BLOG

The Body, Mind and Soul of Digitally Evolved Organizations

Getting employees to believe in transformation efforts requires a bold new way of thinking.

Why Corporate Culture is the Biggest Impediment to Digital Transformation

When it comes to digital transformation, many companies say the hardest part is changing the culture itself. They often do a great job signposting new corporate values, like innovation and agility. They hold town halls and may even pour millions into expensive technology initiatives. At best, they get poor adoption rates. But often the worst happens: Nothing changes.

After a few rounds of announcements, disappointed (and increasingly cynical) employees sit back and wait. Their leaders tell them that things must change, but then offer platitudes about their position as traditional industry leaders. “There will always be a need for pharmaceutical sales reps,” they might say, or “Those start-ups don’t even make money.”

Meanwhile, employees watch, keenly aware of digital natives that threaten to disrupt their own industry. They have few choices: They can leave for fleeter firms, or stay put, watching the clock tick.

Do Your Employees Believe in Your Digital Transformation?

For most older organizations, the digital age presents a very specific challenge: How might we compete when the assumptions about where and how value is created have changed? They know the answers lie in digital, and it’s not as though these born-before-the-Internet companies have been standing still. Most have many digital things–websites, sophisticated email strategies, social media and probably at least one mobile application.

Still, progress is slow. And employees, who spend their outside time experiencing companies like Amazon, Netflix and Spotify, are painfully aware of how behind the curve their own employers are. Convincing them that true digital transformation is even plausible, never mind possible, is difficult. Why should they believe you?

“How might we compete when the assumptions about where and how value is created have changed?”

What makes it worse is that even though employees can see–everyone can see–that the company needs to make radical changes, internal strategy teams focus on gradual tweaks and long-term transformation, to minimize disruption. While employees can see the company needs to travel vast distances to catch up, their employers are only taking baby steps.

Relatively few organizations have truly asked themselves, “What would we look like if we’d been designed in the last 20 years?” and then set a rapid roadmap, three years at the most, for working backward to create those capabilities and the culture to support them.

Challenges of an Incremental Approach to Digital Transformation

And the unrecognized truth is that taking an incremental approach to digital transformation comes at a tremendous cost. The widely reported “retail apocalypse” is an obvious example. Over the last 25 years, nearly all retailers worked hard, but slowly, to launch to e-commerce websites and mobile apps. They tried to balance conflicts between physical and virtual stores, creating expensive loyalty programs that gathered customer data.

But their incremental approach was often too little, too late. In the U.S., for example, grocers didn’t fully anticipate the speed with which Amazon and Walmart would enter their markets with advanced digital capabilities for serving shoppers. Dozens of chains, including Toys R Us and Payless Shoes, were forced into bankruptcy by online competitors. Mainstream and luxury department stores, from JC Penney in the US to Harvey Nichols in the UK, are teetering. Across Europe, high streets have been similarly decimated, with House of Fraser the latest to struggle. And in Asia, online retail continues to sizzle, led by Alibaba’s Taobao and Tmall, as well as JD.com.

That’s just one industry. Look at what Airbnb is doing to hotels and Uber and Lyft to taxi operators, or the way Grab is shaking up food delivery in Asia. These digital companies are succeeding because they know we live in an experience-first world. Customer wants are rapidly evolving, requiring dramatically new levels of organizational flexibility, agility and adaptability.

And that responsiveness is about technology, yes. But it’s very much about humans. Data can tell us what people have done in the past and what they need, but it can’t create new products and services. Digital technology can’t see trends, nor help you decide how to shift a business as markets evolve. It can’t drive culture, those values and beliefs that make people want to come to work for you every day.

Transforming an Organization’s Body, Mind and Soul

At Prophet, we’ve started thinking about digital transformation as rewiring the Body, Mind and Soul of the enterprise.

Body: Reinvent the Operating Model

A company is trained and equipped to achieve its vision if it can do three seemingly simple things:

  • Design customer-focused business processes unencumbered by bureaucracy
  • Create an organization with the right roles, empowered to make those processes fleet and effective
  • Shape a governance structure that makes it supremely easy to do the right things, versus being designed purely to block the wrong things

Modern operating models frequently depart from traditional approaches, organizing communities of practice instead of departments and using multi-disciplinary teams to understand customer needs and design new products, services and experiences.

For instance, a large financial services firm determined that its key strategic goal was to dominate the industry in customer experience and differentiate itself through service. But it was bogged down by business units so siloed that its best customers, those who purchased the broadest range of products, got the worst experience. Working with our team, the leaders agreed on a digital transformation vision. Two years after launching its new operating model, it has moved from being the customer-experience laggard to an industry leader, according to several analysts.

Mind: Energize the Talent

The relentless pace of innovation means that many companies struggle with a mismatch of skills and capabilities. This can even happen to digital companies: We recently worked with a global tech behemoth that couldn’t find a market for its newest products. It wanted to deliver innovative Software-as-a-Service (SaaS) products targeted at healthcare, but its talent wasn’t up to it. Product managers had never developed SaaS products before. Project managers weren’t trained in agile software development.

Addressing challenges within the Mind of your organization means pinpointing these mismatches, and either building skills through training or recruiting new talent.

Soul: Create More Meaning

The corporate soul, like the individual one, is as important as it is subtle. We approach Soul starting with the very DNA of firm: by identifying the purpose of an organization. We then begin defining the supporting values that make the firm a place that people love to work. Our recent research on purpose, based on 350 business leaders, confirms that this purpose must be evident to employees (and consumers) every single day.

And it must address big questions: What role do we play in the community? How well do we manage our impact on the environment? Is our workforce diverse? Are we adapting to technological change? Are we providing the retraining and opportunities that employees need to adjust to an increasingly automated world? Those with a well-defined purpose, like Starbucks, Patagonia and LEGO, inspire the way their people think and work toward the kinds of transformation that ensure values for customers and meaning in the work itself.


FINAL THOUGHTS

Balancing all three is challenging. But healthy human-centered enterprises recognize that mind, body and soul are connected. Organizational health–and the ability to step boldly into future transformation–comes from synchronicity between the three.

Learn more about how to spearhead your brand’s successful digital transformation.

BLOG

How Gatorade Fueled Its Business Growth with Customer Insights

To regain relevance, this brand learned the power of unbiased listening, increasing annual sales by 15%.

While the key to unprecedented business growth is sometimes hidden, you can find it if you know where to look: consumer data.

Gatorade Finds the Key to Unlocking Business Growth

Once a leader of the $6BN sports hydration category, in 2006 Gatorade faced a double-digit volume decline. The brand needed a growth strategy that would allow them to reignite consumers’ relationship with the brand, reach new consumers and ultimately drive revenue.

To accomplish this, Gatorade partnered with Prophet on an extensive consumer research project to understand where the opportunities for growth existed. This research uncovered two extremely valuable insights:

1. Gatorade’s Brand Positioning was Losing Relevance

The brand transitioned its marketplace position away from its former status as a “science of hydration” brand toward a lifestyle brand. While this shift was intentional, it turned off key audience groups like competitive athletes and teen athletes – who no longer perceived the brand to offer significant performance benefits beyond thirst quench. Direct competitors like Powerade and Powerade Zero, and other low calories “lifestyle waters,” such as Vitamin Water and SoBe life water were encroaching the market share and relevance within targeted segments of consumers.

2. A Glaring Gap in the Market Existed

The former insight led to the realization that no brand satisfied the whole spectrum of athletes’ nutritional needs. Athletes sought a product that provided benefits from hydration to energy to recovery – and Gatorade presented highly stretchable brand equity into the adjacent sports nutrition category, pre-, during, post-acute sports events and surrounding more foundational athletic occasions.

Building a New Growth Strategy for Gatorade

These insights lead to the development of a two-pronged strategy to drive growth. The approach included:

Prong 1: Reclaim Hydration Leadership

The master brand, Gatorade, needed to be re-positioned back to its foundation in hydration. To reclaim its leadership of the hydration space, it needed to move beyond “thirst-quenching” to “performance hydration.”  As part of its bid to reclaim leadership in hydration among competitive athletes, Gatorade launched G-Series – Prime, Perform and Recover. This transformed the brand from a generic all-athletic-occasion drink that came in different flavors to a packaged solution covering specific athletic occasions with tailored nutrition ingredients, thus opening the doors to the sports fuel market.

Prong 2: Elevate the Brand from Hydration to Sports Fuel

Anchored on the occasion-specific benefits desired by athletes, the brand was poised to elevate itself beyond the $6BN sports hydration category and into the $72BN sports fuel space; moving from “science and soul of hydration” to “fuel to help athletes win from within”. This was actualized through creating a lineup of products targeting both the hydration and nutrition needs surrounding intensive athletic occasions, across the moments before, during, and after these occasions.

We developed a brand portfolio and architecture to align with other target athlete segments; with clear value propositions for each sub-brand. This led to the launch of G Series Pro – an intense sports fuel targeting endurance athletes. In 2010, it also launched G Series Fit, targeting low-calorie consumption occasions for passionate exercisers.

The Impact of Gatorade’s New Growth Strategy

Due to this strategy, the double-digit declines the brand had been experiencing were reversed to 15 percent growth in just one year. Since its inception, Gatorade has seen over $2 billion dollars in franchise revenue increases and is now the fastest-growing brand in the PepsiCo portfolio (and its only double-digit growth brand for over five years).


FINAL THOUGHTS

Breakthrough Insights Hold the Key to Breakthrough Growth

Identifying consumer insights that have breakthrough growth potential like this example with Gatorade is a tough but rewarding task. To uncover such insights, analysts need to keep a few things in mind:

  1. The market doesn’t lie, and analysts should be bold. When we first introduced the idea for T-mobile’s Uncarrier strategy; it was met with some apprehension, just as when we first talked about nutrition to Gatorade. A bold strategy anchored in solid customer insights is just what an organization needs to ignite its next wave of growth and success. It takes guts to point out (and stick to) a category pain point, but it’s these pain points that lead to breakthrough growth.
  2. Analysts need to understand what’s most important to the business by getting into the minds of the executive team – what keeps them up at night? How do they form their hypotheses? How can we make this data meaningful to them? Fishing outside of this context is futile and irrelevant.
  3. Be an anonymous, unbiased power listener who is tuned into the trends of the market. The challenge nowadays is too much data that still requires human processing and integration.

BLOG

How to Localize Your Brand Name for the Chinese Market

“Better than a thousand tastes.” “Anything can be happy.” “Sparrow’s nest coffee.”

Are these phrases, taglines, slogans, or riddles? Actually, they’re none of the above, but rather, the translated Chinese names of three brands you probably know: Subway, Pepsi and Nestle, respectively.

Choosing a name can make or break any brand experience. And as organizations look to expand globally, considering how your name comes to life in new markets—what it means, how it’s pronounced, and what it evokes—is key to connecting with new audiences around the world.

Chinese Brand Names

The Chinese language is character based, and because each character has its own meaning, every brand name can be interpreted as the sum of its parts. What’s more, some characters can have the same pronunciation but a drastically different meaning. Characters that are positive or neutral on their own can become negative when combined. Which means an elegant English or coined name can, if you’re not careful, become impossible to pronounce, confusing or even offensive to native Chinese speakers.

This is why most organizations pair their global name with a Chinese name that replicates its pronunciation to help Chinese consumers say and understand it.

And while a luxury brand may see Chinese consumers fight through pronunciation challenges to use its global name as a sign of a premium product or experience, more middle market brands risk rejection by not adapting their name for this market.

Thinking about translating your brand name into Chinese can feel overwhelming and complicated. At Prophet, with offices in Hong Kong and Shanghai, and the thought leadership of Tom Doctoroff, Chief Cultural Insights Officer and one of the world’s foremost experts on Chinese consumer behavior, we understand the dynamics at play when bringing names to China.

5 Tips When Localizing Your Brand Name in China

We’ve pulled together five tips to help organizations create a successful name and demonstrate relevance to Chinese consumers.

1.  Set the Stage – Identify Your Primary Dialect

You probably know that the Chinese language is highly complex, and perhaps better defined as a group of related languages, rather than one universal language.

Used in mainland China and Taiwan, Mandarin is the official language of China and overall, spoken by the most people, while Cantonese is spoken in Hong Kong and the Guangdong province. And while Mandarin and Cantonese share a written system of characters, how a character is pronounced comes down to where in China you are, and what dialect you are using.

Keep in mind, these are just two of the most popular dialects, but there are seven traditionally classified dialect groups, and hundreds of subgroups. But global brands usually focus on connecting with the largest population of consumers, which typically means accommodating Mandarin speakers first. However, conducting linguistic disaster checks are critical to ensure that a perfectly innocent name in Mandarin doesn’t invite ridicule in Cantonese—or any other prevalent dialects in your target market.

You might be wondering—how do I engage with Mandarin or Cantonese without being able to read the language? For English speakers, we often see a Romanized version of Chinese using pinyin, which is the official way to spell and pronounce Chinese characters using the English alphabet. But these sounds can have radically different meanings depending on which characters are being used. Take, for example, ‘yōu’ – characters you can use for this pinyin include: 优 (excellent); 悠 (tradition); or 佑 (bless).

2. Consider Your Options – What Type of Name Does Your Brand Require?

With thousands of Chinese characters, many with multiple meanings, adapting your name for China is a tricky business. There are two main factors to consider here; the phonetic link to your global name (how much they sound alike), and your evocative link (how much the Chinese name conveys the story of the original name). Some brands prioritize one of the other, but many do both.

Strong Phonetic / Weak Evocative Link

A strong phonetic/weak evocative link replicates the sound of the English name using Chinese characters as closely as possible, without mimicking the literal meaning. Adidas, or 阿迪达斯 in Chinese characters, and Ādídásī in pinyin, is a strictly phonetic transliteration. This strategy makes sense for the sportswear company, since it’s a namesake brand (after founder Adolf Dassler), and carries significant equity. While the literal translation doesn’t have a meaningful definition, it is recognizable and consistent with the global brand.

Weak Phonetic / Strong Evocative Link

In some cases, phonetic similarity may not be as important to the brand. For example, Marriott, 万豪 or wàn háo, does not sound the same as its English name, but can be translated to “million” and “grand,” evoking a feeling of luxury and style that reflects its global brand equities.

Strong Phonetic / Strong Evocative Link

Many believe that a best-in-class name brings both a phonetic similarity and strong evocative meaning to bear. Coca-Cola is frequently brought up as the gold standard, and for good reason. Before standardizing their Chinese name, Coca-Cola was transliterated at the local level by shop owners in many ways, having a different literal meaning from one shop to the next (“bite the wax tadpole” is the most infamous). In 1928, Coca-Cola trademarked their official Chinese name, 可口可樂 or kě kǒu kě lè, which can be translated as “makes mouths happy” or sometimes “yummy” and “joy”. They now have a close aural approximation, and one that lends a positive association.

3. What Do You Want Your Name to Say About Your Brand?

While the English name of a brand lends international credibility, “Your Chinese name can be an opportunity to create thematic resonance,” Doctoroff says. “The need to elevate the proposition through the brand name is important both for memorability’s sake, but also to give a sense of what the role of the brand in the consumer’s life is.”

For this reason, many businesses choose to transliterate their names to be aspirational articulations of the brand’s higher purpose and its reason for being, rather than a direct translation of the goods or services. Transliterations often rely on images and metaphors, as well as benefit-oriented language, around benefits like “happiness” and “prosperity”.

For example, take the shampoo brand, Head & Shoulders, which becomes 海飞丝(hǎi fēi sī), translating to “flying silk of the sea.”

The exception? Those iconic brands who not only own a word, but an image. Apple is translated directly to 苹果, (píngguŏ). “Because of its iconic stature, the pervasive use of the apple in its visual iconography, and the fact that ‘apple’ is a real word name, it makes sense for it to be translated, rather than transliterated,” says Doctoroff.

4. Recognize that Your Name Can’t Communicate Everything

It may be tempting to load your Chinese name with many characters to augment your brand’s storytelling. It’s an issue we struggle with in English naming—why can’t my name convey everything about my business or offer? But just as they are in English, considerations like succinctness, memorability and ease of pronunciation are still key in Chinese. Consider the simplicity of BMW, 宝马 (bǎo mǎ), which literally means “precious horse”. It’s meaningful—
and not overly complicated.

As ever, a name is one part of your brand’s overall strategy. When LinkedIn officially entered China with a new Chinese name, 领英 (lǐng yīng), meaning “leadership” and “elite”, they focused on a series of localization moves through press releases, partner endorsements and China-specific offerings. This allowed them to communicate the name change, while activating their value proposition and demonstrating their commitment to the Chinese market.

5. Consider Your Own Brand

One name you may not have considered translating? Your own. While it is common for professionals that frequently conduct business in China to create phonetic adaptations of their names to help Chinese colleagues pronounce them, you can also take this opportunity to create a memorable name that communicates something about your personal brand.

Doctoroff, for example, is known exclusively in China as 唐锐涛 or Tang Rui Tao. The first character points to the Tang Dynasty, the second means ‘sharp’ and the third, ‘a big wave’. Through his name, Tom signals his respect for Chinese language and culture, and conveys his own value proposition to his colleagues and partners.


FINAL THOUGHTS

How you approach crafting a Chinese brand name will depend on your industry, your original name and what you’re trying to achieve. It can seem daunting, but with the right considerations—and the right native speakers on your team to guide you—your Chinese name can be an effective first impression to a discerning new audience.

Learn more about Prophet’s brand and experience expertise!

Brand Equity – Brand Value_1_A

BLOG

5 Fundamental Customer Experience Shifts Companies Need to Make

Rising consumer expectations means companies need to rethink what they mean by customer-centricity.

Evolved companies aren’t customer-centric. They’re customer experience-centric.

No matter who their customers are, these companies understand they are in the business of experience and they design their business models explicitly to compete on experience innovation. Amazon may have set the pace, but across every industry–from Lemonade in insurance to Coupa in procurement software to Veeva in pharmaceutical salesforce automation–companies are changing, and customers are responding.

Of course, everyone knows customer experience is important, and these days, it’s a mandate in every boardroom. Business leaders are realizing that memorable and engaging experiences aren’t just the key to growth, they’re the currency of the future.

But very few are doing it well. Spending money on experience and making it work are two different things. And as consumer expectations continue to rise, it’s harder for those offering merely ordinary experiences to catch up.

Challenges of Delivering Seamless Customer Experiences

While many companies are solving experience problems in blended digital and physical environments that delight customers in new ways, that complexity is challenging. Companies are scrambling to keep experiences consistent and on message across channels, markets and lines of business. And while messaging was once clearly under the control of marketing, the responsibility for experience, which now requires help from many disciplines, is diffuse, owned and driven by different departments.

Consumers, of course, don’t care about how complex or hard it is to deliver a stellar experience. They just know a few of their favorite brands that make it work every time, solving their problems and offering consistent ease of use—and the ones that fall short.

“Evolved companies aren’t customer-centric. They’re customer experience-centric.”

Exceptional experiences can only come from those using a holistic approach. Organizations must make philosophical and structural changes to truly be in the “business of experience.”
As many of those who have tried it know engaging contextual experiences don’t invent themselves. It takes a thoughtful reconsideration of the way employees collaborate with each other, capture data, set priorities, make decisions and measure success.

5 Fundamental Customer Experience Shifts Companies Need to Make

1. Experience for Its Own Sake to Bottom-Line Outcomes

Designing a magical, frictionless experience for its own sake is pointless. As companies get into the business of experience, they understand that the real objective is business impact, such as boosting revenue or increasing customer lifetime value. Clear business goals must precede design. Prophet partnered with an international life insurance company to build a CX playbook rooted in measurable business outcomes. After launching several rapid pilots—and seeing a real impact in conversion rates—the organization rallied around this new way of operating. The proof was in the metrics.

2. Brand Engagement to True Customer Obsession

Instead of thinking about customers at each touchpoint, genuinely understanding them calls for a much bigger picture. What worries them? What are their tensions? Their hopes? This holistic picture is essential and sometimes leads to big (and uncomfortable) realizations, such as the need to change the business model. This is how disrupters such as Casper, Lyft and Netflix have been able to become such disruptive forces in (and beyond) their industries; they became obsessed with unmet customer needs in their lives—not just how those customers interact with brands.

3. Brand as a Passive Voice in Experience to Experience Paying Off the Brand Promise

Branding is no longer just an element of experience; it has to drive it. The best experiences envelop customers, proving the brand’s value by offering something deeply personal. And conversely, poor–or even average–experiences undo that promise. After all, customers value brands more for the experiences they create than the promises they make.

4. Fragmented Touchpoints to Pervasive Digital-Powered Execution

In a world where customers leave digital breadcrumbs everywhere, running a business of separate islands —advertising here, in-store experience there– no longer works. Consumers have high expectations of consistency. When a furniture retailer asked us to reimagine its omnichannel experience, we put ourselves in the shoes of consumers, recognizing that the customer bounces back and forth between in-store and online constantly. We designed digital and retail touchpoints offering customers a consistent and personalized experience at every step of their buying journey.

5. Ad-Hoc Change Efforts to Change with Accountability

Initially, baby steps are required. But there soon needs to be a greater commitment, changing the way companies operate and collaborate. It calls for drafting the right technology roadmap and connecting decision-making to the best data. Moving along this curve requires conscious and vocal commitment from leadership.


FINAL THOUGHTS

Experience Is The Face of Business Strategy

Experience is where the brand promise is either paid off or destroyed. At the same time, it is a way of building value that competitors can’t easily copy. The brand is the anchor that drives experience design, putting something in the marketplace that leaves an indelible impression in the mind of the customer.

Evolved enterprises understand that they are, at heart, experience-driven. They know the key ingredients are more than what the customer sees, and also take into account brand and operational models. And they strive to have these components work together, all reorienting the company to be in the business of experience.

Learn how Prophet can help your company become the customer-experience-driven enterprise that it needs to be.

BLOG

B2B Branding: Why You Need It More Than Ever

The secret is understanding that business buyers are consumers, too.

Companies that sell directly to other businesses have long debated the importance of a distinct brand strategy. And many still argue it’s a waste of money and effort: They say customers base their purchases on functional decisions like cost, quality and availability, not the emotional pull of brands. We couldn’t disagree more: With major forces like globalization and digital commerce upending markets, we’ve got a front-row seat to the many ways business-to-business (B2B) branding is more critical than ever.

How B2B Branding Differs from B2C

Of course, B2B markets are distinctly different from those that sell to consumers. The buying cycle is usually longer, the requirements are better defined, more people are involved and the stakes are typically higher. These are functional decisions: On the surface, there’s no comparison between American Airlines buying $12 billion worth of jets from Boeing, for example, to a kid shelling out 89 cents for a bag of Skittles.

But the truth is, there’s a difference between rational and functional buying. B2B transactions are typically heavily weighed and considered purchases. Functional requirements must be met. But there are higher-order elements in play as well. While attributes like competitive pricing, delivery and technical support drive sales, there’s much more to your customer’s decision.

“When you’re easier to do business with, your customers feel it. It makes their work more efficient and predictable. They are more confident and less anxious. They see you as a partner to their business and an ally in their struggles.”

Mike Fleming

These higher-order traits also drive buying decisions and are much harder for competitors to replicate. When you’re easier to do business with, your customers feel it. It makes their work more efficient and predictable. They are more confident and less anxious. They see you as a partner to their business and an ally in their struggles. When you bring your customers fresh insights and ideas, they feel that, too. They come to you more often not just to buy products, but to help solve problems.

This is precisely the power of brands. Instead of just relying on superstar account executives to carry this message one meeting at a time, the strongest B2B companies create brands that do it for them.

How to Build a Successful B2B Brand

Smart branding makes it easier for the marketing, sales, product and technology teams to do their real work: Develop and provide solutions that help customers grow. For this reason, we’ve outlined some of the most important considerations:

Use Brand Stories to Reinforce Business Strategies

Look closely at the fastest-growing B2B businesses, and you’ll see they are all propelled by a brand story that supports their business strategy. These brands, like Salesforce and XPO Logistics, have defined their business around the benefits they provide to customers, not the products and services they offer. They intentionally link brand and strategy in a way that makes it easier to move into–and even create–new categories. The brand is purpose-built for the company’s mission and also for the commercial opportunities they see coming.

Yes, B2B brands need a story. Your customers want to know what you believe, what you can do, and where you can go with them. For inspiration, spend a little time watching the masterful ways Getty Images is injecting its mission into new products, or Adobe’s award-winning story of creating lost masterpieces.

Remember Your Brand is Experience and Experience is Your Brand

Experiences, not messages, define brands. You can have the most compelling brand message in your category, but it doesn’t matter if the experience isn’t reinforcing it. For B2B businesses, it’s increasingly important to start with the experience your customers want as you define your brand.

The strongest B2B brands build highly relevant and hard-to-replicate experiences. From the first impressions they make in the relationship building and early evaluation phase, how they integrate with their customer’s business, the expertise and problem-solving they bring, it is all connected back to their brand.

Are the employees designing products, services and customer touchpoints all starting with a shared understanding of the brand, and what makes it relevant and distinct to customers? The strongest B2B brands have achieved their positions by ensuring that everyone understands the brand attributes and how those traits show up throughout the experience. Every interaction, at each step of the purchase process and beyond, makes it clear that they are not just vendors, but partners. Companies like American Express and MailChimp are succeeding because they take this partnership so seriously, creating steady streams of content and interaction that inspire and inform experiences.

Your Brand Goes Far Beyond Customers

While a strong brand identity helps B2B companies grow faster than generic competitors, it can also cement relationships and connections with other key audiences.

Employees and prospective employees also benefit from stronger brands. Increasingly, people care about the story of who they work for and expect a clear purpose and strategy. They want leadership to articulate that brand and create a team they believe in. Brands play such an essential part in making sure a company’s talent is engaged that many companies are now defining an “employer brand” that works in concert with the “customer brand,” treating it as two sides of the same coin. The businesses that use their brand as a storytelling vessel for current and prospective talent are winning the intensifying recruiting wars.

“The businesses that use their brand as a storytelling vessel for current and prospective talent are winning the intensifying recruiting wars.”

Mike Fleming

It’s no surprise that the largest and most competitive B2B companies, like IBM, Microsoft, Cisco, GE and UPS, continue to invest so carefully in branding campaigns: Their workforces are enormous and recruiting and retention are essential to maintaining their edge.

Wall Street is another critical audience, and well-defined B2B brands can give investors and analysts a view into the business that financial statements and forward-looking guidance alone cannot. How do you want analysts to value your business’ growth prospects? What peers do you want to use as benchmarks? Strong B2B brands have found out how to connect their story with investors in a way that is both credible and compelling. When UnitedHealth Group wanted to shift how investors viewed their business, from a carrier to full-scale health services, it changed the narrative.


FINAL THOUGHTS

What does all this mean for the future? As more companies step up their efforts to build strong B2B brands, we expect we’ll see more innovation in ways that convey value to both primary and secondary audiences.

Some of these efforts will likely look more like B2C efforts, including smarter content marketing and more seamless experiences using mobile technology. They will likely energize employees for greater engagement. They will grow faster than competitors: How strong your brand can make the difference between negotiating price reductions and capturing price premiums, and between merely holding onto core volume and finding the next opportunity. These strengthened brands will have that extra edge, providing an intangible value that goes one step further than price or function.

Learn how Prophet’s brand experience consulting helps create more powerful and relevant brands.

BLOG

Localization Is the Key to Unlocking Relevance and Driving Growth

It’s not always easy to translate global purpose into regional efforts. But it’s worth the effort.

Lost in Translation

In today’s economy, nothing matters more than a “customer first” mindset. But even the most customer-obsessed companies falter when they fail to translate their global purpose into localized efforts. Take, for example, Marks & Spencer, who announced earlier this year that they would halt online sales in China – just 2 years after also closing down their brick and mortar stores in the market – due to disappointing sales because they failed to adapt to the tastes of Chinese consumers.

The importance of localization seems so evident that it’s hard to explain why so many companies undervalue it. To some extent, the tendency to value globalization over localization stems from the historical emphasis brands have placed on centralization and consistency. But, while a certain degree of consistency is critical for all brands and does bring substantial business efficiencies, brands that tend to be most successful are those that manage to balance the desire for global standards with the need for local flexibility. Brands that are dynamic and ‘living’ versus static and confined.

It’s a strategy that is becoming increasingly important for global companies. “Localization of your brand proposition is ever more important in today’s digitalized world, where consumers expect to be able to cherry-pick and create their personalized value ecosystem,” says Akira Mitsumasu, VP of products, planning and services at Japan Airlines. “Having local knowledge and understanding of how to fit into that value ecosystem is essential to stay relevant.”

How localization fuels relevance

At Prophet, we have identified this obsessive focus on customers and their needs as one of the key pillars of building brand relevance and driving growth. Our research shows that the strongest brands around the world are those that manage to be relentlessly relevant. Everything these brands invest in, create and bring to market is designed to meet important needs in people’s lives. That’s what makes them indispensable.

When we look at companies that perform well on our Brand Relevance Index, including Nike, Amazon and Samsung, we can see how they use localization as a strategic opportunity for brands. Done right, it provides a potential lever for growth in an era of escalating disruption. It creates more relevance to more people in more markets.

“If you want to be customer-centric, you have to localize,” Li Run, Senior brand director at TCL, recently told us. “Only by understanding consumer needs and providing products and services that meet their local needs and values, can a brand achieve the deepest level of connection – getting beyond acceptance and towards being loved by local consumers.”

While localization is a strategic opportunity for brands everywhere, it is particularly critical in Asia. Growth here is expected to continue to drive the global economy for years to come. As multinationals seek growth in Asia’s diverse economies, localizing their brand and marketing is emerging as a core strategic component.

But it isn’t easy. “Very often when a company comes to Asia with growth plans, it first needs to develop an authentic narrative for the Chinese market,” says Charles Ferguson, Group Chief Commercial Officer at Tricor. “But the mindset and behavior of the Chinese can be very different.”

“Only by understanding consumer needs and providing products and services that meet their local needs and values, can a brand achieve the deepest level of connection – getting beyond acceptance and towards being loved by local consumers.”

Multinationals aren’t the only ones wrestling to find the best approach. More Asian brands are looking beyond their domestic markets for the next wave of growth, and localization will be vital if they are to replicate success at home in other regions.

This is a significant challenge in a part of the world where brand-building is still in its relative infancy. In the consumer electronics industry in China, for example, Oppo and Vivo have been successful with their strategy of investing colossal sums in celebrity endorsements and product placement. But that is unlikely to be sustainable as they expand into new markets. As a result, One Plus (in which Oppo is an investor) have taken a new approach for the Indian smartphone market, using guerilla retail and messaging around ‘the speed you need’ which resonates with Indian consumers desire for technical excellence. This has helped them capture share in the premium tier.

Unlock the power of localization

While localization has the potential to increase brand relevance and accelerate growth, the best approach will look different for every company and every market. Here are the four essential questions senior management and marketers need to ask:

Do I need to localize my brand?

Very often the culture, value system or competitive landscape mean that the benefits you want to stand for are not relevant or even have different meaning. For example, investment company T. Rowe Price uses the tagline “Invest with Confidence” around the world. But the meaning of confidence varies: In Japan, people feel confident when reassured everything is as it should be, while in Hong Kong, confidence comes from access to exclusive information. So how the company communicates and delivers on the same brand promise is tailored in these markets.

Who should I localize for?

In an ideal world, companies might localize certain aspects in all markets, but that’s often not practical. Prioritizing which specific markets, and which consumer segments within those markets, warrant a localized approach is vital. But, are you clear on who you are targeting in different regions? Do you fully understand the attitudinal differences across markets and the implications for your brand? Developing a robust fact-base about the consumer to identify any potential differences is critical.

Budweiser is one example of a global brand that has managed to use a similar brand positioning but targeting a different audience in a way that fits their lifestyle. Their target in China is younger and more premium, so they have devised fresh retail and digital activations tailored to this audience to draw them into the brand experience beyond the product itself.

To what extent do I localize?

There are so many elements that make up your brand strategy and marketing mix. It is hard for companies to know how much change is right. Should you alter your brand promise, product names and logos, the product itself, distribution channels, or simply modify the messaging or visuals? The key is to identify the levers that most impact relevance in the category and market.

At Marriott, for example, the brand’s foundations – its positioning, promise and values – “must be globally consistent,” says Mike Fulkerson, VP, brand and marketing, Asia Pacific. “Keeping those foundational elements is important to meeting the needs of consumers around the world. We are most focused on localizing how we communicate the brands as well as more specific elements of the guest experience, such as food and beverage.”

How can I deliver?

Finally, it’s important to be realistic about the capabilities you have both in-house and through your network of partners, to bring a localized strategy to life in an authentic way. “Having a management team that understands the value of both cultures is very important,” says John Kim, CEO at Burger King Japan. “Look for people with sensitivity, as well as personal depth and maturity, people who can listen and comprehend the ‘why’ behind what people are saying and to decode the underlying values.”


FINAL THOUGHTS

The key to success, after considering all four questions, is finding the mix that best suits your firm, striking a balance between global brand positioning and local elements. For this, you need true consumer insights and an empowered local team to help tailor your approach in meaningful ways. Done right, localization won’t dilute what makes you special as a global player. In each market, it will augment your strengths and bring the brand to life in the most relevant and credible way possible.

Learn more about what we do to help brands grow across the globe.

BLOG

5 Tips to Better Train Executives on Digital Transformation

“What” and “how” are important. But without the “why” of transformation, digital efforts often fail.

If you are leading a digital transformation effort, you know how important it is to get executive buy-in. Yet many leaders have only a tangential grasp of what it means to be “digital” and shy away from getting their hands dirty. Altimeter found that low digital literacy or expertise among employees and leadership was the top challenge facing digital transformation initiatives. What’s frustrating is that while there is a plethora of training and development options, most executives still hang by their fingertips.

The problem is that most of the training programs focus primarily on the “what” and the “how”. What is digital transformation, What are the latest trends and business models you need to know (platforms, virtual reality, 3D printing, etc.), How do you use digital tools to engage with customers and employees, How do you lead a digital transformation process. But without the “why”, two things happen — they either never engage, or they see the potential but other priorities eclipse that early enthusiasm and digital fall to the wayside.

“The solution is to make digital transformation matter to each executive personally.”

The solution is to make digital transformation matter to each executive personally. I have been working with executives on their digital and social efforts for the past decade and the only successful, sustainable programs are those that continually reinforce the “why” of digital transformation.

5 Tips to Better Train & Develop Executives on Digital

Here are five tips on how to design or retool your digital training and development programs to ensure not only that executives develop a digital mindset, but that proactively seek out ways to improve their digital literacy.

  1. Tie digital to strategic objectives. Start with what is already a priority for every executive — the strategic objectives that they are on the hook to deliver. Identify how digital could help them achieve their strategic goal better, faster, more efficiently. There is not a single function or role that is not being impacted by digital — they key is to figure out why digital is important to each person. For example, if top line revenue growth is an objective, how can digital accelerate the decision making process with a target customer set?
  2. Put digital metrics on the executive dashboard. Every executive has a dashboard by which they measure their success. Having identified where digital can have an impact, include a few relevant, personalized digital metrics on the dashboard that connects digital to those strategic objectives.
  3. Enable peer mentoring. There is safety in numbers, and executives are no different. Hearing what’s working — and what’s frustrating — from their peers will give them the confidence and courage to try new things. Formalize the mentoring with “accountability partners” and make digital mentoring an item on the regular executive meeting agenda. Watch out for “reverse mentoring” where a lower-level (and typically younger) digitally-savvy employee is assigned to mentor an executive. The problem is that employees likely doesn’t understand the context of leadership for that executive and focuses on “what” and “how” without the “why”. I have found it infinitely easier to teach an executive how to think and be digital than to teach a digital native how to be a leader.
  4. Expose leaders to digital customers. At one company I’ve worked with, executives take every Thursday afternoon to go out and meet with customers. In the past few years, they’ve added digital channels to the mix, ensuring that executives see how customers use their mobile devices to engage with the company — and their competitors. There’s nothing like experiencing first hand the digital trials and tribulations as customers try to engage digitally with your organization.
  5. Engineer engagement. One of the hardest areas to change is the personal engagement of an executive on digital channels, either internally with employees or externally with customers and partners. In my book, “The Engaged Leader”, I lay out three ways to engage — Listen, Share, and Engage. Find ways to jumpstart direct, personal engagement by executives — the conversation and relationships they develop, if tied to strategic objectives, will sustain their digital engagement.

FINAL THOUGHTS

If you don’t have a digital transformation leadership training developed, here’s a list of executive development digital transformation courses. Before you send your executives off on these courses, make sure that they understand the “why” of digital transformation and ensure that when they return from the course, you have an environment that will nurture their newfound enthusiasm for all things digital.

Altimeter also offers customized digital leadership workshops that can be stand-alone, day-long events or worked into the agenda of your next executive retreat or offsite. Learn more.

BLOG

6 Signature Story Mistakes Brands Make

Too often, companies bury their narrative treasures. It’s time to polish them up and make them pop.

As described in my book “Creating Signature Stories,” a signature story is a “Once upon a time…” narrative describing an experience or relationship that represents who you are as an organization, a narrative that jumps out of the clutter, communicates externally and internally, and is worth sharing. It is significantly more effective than merely describing programs, reciting facts or making logical arguments at gaining attention, changing perceptions, inspiring, persuading and energizing. Not 20% better, but 200% or 300% better. The numbers are just amazing.

Common Mistakes When Creating Signature Stories

So why are so few organizations using signature stories effectively to communicate their strategic messaging – their purpose, culture, value proposition, or strategic programs? There are six common mistakes that occur.

No signature stories at all

The biggest mistake by far is to simply not participate, to not make signature stories a part of the communication effort. There may be references to customers or employees but it is not a “draw me in” narrative. Why? Following the communication brief, describing rather than telling stories seems efficient and logical. The implicit and erroneous assumption is that the audience is rational and will be persuaded by sound logic. Plus, there are usually several communication tasks that fit into a bullet point list but not into any one story. It can also be discouraging trying to find great stories – but the benefit is huge.

No pop

Signature stories that are put out there often simply do not pop. They do not have the intimacy, emotion or interest intensity to break out and be shared. It may be that the offering does not provide material or there are no higher purpose programs that can support great stories. Or there are effective stories, but the effort to find them is lacking or the story heroes may be reluctant to share details. In any case, the stories are shallow and uninvolving.

“Signature stories should be part of any communication program but they will not happen or be effective alone. There needs to be an understanding, resources, and effort behind them.”

Bad presentation

They are not professionally developed because the value of presentation is not recognized or there is a perceived budget limitation. Relying on customers or employees to create a signature story presentation is almost always a recipe for presentation issues. A good presentation cannot help a weak story, but a strong story can be rendered ineffective with a bad presentation. It’s far better to reduce the number of stories and invest in a professional quality presentation.

Stories hidden in a box

Signature stories might be there but are hidden away in a box all by themselves. That means that they will not be accessed by most of the audience. Worse, it means that they are not driving the key communication tasks. The best use of a signature story is to introduce and motivate a communication objective, or to provide an illustration or proof point of communication task. Neither is possible if the stories are organized in their own box.

Story overload

Having many signature stories can provide freshness, energy, visibility, depth, breadth and texture. But there is a tipping point after which there are too many signature stories for employees to manage or for customers to grasp, and they are just overwhelmed. Story overload can make signature stories ineffective when many of the stories are weak and there is no ability to prioritize stories and let the stars shine.

Organizational support is lacking

Signature stories, especially in B2B firms, are born through a process that needs to involve an organizational story unit including editors and videographers that can produce story depth, execute professional presentations and deploy both internally and externally using outlets such as podcasts and social. The organization also needs a story culture that motivates the development of signature stories.


REPORT

Evolved Enterprise

Transformation isn’t about digital platforms. It calls for seamless experiences and flexible organizations.

What does it mean to be an evolved enterprise?

Let’s be honest: most digital transformation efforts aren’t working. People are lost and don’t know where to begin. In fact, according to one survey, 90 percent of digital transformation projects have either fallen below planning expectations, delivered only minor improvements or altogether failed. There is a better way.

We call companies who successfully rise to meet the digital challenge evolved enterprises. Those who evolve think about digital differently. Regardless of what others have said, digital transformation isn’t about implementing digital platforms and cutting-edge technology – it’s about achieving growth by being committed to three key areas:

  • Developing transformational marketing strategies
  • Creating seamless customer experiences
  • Building smarter, faster, more flexible organizations.

To learn more about Prophet’s capabilities in helping companies develop digital transformation strategies that drive growth please read the eBook.

Download The Evolved Enterprise

*Fill in all required fields

Thank you for your interest in Prophet’s research!

BLOG

Building Relevant Brands: A New Way to Win with Customers

An authentic purpose, engaging experiences and a committed corporate culture help create shared brand values.

Ever notice how some brands become part of our daily life so seamlessly that we don’t even think about them until something goes awry, like when Waze fails to detect massive roadwork, or Netflix suggests you might enjoy “Fuller House”?

At Prophet, we know that’s because these brands represent more than a product or service we buy–they’re an integral part of our lives: It’s what we call relentlessly relevant brands. Achieving this level of relevance is no easy feat given the current state of brand-building. For one thing, customers are more in control than ever, and their expectations of brands continue to rise. Technology, from mobile to wearables to Internet-embedded homes, further disrupt those expectations, allowing people to perceive and interact with brands in new ways. Brands that aren’t evolving get lost in the shuffle.

What are Relentlessly Relevant Brands?

Relentlessly relevant brands engage, surprise and connect. They are genuinely modern, finding new ways to delight and deliver. They push themselves to earn and re-earn customers’ loyalty—and they continually redefine what’s possible.

These brands have barreled through passive exposure to come to life, actively participating with customers. They use technology to be more human, creating new experiences to engage with people in ways that enrich their lives. Nike, for example, was once a brand built on bright products, colorful ads and legendary athletes. Today, it’s an ecosystem of dynamic ‘living’ experiences, like the Nike+ community, an ever-expanding universe that includes expert coaching from Nike pros, personal connections to millions of other athletes, training clubs, and valuable partnerships with the likes of Apple, Headspace and ClassPass.

The result is that Nike is one of the few brands with relevance that knows no boundaries, scoring high on our Prophet Brand Relevance IndexTM in every market we track.

How Do You Build Brand Relevance?

Building a relentlessly relevant brand starts with three essential commitments. First, brands must find a strategic purpose that creates shared value. It’s the only way to inspire people, both internally and externally. Next, companies need to engage customers through living brand experiences. And finally, brands need to be powered from the inside out through culture, capabilities, and engagement.

Let’s take a deeper look at the qualities relentlessly relevant brands have.

They Know Their Real Reason-To-Be

These brands know who they are, moving beyond positioning and into purpose. They are centered on a strategic purpose that creates shared value. This brand purpose is the fundamental binding agent between assets and aspirations of the business and customers’ motivations.

Starbucks, of course, sells coffee. But people love it for its bigger ambition, which is to inspire and nurture the human spirit, one person, one cup and one neighborhood at a time.

LEGO has long been a favorite of children for its delightfully consistent little bricks and has integrated those imaginative properties into physical retail, digital enterprises and full-length films. But all of its efforts speak to the purpose that provides so much value to parents: LEGO is inspiring and developing the builders of tomorrow.

It’s not that these brands don’t have a positioning. They do. But what gives them life is that instead of seeing positioning as a static definition of benefit, they understand purpose as fluid and participatory. They know that it’s the people drinking their coffee and building with their toys who make them what they are, and this shared purpose creates common ground. It gives customers and employees permission to build relationships that go beyond the next transaction.

That ignites innovation and growth, and also allows the company to inspire, attract and retain the best talent.

They Create Hyper-Personalized Experiences

Brands that are relentlessly relevant are those that enlarge the universe and engage customers in a living brand experience. That means constant, real-time engagement between customers and brand stewards, giving companies the ability to anticipate, adapt and respond in the context of customers’ lives. It’s what allows brands to create offers that are hyper-personalized, to leverage data in a way that extends experiences and relationships within customers’ lives and to combine human empathy with tech-enabled intelligence. As a result, every interaction delivers a greater business impact.

What makes these experiences so powerful is that they are based on the understanding that the days of either/or are behind us. These experiences are sprinting full speed into and/both. They understand that what they offer people needs to embrace the head and the heart, intelligence and emotion, data and story, and strategy and empathy.

Think of the way Disney keeps making visits to its properties more magical, by using technology to help guests unlock hotel rooms, make a playdate with Snow White, or even pay for a turkey leg. Or Spotify’s uncanny ability to follow you into an Uber, work with Tinder and Bumble to help you find better dates and cranks out playlists made up of songs you’ve never listened to but instantly love.

Customers are fiercely loyal to these experiences: When Samsung faced the massive recall of its Galaxy Note, pundits expected customers to defect in droves. The brand’s mobile phones have come back stronger than ever, precisely because people love the way they perform across devices, including smartwatches, tablets and increasingly, virtual reality.

They’re Powered From the Inside

Relentlessly relevant brands aren’t managed by a marketing team. They are powered through a company’s culture, capabilities and engagement. Because leadership is in alignment, they can catalyze change, motivate and empower employees throughout the organization to create a self-generating business, balancing customer needs and corporate goals.

Relentlessly relevant brands can drive change and quickly turn new ideas into reality. They empower the diversity of thought, customer centricity, collaboration and agility.

Chick-fil-A, for example, is a fast-growing chain of restaurants built around a culture devoted to delivering delicious food with grace, and it strives to have a positive impact on everyone it comes in contact with. It’s no surprise that on our Brand Relevance IndexTM, it scores high for trustworthiness, consistency and having a better product than competitors. From its innovative corporate test chefs, highly-engaged franchisees and hard-working hourly employees, heartfelt hospitality is as meaningful a menu item as its tasty chicken.

Southwest Airlines, the only airline to rank in the Top 50 of our U.S. Index, also recognizes that delivering outstanding customer experiences has to be a company-wide commitment. To deliver on its promise, which it sees as serving passengers with warmth, friendliness, individual pride and a sense of humor, starts with a commitment to treat its employees the same way. From ticket agents to baggage handlers to pilots, customers have come to expect a personal connection they don’t get from other carriers.


FINAL THOUGHTS

Relentlessly relevant brands are growing thriving brands. They have a meaningful role in people’s lives and earn that status each day. This is why they use purpose as the north star, engage with customers through living brand experiences and power brands from the inside through company culture. These brands are learning all the time; it’s what helps them stay relevant, find new customers, and continually reinvent themselves for the future.

View the Prophet Brand Relevance IndexTM to learn more about what it takes to be a relentlessly relevant brand.

BLOG

Finding True Brand Purpose

How marketers can find and convey true brand purpose.

When brand executives come to us with what they think is a positioning problem these days, we typically have an entirely different diagnosis. Usually, it’s a purpose problem.

Positioning around a functional or emotional benefit isn’t enough anymore, with purpose instead emerging as the heartbeat of modern brands and as a key ingredient in what makes a brand become — and stay — relevant. Brands with purpose stand for something beyond their product or service, and consumers know it. These are brands that can always answer two questions: What do we believe? And why do we exist?

Purpose has become one of the best ways to inspire people, both internally and externally. And it’s essential to creating shared value. Brands with purpose don’t just transact with people; they deliver something more, an intangible element that becomes part of an ongoing relationship.

By The Numbers

Industry research backs this assertion up, including a recent study that found that brands with a strong sense of purpose grow at rate 2x that of those that don’t. Our own Prophet Brand Relevance Index shows time and time again that components connected to how consumers interpret brand purpose propel “meaningful” brands to the top, led by the likes of Amazon, Netflix and Apple. Brands like Pinterest are beloved, while others lacking a strategic purpose may be used but lack relevance. Facebook, for instance, doesn’t even crack the top 100 in our latest ranking.

Consumers can name many coffee brands, but they know Starbucks. When they lace up their sneakers or use Nike+ to track their morning run, they believe Nike is hoping to inspire the athlete inside them.

This sense of purpose isn’t just about winning with customers. It’s the No. 1 reason millennials choose to work for a given employer, studies have found — sometimes even trumping salary. It is then through a clear purpose that companies can attract and retain exceptional talent. It’s also essential to appeal to potential partners and is the foundation for creating a meaningful experience.

Of course, this is not to say that purpose is the only thing that builds relevance, or that it immediately translates to higher sales. Brands must do many things right to succeed. But it’s increasingly clear that the brands that fare the best and are the most differentiated from their competition are those with a crystallized strategic purpose.

How To Find True Purpose

It’s important to point out that brand purpose can, and often should, be different than a corporate mission. Unilever, for example, has staked its claim on sustainability and has supported that through its portfolio of brands. But Axe’s purpose is to help guys look, feel and smell their best, while Dove strives to turn beauty into a source of confidence, not anxiety.

Some brands are lucky enough to have been based on purpose from the very beginning. Parents can buy many types of toys, but their favorites are likely Fisher-Price because they share the belief that play is learning, or LEGO, which sees all children as the builders of tomorrow. Others, such as Ford, GE and Bank of America, have reshaped their purpose to hold more meaning for today’s audiences.

Centering your brand on a strategic purpose isn’t easy, but the intersection of a few lenses can put you well on your way to achieving this goal:

  • Societal impact — where does the world need help and you can make a difference?
  • Major capabilities — what are you good at beyond the products and services provided?
  • Passion point — what is your organization most passionate about?

The first step when examining these issues is to ask the question that goes to the heart of a brand’s sense of itself: What do we believe? It’s the value closest to the center of an enterprise, one so fiercely held that it sets it apart from peers. Many companies believe in being good corporate citizens. Only State Farm believes in being a good neighbor.

Put in simpler terms, how does your brand see the world? What makes that viewpoint different?

Examining Tough Questions

The second question marketers need to answer is harder: Why does our brand exist?

This comes bundled with a few other points, such as what tensions do we want to do address? What experiences do our customers love or couldn’t live without? What do our employees think we do best? A purpose is only valid if it’s known, shared and prized by everyone within and around the enterprise — from potential employees to core customers to investors.

Answering this second question is a logical leap from the first. Bank of America, for example, believes in the power of meaningful connections. Its reason for existing is connecting individuals, families and businesses to make their financial lives better. GE’s core belief is that with imagination, anything is possible. It exists to use that imagination to invent the next industrial era, one that will build, move, power and cure.

“How does your brand see the world? What makes that viewpoint different?”

Answering this second question also delves into the ways your organization delivers on promises. A commitment to purpose, once crystallized and communicated to all parts of the organization, is what inspires a steadily evolving array of services and products.

Following Through

Once the answers to those two questions have been synthesized and articulated into a clear and succinct brand purpose, that purpose needs to be infused in several ways throughout the organization. The smallest details matter, but so do high-level strategies. In 2014, CVS stunned many observers with its decision to stop selling tobacco products. It told customers it needed to do this to better deliver on its purpose of striving “to improve the quality of human life.”

In hindsight, the retailer had to make that call in order for employees, customers and business partners to take its commitment seriously.

Finally, it’s essential to continually validate your brand’s purpose. While purpose reflects deep and enduring values that shouldn’t change much over time, it’s still essential to track the purpose of competitors. Without finding new ways to engage customers through living brand experiences, competitors can hijack your purpose and take customers with them. Is the purpose still clear and evident in every way? Are there new ways it can be conveyed more meaningfully?

Preserving Relevance

By the same token, brands need to continually take the pulse of core consumers and stakeholders, monitoring shifts in the way they interpret purpose. Many concerns about sustainability, for example, have evolved to be as much about people as the planet, expanding the purpose to address issues of fair trade and human rights.

Great care must be paid to delivering on brand purpose. Ingredient scandals are destructive for all food brands, for example, but they’re crippling for those positioned as especially healthy. And while Volkswagen has bounced back from #dieselgate, the damage was precisely because the fraud involved faked emissions results, negating its purpose of environmentally-sound engines. Consumers virtually always dislike bad corporate behavior, but they’re especially fierce in punishing what they perceive as brand hypocrisy.

This article was originally published on marketingdive.com.


FINAL THOUGHTS

Is a strong purpose enough to make a brand soar? No. But combined with a commitment to creating living, evolving brand experiences and the recognition that brands must be powered from the inside out through culture, capabilities and engagement, it’s an essential ingredient of relevance. And in today’s fast-moving world, that’s the currency that matters most.

Brand Equity – Brand Value_1_A

BLOG

Driving Brand Relevance

Building Relevant Brands: A New Way to Win with Customers

Ever notice how some brands become part of our daily life so seamlessly that we don’t even think about them until something goes awry, like when Waze fails to detect massive roadwork, or Netflix suggests you might enjoy “Fuller House”?

At Prophet, we know that’s because these brands represent more than a product or service we buy–they’re an integral part of our lives: It’s what we call relentlessly relevant brands. Achieving this level of relevance is no easy feat given the current state of brand-building. For one thing, customers are more in control than ever, and their expectations of brands continue to rise. Technology, from mobile to wearables to Internet-embedded homes, further disrupt those expectations, allowing people to perceive and interact with brands in new ways. Brands that aren’t evolving get lost in the shuffle.

What are Relentlessly Relevant Brands?

Relentlessly relevant brands engage, surprise and connect. They are genuinely modern, finding new ways to delight and deliver. They push themselves to earn and re-earn customers’ loyalty—and they continually redefine what’s possible.

These brands have barreled through passive exposure to come to life, actively participating with customers. They use technology to be more human, creating new experiences to engage with people in ways that enrich their lives. Nike, for example, was once a brand built on bright products, colorful ads and legendary athletes. Today, it’s an ecosystem of dynamic ‘living’ experiences, like the Nike+ community, an ever-expanding universe that includes expert coaching from Nike pros, personal connections to millions of other athletes, training clubs, and valuable partnerships with the likes of Apple, Headspace and ClassPass.

The result is that Nike is one of the few brands with relevance that knows no boundaries, scoring high on our Prophet Brand Relevance IndexTM in every market we track.

How Do You Build Brand Relevance?

Building a relentlessly relevant brand starts with three essential commitments. First, brands must find a strategic purpose that creates shared value. It’s the only way to inspire people, both internally and externally. Next, companies need to engage customers through living brand experiences. And finally, brands need to be powered from the inside out through culture, capabilities, and engagement.

Let’s take a deeper look at the qualities relentlessly relevant brands have.

They Know Their Real Reason-To-Be

These brands know who they are, moving beyond positioning and into purpose. They are centered on a strategic purpose that creates shared value. This brand purpose is the fundamental binding agent between assets and aspirations of the business and customers’ motivations.

Starbucks, of course, sells coffee. But people love it for its bigger ambition, which is to inspire and nurture the human spirit, one person, one cup and one neighborhood at a time.

LEGO has long been a favorite of children for its delightfully consistent little bricks and has integrated those imaginative properties into physical retail, digital enterprises and full-length films. But all of its efforts speak to the purpose that provides so much value to parents: LEGO is inspiring and developing the builders of tomorrow.

It’s not that these brands don’t have a positioning. They do. But what gives them life is that instead of seeing positioning as a static definition of benefit, they understand purpose as fluid and participatory. They know that it’s the people drinking their coffee and building with their toys who make them what they are, and this shared purpose creates common ground. It gives customers and employees permission to build relationships that go beyond the next transaction.

That ignites innovation and growth, and also allows the company to inspire, attract and retain the best talent.

They Create Hyper-Personalized Experiences

Brands that are relentlessly relevant are those that enlarge the universe and engage customers in a living brand experience. That means constant, real-time engagement between customers and brand stewards, giving companies the ability to anticipate, adapt and respond in the context of customers’ lives. It’s what allows brands to create offers that are hyper-personalized, to leverage data in a way that extends experiences and relationships within customers’ lives and to combine human empathy with tech-enabled intelligence. As a result, every interaction delivers greater business impact.

What makes these experiences so powerful is that they are based on the understanding that the days of either/or are behind us. These experiences are sprinting full speed into and/both. They understand that what they offer people needs to embrace the head and the heart, intelligence and emotion, data and story, and strategy and empathy.

“What gives them life is that instead of seeing positioning as a static definition of benefit, they understand purpose as fluid and participatory.”

Think of the way Disney keeps making visits to its properties more magical, by using technology to help guests unlock hotel rooms, make a playdate with Snow White, or even pay for a turkey leg. Or Spotify’s uncanny ability to follow you into an Uber, work with Tinder and Bumble to help you find better dates, and cranks out playlists made up of songs you’ve never listened to but instantly love.

Customers are fiercely loyal to these experiences: When Samsung faced the massive recall of its Galaxy Note, pundits expected customers to defect in droves. The brand’s mobile phones have come back stronger than ever, precisely because people love the way they perform across devices, including smart watches, tablets and increasingly, virtual reality.

They’re Powered From the Inside

Relentlessly relevant brands aren’t managed by a marketing team. They are powered through a company’s culture, capabilities and engagement. Because leadership is in alignment, they can catalyze change, motivate and empower employees throughout the organization to create a self-generating business, balancing customer needs and corporate goals.

Relentlessly relevant brands can drive change and quickly turn new ideas into reality. They empower diversity of thought, customer centricity, collaboration and agility.

Chick-fil-A, for example, is a fast-growing chain of restaurants built around a culture devoted to delivering delicious food with grace, and it strives to have a positive impact on everyone it comes in contact with. It’s no surprise that on our Brand Relevance IndexTM, it scores high for trustworthiness, consistency and having a better product than competitors. From its innovative corporate test chefs, highly-engaged franchisees and hard-working hourly employees, heartfelt hospitality is as meaningful a menu item as its tasty chicken.

Southwest Airlines, the only airline to rank in the Top 50 of our U.S. Index, also recognizes that delivering outstanding customer experiences has to be a companywide commitment. To deliver on its promise, which it sees as serving passengers with warmth, friendliness, individual pride and a sense of humor, starts with a commitment to treat its employees the same way. From ticket agents to baggage handlers to pilots, customers have come to expect a personal connection they don’t get from other carriers.


FINAL THOUGHTS

Relentlessly relevant brands are growing, thriving brands. They have a meaningful role in peoples lives and one they need to earn each day. This is why they use purpose as the north star, engage with customers through living brand experiences and power brands from the inside through company culture. These brands are learning all the time; it’s what helps them stay relevant, find new customers, and continually reinvent themselves for the future.

View the Prophet Brand Relevance IndexTM to learn more about what it takes to be a relentlessly relevant brand.

Brand Equity – Brand Value_1_A

Your network connection is offline.

caret-downcloseexternal-iconfacebook-logohamburgerinstagramlinkedinpauseplaythreads-icontwitterwechat-qrcodesina-weibowechatxing