Thursday 21 October, 2004
The best brands succeed because they excel at each stage in
their lifecycle. They don’t skip steps. Great brands are founded on more
than a compelling promise and innovative marketing communications. The
stewards of these brands recognize that compelling promises and
marketing only bring you to your customers’ doorstep. In order to enter
their homes and become integral parts of their lives you must also excel
at delivering positive buying and using experiences.
Why is Disney synonymous with such a potent phrase as ‘Family
Entertainment’? Why do Apple’s customers ‘Think Different’? How did
Starbucks become that ‘Third Place’, the gathering spot between work and
home? The most successful brands “hold a strong, favorable and unique
position in our minds.”
1 But how do they become pervasive?
What differentiates a little known brand from that of BMW which
engenders fierce customer loyalty?
Unfortunately, too much brand literature begins and ends with the brand
definition and marketing communication activities. It is time for brand
and marketing executives to take a holistic view of brand development
and be accountable for the brand’s performance beyond the marketing
media.
The five stages of a brand lifecycle
So, how do you take a holistic approach to growing a successful brand?
Brands have a lifecycle that is best understood in stages. Each stage
has both a short and longterm impact on how customers view your brand.
Come up short in any one area and you will surely face consequences.
The five stages of your brand’s lifecycle begin with the brand
definition and then progresses through four distinct customer
experiences.
- The Brand Definition
- The Awareness Experience
- The Buying Experience
- The Using and Service Experience
- The Membership Experience
Some brands fare better than others at certain stages. Some brands never
mature through the full five-stage lifecycle, seemingly stuck in the
equivalent of adolescence or early adulthood.
There are two aspects of the brand life cycle that should be highlighted at the outset.
First, brands live in the minds of their customers. The implication is
that you do not own your brand; you are merely its captain and steward.
Therefore, you should view your brand from the perspective of the
customer’s experience until it is eventually renewed or retired.
Second, although success at each brand lifecycle stage varies widely,
every brand that generates even a single customer travels through stages
one to four. By contrast, stage five, the membership experience, is
reserved for brands that generate such intense loyalty that customers
actually integrate them into their personal identities. But long before
any membership experience can exist, brands must create clear
definitions that can be embraced by their primary target customers.
Brand 101: Defining the brand
"We all know that the Disney brand is our most valuable asset. It is
the sum total of our seventy-five years in business, of our reputation,
of everything that we stand for."
Michael Eisner, Chairman and Chief Executive, Disney
The first step in a brand’s lifecycle is its creation. Brands are not
products, nor are they services. Brands represent a promise to fulfill a
customer need. The promise may be utilitarian, such as a clean pressed
shirt from the dry cleaner, or it may be emotional, such as the comfort
provided by Volvo’s commitment to safety.
All of us have experienced when brands have delivered on their
promise–and when they haven’t. But how does a company construct a brand
promise? There are four basic components to defining a brand:
- Who: the primary target customer for the product or service
- What: the offering of skills, capabilities or features
- Why: the benefits the brand provides to its customers
- How: the approach utilized for delivering the promise
Who: The first component describes the primary target
customer and how they buy and experience your products or services.
Simply put, this is the company or individual that will pay you the most
for what you do and how you do it. These are the people who will
experience your brand most directly and intimately.
What: The second component defines the product or
offering for your primary target customer and identifies the
requirements to meet the customer’s needs. The offering describes the
product or service based on its unique characteristics and defines the
capabilities required to deliver the promise.
Why: The third component describes the two or three key
benefits your primary target customer receives when they utilize your
products or services. When you choose to shop at Staples, you get
informed sales support, a deep and intelligent selection of product
choices, a competitive price and, most importantly, no hassles. When you
purchase a Sony DVD player, you expect it to work when you plug it in
and for several years thereafter. The benefit component clearly
articulates what customers receive for their time and money. It is the
value you provide.
How: The fourth and final component defines how you
deliver and, equally important, how your customer experiences your brand
promise. In many instances this is the most differentiating aspect of a
brand because it is very difficult to emulate. There are many amusement
parks, but Disney World is unique. From the cleanliness of the parks
and hotels, to the décor, to the designation of every employee as a cast
member, Disney World successfully delivers a differentiated experience
that customers value highly. Similarly, Dell delivers PCs to customers,
hassle free, at competitive prices and provides industry-leading
post-sale customer support.
The brand promise describes the client you will serve, your customer
offering and the capabilities required to deliver it, how you execute
it, and the value you provide. The brand promise should be crisp, be
understood universally, and demonstrate an advantage over competing
brands. Defining the brand promise is selected as Brand 101 not because
it is easy to do--in fact it may be the most challenging of all of the
subsequent brand chapters--but because it is what you must do first to
be successful.
Once you build a brand promise, you must make your target customers
aware of your existence and of the benefits you can deliver. This is the
point where your brand enters the public domain and will begin its life
in the mind of your customers. Although many people consider this to
simply be marketing communications, it is more accurately viewed as the
customer’s awareness experience.
Brand 201: The awareness experience
“Simplicity is all. Simple logic, simple arguments, simple visual
images– there's nothing long-winded about 'Liberté, égalité,
fraternité'."
Maurice Saatchi: M&C Saatchi
Brands live in the minds of the customer. But how can you get your brand
in there? And, how can you get your primary target customers to create
positive associations with your brand? This is no small task.
Brands obtain awareness in the mind either through the customer’s brain
or through his heart. The brain has many analytical and cognitive
filters designed to determine the veracity, meaning, and relevance of
any idea, concept or brand. Getting into the mind via the brain
typically requires knowledge of the functional benefits of a brand. Is
it the right size and color? Does it have a service contract? Is it
priced fairly? Is it the industry standard?
Getting into the customer’s mind through his heart is a zero sum game.
The customer’s heart either accepts your brand completely or rejects it
completely: everything, or nothing at all. To get into the customer’s
mind via the heart typically requires an appreciation and empathy for
the emotional benefits of the brand. Will it help me sleep better at
night? Will it say positive things about me to others? Does it make me
feel accomplished or successful or happy?
Both strategies have the same goal: establish brand awareness among your
primary target customers. There are several methods and channels
available for establishing awareness and we experience them every day.
Broadcast media, print advertising, direct mail, direct email,
billboards, store locations, earned media and direct sales are common
tools, although some are better than others at efficiently targeting
customer segments.
So how do you measure brand awareness? The first form of measurement is
known as brand recall. An example of brand recall would be: If I say the
word ‘sneakers’, and you respond with the word ‘Nike’. Recall is a very
good thing for a brand. It means that Nike owns the premier position in
your mind whenever and wherever you think of the type of footwear we
know and love as sneakers. It is the brand against which all other
brands in the category are measured. Nike has an advantage over
competing brands.
The second form of measurement is known as brand recognition. An example
of brand recognition would be: If I say the word ‘Sony’, and you
recognize who they are and can name one or more of their products and
services.
Brand recognition is also a good thing for a brand. It means that the
name of the brand is in your customer’s mind and that the brand has
created the essential and critical associations of its name to its
products and services. This recognition ensures that Sony will be in the
competitive set when a potential customer is thinking about buying a
small, portable CD player we know and love as a Walkman.
So what does awareness mean in the mind of the customer? It means that
they ‘understand’ and desire the brand. It means that the brand appeals
to them both emotionally and intellectually and that they know why they
prefer it over competing brands. Finally, it means that they have
adopted and believe in the promise of the brand--a promise that they
understand from advertising, through word of mouth, and from observing
others who have bought and are using and enjoying the brand.
However, brand awareness is not the end goal. This is where many brand
strategies fall short. They focus on generating interest, but do not
consider how to close the deal and create a paying customer. The goal is
to create awareness and secure a buying commitment and customer
relationship. To successfully complete the customer acquisition, you
must follow a compelling awareness experience with a seamless and
fulfilling buying experience.
Brand 301: The buying experience - the first moment of truth
"A business exists because the consumer is willing to pay you his
money. You run a business to satisfy the consumer. That isn't marketing.
That goes way beyond marketing."
Peter F. Drucker
People want the brands they buy to reflect the intelligence and
sophistication of their buying decision. Brands function as signs of
quality and assurance. They simplify complex purchasing decisions. They
are indicators of value and price. If you are aware of the brand, then
you know its promise and you understand what needs it will fulfill and
how it will make your life easier.
Many factors can impact the brand-buying experience. Is the product
available in the right color and the right size? Can the store employees
or account managers answer your questions and facilitate or validate
your choice? Is it priced appropriately?
Consumers are multi-channel customers. They expect the buying experience
to be ‘on-brand’ in the retail store, on the Internet, through a call
center, and with a sales representative. Wherever and whenever they buy
their preferred brand, be it Caterpillar or Polo, they want to have a
consistent and positive buying experience. No surprises.
So, how does a customer experience the buying of a brand? If you buy a
pair of shoes at Wal*Mart, you expect to see a long rack of boxes, no
sales assistance, and you anticipate paying a modest price. If you buy
shoes at Nordstroms, you expect to be escorted to an elegant display of
the latest styles, have your shoe size and fit confirmed by an
experienced footwear consultant, and pay a premium price for the brand.
You would not pay a premium price for the same shoe at Wal*Mart.
However, shoes are simple and familiar products that require less
technical understanding than a new business software application. You
would not purchase such a complex item at Wal*Mart which specializes in
stocking proven, undifferentiated products at low prices. You require a
much higher level of support throughout the buying process provided by
either the software developer or one of its skilled channel partners.
In the buying experience you engage the customer; and she considers
whether the brand promise is worth the cost. It is a moment of truth, a
dividing line that separates prospects from customers. Your brand needs
to excel at moving people from the prospect stage to the using customer
stage, or your brand’s lifecycle will be short.
Brand 401: The using & service experience - the other moments of truth
“Really, at its core, branding is simply marking something and saying, ‘This is for me’.”
Karl-Heinz Kalbfell, Global Head of Brand and Product Strategy: BMW Group
Interbrand: The Future of Brands
In the using and service experience, brands must deliver on yet two more
moments of truth--two opportunities to keep the brand promise.
The second moment of truth is the using experience. In the buying
experience a retailer or channel partner can provide support and
guidance ensuring a positive experience, helping the customer through
any difficulties he may encounter. By contrast, there is typically
little or no support in the home or the work environment to ensure that
when the customer plugs it in that it will start and start every time.
We expect the brands we use to provide both functional and emotional
benefits. The functional benefits range from the model, color and size
ordered, to the durability, stability and performance of the product. If
we ordered the ‘Special Deluxe Model’ we expect an additional set of
features to provide us with extended capability and shelf life. The
emotional benefits we expect from the brand range from safety and
confidence to the signals of quality and prestige that the brand
communicates to others. Both products and services need to be engineered
to ensure positive and consistent using experiences.
However, accidents happen. Parts wear out. Services will eventually miss
the mark. Will the company keep the promise of the brand when the
customer dials the call center seeking technical support? Will she have
to wait 30 seconds to speak with a customer service representative or 10
minutes? If the customer walks into the store with the product but
without the original box and sales receipt, will the company stand
behind the brand?
The service experience is the third moment of truth for the brand. It
often has a profound impact on the customer relationship and determines
whether repeat purchases occur and whether word-of-mouth is positive or
negative. Successfully fulfilling expectations in customer service can
be as critical as the using experience and should be anticipated as part
of your brand definition activity.
So, now that we have successfully created awareness for the brand and
delivered a positive buying and using experience, how do we further grow
the brand in the minds of our customers?
Brand 501: The membership experience
“A brand has to feel like a friend.”
Howard Schultz, CEO
Starbucks
Interbrand: The Future of Brands
When brands obtain a certain level of awareness, when everyone who buys
and uses products in a specific category recognizes and can recall the
brand, when customers want to be affiliated with the brand--it achieves a
new status. That new status is the membership experience.
The exclusivity and the privileges of membership are valued by the
customer. They recognize the brand as being strong, favorable and
unique. They enjoy shared experiences with other owners of the brand.
Membership status is desired by every brand because it induces a
specific type of customer behavior. That behavior is defined as
repeat-purchase, referralgenerating, discount-foregoing, premium-paying
customers. The customer goes out of his or her way to purchase the brand
even when another more convenient and competitive brand will meet the
same need.
Apple Computer has achieved this status. Starbucks, the Harvard Business
School, Intel, Caterpillar, BMW, Disney, McDonalds and Wal*Mart have
attained this status. The customer is proud to say that they purchase
and use the brand. They display it.
It is a source of identification. It is a sign of quality and a source
of comfort. The brand is seen as a best friend and as a leader in its
category.
Even though the brand’s customers are strangers, they create social
occasion around the brand. Harley Davidson customers tattoo the logo on
their arms and chests. They pay a premium price for a leather jacket
with the Harley name on it. They travel great distances to meet,
socialize and travel with each other.
Some brand users swear that they can jump higher and perform better when
wearing their Nikes than other basketball shoes. Children believe that
the rides at Disney are better than the rides at any other theme park in
the world. And so do their parents.
When brands identify similar attitudes, encourage the expression of
emotion, establish etiquette, create social occasion, and enable
individuals to see the world through like eyes they have created the
membership experience--and it is a privilege for the customer to belong.
There is no unique formula to achieving a membership experience for your
brand. Many luxury brands have achieved this status, but so have
several value brands such as Wal*Mart and Dell. However, brands that
have achieved membership experience status do have something in common:
all excelled at each of the first four stages of the membership
experience. They defined, communicated, and delivered a strong brand
promise that resonated with target customers. It is clear that if you
fail at the brand definition, the communication, the buying or the using
experience you will not achieve a sustainable membership experience.
There is no stage six
There is something that comes after stage five. This is when a brand
loses its meaning and relevance. When this occurs, the brand steward has
two choices-- rejuvenate or retire.
If you choose rejuvenation, the cycle starts fresh by reinvigorating the
brand promise to realign its meaning and relevance with your customers’
evolving needs. If you decide on retirement, then you harvest the last
of the brand’s equity and invest your resources in other brands.
Both decisions are valid. Both depend on your objectives and
circumstances. But be aware that a choice will have to be made. And
often that choice must be made about brands that never reach stage-five
status.
Successful brand stewardship
So what are the lessons of the brand lifecycle for brand and marketing
executives? First, for each brand, you should consider up front how it
will perform throughout all of the stages of its lifecycle. Careful
consideration of each lifecycle stage in the beginning of a brand’s life
can help you make critical decisions about what brand promise you will
make and how you will fulfill it.
Second, you need to pay careful attention to how you must perform in
each lifecycle stage to support your brand. This provides you with the
opportunity to determine where you will focus your efforts. For example,
you may determine that product durability and usability are the most
critical factors for your success and that your primary target customer
does not require coaching through the buying experience. This would
suggest that you emphasize durability and usability in your awareness
building activities and that you must focus a significant portion of
your investment ensuring that the product lives up to the promise.
By contrast, another product may require more effort to be placed in
training sales people to help customers make complex buying decisions.
The important lesson to remember is that by considering your brand’s
entire lifecycle up front, you can understand the critical challenges
and moments of truth it will face and then take proactive steps to
ensure they are properly addressed.
Third, all brands must anticipate the first four stages of their
lifecycle. However, the fifth stage, the membership experience, requires
something more. It requires that you not only excel at each of the
first four stages, but also that you create a reason and a means for
your customers to incorporate it into their personal identities. This is
hard to do. But it is critical to remember that you have no chance to
achieve a membership status unless you are very successful in each
preceding stage.
Finally, these lessons can also be applied to existing brands. By
measuring your brand’s success at each of its lifecycle stages you can
effectively grade its performance and generate insight into how you can
better execute on the promise.
Key questions for brand and marketing executives to ask about their brands:
- What does your brand need to do at each stage of its lifecycle to be successful?
- Can your company’s capabilities meet all of the requirements to fulfill your brand promise?
- What company capabilities can you leverage to exceed expectations and which new capabilities need to be developed?
- How well are your current brands performing at each stage of their lifecycles?
At which lifecycle stage are you falling short of your brand promise and how can you fill the gap?
Source:ceoonline.com
