experience around the promise. As you keep evolving, the Brand starts to shift towards becoming an Idea that helps solve the consumer’s emotional problems.

    • Apple is not just a computer or cell phone. It’s based on an idea of “simplicity that deals with the frustration over technology”.
    • Dove is not just a soap or hand cream, but all about the idea of “real beauty that allows women to feel comfortable with who they are”.
    • Starbucks is not just a coffee and pastries, but an “escape from a hectic day”

While a lot of the Beloved Brands have taken 20 years or even 90 years to earn their status, you can advance your brand faster by starting off as an idea. It becomes less about product and more about the big idea from day 1. It becomes less about hopeful tactics and more about insightful strategy.  You’ll be able to build around the idea rather than getting stuck in the constraints of what your product does. An idea helps you connect with consumers and that connection gives your brand added power, and the power can be used to drive higher growth and profits.

A Beloved Brand is based on an idea that’s worth loving.

 

The 5 touch-points of consumer connectivity

The biggest problem I have with the 4 P’s is that it builds the brand from your the vantage point of the company, not the vantage of the consumer who actually matters the most. I would rather start with the consumer and then build your brand, based on a promise that motivates consumers, a brand story that engages consumers, an innovation plan that keeps the consumer connected, mapping out what the consumer goes through to the purchase moment and building a consumer experience that helps the brand connect with their consumers.

When we think of the most beloved brands–Starbucks, Apple, Ferrari, Disney, Nike or Mercedes–it’s really hard to figure out the ONE part of the brand that really makes it great. For example on Apple, I have heard: “Apple has the best products” or “they have the best ads” or “it’s actually the experience”. At Beloved Brands, we believe you need 5 magic moments that a brand must deliver at an extremely high degree in order to become a beloved brand:

  1. Brand Promise
  2. Brand Story
  3. Innovation
  4. Purchase Moment
  5. Experience
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  1. Brand Promise: Create a simple brand promise that separates your brand from competitors, based on being better, different or cheaper. Try to use a brand positioning exercise to figure out your brand’s value proposition–we use a brand ladder where we map out the target definition, product features, rational benefits and emotional benefits.
  2. Brand Story: At Beloved Brands, we see Advertising as a tool for telling your brand story in a way that creates a bond with consumers, to establish your brand’s positioning and to drive change in your consumers behavior that leads to higher sales, share and profit. You should use your brand story to motivate consumers to think, feel or act, while beginning to own a reputation in the mind and hearts of consumers.
  3. Innovation: Fundamentally sound product, staying at the forefront of trends and using technology to deliver on your brand promise. The trick with innovation is keeping the serendipity of an R&D team aligned, while pushing for a balance of blue ocean against straying within the perimeters of the brand strategy. New products have to meet consumer needs and many times creating a consumer need they didn’t even know they had.
  4. Purchase Moment: As consumers get near the purchase, there becomes this “moment of truth” when they have to make the final decision to buy. How we manage that, is we use a buying system to map out how consumers move through the purchase cycle and use channels, messaging, processes to make the final decision.
  5. Experience: Turn the usage of your product into an experience that becomes a ritual and favorite part of their day. One of the best brand experiences is Starbucks, providing consumers with more than just coffee, but rather an escape from daily grind a hectic life. At Starbucks, you find that little moment between home life and work life, a cool atmosphere indie music and leather chairs, a barista that knows your name and your drink, you can order in Italian and one of the best things they manage to indirectly achieve–no screaming little kids.

The brand becomes more powerful when everything is aligned under a “big idea” for your brand. In today’s crowded media world, consumers now see 6,000 brand messages every day. They have to quickly sort through those messages, rejecting most and only engaging in a few each day. It’s those brands who can communicate in a headline style idea will grab the consumers attention.

Once you establish that big idea, you can align each of the 5 magic moments underneath that big idea.

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Using the Big Idea map above, we can see the promise comes from the brand positioning, the brand story is told through advertising, the innovation is driven by R&D, the purchase moment is a combination of your sales team and your distribution strategy while the experience comes directly from how you manage the operations and culture of your organization. As you can start to see, everyone and every activity should be driven by the Big Idea. To show you how to use the Big Idea map, here’s the example using the Apple brand, showing how they align behind everything linked to the big idea of “simplicity”.

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The most beloved brands are strong on all of the 5 touch-points of consumer connectivity

Here’s a presentation on what makes a Beloved Brand:

Beloved Brands: Who are we?

At Beloved Brands, we promise that we will make your brand stronger and your brand leaders smarter. We can help you come up with your brand’s Brand Positioning, Big Idea and Brand Concept. We also can help create Brand Plans that everyone in your organization can follow and helps to focus your Marketing Execution. We provide a new way to look at Brand Management, that uses a provocative approach to align your brand to the sound fundamentals of brand management. 

We will make your team of Brand Leaders smarter so they can produce exceptional work that drives stronger brand results. We offer brand training on every subject in marketing, related to strategic thinking, analytics, brand planning, positioning, creative briefs, customer marketing and marketing execution. 

To contact us, email us at graham@beloved-brands.com or call us at 416-885-3911. You can also find us on Twitter @belovedbrands. 

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10 ways to build an exceptional Customer Experience, just by saying “stop it” to these brand killers

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There is only one source of revenue: Your Customers!!!

The most Beloved Brands create a brand experience that lives up to even over-delivers against the brand’s promise. I always like to remind myself that the customer is the most selfish animal on the planet, and deservedly so, because they have given you their hard-earned money. Brand Leaders are always fixated on driving demand to increase share and sales. Yet they usually only reach for marketing tactics like advertising, special promotion or new products. Many tend to forget about creating exceptional customer experiences. It takes years to get customers to change their behavior and move away from their favorite brand and try yours. Yet it takes seconds of bad service for you to lose a customer for life.

Do you treat those who love your brand better than you treat other customers?  You should. You can never lose their love, and then you have to find ways to use that love to get them to influence others in their network.

As we map out how consumers buy and experience brands, we have created 5 main consumer touch-points that will impact their decisions on whether to engage, buy, experience and become a fan. Our five consumer touch-points we use are:

  1. Brand Promise: Brands need to create a simple brand promise that separates your brand from competitors, based on being better, different or cheaper.
  2. Brand Story: Use your brand story to motivate consumers to think, feel or act, while beginning to own a reputation in the mind and hearts of consumers.
  3. Innovation: Fundamentally sound product, staying at the forefront of trends and using technology to deliver on your brand promise.
  4. Purchase Moment: The moment of truth as consumers move through the purchase cycle and use channels, messaging, processes to make the final decision.
  5. Brand Experience: Turn the usage of your product into an experience that becomes a ritual and favorite part of their day.
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Here are the 10 customer experience things that you should STOP DOING:

#1: Stop it with the attitude of “I’m in shirts not ties”.

It can be extremely frustrating walking up to an employee of a store who has no clue about anything but their own little world. And even worse when they just point and say “go over there”. The better service is those who take the extra step by jumping in and helping and those know what’s going on in every part of the brand–not just their own world.Stop Try asking someone at Whole Foods where something is and they will walk you right over to the product you’re asking about and ask if you need anything else.

#2: Stop it when you make the customer do the work.

The airlines have been shifting all their work over to customers for years–boarding pass, bag tag and now even lifting your suitcase up onto the conveyor belt. While it might help you control your costs in the short-term, you’ll never be a Beloved Brand and you’ll never be able to charge a premium price for your services. Instead, in a highly price competitive marketplace, you just end up passing those cost savings onto to the customer in lower prices. No wonder most airlines are going bankrupt.

#3: Stop it when you feel compelled to bring up the fine print when dealing with a customer problem.

A year ago, I had a problem with a laptop I bought, but I felt extra confident because I had paid extra money to get the TOTAL service plan. Yet with my first problem with the laptop, I was told the TOTAL service plan did not include hardware,software, water damage or physical damage. 1e1d5d079e23366d1149ea834ce8102f62d562519d45930ae0c0fb1b485ffff7Are you kidding me? With a computer, what else is there? As a consumer, I had gone through the brand funnel–from consideration to purchase–and made a choice to buy your brand. Yet, at the first sign of my frustration with your brand you are deciding to say to me “don’t come back.” I had a problem with my iPhone and returned it to the Apple store. They went into the back room and got a new iPhone for me and said “would you like us to transfer all your songs over?” I was stunned. Apple took a problem and turned me into a happy customer who wanted to spend even more money with them.

#4: Stop it when you send a phone call to an answering machine.

We’ve all experienced this and secretly many of us have done this. Now if you know you’re going to get a machine ask the customer: “is it OK if you get their machine”. But willingly sending a caller into a machine is just plain lazy and it says you just don’t care. Treat them with the respect that a paying customer has earned with you and make sure there is a human on the other line.

#5: Stop it with processes that make it look like you’ve never been a customer before.

While brand leaders tend to think they own the strategy and advertising, it is equally important that you also own the customer experience. While the positive view of the purchase process is driven by a brand funnel, you should also use a “Leaky Bucket” analysis to understand where and why you are losing customers. It is hard work to get a customer into your brand funnel, it is great discipline to move them through that brand funnel by ensuring that every stage is set up to make it easy for the customer to keep giving you money. Step into the shoes of your customers and experience the brand through their eyes on a regular basis so you can effectively manage the experience. You should always be shopping your own category, just to see how it is to buy your brand. When you find leaks to the brand funnel, find ways to close them so you can hang on to the customers you’ve worked so hard to get into the doors.

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#6: Stop it with trying to win every customer interaction.

This past Christmas I was lucky enough to be 34th in the return line at Best Buy. For some reason they put the most angry person they could find to manage the returns line. I suppose it lowers their return budget, but it also drives away customers. With every customer, this guy was hell-bent on trying to break the customer’s spirit so they’d avoid returning the product. As I watched, I felt like I was headed into a police interrogation. On the other hand, if you want to see a comfortable returns policy, try returning something at Costco. They take the stance that they are on the side of their “members” and help you go up against the big bad manufacturers. If you don’t have your receipt, they’ll print it out for you. At Costco, the returns process is where they earn that $50-100 membership price. Just maybe you should start treating your customers like members and see if it forces you to see things differently.

#7: Stop it when you are explaining your problems instead of listening to the customer’s problems.

When a place is completely messed up, some workers feel compelled to tell you how stupid they think this is. Unfortunately, this constantly complaining ‘why me’ attitude can quickly become systemic and contagious within the culture. It takes an effort to turn the culture around. The best way is to create service values, driving process that helps reward good service, and driving personal accountability within everyone. Then reward behavior that matches up to the service values.

#8: Stop it with the hollow apologies that seems like you are reading from a manual.

No one wants to deal with people who just feel like they are going through the motions. It’s crucial that you set up a culture that is filled with authentic people who have a true passion for customers. TD Bank retail staff does an exceptional job in being real with customers. When you consider that they hire from the same pool of talent as all the other banks, it’s obviously the culture of caring about their customers that really makes the difference in separating their customer experience from others.

#9: Stop it when you try using my complaint call as a chance to up-sell me. The only up-sell is to get me to come back again.

Last month, I had an issue with my internet being way too slow. When I called my local service provider, instead of addressing how bad their current service was, the first response was to try selling me a better service plan that with a higher monthly fee and a higher priced modem. Then suddenly, they tried to sell me a home security system. If a customer is a point of frustration, why would they want to pay you even more money for a bad service. You haven’t earned my business. The best in class service is the Ritz Carlton who proactively look to turn customer problems into a chance to WOW the customer. It’s built right into the culture as employees are encouraged to brainstorm solutions and empowered with up to $2,000. Instead of up-selling, the Ritz spends the extra effort to ensure you’re satisfied with the service you’ve already paid for.

#10: Stop it when it just becomes a job for you and you forget the passion you have for the business.

When your team starts to feel like they have no power, they just start to show up as pencil-pushing bureaucrats. There’s no passion left–as it’s been sucked out by a culture with a complacent attitude and a bunch of check in-check out types who follow the job description and never do anything beyond it.  Ask yourself “why do you come to work” and if the answer doesn’t show up in your work, then you know that the culture needs a complete overhaul. If you don’t love the work, then how do you expect your customer to love the brand?  

The best Marketers manage their brand culture

Beloved Brands create an exceptional customer experience. They know it’s not just about advertising and innovation. As a consumer, I’ve become spoiled by the best of the brands who raise the bar and continue to surprise and delight me. Think of how special you feel when you are dealing with Disney, Starbucks and Apple. Compare that to how demoralized you feel when dealing with the airlines, utilities and electronics shops. For the Beloved Brands, they understand that Culture and Brand are One. The Brand becomes an internal beacon for the culture—and the brand’s people have to genuinely be the strongest most outspoken fans who spread the brand’s virtues.keep-calm-and-stop-it-stupid.jpg

As you look at your own customer experience, take a walk in your customers shoes and see where your customer would rate you. Are they with you because they love you and want to be with you or because they have to be with you? Even though they like the product, they may feel indifferent to your brand. And they’ll be gone at the first chance at an alternative. And as a brand leader, your brand is likely stuck on a rational promise, unable to separate yourself from competitors and instead you are left competing on price and promotion.

  • Begin by holding the culture up the lens of the brand’s Big Idea and ensure the right team in place to deliver against the needs of the brand.
  • Start finding ways to create a culture that is more consumer centric (customer first)
  • Begin to push the culture to create a unique delivery of the product experience. Use Leaky Bucket analysis to take a walk in your customers shoes and to discuss weaknesses.
  • Set up forums for innovation—that create an energy through the culture and one that starts to take risks on the best ideas.
  • Use a purpose driven vision, with a set of beliefs and values to challenge the team to create and deliver that experience.
  • Reward the behaviors that match up to your values, with both rewards and recognition. Creating a culture of wow stories motivates all employees to seek potential wow moments they can deliver.
  • Begin using power of a loved brand to attract and keep the best. Find fans of the brand who will become your front line spokespeople. They bring that passion for the brand.

Here’s our workshop presentation on “Creating a Beloved Brand”.

Beloved Brands: Who are we?

At Beloved Brands, we promise that we will make your brand stronger and your brand leaders smarter. We can help you come up with your brand’s Brand Positioning, Big Idea and Brand Concept. We also can help create Brand Plans that everyone in your organization can follow and helps to focus your Marketing Execution. We provide a new way to look at Brand Management, that uses a provocative approach to align your brand to the sound fundamentals of brand management. 

We will make your team of Brand Leaders smarter so they can produce exceptional work that drives stronger brand results. We offer brand training on every subject in marketing, related to strategic thinking, analytics, brand planning, positioning, creative briefs, customer marketing and marketing execution. 

To contact us, email us at graham@beloved-brands.com or call us at 416-885-3911. You can also find us on Twitter @belovedbrands

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Consumer Insights are secrets that we discover and use to our brand’s advantage

Posted on Leave a commentPosted in Beloved Brands Explained

There is a difference in selling to someone and motivating someone to buy.

When you just sell, you start with the product and you don’t really care who you sell to. Whoever comes through the door, you start talking to them about the features of the product and look to close the deal.
Motivating someone to buy starts with the consumer not the product. Instead of selling to anyone, you have to target those consumers who are already motivated by what you do. You have to matter the most to those who already care the most. You have to understand them, to match your brand up to their needs, wants and desires.

You have to get in the consumer’s shoes, observe, listen and understand their favorite parts of the day. You have to know their fears, motivations, frustrations and desires. Learn their secrets, that only they know, even if they can’t explain. Learn to use their voice. Build that little secret into your message, using their language, so they’ll know you are talking to them. We call this little secret the consumer insight. When portrayed with the brand’s message, whether on packaging, an advertisement or at the purchase moment, the consumer insight is the first thing that consumers connect with. When consumers see the insight portrayed, we make them think: “That’s exactly how I feel. I thought I was the only one who felt like that.” This is what engages consumers and triggers their motivation and desire to purchase. The consumers think we must be talking to them, even if it looks like we are talking to millions.Strategic Thinking 2016.062

Consumer Insights are secrets that we discover and use to our brand’s advantage

It is not easy to explain a secret to a person who doesn’t even know how to explain their own secret. Try it with a friend and you will fail miserably. Imagine how hard it is to find that secret and portray it back to an entire group of consumers. Safe to say, consumer insights are hard to find.

The dictionary definition of the word Insight is “seeing below the surface”. To get deeper, when you come across a data point, you have to keep looking, listening asking yourself “so what does that mean for the consumer” until you have an “AHA moment”. You can start with the observations, trends, market facts and research data, but only when you start asking the right questions do you get closer to where you can summarize the insight. Look and listen for the consumer’s beliefs, attitudes and behaviors that help explain how they think, feel or act in relationship to your brand or category. Because the facts are merely on the surface, you have to dig, or you will miss out on the depth of the explanation of the underlying feelings within the consumers that caused the data. Think beyond the specific category insights and think about life insights or even societal trends that could impact changing behaviour.

Good insights get in the SHOES of your consumer and use their VOICE. We force every insight to be written starting with the word “I” to get the Marketer into the shoes of the consumer and force them to put the insight in quotes to use their voice.

Here are two examples of how using Consumer Insights drove business results.

  • Working in the quit smoking business, our starting point was: “Studies show that people try to quit cold turkey 7x before reaching for a smoking aid to help them quit.” That’s not insightful. That’s just a lack of deep thinking. Only when we watched, listened and dug deeper could we feel the consumers pain. When you hold a 2 hour focus group with smokers and tell them “you can’t smoke for 2 hours and we’re going to talk about smoking the entire time” you can see them getting crankier and crankier in the second hour. What we learned is smokers are actually scared to quit, because they knew they’d either fail or lose friends. The new insight we came up with was: “I know I should quit. I’ve tried to quit so many times, it’s ridiculous. I’m not myself, I’m grouchy, irritable and feel out of control. Quitting Smoking Sucks.” When we share this secret with a smoker and they say “yup, that’s exactly how I feel”. The ad they made was a Flight Attendant losing her mind trying to quit smoking, and was the highest tested ad in the company’s history.
  • Working with a bank who was trying to gain a competitive advantage by staying open late, our starting point was this fact: “Recent research shows if a Bank were to open till 8pm, that customers would use the bank 3.4x more each month and with added transactions that would mean $26 more for each customer, and nearly $32 Million in revenue overall.” That’s not insightful. That’s just a lack of deep thinking. Consumers would resent a bank if they knew they were only opening late so they can make more money from them. When we started to think like the consumer, we landed on this insight: “I am so busy driving my kids around, I can never get to the bank during banking hours. I wish there was a bank that worked around my life, rather than me working around the banks’ life.” When we share this secret with a busy mom, she says “that’s exactly how I feel”. The ad they made with this insight had a woman doing a head stand on a yoga pillow with the caption “I do my banking between yoga and taking my kids to soccer practice”. The ad was the highest performing ad in the bank’s history.

Knowing the secrets of your consumers is a very powerful asset. An insight should ONLY connect with the audience you are talking to. I hate when people say “we don’t want to alienate others”. The best brand communication should be like whispering an inside-joke that only you and your friend get. Yes, when we target, we actually do want to alienate others. That’s the only way we will truly connect. Your ability to harness those secrets into creating insights that are arresting or intriguing, fuels the creative spirit as you tell your brand’s story, launch new innovation and move the consumer through to the purchase moment.
After all, there is one source of revenue, not the product you sell, but the consumers who buy. In a tough competitive market, your ability to harness the secrets of your consumers that only you know, is a huge potential competitive advantage.

Done right, if you can make consumers want to buy, you will never have to sell.

Here is the Nicoderm ad based on the consumer insight:

 

We run brand training workshops on everything connected to marketing. Here’s our workshop on Brand Positioning:  

 

Beloved Brands: Who are we?

At Beloved Brands, we promise that we will make your brand stronger and your brand leaders smarter. We can help you come up with your brand’s Brand Positioning, Big Idea and Brand Concept. We also can help create Brand Plans that everyone in your organization can follow and helps to focus your Marketing Execution. We provide a new way to look at Brand Management, that uses a provocative approach to align your brand to the sound fundamentals of brand management. We will make your team of Brand Leaders smarter so they can produce exceptional work that drives stronger brand results. We offer brand training on every subject in marketing, related to strategic thinking, analytics, brand planning, positioning, creative briefs, customer marketing and marketing execution.

To contact us, email us at graham@beloved-brands.com or call us at 416-885-3911. You can also find us on Twitter @belovedbrands. To learn more about Marketing, continue to visit beloved-brands.com where you will have access to stories on everything connected to brand management. 

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Our 7 favorite Holiday ads of 2015. Have your say.

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The UK has always led the way with story telling Holiday ads. And this year is no different. 

UK retailer John Lewis always does terrific Christmas ads and this year is one of the best. I love it. Makes me think of my daughter’s relationship with my mom. Already achieved 20 million views on youtube. 

Sainsbury’s, a UK grocery store, launched an ad this year, which appears to be a fan favorite. Cat lovers certainly will enjoy this one. Personally, I found the ending a bit too contrived. But 21 million viewers and many of my friends have said they like this one better than the John Lewis spot.

This next ad comes from Mulberry, and is a bit bizarre. Wonder how well this goes over with the deeply religious. The sarcasm of this spot treats this new red hand bag as though it is the baby jesus. Perfect for those with a slightly dark sense of humor. I’m still trying to figure out if I like it, but it sure stands out.

Staying with sarcasm comes one of my favorites this year from an electronics retailer in the UK. Curry’s PC World hired Jeff Goldblum to tell people how they should be acting. I’ve seen a handful of these spots, including one where Jeff tells people how to act when the boss gives you a secret santa gift or how to act when someone burns the turkey. And in this one, how to react when your husband gives you a jigsaw puzzle. So far, each spot

 

Another UK retailer, Harvey Nichols, has done a great job in articulating the selfishness of Christmas. While not quite as good as last year’s spot, this one is still quite good.

The spot that is generating the most interest comes from german grocery retailer, EDEKA. This spot is getting shared on many social media sites making people all over the world cry. It certainly touched a nerve with me. Right after seeing it, I called my mom to see how she was doing. Some others find the spot goes way too far to pull at the heart-strings with the older man faking his death. However, this has generated an incredible 38 million views so far.

And finally, Tesco has created a series of quirky humor ads including this spot with a young man flirting, or at least trying to flirt. 

 

Have your say in our poll: Poll Link

If you have seen other ads, we’d love you to share those in the comments section. This is one of our more lighthearted articles, given you are likely cleaning up files before year-end, getting your accrual into finance and finishing some of your key projects. Hope your year-end performance review goes well and you start getting ready for a big 2016.

Here’s our workshop we run to help Brand Leaders become better at Advertising

We make Brands stronger.

We make Brand Leaders smarter.™

We offer brand coaching, where we promise to make your brand better by listening to the issues, providing advice that challenges you, and coaching you along a strategic pathway to reaching your brand’s full potential. For our brand leader training, we promise to make your team of brand leaders better, by teaching sound marketing fundamentals and challenging to push for greatness so that they can unleash their full potential. Feel free to add me on Linked In, or follow me on Twitter at @belovedbrands If you need to contact me, email me at graham@beloved-brands.com or phone me at 416 885 3911.

Brands only have 4 choices: better, different, cheaper or not around for very long.

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There are some consumer driven marketers who think if you do such a great job in servicing the consumer, you should not have to worry too much about what the consumer does. That is crazy talk, with blinders on as to what is happening in the market. The only reason Apple, Starbucks or Virgin are such amazing brands is they are much better than any competitor within those categories. That is the reason why we call the worst type of brands “Indifferent” not just to convey the consumers blasé attitude to the brand, but to really signal “NOT different”. If you do not find your point of difference, you are a commodity, and should be priced accordingly at market prices like the fish at tonight’s restaurant.

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You have to find a unique selling proposition for your brand, that distinguishes you from others. Looking above at the Venn diagram, we first start by listing out everything your consumers want, then list what your brand does best and what your competitors do best. The winning zone for your brand to play in is the match up where consumers want what you do best. The losing zone is to play where consumers want it, but your competitor does it better than you. As we are maturing in the marketing, it is harder and harder to come up with a definitive win, so that is where you can win the risky zone by being different, being faster to market, winning with meaningful innovation or building a deep emotional connection. The key to be seen as unique, not just for the sake of it, but to match up what you do best with what the consumer is looking for. Sadly, I do have to always mention the dumb zone. This is where two competitors “battle it out” in the zone the consumer does not care about. I say sadly, because I keep seeing this in the market. One competitor starts saying “we are faster” and you see them so you think “well we are just as fast”. No one bothers to ask the consumer if they care about speed. To often, Brand Leaders start with the claim, and then try to make the most of it in everything they do. The problem with that strategy is your claim might not be a benefit, and even if it ladders up, it might not be something that is own-able for you or motivating to the consumer.

A good tool we use is to list out all of your brand assets, which could be your main strengths you can stand behind and begin the match them put to various consumer need states. This will not determine your brand positioning, but help you focus as you move into a potential brainstorming session around positioning.

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What is the core strength of your brand?

Most brands should have a focus as to what they win on, whether that is winning based on product, concept, experience or price. You have to pick an area of focus, rather than trying to be everything. Using our Core Strength Model, we use this as a brainstorming tool to play a little game. We give out 4 blue chips, and force you to pick one strength as your core strength, two at the mid-level that will help support your core strength and the fourth chip forced at low to go of it as a potential. This leaves four types of brands: product, concept, experience or price. Positioning 2016.013

  • With Product Brands, your main strategy should focus on being better. You have to invest in Innovation to stays ahead of competitors, remaining the superior choice in the category. Here, it works to focus on rational advertising that makes sure you re-force with consumers that you are the best. However, in a crowded market, it has become increasingly difficult to win on product alone—as many brands are operating in a parity situation. The product brands doing well include Samsung with the best TVs and phones, Five Guys with the best burger and Ruth’s Chris Steakhouse who has a unique cooking technique that products the best steak. These brands talk mainly about the great product. In fact, looking at the Five Guys brand, they have almost completely let go of experience or pricing. imgresThe restaurants are almost run down, and the price of a 5 Guys burger is about twice the going rate. For years, Proctor & Gamble pushed this strategy at every opportunity across Tide, Ivory, Pampers and Always. But technology gaps have closed they have been forced to switch some of their brands to focusing more on being different and less on being better. The problem for product type brands is they struggle to be emotionally engaging and while consumers might love the product, they do not necessarily love the brand. While you can run an amazing business this way, if a competitor catches up to you on product or if you wish to move your loyal base into other products, it is not as easy as being a concept or experience brand.
  • With Concept Brands, your strategy should focus on being different. To tell that story, you need to invest in emotional brand communication. You want to connect consumers on a deep emotional level with the concept. Brands in this space include Apple who builds around the concept of simplicity, Virgin stands out in new categories by challenging the status quo and generally accepted ways of doing things and W Hotels combine the nightlife feel, so you never have to leave the Hotel. With these brands, they still need to make sure that the product delivers at a level expected within the concept. If it fails to deliver, there may be a sense of hollowness to the concept that brings the brand down. Instead of calling these loved brands, I call these brand lust, where our initial feelings are the same as love, only to be disappointed by the product experience.
  • With Experience Brands, your strategy and organization should focus on linking culture very closely to your brand. After all, your people are your product. You want to build values and align the culture to those values. And as you go to market, invest in influencer and social media that can help support and spread the word of your experience. white-glove-service-ritz-carltonWells Fargo bank offers comfortable banking, Ritz-Carlton uses impeccable customer service to really separate itself and Starbucks creates an escape with indie-music, cool servers, leather chairs and a touch of Europe.
  • With Price Brands, your strategy has to focus on efficiency and drive low-cost into the products you sell and high turns and high volume. You have to be better at the fundamentals around production and sourcing. Use call-to-action type advertising to help keep the turns very high. McDonald’s of the 1970s perfected this model, but we’ve since seen Walmart take it to the next level. You might not like all that Walmart does from an ethical point of view, but it’s on strategy and helps you get toilet paper cheaper. What consumers don’t notice at Walmart is their obsession with retail turns. On average Walmart sells through their stock within 28 days, compared to other retailers who might average 100 days. You rarely see slow-moving items and rarely see clearance items. Brands like Uber, Amazon and Netflix have combined an amazing experience at a very low cost. These inventive brands have recently figured out ways to use technology to eliminate a lot of waste in the value chain.

You have two questions to answer:

Are you better, different or cheaper? 

Are you a product, concept, experience or price brand?

Below is a presentation from our workshop on How to find a winning brand positoning statement.

We make Brands stronger.

We make Brand Leaders smarter.™

We offer brand coaching, where we promise to make your brand better by listening to the issues, providing advice that challenges you, and coaching you along a strategic pathway to reaching your brand’s full potential. For our brand leader training, we promise to make your team of brand leaders better, by teaching sound marketing fundamentals and challenging to push for greatness so that they can unleash their full potential. Feel free to add me on Linked In, or follow me on Twitter at @belovedbrands If you need to contact me, email me at graham@beloved-brands.com or phone me at 416 885 3911.

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The marketing world has changed, and brand leaders need to change with it

Posted on Leave a commentPosted in Beloved Brands Explained

When we say Marketing has changed, the first answer people gravitate to is the change in media options over the last 15 years, with the opening up of digital, social and search. That change is at the surface level, but it is not really enough of a reason to warrant the change we are seeing. 

In the previous century, it was product driven brands like Tide, Kodak, Xerox, Microsoft and Ivory soap that always stressed product superiority with repetitive mass media strategies behind 30 second TV ads that used side-by-side demos and robotic rules like saying the brand name in the first 7 seconds and the see-say product shots over the last 5 seconds. But now we see the most modern brands like Starbucks, Whole Foods, Facebook, Tesla, Uber and Netflix driving success with the modern consumer in a completely modern fashion. While each of these brands has a clearly defined brand big idea, there is no real memorable advertising, no tag line we can recite and yet consumers are tightly connected and outspoken fans of each brand. Do you even remember the first time you heard of these brands? How? All I know, is that I’m sure you remember your last experience. 

These modern brands combine big ideas backed by amazing experiences to create a feeling. They find new ways to tell their brand story that spreads like wildfire and they focus more on being different than being better. The organizational culture of these modern brands has become the foundation of their story, their brand purpose and expressed values have become the substitute for brand claims and product demos. The brand story isn’t done through a traditional media blocking chart. Instead of yelling your message over and over to every consumer in the marketplace hoping some buy you, the most modern brands whisper to their most loyal fans, hoping those brand fans whisper with an underlying influence to all their friends and families. 

Old school brands fought for a space in the consumers mind

The best brands of the last century were based on product inventions that solved small problems consumers didn’t even realize they had until the product came along. Old school Marketing was dominated by TV ads, logos, product superiority claims, coupons and a battle for shelf space at retail stores. Products were developed by scientists in a lab, pushed to the market, shouting “we are the best” to anyone who would listen. It was about awareness, brand recall, persuasion and trial, driving volume up to push costs down and drive competitors out of the market. The old school brands fought for a space in the consumers mind, with a motivation to win over a broad target. These brands are liked by everyone, but not really loved, and many are struggling in the new economy.

Modern brands fight for a place the consumers heart

In the new economy of the 21st century, Brand Love is the currency, with marketing shifting to building big ideas, leveraging purpose-driven story telling, creating experiences, managing ubiquitous purchase moments and steering the brand’s reputation. The best brands of the new economy are based on a big idea that consumers connect with. The idea has to reflect the brand’s soul, with a clear purpose and set of values to create an organizational culture of people who live the brand and who will deliver an amazing brand experience that exceeds any expectations. These brands are seen as consumer brands because they were developed through observation of consumers, with innovation that beats down an identified consumer enemy that torments them every day. The growth comes from finding those consumers already motivated by what the brand does. Consumers are made to feel part of brand, they desire it, crave it and are outspoken fans of it. Instead of shouting at consumers, the modern brands confidently whisper to their most loyal fans, who then whisper with trusted influence to bring their friends to the brand. These Brands now fight for a space in the consumers heart.

Brand Leaders need to change.

This is our Beloved Brands credo, and the inside jacket of our new book to be released in early 2016.

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Here’s a presentation from our workshop on how to create a beloved brand

We make Brands stronger.

We make Brand Leaders smarter.™

We offer brand coaching, where we promise to make your brand better by listening to the issues, providing advice that challenges you, and coaching you along a strategic pathway to reaching your brand’s full potential. For our brand leader training, we promise to make your team of brand leaders better, by teaching sound marketing fundamentals and challenging to push for greatness so that they can unleash their full potential. Feel free to add me on Linked In, or follow me on Twitter at @belovedbrands If you need to contact me, email me at graham@beloved-brands.com or phone me at 416 885 3911

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Beautiful Remembrance Day ad will bring a tear to your eye

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ce0c5f924f69811fb32dcea47485Remembrance Day is a special day in Canada, as we take a moment of silence at 11am on the 11th day of the 11th month, to commemorate the very moment that World War One ended. Before showing Bell’s new TV ad, here’s a little history about Remembrance Day in Canada:

Remembrance Day (also known as Poppy Day) is a memorial day observed in Commonwealth of Nations member states since the end of the First World War to remember the members of their armed forces who have died in the line of duty. Remembrance Day is observed on  the 11th of November to recall the end of hostilities of World War I on that date in 1918, as hostilities formally ended “at the 11th hour of the 11th day of the 11th month”.  Every Canadian kid learns about “In Flanders Fields”, which is a war poem, written during the First World War by Canadian physician Lieutenant Colonel John McCrae (November 30, 1872 – January 28, 1918) who was a Canadian poet, physician, author, artist and soldier during World War I, and a surgeon during the Second Battle of Ypres, in Belgium. He was inspired to write “In Flanders Fields” on May 3, 1915, after presiding over the funeral of friend and fellow soldier Alexis Helmer, who died in the Second Battle of Ypres. According to legend, fellow soldiers retrieved the poem after McCrae, initially dissatisfied with his work, discarded it. “In Flanders Fields” was first published on December 8 of that year in the London-based magazine Punch. The red remembrance poppy has become a familiar emblem of Remembrance Day due to the poem In Flanders Fields. These poppies bloomed across some of the worst battlefields of Flanders in World War I, their brilliant red colour became a symbol for the blood spilled in the war.  McCrae died of pneumonia months before the end of the war, while still working at a hospital for Canadian soldiers in Belgium.

Here is the Remembrance Day poem:

 

10676152_10154731864730332_2660724263171587675_nI set that up because this new Bell ad tells a beautiful story from the eyes of a little girl, as she learns about Remembrance Day and does something very touching for a veteran. It’s a very Canadian storyline and I hope you can appreciate every little subtlety in this ad. There are no words and you have to pay close attention to every detail. In the ad, a little girl peers out a school bus window and sees a veteran selling poppies by the side of the road. It prompts her to google “what is a poppy”, which starts her on the learning process about Remembrance Day. The little girl emails someone in Belgium, asking if they are near Flanders Field, a link to the poem above. Then a letter arrives, presumably from the person in Belgium. The little girl takes the letter to the veteran, giving it to him in a very touching tribute and a beautiful moment.

In Canada, most people will wear a poppy in early November as a tribute to our veterans. Everyone knows the poem, as we learn it in school, with most schools holding a Remembrance Day ceremony, with veterans in attendance. This ad is a beautiful tribute to Remembrance Day in Canada and a reminder: Lest we forget. Here’s the ad:

Bell Canada has a long history of paying tribute to our veterans. Below is an ad from the mid 90s, when we were still excited that we could call from anywhere. In the ad, a young 20-year-old visiting Dieppe phones home to Canada to talk to his grandfather, just to say “thank you”. Dieppe holds a special place for Canadians. Two years before D-Day, 6,000 Canadians tried to land on the beach at Dieppe, but less than half survived. We see many tributes to the soldiers, but this one sends a chill through me every time I watch.

Wear a poppy. Lest we forget.

Boring people make boring brands that die

Posted on 2 CommentsPosted in Beloved Brands Explained

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You have to love WHAT you do and live WHY you do it.

Being boring will kill your brand. Not just boring people, but boring minds. Marketers in the new world need to be fueled by their passion and put everything they have into their work. They need to be guided by an underlying purpose for why they do what they do. Brand Leaders need to learn how to be a visionary, creative, emotional, demanding brand driven leader, and avoid being a boring, rational, product driven manager. Everyday, you need to get to the point where you say “I love it”, which is the best bar for making great work. If you don’t love what you do, how do you expect your consumer to love your brand. Where passion meets purpose, you will find that passion is dialed up to  new level when you know why you do what you do. It will consume you, energize you, fuel you and push you to go from good to great.

Brand Love is the new currency.

The more LOVED a brand is by consumers, the more POWERFUL and PROFITABLE that brand will be. Brands move along the BRAND LOVE CURVE, increasing the bond they have with consumers as they move from ‘Indifferent’ to ‘Like It’ to ‘Love It’ and finally to the ‘Beloved Brand’ stage. Boring brands get stuck at ‘Indifferent’ or ‘Like It’, while the most beloved brands are interesting, engaging and break through the clutter. The tight bond beloved brands create with consumers becomes a source of power that makes your brand more powerful in every point of negotiation, whether that is with the very consumers that love you, who feel more and think less, with competitors who can’t figure out how to duplicate the emotional bond you have created, with suppliers just dying to be part of your team, with any form of media who want to showcase your story and with any key influencer that wants to spread your story. Once you have power, and win every negotiation point, the money will flow in, with higher price points, lower costs, more share and an easy entry into new categories.Beloved Brands Summary Tools.002

Consumers love Ideas. They like products.

In a crowded branded marketplace, where we see 5000 brand messages a day, consumers connect with BIG IDEAS that help simplify brand messages in ways that is easily understood and remembered. Boring brands sell products, while beloved brands create big idea that are own-able in the consumers’ mind and heart and served up in a motivating enough message that changes consumer beliefs and behaviors. The role of the BIG IDEA is to simplify the brand message with an outward expression of the BRAND SOUL, which is a collection why you do what you do (purpose) what is important to you (values) and how you can help consumers (role).Beloved Brands Summary Tools.004

Consumers love brands who love them

For beloved brands, everything has to start and end with the consumer in mind. Boring brands get stuck talking about themselves all the time, almost forgetting about the consumer. They talk endlessly about features and claims. Boring brands try to be everything to everyone, and end up nothing to anyone. Beloved brands get in the shoes of your consumer and speak in their voice. You need to define a very focused target market, and using consumer insights and consumer enemy to connect with consumers. Boring brands are consumed while beloved brands are experienced. When consumers experience the brand, they either accept or reject it based on how it matches up to the Big Idea. Consumers who are continually satisfied become loyal and develop a bond with brand. Consumers transform this bond into a reputation they spread. The idealized state for a brand is when the brand reputation perfectly matches up to the brand soul. To ensure delivery of the brand’s Soul, you need to line up all 5 consumer touch points underneath simple Big Idea. Create a simple brand promise that separates your brand from competitors, based on being better, different or cheaper. Use your brand story to motivate consumers to think, feel or act, while beginning to own a reputation in the mind and hearts of consumers. A fundamentally sound product, staying at the forefront of trends and using technology to deliver on your brand promise. The moment of truth as consumers move through the purchase cycle and use channels, messaging, processes to make the final decision. Turn the usage of your product into an experience that becomes a ritual and favorite part of their day. 

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The desire to be loved guides your brand’s strategy and execution

Boring brand leaders get stuck in the analytics, but a good brand funnel system should allow  you to measure and track brand love. Brand funnel becomes thicker as the brand becomes more loved. It’s not just about driving particular numbers but about moving them from one stage to the next. To drive TRIAL you need to gain CONSIDERATION first (the brain) and then you need to move the consumer towards purchase and through the experience. To drive LOYALTY (the heart) you need to create experiences that deliver the promise and use tools to create an emotional bond with the consumer. AWARENESS is never enough, anyone can get that. But consideration is the point you start to see that your brand idea starts to connect and move the consumer. We can see below how you can use voice of consumer and market indicators to determine where you are on the brand love curve.

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We use where you are on the Brand Love Curve to focus your brand on what strategy to guide your next move. This can help provide your overall focus of the strategy. Brands at the Indifferent stage should be trying to establish the brand in the consumers mind, but those at the Like It stage that want to go to the next stage have to create a bigger following by trying find a way to separate your brand from others. Brands at the Love It stage should tug at heartstrings of their consumers to tighten bond with your most loyal. And those brands at the Beloved stage should be trying to continue the magic and get loyalists to speak on your behalf. We’ve mapped out 16 core brand strategies to help guide your brand plans.love strategies.001Once you know the overall strategy, you can begin mapping where your consumer stands on the Brand Love Curve and begin layering in the execution. We use a consumer buying system that reflects the brand funnel and provide executional options to power each part of the buying system. Brands at the indifferent stage should focus on managing the awareness-consideration-search, while brands at the Like It stage should be looking to separate your brand from others and close the deal at the purchase moment. As it moves to the Love It stage, it becomes about turning satisfied consumers into repeating and loyal, while the Beloved stage turns loyalty into outspoken fans that then drive awareness for other consumers. We see the power of the most beloved brands using social media as a tool for influencing awareness among new potential users. I’m still in shock when I see loved brands continue to spend 100% of their money on awareness driving TV ads with a basic product message. WE KNOW WHAT YOU DO–YOU HAVE TOLD US FOR 40 YEARS!!!ad execution.003

When judging execution, you should THINK with strategy and GO with your instincts. Great marketing should attract attention, be about the brand, communicate the story, and stick in the consumers mind. Boring brand leaders get stuck over thinking things and forget their instincts. Or they think about what others will think. The best brand leaders find ways to balance their thinking and instincts, to follow their passion. When thinking, we recommend you ask two questions: Is it on strategy and does it have long-term potential to help the brand?  When going with instincts, you should ask “do you love it and try to assess your gut feel for if it’s good. Strategy is based on slow reflective thinking and instincts are fast responsive thinking. Learn to do both.

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We hope we’ve shown you how brand love can carry throughout every part of running your brand. Follow your passion by loving everything you do. Let your purpose guide your energy every day by living why you do it.

Stop being boring. Get people to fall in love with your brand

Here’s a workshop we run on helping brands find brand love. We hope it provokes you to think differently so you can see how you can unleash the full power and profitability of your brand.

We make Brands stronger.

We make Brand Leaders smarter.™

We offer brand coaching, where we promise to make your brand better by listening to the issues, providing advice that challenges you, and coaching you along a strategic pathway to reaching your brand’s full potential.BBI ads for 2015.003

For our brand leader training, we promise to make your team of brand leaders better, by teaching sound marketing fundamentals and challenging to push for greatness so that they can unleash their full potential. Feel free to add me on Linked In, or follow me on Twitter at @belovedbrands If you need to contact me, email me at graham@beloved-brands.com or phone me at 416 885 3911

New 2015 Bio .001

What you should do when your brand is stuck at the Like It stage

Posted on 1 CommentPosted in Beloved Brands Explained

Figure out how tightly connected your brand is with your consumer

At Beloved Brands, we have created a hypothetical curve called the Brand Love Curve. The more tightly connected consumers are to the brand, the farther along the curve the brand sits, with brands sitting anywhere from Indifferent to Like It to Love It and finally to the Beloved stage, where demand becomes desire, needs become cravings, thinking is replaced with feelings. Consumers become outspoken fans.

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While marketers dream of becoming a Nike, Coke, Disney or Apple, the reality is that most brands are closer to the “Like It” stage. That means you are doing a pretty good job, you’ve been able to carve out a bit of a niche and be a consistently chosen brand against proliferation of brands in your category. And you likely have good steady market shares, moderate profits and most brand indicators are reasonably healthy. It’s just that no one loves you. You’re likely not really doing enough to create a tight bond with consumers. It also means you might not be maximizing the full potential of your brand, you may be leaving your brand vulnerable to future attacks and you are leaving money on the table. 

 

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How do consumers see brands at the “Like It” stage

Consumers see your brand as a functional and rational choice. Your brand does a good job in meeting a basic need they have. They tried it and it makes sense so they buy it, use it and enjoy it. They likely prefer it versus another brand. The might not give it much more though. Consumers lack an emotional connection or have any real feeling for the brand. They see it as ordinary, which is just a little bit better than indifferent. Overall, consumers see you brand in the “it will do” space. 

Why is your brand at the Like It stage?
There are seven reasons why you are at the Like It stage of the brand love curve:

  • Protective Brand Leaders means caution: While many of these brands at the Like It are very successful brands, they get stuck because of overly conservative and fearful Brand Managers, who pick middle of the road strategies and execute “ok” ideas. On top of this, Brand Managers who convince themselves that “we stay conservative because it’s a low interest category” should be removed. Low interest category means you need even more to captivate the consumer. Nearly every category has some consumers that have the potential to love the brand–it’s just a matter of finding them and a willingness to drive more emotion into your marketing.
  • We are rational thinking Marketers: Those marketers that believe consumers are strictly rational when it comes to the brand are inhibiting their brands. The brand managers get all jazzed on claims, comparatives, product demonstration and doctor recommended that they forget about the emotional side of the purchase decision. Claims need to be twisted into benefits—both rational and emotional benefits. Consumers don’t care about you do until you care about what they need. Great marketers find that balance of the science and art of the brand. Ordinary marketers get stuck with the rational only. Don’t get stuck with just features and claims–match them up to consumer needs and create rational benefits and then dial them up to emotional benefits. We recommend using a customer value proposition brand ladder below to help turn your features into benefits.

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  • New Brand with Momentum: The second stage of a new brand innovation is ready to expand from the early adopters to the masses. The new brand begins to differentiate itself in a logical way to separate themselves from the proliferation of copycat competitors. Consumers start to go separate ways as well. Retailers might even back one brand over another. Throughout the battle, the brand carves out a base of consumers.
  • There’s a Major Leak: If you look at the brand buying system, you’ll start to see a major leak at some point where you keep losing customers. Most brands have some natural flaw—whether it’s the concept, the product, taste profile ease of use or customer service. Without analyzing and addressing the leak, the brand gets stuck. People like it, but refuse to love it.
  • Brand changes their mind every year: Brands really exist because of the consistency of the promise. When the promise and the delivery of the promise changes every year it’s hard to really connect with what the brand is all about. A brand like Wendy’s has changed their advertising message every year over the past 10 years. Looking at the various ads for Wendy’s, do you see a big idea? The only consumers remaining are those who like their burgers, not the brand.

 

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  • Your brand has positional power–so you figure who needs Love: There are brands that have captured a strong positional power, whether it`s a unique technology or distribution channel or even value pricing advantage. Brands like Microsoft or Walmart or even many of the pharmaceuticals products don`t see value in the idea of being loved. The problem is when you lose the positional power, you lose your customer base completely. Case in point is the Microsoft brand which has struggled to go beyond their Windows monopoly. 
  • Brands who capture Love, but no Life Ritual: There are brands that quickly capture the imagination but somehow fail to capture a routine embedded in the consumers’ life, usually due to some flaw. Whether it’s Krispy Kreme, Pringles or even Cold Stone, there’s something inherent in the brand’s format or weakness that holds it back and it stays stuck at Loved but just not often enough. So, you forget you love them.

Indicators that your brand is at the Like It stage

From a business point of view, you likely see the brand has a lower conversion from awareness to sales, there is a high % bought on deal, low loyalty and you’re likely faced battling a  strong private label share. 

  • Low Conversion to Sales. While the brand looks healthy in terms of awareness and equity scores, the brand is successful in becoming part of the consumer’s consideration stage, but it keeps losing out to the competition as the consumer goes to the purchase stage. It usually requires a higher trade spend to close that sale which cuts price and margins.
  • Brand Doesn’t Feel Different: A great advertising tracking score to watch is “made the brand seem different” which helps to separate itself from the pack, many times speaking to the emotional part of the messaging.Slide04
  • Stagnant Shares: Your brand team is happy when they hold on to their share, content to grow with the category.
  • High Private Label Sales: If you only focus on the ingredients and the rational features of the product, the consumer will start to figure out they get the same thing with the private label and the share starts to creep up to 20% and higher.

How to get to the Love It stage

  • Separate your brand from the pack: stake out certain spaces in the market creating a brand story that separates your brand from the clutter. The best brands have 3 choices:  better, different or cheaper. When you struggle to be better, you need to find a way to be different so that your brand matches the winning zone below–where your brand’s clear point of difference matches up to what the consumer wants. Begin to sell the solution, not just the product.
  • Build a bigger following: Invest in building a brand story that helps to drive for increased popularity and get new consumers to use the brand.

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  • Leverage those that already love the brand: Focus on the most loyal consumers and drive a deeper connection by driving the routine which should increase usage frequency. On top of that, begin cross selling to capture a broader type of usage.

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  • Love the Work: It is time to dial-up the passion that goes into the marketing execution. Beloved Brands have a certain magic to them. But “Like It’ brands tend to settle for ok, rather than push for great. With better work, you’ll be able to better captivate and delight the consumers. If you don’t love the work, how do you expect the consumer to love your brand.
  • Fix the Leak: Brands that are stuck have something embedded in the brand or the experience that is holding back the brand. It frustrates consumers and restricts them from fully committing to making the brand a favourite. Be proactive and get the company focused on fixing this leak.
  • Build everything a Big Idea: Consumers want consistency from the brand—constant changes to the advertising, packaging or delivery can be frustrating. Leverage a Brand Story and a Big Idea that balances rational and emotional benefits helps to establish a consistency for the brand and help build a much tighter relationship. Once you establish your big idea, line up everything under that big idea including your brand positioning, communication, innovation, in-store and the overall experience you create.

 

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Brands at the Like It stage tend to get complacent. You need to drive the Love into the work, and find the balance between rational and emotional benefits.

 

Does being loved matter?

The big idea behind RETURN ON LOVE (R.O.L.) is that the work you do on the brand is first and foremost focused on creating a strong bond between your consumer and your brand. Once you have that bond, you can use it as a source of power versus all the stake holders of the brand: power over customers, suppliers, competitors and even the very consumers you have the bond with. The brand would also generate added power with the media, key opinion leaders and employees. Once you have power, you can drive growth and profit, using that power to drive up price, drive down costs, gain market share and enter new categories. If your finance person asks “so what is the ROI on this”, I’m not recommending you say “we are focused on ROL buddy, not ROI” but what you should say is “we are investing in building a bond with our consumer that will give us more power that we can then wield much greater profit for our brand”

But seriously, having more love adds to the profits. Here are the 8 ways to turn brand love into more PROFITS for your brand.

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With all the love and power the Beloved Brand has generated for itself, now is the time to translate that into growth, profit and value. The Beloved Brand has an Inelastic Price. The loyal brand fans pay a 20-30% price premium and the weakened channels cave to give deeper margins. We will see how inelastic Apple’s price points are with the new iPad Mini. Consumers are willing to trade up to the best model. The more engaged employees begin to generate an even better brand experience.  For instance at Starbucks, employees know the names of their most loyal of customers. Blind taste tests show consumers prefer the cheaper McDonald’s coffee but still pay 4x as much for a Starbucks.  So is it still coffee you’re buying?

A well-run Beloved Brand can use their efficiency to lower their cost structure. Not only can they use their growth to drive economies of scale, but suppliers will cut their cost just to be on the roster of a Beloved Brand. They will benefit from the free media through earned, social and search media.  They may even find government offer subsidies to be in the community or partners willing to lower their costs to be part of the brand.  For instance, a real estate owner would likely give lower costs and better locations to McDonald’s than an indifferent brand.  Apple get a billion dollars worth of free media, with launches covered on CNN for 2 weeks prior the launch and carried live like it’s a news event.

Beloved Brands have momentum they can turn into share gains. Crowds draw crowds which spreads the base of the loyal consumers. Putting the Disney name on a movie generates a crowd at the door on day 1. Competitors can’t compete–lower margins means less investment back into the brand.  It’s hard for them to fight the Beloved Brand on the emotional basis leaving them to a niche that’s currently unfulfilled.  Walk past an Apple store 15 minutes before it’s open and you’ll see a crowd waiting to get in–even when there are no new products.

Beloved Brands can enter into new categories knowing their loyal consumers will follow  because they buy into the Idea of the Brand.  The idea is no longer tied to the product or service but rather how it makes you feel about yourself.  Nike is all about winning, whether that’s in running shoes, athletic gear or even golf equipment. When Starbucks went for pastries and sandwiches their loyal consumers quickly followed.

The more loved a brand is by consumers, the more powerful and profitable that brand will be.

 

To read more on how to create a beloved brand, here’s a training workshop we lead with marketing teams around the world:

Also, if you’re interesting in Beloved Brands Training Programs for brand management, feel free to contact us to learn about our one day or three day boot camps for brand leaders. We believe that better leaders make better work which produces better results. Here’s more information.

We make Brands stronger.

We make Brand Leaders smarter.™

We offer Brand Coaching, where we promise to make your Brand better by listening to the issues, providing advice that challenges you, and coaching you along a strategic pathway to reaching your Brand’s full potential. For our Brand Leader Training, we promise to make your team of Brand Leaders better, by teaching sound marketing fundamentals and challenging to push for greatness so that they can unleash their full potential. Feel free to add me on Linked In, or follow me on Twitter at @belovedbrands If you need to contact me, email me at graham@beloved-brands.com or phone me at 416 885 3911

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