What is a “brand gap”? Simply stated, it’s when – as a corporation – who you say you are doesn’t connect with the reality of who you actually are. Most commonly, these brand gaps exist between an organization’s “vision” or “brand values” as articulated and promulgated by the executive suite, and the staffers who should be delivering on them. But did anyone bother to let the staff know what those promises actually meant, or how to interpret them in their daily interactions? If not, the customer experience isn’t going to match up to expectations, and dissatisfaction (if you’re lucky) occurs.
Over the last year we’ve had a front-row seat to a textbook example that leapt from the business section to the front page, and is now being splashed across televisions sets around the globe. It’s pretty widely acknowledged that Wall Street’s “Masters of the Universe” screwed up royally – after all, their greedy myopia nearly brought the global economy to its knees.
At the first public hearings on the crisis just a few short weeks ago, a Reuter’s article noted that “Wall Street’s chiefs acknowledged taking on ‘too much risk’ and having ‘choked’ on their own cooking, but stopped short of an apology….”
Do we wonder why financial services firms are held in such low esteem? While it may be a particularly low point for the industry, this isn’t a new thing. Nearly six years ago, a Forrester 2004 report What Satisfies Financial Services Consumers noted that, “Less than half of US consumers believe that their firm would do what’s right for the consumer without government regulation.”
Funny, because the taglines and ads of these same financial services firms – and many like them – drip with sincerity and concern; for our financial wellbeing and security, as well as more emotional pleas like “peace of mind.” On the one hand, they want us to “trust them.” On the other, they have done – and seemingly continue to do – everything in their power to prove that we can’t possibly.
The funny thing is, most of these banking and financial services executives seem to be thinking all this negative sentiment will just go away. And maybe it will. But hoping your screw-ups will get swept under the rug when you neglect to acknowledge them isn’t the way to build an enduring brand.
It’s a classic brand gap. And you don’t need a brand audit or customer experience research to figure it out. No matter the size of the company or the industry you’re in, if there’s a disconnect between what you say and how you behave, your customers are going to know it. Of course, most disconnects aren’t so blatant, nor so well publicized.
How is your organization doing with its brand promises and gaps? just because you don’t see your mistakes on CSPAN doesn’t mean that all’s well, or that disgruntled customers will sit idly by. To butcher the late John Irving, sorrow floats – and loyalty sinks. Glub glub glub.
Organizations touch their audiences in many ways, with multiple interactions across multiple brand touchpoints. These touchpoints are all of the interactive, static and human interactions that your company’s customers experience over the life of their relationship with your company. In short, the heart of customer experience lies in the ways they experience your brand.
Here’s the thing that many organizations seem to have trouble grasping: every interaction between you and your customers (or those you’d like to be customers) is part of the brand experience. Every single one, every single time.
This means that your brand attributes are communicated clearly – both positively and negatively, whether you like it or not – every time you “touch” your customer. These interactions include obvious touchpoints like advertising, your website, call center and sales team. Then there are those touchpoints that aren’t usually at the forefront of brand experience planning, such as Google SERP’s, billing statements, online customer forums and more. At the end of the day, virtually every point of contact between you and your customers impacts the customer experience. The lesson to be learned? Everything matters.
So when it comes to planning customer experience, keep their point-of-view in mind. Look at the customer relationship through the lens of his or her “journey” as individual interactions string together to create experiences, driving brand perceptions and attitudes. You’ll be amazed by what shows up when you start mapping customer experience. It often isn’t pretty, but it sure can be illuminating.
It’s pretty straightforward, in theory. Know what customers want and need at each stage of their relationship, and give it to them. Be consistent in what you say, how you say it, how it looks, and how what you say and do supports your brand promises. And always keep your customers in mind.
Simple, right? Surprisingly, it often can be. If you take the step of auditing a typical customer journey, you’ll likely be ahead of 90% of the competition. We see it every day – simple steps often lead to big returns. After all, knowing what the issues are is the first step to fixing them.
Last Friday, Toyota CEO Akio Toyoda apologized. To everyone. And he did it again on Tuesday, in the Washington Post. And again and again in a subtler way on national TV, with the currently ubiquitous “commitment” TV commercial.
There’s something refreshing about a (seemingly) heartfelt apology for mistakes made. “We screwed up,” he’s saying, “and we know it.” What’s not said but implied is obvious to parents (and consumers) worldwide: we’ve learned our lesson. Let’s fix it and move on. Maybe the ad’s a little sappy, but hey – it does a great job reminding viewers why Toyota is (still) the number one car company in the world. It’s actually heartening to see a grown-up stand up and take the heat.
After all, when’s the last time any of us saw a politician apologize with something other than crocodile tears of self-pity and shame, almost universally brought on as the result of stunning self-absorption, monumental lapses in judgment and a total lack of humility?
Perhaps it’s because humility isn’t a great brand attribute for U.S. based companies. Michael Useem, professor of management at the Wharton School at the University of Pennsylvania was quoted recently in The New York Times saying, “American culture does not put a premium on apology.”
Maybe not. But when it comes to driving brand loyalty, I’m much more likely to open my wallet for someone who actually seems to care. Good luck, Akio. Yeah, you screwed up. But I, for one, accept your apology. Just don’t do it again…
The more similar competing organizations are, the more important any difference becomes. And when meaningful differences are difficult (or impossible) to find in a product or service, the market will find differences outside of them.
Your customers will define you, if you don’t define yourself.
That’s why, for most organizations, the key to success is differentiation. Even if nearly identical in many ways to other competitive offerings, your prospects and customers do perceive differences. And these differences influence purchase decisions, and relationships.
But how do you define these differences? You start by gathering information, understanding the brand experience as well as strengths and weaknesses as perceived by your key audiences. Internally, this includes executives, management and customer-facing employees. Externally, garner insights from your customers, investors, prospective customers and others.
Taken together, this provides the data you need to create a perceptual map of your brand. This “brand map” will help you understand where you stand with your customers, and the market overall, today.
Where do you want to go… tomorrow?
Brand research, and analysis of the data that must both drive and validate your approach, doesn’t tell the whole story. It’s relatively easy to capture both “present state” and “aspirational” brand attributes, values, and differentiators if you are smart, are a research expert (or have a team at your disposal) and understand both your business, and the underpinnings of high-performing brands.
But what isn’t easy is to create true differentiation by relying totally on what exists today. Yes, building a brand based on “present state” values and attributes takes both strategic acumen and research skill. But defining a brand that truly says “We’re Different; We’re Better; We’re Special” takes something more. Simply interpreting the numbers won’t drive the type of category-defining brand that many high-performing organizations wish to become. Supported by defensible (and illuminating) market and brand research, it also takes creativity.
Mind you, we’re not talking about “blue-sky let’s see what sticks” creativity, but creativity rooted in a deep understanding of your vision, your culture and your customer experience. To build a truly differentiated brand, you need to define where you want to go, where the “ideal” customer experience intersects with business, strategic and market realities, and set a stake – a defensible, differentiated stake – in the ground.
As Harry Beckwith points out in the book Selling the Invisible, “Create the possible service; don’t just create what the market needs or wants. Create what it would love.”
In most companies, market research is both confusing and misunderstood. Add the desire (and need) to better understand brand into the mix, and you have a recipe for even further confusion. After all, just because you measure something doesn’t mean you understand it.
Our experience shows that the utilization of research to drive brand insight requires multiple approaches to effectively measure brand experience, and understand ways to improve it.
The brand research toolbox includes various sampling methodologies.
Some of the most popular include one-on-one interviews, web and phone based surveys and focus groups. Deciding what approach to use comes down to the one question that simply isn’t asked (or more accurately, answered) often enough: what (exactly) are we trying to accomplish?
At the core of MCorp’s Brand Mapping approach, we leverage brand research to balance insights, strategy and defensibility with our ultimate goal: a deep understanding of the brand, a defined path to improving it, and defensible metrics that tell you with a degree of certainty where you are and where you need to go. So when it comes to understanding your brand, where – if anywhere – do focus groups fit?
Bottom line, we don’t think that focus groups are an effective technique for this type of brand research. Why? Several reasons:
Even with a skilled moderator, focus groups tend to be influenced by the few dominant people in the group, driving potentially biased output.
Marketers find that focus groups tend to deliver a single perspective; individual opinions are hard to capture because of group dynamics.
As a series of opinion from groups of 9-12 people, the results simply aren’t projectable over a broader audience. Whether or not the opinions expressed are valid is one thing; but attempting to project these opinions over broader audiences simply isn’t possible.
In short, it’s really hard to quantify or validate results, the sample size is small, and you simply cannot generalize findings to the target population. In fact, we’ve been called in several times by organizations who have attempted to research their brand with focus groups to get to defensible conclusions, and failed.
And as a vehicle to quantitatively assess elements of a brand platform, focus groups are useless.
In our experience, focus groups tend to capture perceptions of a moment in time, not how customers really organize their lives and their emotions. And because group dynamics play such a large part in the findings, they aren’t effective for drawing conclusions about a given population, though they are often used for such purposes.
We’ve found that the most effective method of gathering qualitative data around current brand perceptions are one-on-one interviews: with employees, customers and prospects, as well as the broader market. In our experience, the “one-on-one” interview process yields insights and frank, honest opinions much more effectively than traditional focus group formats, while costing substantially less.
From this come competitive insights, indicators of brand loyalty and experience, and insights into what drives brand attitudes and perceptions. Once organized, the brand and its position in the market can be validated with projectable follow-on customer experience and brand research.
So Where Do Focus Groups Fit?
The whole idea of focus groups is get people to project their opinions and attitudes in an interactive group setting, where participants are free to talk with other members of the group. As a result, they’re more of an open-ended elicitation than some of the other methods in the brand research toolkit. In our experience, they can work well for brainstorming new brand ideas, perceptual mapping or gathering creative and concept feedback.
To be honest, all marketing research is subject to Nobel prize-winning physicist Werner Heisenberg’s famous observation: “We have to remember that what we observe is not nature herself, but nature exposed to our method of questioning.” But if you’re trying to brainstorm a new brand, creative concepts or brand extensions, focus groups are a great place to start (or finish). But if you’re trying to quantify your current brand, validate your position vs. your competition, understand attributes and values for internal audiences and external customer segments, then stick with methodologies which you can validate and defend.
To understand the kinds of stories that are being told about your brand, start by examining the experiences your customers have each time they come into contact with you. What is it like to do business with you? How do the touchpoints your customers encounter make them feel?
One bank we worked with was astounded that their customers took umbrage at the prominent eye-level signage on all branch doors: “Remove your hat and glasses before entering.” A practical step to reduce robberies, as the bank thought? Or an unintentional message that says to customers “You are not trusted” or “You are not good enough to do business with us,” as more than a few customers said?
Another bank had a teller that gave dog biscuits to pooch-loving customers when Fido and friends showed up at the drive-through teller. When the teller left the bank (and took the doggie treats with her), brand loyalty scores at the branch turned stale, as well. In fact, they plummeted. It took some time to discover the reason, but now fresh doggie biscuits are a staple at every branch, and the bank is creating powerful connections with dog lovers (and their friends and families!) throughout the area.
This is where the power of stories comes into play. Consumers tell themselves stories. They also tell their friends (also known as “word of mouth marketing”). And the power of brand stories to influence actions and beliefs is as old as the spoken word. And as much as consumers distrust financial services providers, they trust their friends and business associates. This is why delivering a consistent, differentiated and branded customer experience is so important.
It really comes down to better managing and improving the experience, earning loyalty by proving your commitment to your customers, delivering a consistent brand experience one interaction or touchpoint at a time, over time.
Has the Internet finally saturated America? Based on data gathered from the Pew Internet and American Life Project, the answer may well be yes. It looks like the proportion of America adults who aren’t connected to the Internet has stabilized at around one-fifth of the population. And the vast majority of those enjoy broadband access at home. No surprises here, right?
Yet in addition to the “common knowledge” of the ‘net as a multi-purpose customer touchpoint for marketing, sales and service, this data indicates something else of interest to brand marketers and customer experience experts as well.
There is still a significant portion of the population that many marketers cannot ignore. Though skewing older, less educated and less affluent as a group, their buying power is still substantial. And the marketing touchpoints that will get them to sit up and take notice don’t reside on a CRT hooked up to the World Wide Web.
Though we’re not huge proponents of broadcast brand building, the direct marketing ability of TV is proven, as is print direct. As with any brand strategy or marketing effort, knowing who your customers are and how to best reach each segment is the key to drawing them through your customer relationship lifecycle; from awareness and acquisition to satisfaction, loyalty and advocacy.
Still, with 93% of the under 30 crowd online and connected, I’d think twice before positioning any new products to an audience that’s literally dying off…
“The greatest trick the Devil ever pulled was convincing the world he didn’t exist.” – Verbal, The Usual Suspects
In public relations, there is a little-known segment of experts whose jobs are essentially to keep their clients names (and deeds) out of the light of public scrutiny. These men and women are almost never quoted or noted, yet they are powerful enough to pull feats worthy of David Blain by causing major negative events to literally disappear in plain sight.
Every so often in the branding world, a similar feat occurs. What do you do when your brand strategy is to be invisible, or you need to remove traces or connections of a brand to negative events? Changing your name is one way to do it; simply turn to your brand strategist of choice for guidance. But it only works if you keep your mouth shut.
Take for instance Altria Group, formerly known as Philip Morris.
This company’s innocuous logo and unassuming name tells you nothing about who they are or what they do. There’s a reason for this: the once-respected Philip Morris brand (the biggest member of the Big Tobacco club) needed to duck under cover from a constant barrage of media scrutiny and legal attacks. Unlike their competitor Lorillard Corp. which has always tried to keep a low profile, Philip Morris spent years building its brand around cigarettes and beer (“the companies of your pleasures”).
Reinventing its brand as a brand representing “nothing” was a Seinfeld-esque stroke of genius. As Altria, the company is now able to fully express its altruistic side, because non-profit organizations that had previously distanced themselves from Philip Morris were (and are) only too happy to accept grants from Altria. And best of all, the Philip Morris name wasn’t gone entirely; it could be trotted out to take the blame for corporate sins and then retired to the closet.
An unfortunate (though extremely impressive) example of marketing smarts trumping morals, as the biggest name in tobacco literally disappeared in a puff of smoke.
Corporate Culture Rules: Why Xe will likely forever remain “the company formerly known as Blackwater.”
Then you have Xe. Founded as Blackwater Group, Xe is a multi-billion dollar corporation built by CEO Eric Prince into one of the largest military contractors in the world over 6 short but tumultuous years. But the last few years have been hard on their image. As five former Blackwater employees prepared to defend themselves on charges of killing 17 Iraqi civilians in 2007, civil suits and negative press abounded. What to do? Change your name. Company spokeswoman Anne Tyrrell said Blackwater was changing its name because “the idea is to define the company as what it is today and not what it used to be.”
Better tell that to the CEO. Not the kind of man to hide quietly and wait anything out, former navy SEAL and billionaire auto parts heir Eric Prince took up several pages in this month’s Vanity Fair pointing out how unfairly he and his firm have been treated. That’s all well and good – but if the point of your name change is to lower your profile, well, you need to lower your profile.
Lesson learned?
Two of the three “legs” of the brand experience triangle are related to the corporation. The vision comes from the top, and ideally closely aligns with employees to drive a consistent corporate culture. We suspect that Xe has these two nailed down nice and tight. But the other leg – customer experience – is the one that drives how the world sees you. In Xe’s case, their direct customers – primarily the U.S. Government – still seem to be happy with what they’re getting. But their indirect customers – the taxpayers who ultimately pay Xe’s bills – are getting another perception entirely.
Brands succeed most powerfully when they align with the passion of their people, and tap into the passion of their customers. Just look at Apple or Pixar. But sometimes, it’s best to keep your passion, and your point of view, under wraps.
As the importance and power of brands – and the customer experiences they drive – continues to creep up the scale of corporate awareness and priority, brand consultants are scrambling to find ever more evocative (scratch that: make it “provocative”) ways to describe the relationships that the buyers of products and services have with brands.
I grant you, we brand strategist and consulting types are doing a great job confusing corporate marketers. Now they can’t focus on driving sales through the door until they figure out how to make a “Lovemark.” Customer intimacy is more important than customer relationships, and those are pretty important too. Now there’s the “Love Triangle Model.” Throw emotional contagion into the mix, and we’re going to have brand-based STD’s next… (are phishing and pharming the equivalent?)
Maybe it’s a little too much to ask, but do I really want “love” from (or with) a brand? Maybe I’m just a little uncomfortable with these new levels of brand intimacy. Call me old fashioned, but these are all just new ways to describe the same old thing: Create a product or deliver a service that solves a real need. Support it with honesty, integrity and quality, and make sure you respond quickly to customer needs, delivering a consistent, differentiated brand experience across all your customer touchpoints.
Make sure your market knows that you do this, and encourage them to tell others. Conduct loyalty and brand research to make sure you know what your customers think and how they feel about you vs. your competition, and act on the results.
No offense, but can’t we save these “sweet nothings” for our wives, husbands and significant others? After all, if you want this kind of involvement, where would you rather turn for fulfillment? I know where I’d rather go. I’ll give you hint: it’s not Amazon. And if this trend towards unwanted intimacy keeps up, we can always create new meaning for “brand therapy.” We’ll need it.
I’ve just spent an afternoon at the Hard Assets Investment Conference here in San Francisco, listening to a couple dozen mostly small and mid-cap mining and energy companies pitching their stories to the investment community, represented in this instance by a handful of hedge funds, some private equity folks and a bunch of individual investors taking that rare (and smart) step of looking CEOs in the eye and learning about the firms they invest in, rather than relying on some analyst’s report or a tip from their broker.
But while chatting with some of these smart investors over a couple drinks, something that we marketers already know became crystal clear: you need a message that resonates to stand out from the crowd. Whether that crowd is small-cap oil and gas companies competing for investors, the highly competitive banking sector, or sodas on a supermarket shelf, two things need to be clearly understood by those doing the selling. First, what is it that makes your product or service compelling? And how does this position you versus your competition? While not seasoned marketers, these investors intuitively understand when they’re not getting a message that turns their crank.
After listening to the first half-dozen of these earnest, experienced and highly intelligent CEOs say, “We focus on maximizing shareholder value…” I almost fell asleep. C’mon guys.
Just because your company doesn’t compete on a retail shelf, doesn’t mean you shouldn’t focus on your differentiators to light the fire of interest with your target audience. Figure out what gets me going, and by God get me excited. As consumers, we want to be educated. We need to be engaged. And we must understand why we should care.
Your company has a story to tell– whatever it is you’re trying to sell – so do us all a favor, and figure out how to tell it.
