The Changing Role Of Brand In The Digital Economy
January 18, 2017
I spent the holidays pondering how the role of brand is changing in the midst of digital transformation.
As branding grew to prominence, important branding practitioners defined the role of brand as a decision enabler, information source and risk mitigator. Brand helped guide customers to better purchase decisions.
As we shifted into the experience economy, practitioners evolved their thinking to focus on defining the role of brand as actions that contribute to a more fulfilling experience. In fact when you look at new brands like Airbnb and Uber, the brand and the experience are one in the same. The brand simply took shape as the experience gained traction.
Lately, many thinkers postulate that the role of brand is to define the organization’s purpose. They hold that purpose driven brands are uniquely capable of forging emotional based connections with employees, b2b and b2c customers. This is especially true when building an employer brand strategy,
My sense is that brand plays all of these roles, but no one of these ladders up to the primary role for brand in the digital economy. A review of practitioner websites yielded no consensus. In fact, it led to more questions than answers. It seems that the branding world is at an inflection point with little clarity as to the path forward.
So I spent time during the holiday break speaking with everyday customers – both consumers and professionals. I wanted to understand their unvarnished views of the role brand plays in their lives.
As I imagined, brand continues to play all of these roles – decision catalyst, experience clarifier and purpose specifier. However, a new, very important primary role, emerged from these discussions.
Digital transformation gives customers new tools to develop and maintain relationships with the things that are important in their lives. With these tools, relationships transcend physical limitations of time and proximity.
The biggest shift for brands in the digital economy is the desire by customers of all types to forge real relationships with the brands in their lives. http://catalystbranding.com/blog/relationship-branding-brandings-next-chapter/ Whether it be b2b or b2c, customers are increasingly demanding active dialogues with brands throughout the purchase process and beyond.
Within this quest for active relationships, a new, very important role for brand emerges. The people I interviewed seek to “personify” the products and services they are engaging with. The most successful brands do a good job in establishing “who” the brand is in the relationship, so that customers and prospects find them more relatable and desirable.
As with human to human relationships, this is accomplished through a combination of physical attractiveness, magnetic personality and the promise of mutual value exchange.
Physical attractiveness piques and retains attention. Humans are drawn to what they find physically attractive, but attractiveness alone is not sufficient. It is simply the gateway to establishing the relationship.
Personality enhances attractiveness. It’s the magnet that draws individuals together. It establishes the basis for relatability and, holding attractiveness constant, is the prime source for differentiation. Just think of your group of friends. It’s personality that distinguishes one from another and is often the reason you’re drawn more closely to one over the others.
The promise of mutual value exchange distinguishes true relationships from simple acquaintances. People have room in their lives for few real relationships. The important ones transcend attractiveness. The “worth my time” question is ultimately answered through a relatable value proposition that speaks to real needs – both rational and emotional.
Together, these three aspects “personify” the brand to encourage the connections needed to forge relationships.
Well developed, they fulfill the central role of brand in the digital economy – to humanize the brand so that prospects and customers are encouraged to build the relationships they seek with the brands that are important to the ways they live, work and play.
How Millennials Are Transforming Branding
September 21, 2016
Traditional Branding On The Cusp of Disruption
Several studies reveal that traditional marketing and branding disciplines are losing their impact when it comes to serving millennials. Credibility and differentiation are no longer earned simply through what we say. Instead, they’re established by what we do and what others say about us.
How Millennials Decide
Millennials make purchase decisions in a manner uniquely theirs:
They learn as much as they can
They share with their trusted network to gather a consensus of opinion
They strive to forge a two way relationship
They demand discussion and responsiveness
They’re drawn to the authentic – those who do what they say and are true to what they promise
They’re motivated by customized “deals”
“Value” is the prime driver
The Role of Brand is Different for Millennials
The role of brand is about shaping a narrative that defines who you are in a potential relationship:
What you believe
Why you exist
What you do to deliver on this reason for being
How you do it
Personality is more critical than ever:
Personifies the brand
Humanizes the relationship
Shapes communication style – verbal and visual
Guides behavior – relating, teaching, solving, delivering
Selling is bad. Sharing and teaching are good.
Millennials seek to be better equipped to make the decision themselves. They don’t want others making the decision for them and telling them what to do.
Branding is necessary, but no longer sufficient
Millennials need to be engaged as they live. Interrupting them and forcing them to listen to you turns them off. This is one of the major reasons so many are turning away from cable to streaming content. Advertising as we know it is no longer the most effective engagement mechanism.
The new challenge is capturing their attention in the context of how they live. Giving them the information they need to teach themselves and allowing them the freedom to engage with you as they prefer through the channels they choose to use.
If you’re successful in engaging them, they will demand an active dialogue. They will expect you to shape your offer for them based upon what you’re learning in that process.
They will share intensely. If they see you as right for them, all of their friends will know about you and will be encouraged to give you a try. If, however, you turn them off, then rest assured that all in their network will know about it.
Relevance continues to be an important driver. But the definition of relevance is expanded to include both what you offer and who you are in the context of a potential relationship.
Authenticity makes or breaks a relationship. “Are you true to who you say you are?” Is the core question millennials constantly ask. This is the foundation of the new trust.
Responsiveness is also key. Do you hear me and are you willing to show me how much you’re prepared to shape your offer for me based upon what you know about me?
Branding, engagement and delivery are all one in the same for millennials. They want to form a relationship with an authentic source of value who will commit to being true to their word in promise and deed, engage with them in an active dialogue, shape their offer to meet their desires, deliver in all the ways promised and reward them for their loyalty to you.
Need to Work On Your Brand? Coaching May Be The Best Way to Go.
September 13, 2016
Enhancing Brand Consulting Effectiveness
Since founding Catalyst five years ago, we’ve been working to hone the effectiveness of traditional brand consulting engagements. Our clients told us that the big firms take too long and cost too much. They’re seeking a faster and more cost effective alternative.
We were able to fulfill their requests by delivering a new model that actually increased outcome quality through a streamlined process that was both faster and less expensive. By giving clients complete access to the best minds in the firm – those capable of working both smarter and faster – we’ve been able to create business enhancing solutions in less than half the time, for a third of the fees the big firms are charging.
Coaching as an Alternative
Along the way, a select number of clients have started to ask for a new type of engagement. These clients have a strong staff with significant internal capabilities. They’re confronting a new reality where brand alone, while necessary, is no longer sufficient to build attention and engagement needed to spur demand. And they’re being asked increasingly to serve a C-Suite role that integrates marketing and culture to grow revenue and deliver a compelling customer experience.
These clients don’t need an outside firm to come in, do their work and deliver an externally produced branding solution. Instead, they seek external expertise to coach, guide and teach their internal staff to create their own integrated branding, marketing and customer experience solutions.
The Benefits of Coaching
This approach has many benefits. Most of all, because the internal team created the solution, they tend to be more committed to doing all it takes to make it successful. The process of taking ownership breeds the collaboration required to create truly integrated solutions across marketing and customer experience. Furthermore, the solutions tend to be more organic in that they are actively managed and easily honed to respond to internal & external catalysts.
Finding the Right Coach
The challenge lies in finding the right coaching partner. As with all other forms of coaching, a branding coach that follows a rote process for each and every challenge is the wrong way to go. Instead, it is important to find a coach who has the expertise to work within models and frameworks that are right for the individual firm. Most clients already have institutionalized frameworks. If that isn’t the case, most talented teams have experience with particular frameworks that will ease the developmental process. If neither is the case, the coach needs to be able to tailor the right framework to the firm’s needs given the nature of how decisions are made.
The Coach’s Role
First, the coach must guide the team through the process of defining the real business challenge and/or opportunity to be addressed in order to spur demand, ignite growth or neutralize competition.
Second, the coach helps the team to understand market psychology, identify inflection points, map strengths and weaknesses and determine territories for viable long-term positioning based upon relevance and differentiation.
Third, the coach guides the team to chart the customer experience by mapping the path to purchase and the journey to loyalty. Each touchpoint needs to be identified and evaluated. From this, the team determines the fit and strengths of the current brand identity system and frames a plan to retain, refine or transform the brand to fulfill the opportunity.
Fourth, the coach helps the leader shape the resourcing plan – coordinating internal resources and identifying best in class external resources to manage the process of creative exploration, refinement and finalization. The coach also plays a very important role with the C-Suite, reinforcing the leader’s recommendations and providing the context key decision makers need to evaluate proposed solutions.
Fifth, the coach guides the various teams through the process of creating execution plans for marketing and customer experience to optimize the paths to purchase and loyalty. In the process, the coach identifies key training requirements and works with the leader to develop internal team skills.
Finally, the coach works with the leader to institutionalize a program for success measurement, on-going evaluation, strategy refinement and new opportunity identification. This ensures a constant state of readiness and enables an organic go to market solution.
The Brand Coach – My Favorite Way to Engage
For me, this is a welcome new development. My most enjoyable and successful programs resulted from, or evolved into, this type of coaching relationship. The clients I’ve worked with would testify that this approach yields team buy-in and executional effectiveness more successfully than traditional models. It’s an approach best suited for the dynamic demands faced by today’s marketing organizations.
Reach out if you’d like to know more – email@example.com
How to Convert Fresh Attention to Action
April 12, 2016
Now That I Have Your Attention …
Every once in a while, good fortune shines on your brand when an important event generates wide spread attention. Such was the case for Callaway this week when Danny Willett emerged as an unexpected winner of the Masters.
When this happens to you, what do you need to be ready to convert this attention into the action needed to expand sales?
Start by understanding your customer’s decision process
A quick review of the consumer decision-making process in your category will tell you exactly where to focus. For most prospects, new attention compels people to want to learn more about the brand. Some will go directly to your website. Others will need to be nudged to act on their new intentions.
Nudge with non-intrusive media
To nudge, you need to be where they are looking. Twitter, Facebook, Instagram, Pinterest, Snapchat and relevant information sites are all places your targets will be using to learn more about the event that helped to raise your brand’s visibility.
By participating in these important media outlets you’ll be in the right place to naturally influence your targets to take the actions needed to learn more about your brand. You won’t be interrupting them. You won’t be alienating them. Instead you’ll be working in the natural flow they use to learn more about what happened and participate in the debate.
Email can also an effective tool, but a bit more intrusive than social media. The good news is that email gives the consumer the option of clicking in only if they are interested.
Content to inform and answer important questions
Once they’ve been nudged, your targets will do what they normally do to determine whether what you have to offer fits their lives. They’ll want to learn what they need to learn to make a smart decision.
This is where powerful content comes in. You’ll want to help these targets understand why you exist, what you have to offer and how it is right for their lives. You’ll want to help them assess your value relative to what they’re already using and decide whether or not to give you a try.
Short information rich video content, how to lessons, and third party assessments should always be top of your list. Channel partner and influencer content are also extremely valuable. Consumer endorsement never hurts as long as it is credible. What we stand for videos are icing on the cake.
Determine the actions you need your customers to take
Your primary objective is to give your targets the information they need to decide to take action. That action could take a variety of forms ranging from making an on the spot purchase to beginning a more protracted purchasing process.
In the case of Callaway, this could take a variety of forms. Golfers could decide in the moment to buy Callaway branded gear or balls directly, from an online partner, at a big box golf store or from their club’s pro shop.
Or, they could decide to start the process of buying Callaway branded clubs either in the moment or following a thoughtful fitting process. Again, this could be through a variety of channel options including direct, an online partner, a big box golf store or their club’s pro shop.
In either case, regardless of the chosen path, success is enabled from a well coordinated, well orchestrated experience that is seamless both within and across channels.
Plan in advance for success
Which means of course, that all of this should be well planned and managed in advance. Like most everything else, prior preparation enables you to benefit from a momentary event that brings your brand significant new attention.
In the end, success is all about the effective orchestration of touchpoints along the customer journey to nurture the decision making process. Media and content are critical for both building and leveraging attention and converting this attention into an intention to act. Managing experiences across the channels then insures that consumers follow though on their intention and take the action needed to ensure your success. If the process is especially well run, these customers will tell others all about it so that your success will be compounded across their relationships.
So when good fortune shines on your brand, be sure you’re ready to make the most of its fleeting benefits. Hopefully, for Callaway, this week marks the beginning of a very lucrative year.
Let me know what you think.