the new brand normal

Proprietary and confidential Do not distribute

THE NEW BRAND NORMAL: IT'S NOT SO NEW AND IT'S ANYTHING BUT NORMAL

SCOTT DAVIS CHIEF GROWTH OFFICERProprietary and confidential. Do not distribute.

Every year, FORTUNE and BusinessWeek publish influential research on high performing companies:

FORTUNE’sMost Admired Companies

BusinessWeek’sThe Best Global Brands

Hot off the presses; rankings of corporate brands

Proprietary and confidential. Do not distribute.

Many companies have made both lists…


http://money.cnn.com/magazines/fortune/mostadmired/2007/index.html







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All of these companies have demonstrated superior business performance and have established powerful brands in the market

LEADERSHIP TEAMS THAT GET IT Think about brand building and the

bottom-line – brand and demand True cross-functional collaboration and

integration De-siloed management teams

STRONG, RELEVANT BRANDS Able to develop strong brands that

resonate with consumers Admired as driving insight to impact Admired for quality products and

services and leaders

Marketing is a respected function, with leaders that drive the marketing agenda

Maintain strong business acumen Have a deep understanding of market

forces and strategic knowledge

MARKETING EXCELLENCE IS THE NORM

CUSTOMER EXPERIENCE ZEALOTS

Consistency of experience across all touchpoints

Employees understand their roles in bringing their brand promise to life

Understand moments of truth

…so what do these companies have in common?


In 2013, Fast Company did its annual ranking of the “World’s Most Innovative Companies”

Another way to measure


Only a handful of companies made these three lists…


…but what do these companies have in common?

Leaders who continue to reinvent the business and the brand

Constantly think what is next – new offerings, experiences, business models

Fail fast mentality – constant test & learn mode

Design thinking as a pervasive part of the company culture

Executive-level commitment to diversity in thinking – internally and externally

Culture that emphasizes the customer’s relationship with the brand

Measurement and reward systems that align with building strong brands

These companies have shifted and understand the power of their brands, both internally and externally, and have…


To start 2014, FORTUNE did its annual ranking of the “100 Best Companies to Work For”

A fourth way to measure


We are left with only a few leading brands


To end 2013, Brand Index measured the 25 most talked about brands of the year

Finally, a fifth way to measure


Amazon and Google get it. They thrive around a shared purpose aimed at delivering end-to-end brand and business experience for

both BTB and BTC

Even fewer companies made all five lists


Most of the brands just mentioned continue to outperform the market

Top 10 brands according to Interbrand’s 2011 ranking; stock information from Google

8 out of 10 top brands beat the S&P index

S&P 500


Most of these brands get to experience benefits others cannot


Toyota Camry Lexus ES

2.5L Hybrid 2.5L Hybrid

200hp 200hp

Georgetown, KY Georgetown, KY

43/39mpg 40/39mpg

$26,500 $39,500

Source: http://www.toyota.com/camry/?srchid=sem|google|Camry|Car_Camry|Car_Camry_Base|Existing|Camry_MLP#!/panels2, http://www.lexus.com/models/ES/specs/

Some more so than others


Source: LUMA Partners LLC

But it isn’t as easy it used to be when we all lived in a push world

Brands are more difficult to build, understand and control…

…which leads to chaos, confusion and trust issues

94% trust word of mouth

Even when exposed to a brand message 10+ times online, only 26% of consumers could recall it

Only 24% of consumers trust the ads they see

Over 50% of those surveyed said they thought marketing and advertising were out of control

40% of B2C and B2B marketers believe that they will have less control of their brand in 3 years

Consumers believe that 70% of brands could disappear without them taking notice

90% of marketing investments are in traditional mediums, but only 1 in 5 are getting the results they want

CONFUSION CHAOS

Source: Fast Company, Hubspot, Nielsen, Emarketer, Havas Media, Prophet Proprietary and confidential. Do not distribute.

Proprietary and confidential. Do not distribute.Deck Title 18

HypertargetingStory over campaign

Analytics ‘connects the

dots’ Marketing AgilityExperience

matters

Multiple devices Device integration

Knowledge-sourcing

communitiesPower of social

media E-commerce

Richer dynamic media Smarter web

Digital personal assistants

Short-form content Mobile maturity

Marketing automation

Digital identity mgmt, privacy, and

security Wearable devicesBrand

partnerships

Location-based services & near-

field comms

Marketers are overwhelmed by the vehicles, choices and expertise areas they need to build

Proprietary and confidential. Do not distribute.Proprietary and confidential. Do not distribute.

And they know that Millennials are changing the game…

Talk value matters more than ever, especially among millennials who live in a video-on-demand-on-the-device-of-their-choice world.

Average times per week that a consumer mentions specific brands in conversations with friends, family and co-workers

Percentage of consumers who consider buying the brand, product or service recommended by a brand advocate

Percentage of Facebook and Twitter followers, respectively, who are more likely to recommend brands after becoming a follower


…and the role of community and peer influence is here forever

WHAT MAKES YOU AWARE?

Awareness DriverAdvertising (TV, print, online ads) Most Friends and family who volunteered their opinion

Observing people use product/brand

Research conducted online

Friends & family from whom you sought out opinions

Information at store or on-shelf

Company's website

Promotion/sponsorship from the company

Sales material by company that came to you

Product reviews by experts, peers

Research conducted offline

Sales material by company that you sought out

Salesperson at point of sale

Direct mail with special offer from company

News media

Email/text message with special offer from company

Telemarketing with special offer from company Least

WHAT MAKES YOU BUY?

Purchase DriverFriends & family from whom you sought out opinions Most

Friends & family who volunteered their opinion

Research conducted online

Promotion/sponsorship from the company

Product reviews by experts, peers

Company's website

Information at store or on-shelf

Research conducted offline

Observing people use product/brand

Advertising by the company Sales material by company that you sought out

Sales material by company that came to you

Direct mail with special offer from company

Salesperson at point of sale

News media

Email/text message with special offer from company

Telemarketing with special offer from company Least

Source: Jack Morton : The Year of Experience BrandsProprietary and confidential. Do not distribute.

Books

Advertising

TV Adverti

sing

Endorsement

Billboards

Print

Apple Website

Online Training

AccountMgmt

RSS

Down-loads

Promotion

PR

Product

Design

Extension

Feature

Gift Certific

ates

Partnership

AuthorizedReseller

Apple StorePurchase Experience

SalesRep

Display CustomerService

Billing Statement

Genius Bar

Work-shops

AS/Warranty

Events

SteveJobs

AppleExpo

WorldwideDevelopers

Conf.

MacWorldExpo

Tours

Call Center

Sponsorship

Starbucks

Nike

Bill Me

Later

In the Networked Era, an explosion of touchpoints is now the norm

I know this is confusing, but is this really any different than 20 or 50 years ago?

Blogs

RSS

CGM Reviews

Social Software

(ebay/Amazon)

CGM Merchandis

e

Word of Mouth

Friends & Family

Influencers/Ambassadors

IndependentResourceProviders

Social Networks

(Facebook)

Email

OnlineCommunity

Wiki


Advocacy Awareness

Trial/Usage

Influencers

Blogs

Books RSS

Advertising

TV Adverti

sing

Endorsement

Billboards

Print

Apple Website

Online Training

AccountMgmt

RSS

Down-loads

Promotion

PR

Product

Design

Extension

Feature

Gift Certific

ates

Partnership

CGM Reviews

AuthorizedReseller

Apple StorePurchase Experience

SalesRep

Display CustomerService

Billing Statement

Genius Bar

Social Software

(ebay/Amazon)

CGM Merchandis

e

Work-shops

AS/Warranty

Events

SteveJobs

AppleExpo

WorldwideDevelopers

Conf.

MacWorldExpo

Tours

Call Center

Word of Mouth

Friends & Family

Influencers/Ambassadors

IndependentResourceProviders

Social Networks

(Facebook)

Email

Sponsorship

Starbucks

Nike

Bill Me

Later

OnlineCommunity

Wiki

However, a time tested approach can make sense of these touchpoints

I know this is confusing, but is this really any different than 20 or 50 years ago?


Strong brands get customers to do things others don’t

• 60% of customers prefer to buy new products from a brand they know well

• 25% of customers state price does not matter if they are buying a brand they are loyal to

• Brands with high advocacy get 264% more earned media impressions than average brands

• Millennials and Gen We influence a lot


Strong brands get customers to say…


We all know it takes a significant investment to build a strong brand…


…but that investment can evaporate if not managed well


PATH TO BECOMING A GREAT BRAND:IT’S REALLY NOT SO NEW ORNORMAL


There are five tenets for building strong brands

Be Clear on Your Purpose

Arm Your Communities

Become Famous for Something

Relentlessly Drive Brand Relevance

Create Seamless Experiences


Know what you want to accomplish. Align business and brand strategy. Understand your target segment and where the gaps are. Build a brand that will disproportionately win with those segments

Be clear on your purpose


Get talked about, make your brand fascinating and disruptive relative to those around it. Keep banging the drum. Earn your media and use your culture to your advantage

Become famous for something


Arm your communities

Leverage employees and loyal customers as allies—Millennials can make or break you. Give them a reason to love you and influence others to do the same


Give customers what they want through any channel, in ways that make them remember on- vs. off-brand behaviors. Leverage a consistent identity to build and maintain brand loyalty

Create seamless experiences


Think bigger than incremental improvements to constant innovation to stay relevant. Leverage the brand to reach new segments, new emotions and greater partnerships

Relentlessly drive brand relevance


LinkProprietary and confidential. Do not distribute.

https://www.youtube.com/watch?v=6roJKaihNf0

We have seen all of these work well together

Be clear on your Purpose






“SEA OF SAMENESS”

Staples was seen as undifferentiated and faced competitive threats

Wide Selection

Massed displaysFrequent Sales

Price Focused

OFFICE SUPPLY WAREHOUSE


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http://images.google.com/imgres?imgurl=http://staples.flyerservices.com/cached_images/pages/STAPR_a2d4b191-2273-4b71-a46d-19eb37b46ca3_101_May_7_Pg_1%20EW.jpg&imgrefurl=http://www.pricenetwork.ca/showthread.php?threadid=181737&h=524&w=550&sz=79&hl=en&start=5&sig2=mDYsxpvAygO2h3Xf-C4KFw&um=1&tbnid=KXw-lqoUcxnP5M:&tbnh=127&tbnw=133&ei=8DyHSN23PIbcigGE9IjsAw&prev=/images?q=Staples+flyer&um=1&hl=en&safe=off&rlz=1T4GGIC_enUS223US281&sa=G

DEMANDERS EFFICIENCY SEEKERS

MAXIMIZE EFFICIENCY

in terms of time/effort

EASE OF DOING

BUSINESS more important than lowest price

RELATIONSHIP DRIVEN ENTHUSIASTS

Segmentation applied across key targets: from small business and power users

HASSLE-FREE buying experience

A new purpose was found


“That was easy” campaign brought the brand positioning to life by making problems go away with the push of a button

After the campaign store sales rose 5% and customer satisfaction increased dramatically

Brand awareness spread even to out of category purchasers with the “easy button” which generated $7.5M in sales

Became famous for being “easy”


Created a new service approach for floor staff: Engage, Ask, Show, Always Yes

Changed way leadership communicated internally – from technically correct to better focused, including the brand voice (wit and polish)

Store managers spent ~20% less time in the back office reallocated that time to be on the floor helping colleagues and customers

Turned communities into brand ambassadors


Office product buyers needed an expert to help them navigate a vast array of category choices

“PRODUCTIVITY EXPERT”

Interactive Displays

Free DeliveryNew Solutions

Education

Loyalty Programs

Mobile Ordering

Online order and in-store pick-up

Developed a “hassle-free” experience


Staples became the #1 office supply retailer, surpassing OfficeMax and Office Depot

Store sales growth outpaced the leading competitor by 10-15% over a seven year period

Staples continues to profit and refocus on online retail, while competitors continue to sink and consolidate

Source: WSJ, Thompson Reuters, The Boston Globe

Continues to differentiate a relevant brand


We have seen all of these work well together

Find your Purpose






Scott Davis Chief Growth [email protected]@scottdavisshift

(312) 878-4934

Prophetprophet.com

mailto:[email protected]