Go beyond Porter’s Model to understand the 8 sources of brand power

Porter’s 5 forces modelWhen I was in business school, I learned about Michael Porter’s five forces model as a way to understand the industry attractiveness and competitive intensity. It’s a great starting point to get you to think more strategically.  However, I want to show you how you can go beyond Porter and start to see other sources of power, which reinforces the idea that the more loved a brand is by consumers, the more powerful and profitable that brand will be.

Start with Porter’s Model

I created the brand love curve, which shows the differences in how consumers feel about a brand as they move through five stages. It defines their feelings as unknown, indifferent, like it, love it and onto the beloved brand status.

For unknown brands, the strategic focus should be to stand out so consumers will notice the brand within a crowded brand world. For indifferent brands, the strategy must establish the brand in the consumer’s mind so they can see a clear point of difference. At the like it stage, the strategy is to separate the brand from the pack, creating happy experiences that build a trusted following. And at the love it stage, the focus shifts to tugging at heartstrings to tighten the bond with the most loyal brand fans. At the beloved brand stage, the strategic challenge is to create outspoken, loyal brand fans who are willing to whisper to their friends on the brand’s behalf.

Porter's Model

Competitive Rivalry = Brand Power

As your brand moves to the loved and beloved stages, the power of buyers goes down. We see that Consumers start to feel more and think less. They become outspoken brand fans who can’t live without the brand. Your brand is becoming a favorite part of their life, built into their normal routines. These brand fans defend you, sell you and crave you at times.

The other source of buyer power are the Channels you sell through. In that relationship, it is the retailers who are powerless against a beloved brand. Consumers switch stores before brands. Stores can’t stand up to the beloved brand.

When it comes to the threat of substitutes, competitive brands cannot match the emotional bond that the beloved brand has with their brand fans. It becomes less about product and more about connection and how the consumer feels through the brand. The beloved brands have a monopoly on feelings.

When it comes to the power of Suppliers, they serve at mercy of the beloved brand. High volumes drive down costs and margins. Suppliers build completely around brand.

New brands can’t break through the emotional bond of a beloved brand. Their message can become lost in the clutter or shut out by the loyal brand fans.

Going beyond Porter

Porter is a great starting point for assessing brand power. However, Brands are in the midst of a significant change on a few fronts. The obvious one people can see and touch is Media. However, don’t forget to look beneath the surface and you’ll start to see a more significant change in brands than the media, and that’s the Brand Culture and the Conversations.

Porter's Model

Brand love generates brand power over buyers

The tighter the bond a brand creates with their consumers, the more powerful the brand will become with all stakeholders. Think of brand love as stored energy a brand can unleash in the form of power into the marketplace. You can use that power with consumers, competitors, new entries, employees, influencers, media, suppliers and channel partners.

These beloved brands command power over the very consumers who love them, as consumers feel more and  think less. These consumers pay price premiums, line up in the rain, follow the brand as soon as it enters new categories and relentlessly defend the brand to any attackers. They cannot live without the brand.

Beloved brands have power over channel customers, who know their consumers would switch stores before they switch brands. Stores cannot stand up to the beloved brand; instead, they give the brand everything in negotiations. The beloved brand ends up with stronger store placement, better trade terms and better promotions from retail partners. 

Competitors can’t compete

The competitors, whether current competitors or new entries, cannot match the emotional bond the beloved brand has created with their brand fans. The beloved brand has the monopoly on emotions, making the consumer decisions less about the actual product and more about how the experience makes consumers feel. Unless a new brand has an overwhelming technological advantage, it will be impossible to break the emotional bond the consumer has established with the beloved brand.

The power over media

The beloved brand also has a power over the media whether it is paid, earned, social or search media. With paid media, the beloved brand gets better placement, cheaper rates and they are one of the first calls for possible brand integrations. The beloved brand is considered newsworthy, so they earn more free media via mainstream media, expert reviews and bloggers. 

Being a famous, beloved brand helps bypass the need for search engine optimization (SEO). The beloved brands become part of the conversation whether it is through social media or at the lunch table at work. Beloved brands can use their homepage website to engage their most loyal users, inform the market of upcoming changes, allow consumers to design their version of the brand and then sell product directly to brand lovers.

The beloved brands have power over key influencers, whether they are doctors recommending a drug, restaurant critics giving a positive review or salespeople at electronics shops pushing the beloved brands. These influencers become fans of the beloved brand and build their own emotions into their recommendations.

Power over suppliers and employees

Suppliers serve at the mercy of the beloved brand. The high volumes drive efficiencies of scale that drive down production costs, backing the supplier into a corner before they offer up most of those savings. Plus, the supplier becomes willing to give in, so that they can use the beloved brand as a selling tool for their supplier services to other potential brands.

Beloved brands even have power over employees, who want to be part of the brand. They are brand fans, who are proud to work on the brand. They embody the culture on day 1 and want to help the brand achieve success.

Brand love means brand profits

With all the love and power the beloved brand generates, it becomes easy to translate that stored power into sales growth, profit, and market valuation. Here are the eight ways a brand can drive profits: 

    1. Premium pricing
    2. Trading up on price
    3. Lower cost of goods
    4. Lower sales and marketing costs
    5. Stealing competitive users
    6. Getting loyal users to use more
    7. Entering new markets
    8. Finding new uses for the brand.

Beloved brands can use higher prices and lower costs to drive higher margins 

 

To learn more about this type of thinking, you should explore my new book, Beloved Brands.

With Beloved Brands, you will learn everything you need to know so you can build a brand that your consumers will love.

You will learn how to think strategically, define your brand with a positioning statement and a brand idea, write a brand plan everyone can follow, inspire smart and creative marketing execution and analyze the performance of your brand through a deep-dive business review.

Beloved Brands book

To order the e-book version or the paperback version from Amazon, click on this link: https://lnkd.in/eF-mYPe

If you use Kobo, you can find Beloved Brands in over 30 markets using this link: https://lnkd.in/g7SzEh4

And if you are in India, you can use this link to order: https://lnkd.in/gDA5Aiw

Beloved Brands: Who are we?

At Beloved Brands, our purpose is to help brands find a new pathway to growth. We believe that the more love your brand can generate with your most cherished consumers, the more power, growth, and profitability you will realize in the future.

We think the best solutions are likely inside you already, but struggle to come out. Our unique playbook tools are the backbone of our workshops. We bring our challenging voice to help you make decisions and refine every potential idea.

We start by defining a brand positioning statement, outlining the desired target, consumer benefits and support points the brand will stand behind. And then, we build a brand idea that is simple and unique enough to stand out in the clutter of the market, motivating enough to get consumers to engage, buy and build a loyal following with your brand.

We will help you write a strategic brand plan for the future, to get everyone in your organization to follow. It starts with an inspiring vision that pushes your team to imagine a brighter future. We use our strategic thinking tools to help you make strategic choices on where to allocate your brand’s limited resources.

Our brand playbook methodology will challenge you to unlock future growth for your brand

  1. Our deep-dive assessment process will give you the knowledge of the issues facing your brand, so you can build a smart plan to unleash future growth.
  2. Find a winning brand positioning statement that motivates consumers to buy, and gives you a competitive advantage to drive future growth.
  3. Create a brand idea to capture the minds and hearts of consumers, while inspiring and focusing your team to deliver greatness on the brand’s behalf.
  4. Build a brand plan to help you make smart focused decisions, so you can organize, steer, and inspire your team towards higher growth.
  5. Advise on advertising, to find creative that drives branded breakthrough and use a motivating messaging to set up long-term brand growth.
  6. Our brand training program will make your brand leaders smarter, so you have added confidence in their performance to drive brand growth.

To learn more about our coaching, click on this link: Beloved Brands Strategic Coaching

To learn more about our training programs, click on this link: Beloved Brands Training

If you need our help, email me at graham@beloved-brands.com or call me at 416 885 3911

You have my personal promise to help you solve your brand building challenges. I will give you new thinking, so you can unlock future growth for your brand.

Signature

Graham Robertson

Founder and CMO, Beloved Brands Inc.

The Ferrari brand sells more merchandise than it does cars

Ferrari is one of the most desired luxury car brands in the world. To Italians around the world, the Ferrari brand screams the passion they hold for the Italian culture. As other brands hope to claim their value by selling more, Ferrari makes their money by actually selling fewer cars. This is a great case study for marketers to build desire for your brand. With all the pent-up desire, Ferrari sells more merchandise than it does cars.

While most marketers ask “what consumers do we want to get” when thinking of a target market, I ask a slightly different question of “who wants us?” You should be looking for those who are already motivated and bringing them in first. Then use them to help fuel passion for your brand.  Once you have the most motivated consumers, you can tap into their desires and build a tight bond with these brand fans. That bond becomes a source of power for the brand to drive their profits from.

Ferrari is such a unique brand. Here are the three pillars of their success:

  1. Ferrari spends nothing on advertising, everything on the F1 race: They put all their money into the Scuderia Ferrari F1 racing team, knowing that a win in front 500 million viewers each week fuels that desire for the brand. While Ferrari was the dominant winning team from 2000-2007, most recently they have struggled on the track behind Mercedes. Scuderia is Italian for a stable reserved for racing horses, closely linked the prancing horse in the Ferrari logo. Ferrari supplies engines for 4 of the F1 race teams. No matter what part of the world, whether in Australia, Britain or Brazil, it is the screaming Ferrari fans with their faces painted red, who are the most passionate among the crowd. The passion of these fans will continue to fuel Ferrari on the race track to catch up with Mercedes. They have to. It is crucial to the brand’s success.
  2. Ferrari stands for Italian passion: The Ferrari brand big idea is “Italian Excellence that makes the world dream”  They clearly understand the brand’s role in tapping into the pride of Italians around the world. Most fans of Ferrari will never own a car. It will be a lifelong dream. Instead, these brand fans will buy the tee shirts, hats, sunglasses, key chains and anything that projects their association with the brand. The branded merchandise accounts for $2.5 billion in sales each year, slightly more than the revenue from selling cars.
  3. Ferrari limits production on cars:  Since back in the 1990s, Ferrari has found tremendous success in using the pent-up desire to fuel their success. While everyone should want a Ferrari, not everyone should have one.  This keeps the price high.By focusing on extraordinary vehicle design and exclusivity, Ferrari is able to sell luxury cars with high-profit margins. Increasing profitability with high margins has been a key driver of revenue growth for Ferrari. Ferrari reported EBITDA margins of 25%, which is quite high as compared to other luxury car manufacturers as well as the industry average.

The purpose behind the Ferrari brand is clear: “We build cars, symbols of Italian excellence the world over, and we do so to win on both road and track. Unique creations that fuel the Prancing Horse legend and generate a “World of Dreams and Emotions”. Very motivating to consumers in the marketplace, as well as internally, for everyone who works on the Ferrari brand.

Luca Cordero di Montezemolo, the former Chairman of Ferrari talked about the link between the history and traditions of the Ferrari brand with the future. “I want to maintain the link with the past, with the tradition and with the history but don’t want to be in the prison of the history. I want to be in the prison of the future.”

The two issues for Ferrari in the future:

  1. How will Ferrari improve their performance on the F1 track, to beat Mercedes, and keep the passion of their fans alive?
  2. With changing regulations on fuel emissions, around the world, how can the Ferrari brand advance on Hybrid technology so that it can maintain their standing as a modern car?

It looks like as we head into the F1 season of 2017, there will be pressure for the Ferrari brand to step up their performance on the track. All those fans with their faces painted red want victories.

For marketers, who are your most motivated consumers and how can you turn them into passionate brand fans?

 

To read more, here’s our workshop to building a beloved brand.

 

 

My new book, Beloved Brands, coming this spring.

How this Beloved Brands playbook can work for you. The purpose of this book is to make you a smarter brand leader so your brand can win in the market. You will learn how to think strategically, define your brand with a positioning statement and a brand idea, write a brand plan everyone can follow, inspire smart and creative marketing execution, and be able to analyze the performance of your brand through a deep-dive business review.

 

Beloved Brands: Who are we?

At Beloved Brands, our purpose is to help brands find a new pathway to growth. We believe that the more love your brand can generate with your most cherished consumers, the more power, growth, and profitability you will realize in the future.

The best solutions are likely inside you already, but struggle to come out. Our unique engagement tools are the backbone of our strategy workshops. These tools will force you to think differently so you can freely generate many new ideas. At Beloved Brands, we bring our challenging voice to help you make decisions and refine every potential idea.

We help brands find growth

We start by defining a brand positioning statement, outlining the desired target, consumer benefits and support points the brand will stand behind. And then, we build a big idea that is simple and unique enough to stand out in the clutter of the market, motivating enough to get consumers to engage, buy and build a loyal following with your brand. Finally, the big idea must influence employees to personally deliver an outstanding consumer experience, to help move consumers along the journey to loving your brand.

We will help you write a strategic brand plan for the future, to get everyone in your organization to follow. It starts with an inspiring vision that pushes your team to imagine a brighter future. We use our strategic thinking tools to help you make strategic choices on where to allocate your brand’s limited resources. We work with your team to build out project plans, creative briefs and provide advice on marketing execution.

To learn more about our coaching, click on this link: Beloved Brands Strategic Coaching

We make Brand Leaders smarter

We believe that investing in your marketing people will pay off. With smarter people behind your brands will drive higher revenue growth and profits. With our brand management training program, you will see smarter strategic thinking, more focused brand plans, brand positioning, better creative briefs that steer your agencies, improved decision-making on marketing execution, smarter analytical skills to assess your brand’s performance and a better management of the profitability of the brand.

To learn more about our training programs, click on this link: Beloved Brands Training

If you need our help, email me at graham@beloved-brands.com or call me at 416 885 3911

Graham Robertson bio

How to be a great Assistant Brand Manager…and of course, get Promoted

In my 20 years of CPG marketing, I must have interviewed 1,000 potential Assistant Brand Managers. I was lucky to have hired some of the best, who have gone on to have very strong marketing careers. I became notorious for asking for some of the toughest questions, some even bizarre. I always asked an analytical question to see if they could piece together lots of data and tell a story that made sense. I’d ask a creative question to see if they had a certain flare and pride in the output. I’d ask a problem solving question, some very hard, no real right answer, but I wanted to see how they actually think. And finally, I wanted to know that they had done something at a very high level–it didn’t matter what–but I wanted to know they could make it happen, whatever it was in. Getting that first ABM job is NOT EASY!  I had many failed interviews over the years that I began to wonder if it would ever happen. I remember one interview ended after about 8 minutes when she found out I didn’t have any experience. Thank god, I stuck with it.

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But even after gruelling interviews, only about 50% of Assistant Brand Managers get promoted to Brand Manager. So what separates the ok ABM from the great ABM that gets promoted?  There are two factors that I have seen in a consistent manner:  #1:  They get what they need and #2:  What they need is the right thing to do.  Very simply put, great ABMs get both.   The rest either fail on #1 or #2.    

Keep in mind there are some core marketing values you want to adopt over the years as an ABM that will serve you well in your career.

  • Hit deadlines: Never look out of control or sloppy. Marketers have enough to do, that things will just stockpile on each other. In Marketing, there are no extensions, just missed opportunities.
  • Know your business: Don’t get caught off-guard. Make sure you are asking the questions and carrying forward the knowledge.
  • Open communication: No surprises. Keep everyone aware of what’s going on. Present upwards with an action plan of what to do with it.
  • Listen and decide: It is crucial that we seek to understand and equally important that we give direction or push towards the end path.
  • We must get better: When we don’t know something, speak in an “asking way”, but when we know, speak in a “telling way”.
  • We control our destiny: We run the brands, they do not run us. Be slightly ahead of the game, not chasing your work to completion. Proactively look for opportunity in the market, and work quickly to take advantage.
  • Regular feedback for growth: Always seek out and accept feedback, good or bad, as a lesson for you. Not a personal attack or setback.

The Five Factors that Separate Ok ABMs from the Great ABMs are:

  1. A great ABM is able to tell stories, where others just see data: There is tons of data all over—share results, tracking, test scores, etc. One of the most critical skill an ABM can work on is developing stories with the data. It’s one thing to have the data point, but another to have thought it through and know what it means, and what action you will take on this data. Look for patterns or data breaks, ask questions, start putting together stories and challenge the stories. Use stories backed up by data to sell your recommendations. Never give a data point without a story or action. You risk letting someone else take your data and run with it or tell a story different from yours.
  2. A great ABM takes action and moves before being asked: Most of the projects for ABMs are already set by your manager. When you are new, it’s comfortable to wait for your projects. But don’t get in the habit of waiting for someone to create your project list. But a great ABM starts to push ideas into the system and create their own project list. Some of the best ideas come with a fresh set of eyes and we need a continual influx of new ideas. We also start to see the ABM making good decisions, on their own, and communicating to their boss. Not asking permission but telling what they want to do and look for the head nod. Know what’s in your scope and align with your manager.
  3. A great ABM can get what they want: Instead of just functionally managing the steps of the project, great ABM’s “make it happen”: faster, bigger and better. Faster means you understand what are the important milestones that need to be hit. Manage the bottle necks: the task that have the longest completion time, that impact the entire project. Sometimes you need to push with an inflexible but motivating fist to get it done.
    Bigger means you want to do more than is required. You find that magic to make it even have a bigger impact. Creative solutions or motivating others to do more. Better means you have to take the same people and get them to give their best ideas or their best effort or their best work. Guaranteed you will meet many points of resistance. Every project will. Solving these and still getting the most you can, is what separates the great ABMs from the rest.
  4. A great ABM puts their strategic thoughts forward. You need to be a strategic thinker—asking the right questions to ensure you are focused on the right area, where you can gain a positional power that leads to higher growth and profit for your brand. Ensure you are staying strategic and not just falling in love with some execution not aligned to your brand’s strategy. It’s so easy to be lost in your own “cool” projects. At the ABM level, showing that you can keep things aligned to the strategic is just as important as being strategic. Speak up and represent your strategic thinking. Standing up for your thoughts shows that you are in the game, that you are thinking, and that you believe in your strategic thoughts. Silent ABMs never last.
  5. A great ABM is accountable in the ownership of their work: Accountability is the stepping stone to ownership. And the ownership of the brand is a sign you can be a Brand Manager. We need to see that before giving you your own brand.
    Great ABMs motivate but don’t delegate. If you have to step in, then jump in. You cannot let things slip or miss. You have to stay on top of the timelines and lead those on your project teams. You have to be action oriented, and solution focused. You can never allow your team to get stuck. Be the hub of communication to all team members, and to key stakeholders, including upwards to your manager.

If you can do those better than your peers, then you’ll get promoted. Conversely, if you’re missing any one of these, you might not get there. I hope your boss gives you a quarterly review because I believe ABMs can grow so fast that you need those regular check-ins. If you just get an annual review, you won’t go as fast. Ask for feedback, cherish it, and use the next 90 days to build on a strength or eliminate a gap.

One thing to keep in mind is the Idiot Curve. The basic rule is: You get dumber before you get smarter.   

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When you first land the ABM job, there’s just so much to learn, it’s like drinking from a fire hose. I find it takes 3 months to get back to being just as smart as you were on the first day. It’s over-whelming at first, and yet you see all these other ABMs doing it so that’s even more intimidating. But the idiot curve is inevitable. It just shows up differently for each person. No matter how hard you fight it, you have to ride the curve. (But, please fight through the curve, you have to for your survival) The idiot curve normally lasts up to 3 months, and then things just start to click. And you’ll experience it in a new and exciting way you can’t even predict.  

ABM roles are hard, but all the work you do now will pay off the rest of your career.  

Here’s a presentation on how to have a successful Marketing Career.

 

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.

GR bio Jun 2016.001

Can Uber survive their own disasters?

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. 

Positioning 2016.112

 

 

 

 

 

 

 

10 annoying tactics that give Marketers a bad reputation

 

1e1d5d079e23366d1149ea834ce8102f62d562519d45930ae0c0fb1b485ffff7I’m a marketer at heart. In terms of career, it’s all I know and all I am. I claim to love everything about marketing. Well, nearly everything. Here are 10 things i despise and even more importantly I believe give us marketers a bad reputation. As Mike Ditka would say “STOP IT”.

  1. The price of popcorn at the Movie Theatre. At the grocery store, a single bag of Orville’s popcorn goes for 29 cents a bag. Yet at the movie theatre, it costs $5.99. I get that the movie is using popcorn to cover the overhead.  But it really is blatantly treating your consumer like a hostage. “Combos” (popcorn plus pop or candy) are even worse. At my theatre, one night while I was 9th in line, I added them up and there is zero savings. So I asked the kid at the front. And the answer the poor kid had to give was “the combos are more convenience than savings”. Wow. That just gives us a bad reputation.
  2. Freight and PDI on a New Car. If you’ve ever bought a car, you have to pay something called freight and PDI. It’s really an admin fee for shipping and preparing the car. What’s frustrating is the negotiation process in buying a car. This is just one more tool at the disposal of the sales people. I know Saturn tried the “no price negotiation” strategy and it backfired. Negotiations with so many moving parts can be a brutal experience. And many times, you start off day 1 with such a negative experience that you’re mad at the brand. Why would you want that?
  3. That’s not all, if you call now…’ Yes, telemarketing is a necessary evil of the marketing game. I’m not a fan. The worst line ever invented is “that’s not all”. That just means we’ve taken this low-cost item we’re trying to sell you and give you a second one for free.  But the rip-off is the “you just pay the shipping and handling” line. You’re likely paying an extra $8=10 in shipping and handling, where the company makes a huge profit on that amount. It’s never double the price to ship two items in the same parcel. And the handling? I wish these guys would stop preying on the defense-less consumer. These techniques make us look bad.
  4. 100% Money Back Warranty…’except for’: A few years ago, I decided to buy a Toshiba Ultrabook, as it was slightly cheaper than the Mac version. While the Toshiba was a bit flimsy, I decided to buy the 3 year extra service plan from Best Buy. I was told “don’t worry, this warranty covers everything, and while it’s being repaired, we’ll even give you a loaner version”. I figured OK, I”m covered. Six months in, the flimsy screen caught up to me and all of a sudden I couldn’t see anything. Confidently, I took it back to Best Buy. They gave me a loaner and a week later said “we can fix it, but the cost to you will be $400” I said “but I have the full warranty”. And they said “yes, but the warranty does not cover software, hardware or battery”. HUH? What else is there? There is nothing else but software, hardware or battery to a computer. Anyway, I bought a new Mac. No wonder Apple does so well in an industry like this.
  5. Paying $3 for headphones on the Airplane. I know pretty much every airline is nearly bankrupt. And I’d never invest a penny into an airline. But the shift to charging the consumer for everything seems like the wrong way to go. There have to be more creative ways than charging $3 for headphones. I was recently on a flight that cost me $1700, which makes that headphone fee about 0.18% of the overall price. Is it really making a dent in the balance sheet of your airline?  Or is giving the consumer a small token a bad thing?
  6. Email Lists you didn’t know you signed up for. I manage my email as best I can. For about 2 months now, I’m getting weekly Hilton Honors email blasts. I finally un-subscribed.  Some of the un-subscribes are easy.  But others are painful with 3 or 4 steps to confirm I really want to un-subscribe and I’m not “mistaken”. Email marketing is just the new form of junk mail. I guess it works for 3% of customers so to get the money from those guys, let’s bug the 97% of customers who don’t want emails cluttering up their inbox. Let’s make it so hard to tick off that “no email thank you” box that we can annoy our most loyal consumers.
  7. Paying more for a large hot tea versus a small: There are 3 component costs in hot tea. The cup, the bag and the water. The only thing that changes with a larger size is more water. Any chance to rip-off the consumer.
  8. 3-year Cell Phone Contracts: When the technology changes every six months and you’re teenager drops (or throws) their phone at least once a week, having that long contract feels like a prison sentence. I get the whole it’s the only way we can cover the cost. But it puts all these phone companies into a position where they get the sale but lose the customer’s loyalty. It’s not a way to build a long-term love affair but rather a growing hatred for one another.
  9. Gas Price Games.  I want one simple rule for gas prices. You have to set them on the first day of the month and leave that price the entire month. Have you ever noticed that the price of gas goes up immediately at the start of a crisis–in anticipation of prices going up.  So a hurricane hits, prices jump up that day just in case the oil industry is affected. Not because it’s been affected. Just in case. Yet the prices don’t come down in anticipation of the world crisis ending,
  10. Call center cold calls at home. Even worse than junk email cluttering up my inbox are the phone calls coming from overseas. I’ve signed up for the “Do Not Call”, but I guess the loophole is to now call from overseas. You’re in the middle of cooking dinner and the phone rings. And there is some 7 second delay before someone says “Hi Mr Robertson”.

These 10 things are very common to most consumers causing great frustration but also lack of respect for the marketing profession. And yes, it is a profession. What are the things about marketing that annoy you and damage our reputation?

How do we get these guys to “Stop It”?

Read more on how to create 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

Positioning 2016.112

Ritz-Carlton: Meeting the “unexpressed” needs of guests

 

 

Impeccable service separates Ritz-Carlton

Ritz-Carlton does a lot of things right to earn the high prices they are able to charge–the best locations, beautiful rooms, nice beds and great meals. But in reality, every luxury hotel has to deliver against these or they’ll be quickly out of business. Recognizing that any great brand has to be better, different or cheaper to win, Ritz-Carlton focuses their attention on impeccable service standards to separate themselves from other Hotels. What Ritz-Carlton has done so well is operationalize it so that culture and brand are one.RitzCarlton.svg

I was lucky enough to be able to attend the Ritz-Carlton Training session, and as a Brand Leader, the thing that struck me was the idea of meeting the “unexpressed” needs of guests. As highly paid Marketers, even with mounds of research, we still struggle to figure out what our consumers want, yet Ritz-Carlton has created a culture where bartenders, bellhops and front desk clerks instinctively meet these “unexpressed needs”. Employees carry around note pads and record the expressed and unexpressed needs of every guest and then they use their instincts to try to surprise and delight these guests.

Employees are fully empowered to create unique, memorable and personal experiences for our guests. Unique means doing something that helps to separate Ritz-Carlton from other hotels, memorable forces the staff to do something that truly stands out. And personal is defined as people doing things for other people. Isn’t that what marketers do? So what’s getting in our way?

They bake it right into the Ritz-Carlton culture

The phrase that Ritz-Carlton uses with their staff is “Radar is on and Antenna is Up” so that everyone can be looking for the unexpressed needs. These could be small wins that delight consumers in a big way:

  • A couple arrives at the hotel, wife is six months pregnant. Normal service would be to observe and do nothing–at best help with the bags. But at Ritz-Carlton, antenna up means they get a special pillow for sleeping and alcohol free sparkling cider instead of champagne.
  • A business guest who was staying at a hotel for 4 weeks and the staff printed up business cards with the guest name, hotel address and phone number so that he could give them out during his stay.

But like any hotel, things do go wrong. The staff is encouraged to use these moments to not only address the problem and fix it but also try to surprise and delight guests turning a problem into a potential wow moment. With everyone’s antenna’s up, when a problem does arise they quickly brainstorm and use everyone’s input.

  • A guest who had just left the hotel called to say that their son had left his stuffed giraffe in the room. The boy could not stop crying.2012-05-17-Joshiepic5 The only thing these distraught parents could think of to tell their son, is that the giraffe was staying on the vacation a little longer. So the staff, found the giraffe and overnighted it to the boy. Most luxury hotels would have done that. But that was not enough for Ritz-Carlton. Knowing what the Mom had told their son about staying on a bit longer, the staff also included a photo album of the giraffe enjoying his extra stay, including photos of the giraffe sitting by the pool, in the spa with cucumbers on his eyes, and laying out on the beach. It’s not that the album would make the boy excited, because he was excited just to have his favorite giraffe back. But imagine how the parents felt and the signal it sends to them about the Ritz-Carlton staff and how many friends they may share that story with.
  • An activity coordinator noticed that one of them had a real passion for ballet. Over the week, the activity coordinator even came in before her shift every day to give the girl a private ballet class. She wanted to do something special for the young guest, and decided to teach her a special dance for her parents. On their last day, she arranged for a performance at the Jazz Club, with special music and lighting for the performance. The couple was very grateful and could not believe how much love and passion the activity coordinator had put into making their daughter’s stay so memorable. To complete the experience, they gave the guests a CD with pictures and videos of their daughter’s performance so they could share it with family and friends on their return home

To inspire each other, everyone at Ritz-Carlton goes through a daily line up where they share wow stories, both local stories and stories from other hotels around the world. This line up keeps everyone in line, but it also keeps people fully engaged. Harvard did a study on Employee Engagement, stating that the average company had 29% of their employees who were fully engaged and they labelled this group as the Super Stars. Using the same criteria, Ritz-Carlton has 92% of their staff considered fully engaged. No wonder they are able to win so many service awards and no wonder they can create such an experience for their consumers. They’ve fully created a culture that now defines the brand.

So what can brand leaders learn from Ritz-Carlton?

  1. How can marketers challenge themselves to meet the unexpressed needs of guests? As Henry Ford said: “If I had asked people what they wanted, they would have said faster horses.” So what’s getting in your way? Are you over-thinking things? Are you too worried about the short-term results that you’re not even seeing or hearing the unexpressed needs? Are you so analytical that you need to see the data first and never really reach for your instincts which might challenge the data or even fill in the missing gaps in the data?0da472d
  2. How do you get your antenna’s up so that you and your team are always watching, listening and thinking? As you run from meeting to meeting, filling in forecasting templates and spending evenings pretty-ing up your presentation for senior leaders, how many times a week do you talk to consumers, how many times do you walk into a store or what social media tools do you monitor and listen to. Do you ever sit with customer service for an afternoon? Do you read through the complaints? And while it’s great that you do this once in a while, how do you operationalize it with your team. Can you set aside time so that you’re doing regular store visits or a quick brainstorm on observations once a week.
  3. How can Marketers push ourselves to wow the Consumer? The Ritz-Carlton staff is constantly trying to wow their guests, in either a small or big way believing that both make a difference. Are you pushing yourself to surprise your consumer? Are you trying to wow your consumer? Are you rejecting OK work to force everyone to reach for Great? Do you have a standard for the work that exceeds that of your consumer, after all if you don’t love the work then how do you expect your consumer to love your brand?

Do something this week that meets the unexpressed needs of a Customer just to see what it feels like. It might feel pretty damn powerful.

 

To read about how to create a Beloved Brand, click on the presentation below:

 

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.

Positioning 2016.112

 

10 Ads that will definitely leave you with goose bumps (get some tissues ready)

goosebumps-101027-02When clients say they want emotional advertising, I usually say “I can’t wait to see this emotional brief you wrote”. Without understanding the emotional space you wish to own in your consumer’s heart, asking for an emotional ad, feels like a random game of chance.

Here are ten ads that do a fantastic job going into the emotional space, whether it’s a mass retailer, a utility or a shoe company. They do a nice job trying to connect the consumer tightly to the brand. While the ads do that, does the brand do what it takes to back it up when you experience that brand? In some cases, but not all.

Google “Paris”

For all the romantics, this is one of the best ads. They tell the complete story through google searches, with a few surprises like the airline ticket, wedding bells and of course the baby. Extremely creative.

 

Nike’s “If You Let Me Play”

Nike released this inspiration way back in 1995, outlining the benefits of having girls play sports. Brands such as Always “throw like a girl” were inspired by this type of message.

 

P&G “Thank you mom”

Back in the 2012 London Olympics, P&G was making an attempt at a Master Brand strategy. This is a beautiful ad, that is a nice salute to moms around the world, whether your child is an Olympian, or not.

 

Ram “Farmer’s”

Aired during the Super Bowl, it’s one of the best spots I have ever seen. Using Paul Harvey’s story telling hit a positive vibe with Farmers, and Americans in general. Simplicity of idea, yet story telling at it’s best.  They didn’t over-do the branding, but consumers were so engaged in the ad, they were dying to know who is it that’s telling this story. While everyone else is being loud, maybe being so quiet stands out. 

 

 Canadian Tire “Bike Ad”

This ad makes me cry every time. We can all remember our first bike and how special it is. In Canada, Canadian Tire was that store, prior to Wal-Mart entering the market. Now, Canadian Tire can’t deliver on this promise, because it now resembles Wal-Mart. No longer is it where you go for your first bike, but rather where you go buy Tide when it’s cheap.

 

Bell “Dieppe”

Wow, a utility delivering an ad that gives you goosebumps. I have been to that beach in Dieppe and it does command such intense feelings. As you can tell from the phone at the end, this was in the early days of Cell phones, trying to link the idea of connecting anywhere. While this is just an ad, I do wish that utilities would try harder to connect with consumers at every stage of the consumer’s buying journey.  

 

John Lewis “Christmas 2011”

Every Christmas, British retailer John Lewis has been releasing campaigns around Christmas.  To me, this one is the best, especially the ending. John Lewis is an employee-owned retailer, with a very unique culture that delivers on the brand.  

 

Budweiser “9/11”

Aired only once, only a few months after 9/11 the context of this ad is paramount to the emotion. An amazing salute, by the brand, to the heroes of 9/11.

 

Pfizer “More than Medication”

A nice twist. The ad appears to be a typical rebellious teenager, but he turns into an angel, with a big message for his sister.

 

Nike “Find your Greatness”:

Aired during the 2012 Olympics, this ad was very high risk, but also ran counter to all the athlete ads. There are many types of motivation, for some of us, Michael Jordan is the inspiration. But not all of us are Michael Jordan. This kid running is the average person that gets out there and makes it happen.My hope is that it inspires you do get out there and “just do it”, on your own terms.

 

To see a training presentation on getting Better Marketing Execution, click on the link below

 

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. 

Positioning 2016.112

 

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

 

 

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

Positioning 2016.112

 

In advertising, what comes first: the MEDIA choice or the CREATIVE idea?

Of course the consumer always comes first. However, as you begin the advertising process, Brand Leaders need to figure out whether the creative determines the media choice you make or the media choice helps frame the creative. When I started in marketing, way back in the mid 90s, life was a little simpler because the media and the creative were both under one agency roof. The meetings were simple: you’d see your various TV script options, give some feedback and then the room would go silent and the account person would say “now let’s look at the media plan” and the media person would take you through a 15 page presentation on where else the idea of your TV script could go. You would see some magazine, OOH and even some sampling idea. Back then, there was no internet advertising yet.

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Then one day, our media folks from our agency were spun off, had a new name, moved offices and had a new President. It now just meant we had two presentations and the Brand Leader now had to make sense of things and try to piece it together. About a year into that new relationship, I was sitting there confused and asked the question: “So what comes first, the media choice or the creative idea?” The room went silent for about 5 minutes. Then of course both sides talked over each other, both saying it was them that came first.  

All Marketing Execution has to do something to the brand–getting the consumer to think, act or feel differently about your brand. Media is an investment against your strategy and creative is an expression of your strategy. Both media and creative are only useful if they connect with consumers. Great advertising must connect through very insightful creative that expresses the brand’s positioning and told in a way that matters to those who care the most. Great advertising must be placed within the consumers’ life where it will capture their attention and motivate them in the expressed desired way to meet the strategy. So really, the consumer comes first and strategy comes second. Media and creative need to work to jointly capture the consumer and deliver the strategy.  

With separate agencies, the problem now rests with Brand Leaders to figure it out. While one could theoretically argue that if the Creative Idea of the advertising is so big, it should work in every medium. That’s just not always true in reality. Some ideas just work better in certain mediums. Yet the media people could also theoretically argue that if you go for the most efficient and effective media option, the media will do the work for you. That’s also not true. The best overall advertising should work focus on what has the most impact and what has the highest efficiency.  

Here’s a solution for Brand Leaders 

The three questions you always need to keep in your head at all times: 1) where is your consumer 2) where is your brand and 3) how does the creative idea work? 

1.  Where is your consumer?

You should really understand who your consumer is, and who they are not. You need to make sure you understand the insights about them, because it’s those insights within your creative that allow you to connect with them. They’ll say “they get me”. You should always be mapping out a day in the life of your consumer. Get in their shoes and say “what does my consumer’s day look like and how will my message fit or interrupt their life?” Take a “be where they are approach” to your media. 

2.  Where is the Brand?

First thing you have to do is consider where your brand is on the Brand Love Curve where brands go from Indifferent to Like It to Love It and all the way to Beloved. At INDIFFERENT, it’s about announcement style such as mass media, LIKE IT becomes about separating yourself from the competition while LOVE IT and BELOVED you’ll start to see the growing importance of event marketing to core users or social media as a badge of honor to share with others.

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3.  How does the Creative work? (The ABC’S)

The best advertising should draw ATTENTION, be about the BRAND, COMMUNICATE the main message and STICK in the consumers head long beyond the ad.

  • Attention: You have to get noticed in a crowded world of advertising. Consumers see 7,000 brand messages per day, and will likely only engage in a few. If your brand doesn’t draw attention naturally, then you’ll have to force it into the limelight.
  • Branding: Ads that tell the story of the relationship between the consumer and the brand will link best. Even more powerful are ads that are from the consumers view of the brand. It’s not how much branding there is, but how close the brand fits to the climax of the ad.
  • Communication: Tapping into the truths of the consumer and the brand, helps you to tell the brand’s life story. Keep your story easy to understand. Communication is not just about what you say, but how you say it—because that says just as much.
  • Stickiness: Sticky ads help to build a consistent brand/consumer experience over time. In the end, brands are really about “consistency” of the promise you want to own. Brands have exist in the minds of the consumer. 
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In the reality of advertising, not every ad execution will be able to do all four of the ABC’S.  When I’m in the creative room, I try to think about which of the two ABC’S are the most critical to my strategy. If it is a new product, I want all four, but I have to have: Attention and Communication. If the brand is in a competitive battle I have to have Brand and Communication.  If the brand is a leader and beloved, I need to make sure the advertising is about the Brand and that it Sticks.   

What I recommend you do:

In a sense, you have to work the creative and media together. But that’s impossible. So what I do is hold off on making any media decisions until you see the creative idea and how it is expressed in a few media options. With all the potential media options now available, I ask for 3 executions for each creative option:

        1. Video version
        2. Billboard 
        3. Long Copy Print

Sounds simple, but here’s the logic. With those 3, I can now imagine how the advertising might work across all possible media options. 

  • The “Video” allows me to imagine how the creative would work for traditional 30-second TV ad, a 60-second movie theatre ad, 2 or 3 minute viral video for sharing or even a video you could put on a website.
  • The “Billboard” allows me to imagine how it would work with traditional media options such as out-of-home billboard, bus shelter, in-store poster, packaging copy and the back cover of a magazine.  Or if we want to look at digital, it could be a digital billboard, Facebook photo, website cover.
  • The “Long Print” allows me to imagine what how it might work with a print ad, side panel of packaging, brochures, public relations story-line,  social media feed or even a blog on your website.  

With 3 simple asks against each creative idea, it covers off most of the traditional media options, even covering the digital media. So now as the Brand Leader goes to their Media Agency, they will know how the creative idea would work against any of their recommendations. 

Obviously, we always recommend that you focus. So we’ll likely recommend a lead traditional media and a lead digital and lead social option. You need to make the most out of your limited resources of dollars, time, people and partnerships. However, if we want a creative idea to last 5 years, seeing it work across this many media options gives me a comfort that should I need that option, I know the creative idea will work.

The media math from a client’s view

While the media agency owns the media math that blows your mind, here is some simple client side media math. As clients, we have to make the most of our budgets. 

  • Your production budget should be around 5-10% of your overall advertising plan. If you have small budgets, that may creep up to 20%, but that’s it. Every time you do a new piece of creative, the production dollars go up and the media dollars go down. I’d recommend you focus on one main traditional media and have only one secondary option. This keeps your spend focused. 
  • When it comes to social media, keep in mind there is no free media options. Instead of financial capital, you are now exhausting people capital. Just like the traditional options, I would recommend one lead social media and one secondary focus. Do not try to be all things to all people.  
  • The other reason to focus is to ensure you do great executions and not just “ok”.  Pick the media that maximizes the power of the creative. Don’t exhaust the team by spreading them against too many activities.   
  • Allow 80 to 90% of your media spend be on the highly effective highly efficient media plan. That means 10-20% of your media spend can now go against high IMPACT creative ideas that you know will break through.  

Work with both the creative and media at the same time, figuring out what gives the highest return on your investment

 

To see a training presentation on getting Better Marketing Execution: 

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

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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