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.

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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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Barbie is trying to inspire girls to believe that “you can be anything”

Barbie faced major declines

Barbie has been heavily criticized over the last few decades for projecting an unrealistic image for girls. Launched in 1959, Barbie was the blonde all-American dream, but a complete fiction that many believe to be doing more damage of the self confidence of girls. The modern Moms didn’t want their daughters playing with Barbie anymore. All of a sudden, Barbie sales declined 20% in 2012 to 2014. The brand needed to make a dramatic change.

Barbie took a dramatic step forward–even if just to catch up to where they should be–by launching new possibilities with realistic options for body type (curvy, tall and petite) and various ethnicities (seven skin tones) They needed to create a Barbie that Moms would think acceptable for their girls to play with. These moms wanted a good symbol for their daughters, not something unrealistic and unattainable. The new Barbie is a good first step.

 

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Next, the supporting Advertising for Barbie has gone viral with over 20 Million views. The ad starts by showing a young girls in situation as a College Professor, a Museum curator, a Veterinarian or a Soccer coach.  The supporting copy: “When a girl plays with Barbie, she imagines everything she can become.” with a bold tag-line:  YOU CAN BE ANYTHING. This is a great ad with a new message that should fit with the modern moms.

 

Barbie sales are up 8% this past holiday period, a good start to the turnaround. 

Here are five lessons for Brand Turnarounds

  1. Ensure the right people in place: Before even creating the plan, you need to get the right leadership talent in place. Talent, motivation, alignment. Mattel brought in new CEO last spring who reshuffled a lot of the executives in an effort to turn the business around.
  2. Look to close leaks on the Brand: Use brand funnel to assess, using leaky bucket tool to close leaks. Find out where the specific problems are coming from. Barbie has done a nice job in listening to their consumers, the moms who were rejecting the brand due to stereotypes.
  3. Cut the fat, re-invest: go through every investment decision, invest only in programs that give you an early break through win. Even faced with Sales declines, Mattel made a smart move to cut costs by 10% to drive profits back into the business. It is hard to do a turnaround while the profit keeps falling.
  4. 3-stage plan: In stage 1, find early/obvious win, halts slide, helps motivation. In stage 2, invest behind new positioning/new plan, focused decisions, take risks. In stage 3, make adjustments to plan, build innovation behind new ideas that fit plan. Barbie started talking about the plan a year ago, listening to consumers and preparing for the big launch. So far, they’ve stemmed the decline, but now they need to build a plan for the next 3-5 years that grows this business.
  5. Motivating a demotivated team: Losing can be contagious to a culture/team. Recognize wins to fuel performance driven culture. People on the team needed new leadership and needed room to take chances with this iconic brand.

We run workshops on Strategic Thinking that looks at brand strategy including competitive war games, focusing on your core strength, building connectivity with consumers and situational strategy.

 

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.

custom_business_card_pile_15837We 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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5 key success factors at the CMO level

CMO slides.001At the Chief Marketing Officer (CMO) level, success comes from your leadership, vision and ability to get the most from your people. If you are great at your job, you might not even need to do any marketing, other than challenge and guide your people to do their best work. Steer on principles, values and strategy. But let your people equally challenge you from the bottom up. Especially with the shift to media that did not even exist when you started your career. Your greatness comes from the greatness of your people. Once you figure out the magical leadership equation that better people create better work, you’ll be able to deliver better results. Invest in training your people as a way to motivate your team and keep them engaged. At the end of meetings, use teaching and mentoring moments to share your wisdom. Equally, you represent Marketing to the rest of the organization. You must challenge the other functions, challenging your sales peers on ensuring the channel strategies deliver the purchase moment, challenging HR peers to ensure that the organization can deliver the expected brand experience, challenging R&D to ensure the innovation pipeline is strong and challenging your Finance peers to ensure the strategy has adequate resources to deliver the results. You also have to challenge your CEO to push for the right brand strategies and highly creative executions. You have to stay fresh, on top of trends with consumers, channels, competitors, media and in most cases the economic conditions of various geographies around the world.

Quintessentially, rule #1 is you have to make the numbers. 

As the CMO, your main role is to create demand for your brands. You are paid to gain share and drive sales growth to help drive profit for the company? The results come from making the right strategic choices, executing at a level beyond the competitors and motivating your team to do great work. But how you do it, and the balances you place in key areas are choices you need to make.  Making the numbers gives you more freedom on how you wish to run things. Without the numbers, the rest might not matter.

Five success factors for CMO roles:

1. People come first

Focus on the People and the Results will come: The formula is simple: the smarter the people, the better the work and in turn the stronger the results will be. You should have a regular review  of the talent with your directors. CMO slides.002I would encourage you to ensure there’s a systemic way to get feedback to everyone on the team, preferably on a quarterly basis. Invest in training and development. Marketing Training is not just on the job, but also in the classroom to challenge the thinking of your people and give them added skills to be better in their jobs. Marketing fundamentals matter. The classic fundamentals are falling, whether it is strategic thinking, writing a brand plan, writing a creative brief or judging great advertising. People are NOT getting the same development they did in prior generations. Investing in training, not only makes them better, but it is also motivating for them to know that you are investing in them.  

2. Be the visionary

You are the Mayor of Marketing: Bring a vision to the role. Look at what needs fixing on your team, and create your own vision statements that are relevant to your situation. Bring a human side to the role. Get up, walk around and engage with everyone on your team. It will make someone’s day. Your role is to motivate and encourage them to do great work. Influence behind the scenes to help clear roadblocks. Know when you need to back them up, whether it’s an internal struggle, selling the work into your boss or with a conflict with an agency. Do they love it? When they put their great work up for approval, and it’s fundamentally sound, approve it. Don’t do the constant spin of pushing for better, because then you look indecisive. 

3. Put the spotlight on your people

Let them own it and let them Shine: It has to be about them, not you. Do not be the super-duper Brand Manager. It is not easy to balance giving them to freedom to lead you and yet knowing when to step in and make a decision. By making all the decisions, you bring yourself down a level or two and you take over their job. Instead of telling, you need to start asking. Ask good questions to challenge or push your team into a certain direction without them knowing you’re pushing them is more enlightening than coming up with statements of direction. Challenge your team and recognize the great work. It might be my own thing, but I never said: “thank you” because I never thought they were doing it for me. Instead I said: “you should be proud” because I knew they were doing it for themselves.  

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4. Be a consistent, authentic, approachable leader

People have to know how to act around you. You have to set up an avenue where they are comfortable enough to approach you, and be able to communicate the good and bad. A scary leader discourages people from sharing bad results, leaving you in the dark. Open dialogue keeps you more knowledgeable. If you push your ideas too far, you could be pushing ideas from a generation too late. Get them to challenge you. Inconsistent behavior by a leader does not “keep them on their toes”. It inhibits creativity and creates tension. Be consistent in how you think, how you act in meetings and how you approve. Leadership assumes “follower-ship”. Creating a good atmosphere on the team will make people want to go the extra mile for you. Knowledge makes you a great leader, and it starts with listening. You will be surprised how honest they will be, how much they will tell you.

5. Run the process and the system

While your people run the brands and the execution, you should run the P&L and essentially run all the marketing processes. You have to run the P&L and make investment choices. Bring an ROI and ROE (Return on Investment and Effort) mind set to those decisions. These choices will be one of the essentials to making the numbers and gaining more freedom in how you do the job. In terms of process, it’s always been my belief that great processes in place—brand planning, advertising, creative briefs—is not restrictive but rather provides the right freedom to your people. Get your people to drive all their creative energy into great work that gets in the marketplace, not trying to figure out what slide looks really cool in the brand plan presentation.  To read more about running the Planning process, click on this hyperlink: 

How to lead the entire Brand Planning process on your business

The head of Marketing role can be very lonely.

I remember when I first led a Marketing team, I found it surprisingly a bit lonely. Everyone in marketing tries to be “on” whenever you are around. And you don’t always experience the “real” side of the people on your team. Just be ready for it. The distance from your new peers (the head of sales, HR, operations or finance) is far greater than you are used to.Your peers expect you to run marketing and let them run their own functional area. They have their own problems to deal with, and likely see many interactions as a win-loss for resources. The specific problems you face, they might not appreciate or even understand the subtleties of the role. Your boss gives you a lot of rope (good and bad) and there’s usually less coaching than you might be used to. It is important for you to have a good mentor or even an executive coach to give you someone to talk with that understands what you’re going through.

As a CMO, you have to know that better people leads to better execution, which leads to stronger brand results

 

 

We will make your team of brand leaders smarter

While you might think that having a great product, the right strategy and a winning TV ad will drive your brand, the long-term success of your brand is dependent is how good your people are. If you have great Brand Leaders, they will be on top of your business, make the necessary strategic course corrections, create better executions that connect with consumers and drive profitable growth for your brand.

One of the best ways to drive long-term business results from your brands is to ensure you have a strong marketing team in place. At Beloved Brands, we can develop a tailored program that will work to make your team better.  Regardless of industry, the fundamentals of Brand Leadership matter. In terms of connecting with your people, Training is one of the greatest motivators for teams and individuals.  Not only do people enjoy the sessions, they see the investment you’re making as one more reason to want to stay. They are focused on their careers and want to get better.  If you can be part of that, you’ll retain your best people.

The Brand Management courses we offer:

At Beloved Brands, our training center offers 10 selected courses to get you ready to succeed in Brand Management.

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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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How to lead the entire Brand Planning process on your business

4 stages of the planning process

Our  planning process starts with a deep-dive business review, lays out the brand positioning. We use the Brand Plan to get everyone on the same page, helping make decisions, resource allocations and set up the brand’s execution. We then build an execution plan that helps every stakeholder to contribute their part to the brand.

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First, you need to go deep to gain an understanding

Every situation has unique challenges. It is important to do the work to understand where your brand is today, what is holding it back from the expected growth. Whether that means doing a deep dive on the business or challenging your people with key questions that will highlight the challenges facing the brand.

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To read more on conducting a Deep Dive Business Review, here is our workshop that we run to help make brand leaders smarter:

Create a winning brand positioning statement for your brand

You need to create a brand idea and brand positioning that will help your brand win in the market. Find a winning brand positioning, that balances the rational and emotional benefits.  Work to create a Big Idea that frames the external and internal promise of your brand. We recommend that you validate a Brand Concept with your consumers to see if  you have something unique, own-able and motivating.

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To read more on developing a unique, own-able and motivating Brand Positioning Statement, here is our  workshop that we run to help make brand leaders smarter:

Write a Brand Plan that everyone can follow

The main goal of writing a focused strategic brand plans is to get everyone on the same page, so that everyone in your organization can follow. Here, you want to get your team lay out a long range strategic road map and brand plan that includes a vision, purpose, goals, strategies and tactics. Then, work with your team to create actionable project plans for each tactic with goals, milestones and budget.

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To read more on building a Brand Plan that everyone can follow, here is our workshop that we run to help make brand leaders smarter:

Build the marketing execution plan that drives growth for your brand

We use the Big Idea map to lay out a plan every consumer touch point–including the brand promise, brand story, innovation, purchase moment and brand experience. From there, we match up with the consumer buying system to focus on moving consumers from awareness to purchase to repeat and on to becoming loyal. This sets up the communication brief that frames both the creative and media, helps drive the innovation plan, sets up the culture of the organization as the backbone to the experience and manages the purchase moment through channel management and merchandising.

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To read more on getting the most from your Marketing Execution, here is our workshop that we run to help make brand leaders smarter:

 

We run workshops that help Brand teams make better decisions on the way to smarter action plans

We are big believers in the workshop process. We think it’s the best way to get the decision makers in the room, push for alignment, make decisions and drive the team towards action. The most noticeable point of difference we offer is that we will challenge you with new ideas to get your brand and your team in a better position for future growth. As the facilitator, I bring my executive experience into the room, ready to challenge the thinking and pushing for better answers. It’s like having another VP Marketing in the room.

While anyone can recommend a strategy, we recommend a realistic strategy that drives towards action. Quite frankly, I’m not big on consultants that just bring in big presentations that just sit on the shelf and never make it to the market. They cost a lot, take a long time, and in general they are written by consultants that have never run a business. Even Ad Agencies can recommend strategy, but they usually bring an agency bias and just give strategies that set up work they want to make–whether it drives growth for your business or not. I’ve run many businesses and I understand the pressure you’re facing on driving growth.

My personal promise to you is that I will get your brand in a better position for future growth

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. custom_business_card_pile_15837We 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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Could you ever imagine a Bank ad that might make you cry? Here’s one.

In general, bank ads suck.

Banks are just too predictable and safe to be truly innovative. That makes sense, because the only chance a bank takes is with someone else’s money. Yes, there are some good ads from the non-traditional challenger banks, but any of the traditional Banks that we think of as great brands, don’t really have great advertising. They usually lead with a great experience that connects emotionally and creates loyalty with consumers.  

td_logoIn the last decade, TD Bank has been one of those bank brands that leads with the experience. While other banks push products, TD has built an idea of comfort around personalized and convenient customer service that makes you feel special. TD works around your life, instead of forcing you to work around their life.  TD has been smart enough to borrow great ideas from Banks they acquired–Canada Trust and Commerce Bank. They have used those ideas to create a unique culture around “comfortable service” and have operationalized comfort into everything they do. TD is consistently rated by consumers as the best service in the industry, winning the JD Powers award year after year.  

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Yet, TD has struggled to create advertising that truly captures their comfort idea. The green chair ads are ok, but not great. Too boring, too stiff and too un-emotional. This week TD created a remarkable “thank you” video, that has gone viral to millions. While the marketing team at TD might think of this as just a tactical video, what they should be asking themselves is: “did we just create an advertising idea that finally articulates the TD brand?”  

Have a look at the video and see how emotional a Bank can be:  

 

There is a good lesson here.  For brands that struggle telling their story–you might be finding the 30 second TV ad format inhibiting–and makes you even more stiff than you need to be. The freedom of new media options, like viral videos, might allow you to tell your brand’s story and positioning in a more authentic way that will connect with consumers.  TD seems to have learned that lesson.

Bank brands need to open up emotionally and connect with consumers  

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How loved is your brand?

We believe a brand’s source of power is the emotional feelings it generates. With that power comes added profitability.

In the consumer’s mind, brands sit on a Brand Love Curve, with brands going from Indifferent to Like It to Love It and finally becoming a Beloved Brand for Life. At the Beloved stage, demand becomes desire, needs become cravings, thinking is replaced with feelings. Consumers become outspoken fans. It’s this connection that helps drive power for your brand: power versus competitors, versus customers, versus suppliers and even versus the same consumers you’re connected with. The farther along the curve, the more power for the brand. It’s important that you understand where your brand sits on the Love Curve and begin figuring out how to move it along towards becoming a Beloved Brand. With the power of connection, the brand can leverage that power into increased growth and profits.

To read more, follow this presentation.

  

How generating more Love for your brand will make You More Money

Love = Power = Profit

This message is for the Brand Leaders who many times stick to the straight rational management of a brand.  I grew up in the CPG Brand Management world.  And today I’m about to tell you a message that you likely hear all the time from your agency:  you should be more emotional with your brand!   I preface it by saying I’m one of you (client), not one of them (agency).  It’s very common among clients to think that way because we get frustrated that the agency doesn’t deliver what we want.  From my experience, many Brand Leaders still say:  “Give me a very straight forward ad that delivers the message we know will work”.  When an agency starts to push for us to be more emotional, we immediately think they are just trying to win an award.  

I guess I wished I listened to my agency.  But I just wish the agency went a layer deeper and connected going emotional with making more money and then they would have gotten my attention more. Hey Agencies:  Try telling your client this next time:  We should be more emotional because then you’ll make more money.  If you could generate more love for your brand, that would give you more power in the market and that power would  help you to drive more profits.

love = power = profit

Here’s the theory part on how the more love you create, the more power you command and the more money you make.  Brands sit somewhere on the hypothetical Brand Love curve, going from Indifferent to Like It to Love It and finally becoming a Beloved Brand.  Brands can connect with the consumer through 5 sources:  how strong is the promise, how good is their story, how focused is their strategy, how do they keep the brand fresh through innovation and how do they turn all this into an experience beyond the product.  It is the Brand’s connectivity and love that generates power for your brand–a power with the very consumers who love it, versus the channels who carry it, the competitors who fight you, possible new entrants trying to de-throne you, influencers who recommend you, suppliers, the employees and the media.   Having power enables your brand to generate higher profits in 8 ways, through price points, trading up/down, product costs, marketing costs, stealing other users, getting users to use more, entering new categories or creating new ways to use for the brand.

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There are 5 Ways to Generate more Love for your Brand
  1. The brand’s promise sets up the positioning, as you focus on a key target with one main benefit you offer.  Brands need to be either better, different or cheaper.  Or else not around for very long.  “Me-too” brands have a short window before being squeezed out.  How relevant, simple and compelling the brand positioning is impacts the potential love for the brand.  Apple goes above just their product with a promise of simplicity that allows everyone to experience the future through technology.
  2. The most beloved brands create an experience that over-delivers the promise.  How your culture and organization are set up can make or break that experience.  Hiring the best people, creating service values that employees can deliver against and having processes that eliminate service leakage.  The culture attacks the brand’s weaknesses and fixes them before the competition can attack.  With a Beloved Brand, the culture and brand become one.  I love the Starbucks experience that has been created with coffee as the base, but they have gone so deeper to enable magical moments for their consumer.
  3. Brands also make focused strategic choices that start with identifying where the brand is on the Brand Love Curve going from Indifferent to Like It to Love It and all the way to Beloved status.   Marketing is not just activity, but rather focused activity–a focused target, a focused message, focused strategic choices, focused activities always with an ROI mindset.  Where you are on the curve might help you make strategic and tactical choices such as media, innovation and service levels.  Find those who are most motivated to buy what you do best.  I love how Volvo is so singularly focused on the safety message since 1954.   Yes they have leather seats and a great radio, but the message is always safety first.
  4. The most beloved brands have a freshness of innovation, staying one-step ahead of the consumers.  The idea of the brand helps acting as an internal beacon to help frame the R&D.  Every new product has to back that idea.  At Apple, every new product must deliver simplicity and at Volvo, the innovation must deliver the safety promise.
  5. Beloved brands can tell the brand story through great advertising in paid media, through earned media either in the mainstream press or through social media.  Beloved Brands use each of these media choices to connect with consumers and have a bit of magic to their work.  John Lewis out of the UK, is an employee-owned store growing double digits right through the recession because of their commitment behind amazing story telling around the simple message of the gift of giving.

There are 12 ways to turn the Love to Generate Power for your Brand

A brands connection between consumer is a power.  And that power translated itself into 12 forces of a power that a Beloved Brand wields, (show below).

A Beloved Brand with a loyal group of followers has so much more power–starting with a power over the very consumers that love them.   These consumers feel more than they think–they are e-rational responding to emotional cues in the brand.   They’ll pay a premium, line up in the rain for new products and follow the brand to new categories.   Look at the power Starbucks has with their base of consumers, making their Starbucks moment one of their favorite rituals of the day and how consumers have now added sandwiches and wraps to those rituals.  All day long, Starbucks has a line up of people ready for one of their favorite moments of their day.

Using Porter’s 5 forces, we can see that the love also gives Beloved Brands power over channels, substitutes, new entrants, or suppliers.   People rather switch stores than switch brands.  Apple has even created their own stores, which generate the highest sales per square foot of any retailer.  These brand fans are outspoken against competitors and suppliers will do what it takes to be part of the brand.  In Apple’s case, Intel has given them the lead on new chip technology.

Beloved Brands have a power over employees that want to be part of the brand and the culture of the organization that all these brand fans are proud to project.  People at Starbucks love working there and wear that green apron with a sense of pride.  Brand fans know the culture on day 1 and do what it takes to preserve it.

Beloved Brands have a power over the media whether that’s paid, earned, social or search media.  Apple generates over a billion dollars of free media via the mainstream media and social media.  Competitors complain about Apple getting a positive media bias–they are right, they do.  Even for paid media,beloved brands get better placement, cheaper rates and they’ll be the first call for an Integration or big event such as the Super Bowl or the Olympics.   Nike did such a great job with social media during the London Olympics that people thought they were the main shoe sponsor–when it was Adidas.

Beloved Brands have a power over key influencers whether it’s doctors recommending Lipitor, restaurant critics giving a positive review for the most beloved restaurant in town  or Best Buy sales people selling a Samsung TV.  They each become fans of the brand and build emotion into their recommendation.  They become more outspoken in their views of the brand. And finally beloved the Beloved Brand makes its way into conversation at the lunch table or on someone’s Facebook page.  The brand fans are everywhere, ready to pounce, ready to defend and ready to say “hey, you should buy the iPhone”.  The conversation comes with influence as crowds follow crowds.  This conversation has a second power, which creates a badge value.  People know it will generate a conversation and are so proud to show it off.  After all, they are in the club. All twelve of these forces combine to generate further power for the brand.

How to use the Love and Power to generate more Profits for your brand

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 the consumer quickly followed.

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Beloved = Power = Growth = Profit

 

To read more about how the love for a brand creates more power and profits:

 

email-Logo copyABOUT BELOVED BRANDS INC.:  At Beloved Brands, we are only focused on making brands better and making brand leaders better.Our motivation is that we love knowing we were part of helping someone to unleash their full potential.  We promise to challenge you to Think Different.  gr bbi picWe believe the thinking that got you here, will not get you where you want to go.  Our President and Chief Marketing Officer, Graham Robertson is a brand leader at heart, who loves everything about brands.  He comes with 20 years of experience at companies such as Johnson and Johnson, Pfizer Consumer, General Mills and Coke, where he was always able to find and drive growth.  Graham has won numerous new product and advertising awards. Graham brings his experience to your table, strong on leadership and facilitation at very high levels and training of Brand Leaders around the world.  To reach out directly, email me at graham@beloved-brands.com 

At Beloved Brands, we love to see Brand Leaders reach their full potential.  Here are the most popular article “How to” articles.  We can offer specific training programs dedicated to each topic.  Click on any of these most read articles:

Ask Beloved Brands to help you uncover the love and power on your brand or ask how we can help train you to be a better brand leader.

What to do when your Brand is stuck at “Like It”?

Don’t feel bad. Most brands are at the Like It stage

You have been able to carve out a niche and be a chosen brand against a proliferation of brands in the category. And you have good shares, moderate profits and most brand indicators are reasonably healthy.  It’s just that no one loves you. There’s nothing wrong with being a Liked brand. All the power to you. But just know that you might be leaving good money on the table.  

Beloved = Power = Growth = Profit

The Brand Love Curve

In the consumer’s mind, brands sit on a Brand Love Curve, with brands going from Indifferent to Like It to Love It and finally becoming a Beloved Brand for Life. At the Beloved stage, demand becomes desire, needs become cravings, thinking is replaced with feelings. Consumers become outspoken fans. It’s this connection that helps drive power for your brand: power versus competitors, versus customers, versus suppliers and even versus the same consumers you’re connected with.  The farther along the curve, the more power for the brand. It’s important that you understand where your brand sits on the Love Curve and begin figuring out how to move it along towards becoming a Beloved Brand.

With each stage of the Brand Love Curve, the consumer will see your brand differently. The worst case is when consumers have “no opinion” of your brand. They just don’t care. It’s like those restaurants you stop at in the middle of no-where that are called “restaurant”. In those cases, there is no other choice so you may as well just name it restaurant. But in highly competitive markets, you survive by being liked, but you thrive by being loved. Be honest with yourself as to what stage you are at, and try to figure out how to be more loved, with a vision of getting to the Beloved Brand stage. 

The Like It Stage

At the Like It stage, the funnel is fairly strong at the top but quickly narrows at purchase and has a very weak bottom part of the brand funnel. As people see your brand as a good rational choice, they might consider it and use it, but it lacks separation from the other brands and it’s missing that emotional connection. Brands stuck here usually focus on what they do (features) and not what the consumer wants (benefits)  In the funnel, you’ll see pretty strong awareness and consideration but you’ll lose out at the purchase stage and have no real repeat or loyalty at all.  You’ll notice fairly high trade spend just so you can keep your share going–and you use price as a weapon to close the deal. The best strategy here is to begin to Separate Your Brand from the clutter of the market, by establishing a brand promise based on benefits–rational and emotional. A brand like Dove was at the Like It stage back in the 1990s. Only when they could shift from talking about themselves to talking about the consumers would they be able to establish more love for their brand.  

Consumers see your brand as a functional and rational choice they make. They tried it and it makes sense so they buy it, use it and they do enjoy it. It meets a basic need they have. They likely prefer it versus another brand, but they think it is better, cheaper or easier to use. Or your mom told you to use it.  But, consumers don’t have much of an emotional connection or feeling about the brand. Where Indifferent is really bad, you’re ordinary, which is just a little bit better. Overall, consumers see you brand in the “it will do” space.

The Five Sources of Brand Love

Under the Brand Idea are 5 sources of connectivity that help connect the brand with consumers and drive Brand Love, including the brand promise, the strategic choices you make, the brand’s ability to tell their story, the freshness of the product or service and the overall experience and impressions it leaves with you. Everyone wants to debate what makes a great brand–whether it’s the product, the advertising, the experience or through consumers. It is not just one or the other–it’s the collective connection of all these things that make a brand beloved.

Why is your Brand stuck at the Like It Stage:

If your brand is stuck at Like It, look to the five sources of love to see if you have a weakness.  

  1. 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. They do a bad job at either telling the story or launching new products. 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.
  2. We are rational thinking Marketers: Those marketers that believe they are strictly rational 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 what 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. The promise stays very rational, and the execution of the brand story becomes rather bland.  
  3. New Brand with Momentum: As a new brand, you might not have found a way to use a unique brand promise to separate yourself from other competitors. Stage 2 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.
  4. 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. That leak could be in the freshness or experience stage.  
  5. 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. The only consumers remaining are those who like their burgers, not the brand. The story never gets told in a consistent manner that delivers the brand promise. It fails to catch on, so instead of just fixing the communication the brand also changes the brand promise.  
  6. Positional Power–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 Wal-Mart 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. The brand with just positional power becomes complacent and lazy–with a culture that does not create a brand experience that surpasses the promise. 
  7. 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. The strategy of linking the brand’s promise to the other connection points of the brand.  

Indicators that you’re at the Like It Stage

  • 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 set, 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.
  • Stagnant Shares: Your brand team is happy when they hold onto 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.

Why would you want to get to the Love It Stage

As you become more loved, you can use that love consumers have for your brand to drive more power for your brand.  That power may be against retailers, other competitors, suppliers, media and key influencers.   As well as a power over the very consumers that love your brand.  With more power, a more loved Brand has 8 ways it can add profit. 

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In terms of pricing, you can charge premiums and any change in pricing is relatively more Inelastic.  Loyal consumers, weakened channels pay premiums, and trading up where offered.  More engaged employees deliver better experience—even more premiums. This gives your brand an opportunity to drive higher margins.

With costs, a more loved brand becomes more Efficient and Powerful. You’ll be able to achieve Economies of scale. Suppliers cut costs due to volume & wanting brand in portfolio. Efficient media spend, free media through search, earned and social. Gov’t willingly subsidize. Partners give favorable terms.  This gives your brand lower costs–both in terms of product costs and marketing costs.  

A more loved brand can drive market share by pushing the Momentum and finding that Tipping Point. Crowds draw crowds. Power of media (search + social + earned) keeps brand in the conversation with heavy influence. Competitors can’t respond to the momentum. You can steal share from weakened competitors who have no love, or get current users to use even more.  

A more loved brand can enter new markets. Loyalists Will Follow Wherever: Loyal users will follow where brand goes, and doors will open to new ventures. The idea of brand no longer tied to product, but to how brand makes you feel. 

As the brand is more loved, the P&L statement looks a lot stronger–higher markets, lower costs, higher share and new market entries all add up to much higher profitability.  It’s worth finding that love.  

How to get to past the Like It stage

  • Focus on action and drive Consideration and Purchase: stake out certain spaces in the market creating a brand story that separates your brand from the clutter. 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.
  • Begin to Leverage those that already Love:  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.
  • 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 favorite. Be proactive and get the company focused on fixing this leak.
  • Build 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.

So be content with being Liked.  But just realize that you’re leaving profits behind for someone else to capture.  

If you are stuck at Like It, then you are leaving money on the table

 

To read more about how the love for a brand creates more power and profits:

Other Stories You Might Like

  1. How to Write a Creative Brief. The creative brief really comes out of two sources, the brand positioning statement and the advertising strategy that should come from the brand plan.  To read how to write a Creative Brief, click on this hyperlink:  How to Write a Creative Brief
  2. How to Write a Brand Plan: The positioning statement helps frame what the brand is all about.  However, the brand plan starts to make choices on how you’re going to make the most of that promise.  Follow this hyperlink to read more on writing a Brand Plan:  How to Write a Brand Plan
  3. Consumer Insights: To get richer depth on the consumer, read the following story by clicking on the hyper link:  Everything Starts and Ends with the Consumer in Mind

 

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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