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.”

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.

For anyone who’s involved in customer experience management, brand research and consulting projects and/or other complex, cross silo and segment business issues, the concept of the “Wicked Problem” is a fascinating one.

Coined by Horst Rittel, a Wicked Problem is one for which each attempt to create a solution changes the understanding of the problem. In brief, Wicked Problems cannot be solved in a traditional linear fashion, because the definition of the problem continues to evolve as new hypothesis are developed and put forth.

As stated by famed educator and Dr. Laurence J. Peter (who also formulated the Peter Principle) “Some problems are so complex that you have to be highly intelligent and well informed just to be undecided about them.”

Because the understanding of the Wicked Problem evolves the longer you work to solve it, finding an acceptable solution requires powerful processes for getting everyone on the same page. According to Rittel, Wicked Problems always occur in a social context – the wickedness of the problem reflects the diversity among the stakeholders in the problem. For instance, in our experience, the more complicated the brand, the greater the diversity and the higher the stakes for each individual involved in the process.

Some specific aspects of “problem wickedness” include:
1. You don’t understand the problem until you have developed a solution. Indeed, there is no definitive statement of “The Problem.” The problem is ill-structured, an evolving set of interlocking issues and constraints.

2. Wicked problems have no stopping rule. Since there is no definitive “The Problem”, there is also no definitive “The Solution.”

3. Solutions to wicked problems are not right or wrong, simply “better,” “worse,” “good enough,” or “not good enough.”

4. Every wicked problem is essentially unique and novel. There are so many factors and conditions that no two wicked problems are alike, and the solutions to them will always be custom designed and fitted.

5. Every solution to a wicked problem is a “one-shot operation,” and every attempt has consequences. You can’t learn about the problem without trying solutions.

6. Wicked problems have no given alternative solutions. Therefore, it is a matter of creativity to devise potential solutions, and a matter of judgment to determine which are valid, and which should be pursued and implemented.

Indeed, it sounds like virtually all brand, marketing and customer experience related projects for complex organizations are about solving what are inherently wicked problems. And this, of course, is what makes our business – the business of solving the “wicked” problems that exist between organizations and their customers– both so fascinating, and so difficult. Because at the end of the day, it is our passion, our talent and our intellect that drives our creativity, and our experience that drives our judgment. Of course, we always back this up with research – customer research, employee research and competitor research – because the best creativity can be wasted if you’re unable to measure your success, and improve upon it.

Unfortunately, the concept of the Wicked Problem underscores something that we’ve always known, and experience anew each time we start a new engagement. Though processes and systems for solving Wicked Problems do help – Touchpoint Mapping and Brand Mapping have been proven many times – every solution is fresh, new and entirely relevant only to the situation at hand.

Your brand is an experience, ideally resulting from a successfully planned and delivered combination of messages and interactions across multiple Touchpoints.

To keep these experiences (and brand perceptions) positive and appropriate, companies must consistently touch customers and prospects in ways that build satisfaction, trust and loyalty, at each stage of their Customer Relationship Lifecycle. This systematic process creates expectations that must be regularly met, resulting in customer confidence and an emotional connection–the foundation for all successful brands.

The downside, of course, is when good Touchpoints go bad. How many customers can you lose due to dissatisfaction to a call center employee with an attitude, or an accent they cannot understand?

You get it. It’s pretty simple, really: Managing the brand experience across all Touchpoints matters.

Brand Promise. Sounds good, doesn’t it? But what does it really mean to make and support these statements, and what is the cost of less-than-perfect delivery? In truth, achieving the outcomes that delivering on this can accomplish requires near-flawless execution in making, delivering, keeping, and reinforcing the brand promise.

While appropriately positioning the organization and the development of a branding and messaging platform are critical first steps, there must also be steadfast, across-the-board organizational commitment to developing and implementing the structure, systems, and staffing needed to effectively deliver on the promise.

Our experience shows us that the benefits of making and keeping a brand promise are well worth it. Here’s a quick primer on our point-of-view:

Defining (and Making) the Promise. Your promise needs to be relevant, compelling, believable and achievable – and supported by the values that drive your organization – to make a deep connection with your target audiences. To define it, you must understand your organization, your customers and your competition.

Delivering the Promise. The responsibility for delivering the promise message falls primarily on the sales and marketing team, while management and employees in the field deliver on the elements of the promise on a daily basis.

Keeping the Promise. Your success hinges on the competency and commitment of line staff, IT, call center, outsourced vendors, etc. to deliver on the promise at each Touchpoint. So much of your relationship with customers, and of your ability to keep your promises to them, will depend on the precise coordination and structure of your systems and staff. Leverage the processes, procedures and systems needed to effectively communicate with each other, and your customers will experience the positive results.

Feedback: Have we kept our promise? The only way to know that you are making, delivering, and keeping the right promises is to continually get feedback from your customers. Utilizing Customer Listening Tools – including those in MCorp’s Customer Experience Mapping toolkit – can be qualitative, or it can be a formal, quantitative process for measuring gaps between customer satisfaction, attitudes, and needs. Finally, processes must be in place for easily and systematically collecting, reviewing, and acting upon this feedback.

Those organizations that successfully connect with customers and deliver on a relevant promise reap huge, quantifiable benefits in areas such as retention, loyalty, customer NPV (“Net Present Value”) and LCV (“Lifetime Customer Value”). The flip side for those organizations which promise one thing and deliver an experience that just doesn’t match up is the cynicism, increased churn, and reduced loyalty and satisfaction which can negatively affect relationships with both internal (employees) and external (customers, analysts, partners, etc.) audiences.

Regardless of industry, shareholders (and those that influence them, such as media and analysts) are a core audience. So what are the best ways to “touch” these key stakeholders, and build a loyal shareholder following?

In the age of “what have you done for me lately?” investors are increasingly fickle. The ability to retain investors for the long term drives valuation. To help those willing, we’ve identified key Investor & Media Relations concepts that every management team (of publicly traded companies or companies that wish to become public) should understand, and address.

Create (and articulate) a strategic plan.
Long term thinking in a short term world. It is not impossible, but must be strategically coordinated across your organization, and articulated in a way that investors understand, believe and support. Investors must understand the direction your company is headed and develop reasonable expectations for determining success. If investors’ goals are met, they will provide you with the capital “runway” to execute your vision.

Invest in online.
Unsurprisingly, companies, investors and other stakeholders are now shifting their focus to the internet. Investors need (and want) to be steered to the web whenever there are significant corporate events. Annual reports, recorded earnings calls, conference presentations and other investor updates should be available through the website. By keeping investors on your site, you control the interaction and can help shape investors’ perceptions.

The annual report is still your most important investor touchpoint.
Despite the preponderance of other material available to investors, the annual is still king. Take the time and effort to ensure a satisfactory product that delivers the proper message to investors. Of primary importance: lay the foundation for investor expectations in the CEO’s letter. This is the bar against which investors measure fundamental execution.

Analyst coverage helps drive loyalty.
Getting analyst coverage will benefit corporations in both investor interest and market valuation. Investors need assistance with due diligence, and analysts provide this service.

Press coverage is essential to building (and maintaining) a broad investor base.
There is no better way to inform investors of your story than through unbiased local trades and national media. Seize every opportunity to present your firm to the outside world, and leverage your coverage online.

There is no such thing as too much investor communication.
Your strategic plan must be delivered to investors. Never catch investors by surprise. Pre-announce earnings dates, conference calls and speaking engagements. Let investors know what to expect, and when to expect it.

Focus on running your business.
Whether it is accomplished internally or outsourced professionally, Investor Relations is a full time job. Do not expect your CEO, CFO, or other professional to be able to competently handle both their job and IR duties. Investors expect, and deserve, the attention that an “ownership” stake implies. Of course, not all investors are created equal, any more than your customers are.

Investors may be your most important customers.
Without an equity valuation, your business would disappear. Deal with investors honestly and professionally. Never ignore investor questions, but respond immediately. Creating loyalty is an important step towards achieving success as a public company.