most trusted brand 2010 lecture.docx

WINNING AND RETAINING CONSUMER LOYALTY IN A

RAPIDLY CHANGING WORLD

Udeme UfotDecember 2010

MOST TRUSTED BRAND AWARDS NIGERIA,2010

CHALLENGING OPERATING ENVIRONMENT• The world in recession

• The mighty have fallen

• Public confidence in institutions, in brands shaken

• Nigeria not spared from this experience

- R8 Banks

- Oil Marketers

- Debt recovery by banks

- Liquidity squeeze

- Diminished consumer purchasing power

HOW HAS THIS IMPACTED THE WAY CONSUMERS RELATE TO BRANDS?

•Cynism

• Suspicion

• Low Trust

• Brands have become vulnerable

WHAT ARE BRANDS?

• A brand is a bundle of tangible and intangible benefits comprising of: name, term, symbol, image, personality, perception, emotion, style, associations, feelings, customer service, guarantees

WHAT ARE BRANDS?

• … a multitude of good, neutral and bad encounters, such as the way a product performs, an advertising message, a press report, a telephone call, or a rapport with a sales assistant.

WHAT ARE BRANDS?

• … a brand is the effect on the user of everything the company does and how it behaves. Brands may start life in planning documents but ultimately they rest in the minds and hearts of people.

The Information Economy

The Attention Economy

The Knowledge Economy

The Experience Economy

THE ATTRACTIONECONOMY

THE TIMES THEY ARE A CHANGING ….

All about connections between people and brands, products…The emotional contract

THE NEW WORLD OF CONSUMERS

ATTENTIONECONOMY

Interruption

Shout

One-to-many

High powered messages

Reactive

Larger than life

Return on investment

Big promises

What you need

Explanation

ATTRACTION ECONOMY

Engagement

Entice

Many-to-one

Engaging content

Interactive

My life

Return on involvement

Intimate gestures

What I want

Revelation

The only currency of any sustainable value in the Attraction Economy is ideas that attract consumers.

For the consumers, as their choices grow wider, their loyalty to brands that don’t touch them in any personal way becomes shaky.

Brands need to get more emotional and begin to consciously build deep and lasting emotional connections with consumers.

How do brands create and build deep emotional connections with consumers that will make them become passionate advocates for the brand?

Lovemarks are brands that inspire action & loyalty beyond reason

The degree to which a brand is a Lovemark can be measured by the behaviour of the brand users.

What level of loyalty do they exhibit? What level of preference do they express?

What are Lovemarks

15

Lovemarks are brands that people love passionately… sometimes beyond obvious reason… for example, English Premiership clubs & their fans.

“The essential difference between emotion and reason is that emotion leads to action while reason leads to conclusions.”

(Donald B. Calne – Professor of Neurology – University of British Columbia)

Human beings are powered by emotion not reason

"I've learned that people will forget what you said, people will forget what you did, but people will never forget how

you made them feel."

Maya Angelou

Only Lovemarks explain why some brands, events, or experiences enjoy deeper emotional connections with the

people they touch.

20

Defined by the attitudes and lifestyle of it consumers. Harley Davidson does not sell motorcycles. They sell a rebel lifestyle.

SuzukiHarley

Defined by features and Performance

Owned by people.

Consumers are the people we should be paying attention to – understand what matters to them.

RESPECT LOVE

+42

Sensuality

45

Being Intimate

TRUST Reliability Honesty

Ease Openess Security

PERFORMANCE Innovation

Quality Service Identity Value

REPUTATION Leadership

Responsibility Efficiency Heritage

Respect and Love

TWO COMPONENT OF LOVEMARKS

BRANDSHigh Respect

Low Love

PRODUCTSLow Respect

Low Love

FADSHigh Love

Low Respect

High LoveHigh Respect

LOVEMARK QUADRANT

Enthuser: Consumers who monitor, critique, set new trend, spread word-of-mouth, or engage with a brand through actions beyond purchasing but not connected on a long-term basis.

User:Consumers who use a product without emotionally connecting or engaging in action beyond random purchase. Low loyalty, vulnerable to competition.

Chooser: Consumers who rationally connect with a brand long-term but who do not engage in action toward the brand’s producer beyond always choosing it. Speak in terms of benefits & attribute words. Successes built on the ‘er’.

Inspirational Consumer: Long-term emotionally connected consumers who inspire action in others by taking steps to ensure the success of the relationship they “own” by whatever means possible.

CONSUMER ACTION/ENGAGEMENT

THE JOURNEY TO A

LOVEMARK.

Unknown

Known

Known for something

Known for things that are different

Known for good things

Known for things that I care about

Getting to Lovemark status means you need to go beyond what you are known for and

instead focus on what ‘people’ care about

•A brand I identify with

Unknown

Known

Known for something




The journey to a Lovemarkturning brands that are respected into brands that are loved too

Source: Harvard Business School

LOVEMARK

Unknown

Known

Known for something




LOVEMARKBrands too often become trapped around

here

Unknown

Known

Known for something




LOVEMARKAnd start battling each other for differentiation

– often rationally

Unknown

Known

Known for something




LOVEMARKNeed to break out to find a more EMOTIONAL territory where the brand becomes

something people care about, LOVE and identify

themselves

The Future Beyond Brands

BRANDSBuilt on Respect

Create Loyalty for a Reason

Drive solid performance

Great Brands are irreplaceable

Built on Trust, Performance & Reputation

Owned by managers, marketers & shareholders

LOVEMARKSBuilt on Respect & Love

Create Loyalty Beyond Reason

Accelerate Performance

Irresistible

Adds Mystery, Sensuality & Intimacy

Owned by the customers who love them

MYSTERY

•The combination of three qualities separates Lovemarks from brands

SENSUALITY

INTIMACY

Great brands have always been surrounded by great stories. Every brand has a story – the best one often come from consumers

Dreams is the key motivations for human actions and decisions. It is personal, possessive and aspirational

People live for adventure, anticipation and surprise

The ten conditions common to all Lovemarks

1 2 3 4 5 6 7 8 9 10

CONSUMER UNDERSTANDING1

A lovemark acts from an intimate understanding of customer needs and desires

2ONE WORD EQUITY

A lovemark captures its emotional essence in a single word

Optimism

PridePe

rfect

ion

CuriosityInvincible

3ATTENTION

A lovemark surges through the clutter with ideas, emotions and experiences

4

EMOTIONAL CONNECTIONS

A lovemark acts on the fact that human beings make their decisions emotionally

5LOCAL CONNECTIONS

A lovemark keeps relationships alive with insights from the local

USA

Football

UK

Football

6CUSTOMER OWNERSHIP

A lovemark is only a lovemark when its customers says so

7DISTINCTIVITY

A lovemark is distinctive and easily recognized

8TRANSPARENCY

A lovemark connects the company with its people and its brands

9TOTAL EXPERIENCE

A lovemark designs compelling and sensuous experience at every point it touches people

10NURTURE THE FUTURE

A lovemark fosters long-term relationships with constant attention

SUMMARY

• Recent global developments have shaken consumer confidence in

brands.

• More than ever before, companies must build from the inside-out,

consistently engaging with their consumers to build credible and

sustainable

emotional connections.

• Inner strengths and values must be aligned to what customers

value.

• Web communities have wrestled control of brands from brand

managers.

• Integrity and consistency is key to brand survival.

SUMMARY

“ Great companies pay attention to every point of interaction with

the customer. That’s how great companies become great brands.”

Claude Singer: Branding Worlds Collide.

SUMMARY

“ Lovemarks is the ultimate in brand status… A stage in brand

evolution to assuming a special place in the heart of the consumer

where it becomes virtually unassailable engendering cult like belief

and followership – the Superbrand.”Kevin RobertsWorldwide CEOSaatchi & Saatchi.