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What You Can Learn From The Best Print Ad Ever

Nearly 100 years later, this ad has plenty to teach today’s brands about the elements of great storytelling.

When identifying the top print advertisements and best headlines in the last century of advertising, a 1926 ad written by a young, green copywriter always makes the cut. John Caples, only one year on the job, wrote: “They laughed when I sat down at the piano—but when I started to play!” Caples’ assignment was to entice people to buy piano lessons by correspondence from the U.S. School of Music. The hero of the ad was ridiculed by the guests when he sat down, but the ridicule turned to accolades and applause when he begins to play, only a few months after starting the correspondence course.

The ad was not only critically acclaimed but brought in a lot of customers. It illustrates the power of a story that has tension, emotion, challenge and a brand-driven resolution as opposed to a recitation of facts and functional benefits. A story, as we now know, is a powerful way to get people to get involved and remember a message. This story also nicely frames the subcategory by changing what the customer is buying and defining the relevant options.

There is a lot to learn today from this ad. It included almost no details about the actual course offering. Rather, the ad told a captivating story in graphic detail about what happened to someone who took the correspondence course, a story that brought tears of joy to readers happy for the piano player’s success.

The ad shows that functional benefits are not the sweet spot of persuasion and communication. Rather, what grabs people are emotional, self-expressive and social benefits. There is the emotion felt not only by the piano player who excelled but also by those hearing the story and bursting with pride that he accomplished his goal. The self-expressive benefit displays the ability of the man to express his talent, his perseverance and his ability to face those that had ridiculed him.

“A story, as we now know, is a powerful way to get people to get involved and remember a message.”

And there is the social benefit of the man being accepted into a desirable group. The brand was embedded so much in the story that a memory of the ad recalls a memory of the brand. Further, there was a specific call to action. You could send in a free brochure and a free sample lesson. Free! Think of the foot-in-the-door research that has shown how much impact a small action step can have.


FINAL THOUGHTS

Too often, brand strategists suffer from what I call the “product-attribute fixation trap” whereby there is a compulsion to focus on attributes under the faulty assumption that people are rational. Caple’s breakthrough idea was that a brand is more than its attributes and functional benefits. It has emotional benefits, self-expressive benefits, social benefits, a brand personality, organizational associations and more. When you understand that, your potential for creating deeper brand experiences and stronger brand/customer relationships will be realized.

As for Caple: One year after he wrote that ad, he joined BBDO where he enjoyed a career that extended well past a half-century. Among other accomplishments, he was one of the pioneers in ad research, published several books on advertising testing, became a member of the Advertising Hall of Fame, and was named by AdAge as number 21 of the 100 top advertising leaders of the century. One of his tenets was to only use words you would expect to find in a fifth-grade reader because otherwise, you will not reach the average American. Another was to avoid humor because half of America lacks a sense of humor. His ad was an amazing start to an amazing career.

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The Six Stages of Digital Transformation

From “business-as-usual” to genuine innovation, uncommon growth comes from following a clear roadmap.

For companies faced with the prospect of “Digital Darwinism,” the hardest part is evaluating what needs to be changed first. In this research report, we’ve created a maturity model that helps companies assess exactly where they are, and where they need to be on the road to digital transformation.

After several years of interviewing those helping to drive digital transformation, we have identified a series of patterns, components, and processes that form a strong foundation for change. We have organized these elements into six distinct stages:

  • Business as Usual
  • Present and Active
  • Formalized
  • Strategic
  • Converged
  • Innovative and Adaptive

Collectively, these phases serve as a digital maturity blueprint to guide purposeful and advantageous digital transformation. Our research of digital transformation is centered on the digital customer experience (DCX) and thus reflects one of many paths toward change. We found that DCX was an important catalyst in driving the evolution of business, in addition to technology and other market factors.

This report introduces each of the six stages as a self-contained phase, offering a narrative and a checklist to guide your journey. While presented in a linear format, our research shows that companies may span multiple stages at once depending on their goals, resources, and overlapping initiatives. Use this framework to validate, benchmark, and map your company’s progress toward digital literacy and leadership, but know that you may find yourself revisiting and overlapping stages throughout program and strategy deployment.

To make this more actionable, we’ve identified six key elements within the organization that must undergo a simultaneous transformation, Analytics, Customer Experience, Governance and Leadership, People and Operations, Technology Integration, Digital Literacy.

By examining the progression of transformation for each of these elements separately, the framework makes it easy for individual stakeholders within the company to focus only on the areas they are managing. For example, a COO could focus on People and Operations, while the CTO can focus on technology, with the CIO focusing on Digital Literacy. By laying out the plan for each department, it becomes much more manageable for a company to execute smaller plans that service the digital transformation effort as a whole.


FINAL THOUGHTS

Transformation efforts require many changes in multiple areas, often happening simultaneously. Even organizations that see themselves as far along in the transformation process need constant audits to progress, making sure each move ladders up to power the growth strategy.

Download the free report.

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7 Learnings to Improve the Healthcare Experience

Patients are miserable–especially millennials. Healthcare companies need to think holistically.

Seven provocative and suggestive learnings emerged from a major study of patient satisfaction that was just released by Prophet and GE Healthcare Camden Group. The following learnings provide a profile of the surprisingly dismal picture of the patient experience in healthcare today, but also provide insights that will hopefully lead to massive improvements. Prophet, the branding and marketing consultancy, and GE Healthcare Camden Group, interviewed 3,000 consumers and 300 healthcare executives about the holistic patient experience. The focus was on the total experience, rather than silos such as hospitals, doctor specialties or insurance companies because all aspects of the experience are intertwined in the minds of patients. Input from providers provided a more complete picture of the current situation and its challenges.

Seven headlines that come from the study:

1. The patient satisfaction level is abysmal, which I found very surprising and discouraging considering recent industry attention and initiatives. Only 40% of consumers felt that they received a high-quality health care experience and only 35% feel that the providers have an empathetic staff. Worse, the dissatisfaction is much higher among those that have more experience with the healthcare providers; some 75% of frequent healthcare consumers said they were frustrated with their health care experience versus 48% of the rest.

2. Low satisfaction is even worse among millennials. The group values two related factors: the ability to control their lives and having digitally-enabled convenience in doing so (they’re used to both in other aspects of their life). They adore firms that provide these attributes like Uber, Starbucks, Zappos, and Square. These two factors also appear in their healthcare preferences. Among their favorite healthcare brands are ZocDoc (find a doctor), Oscar (obtaining insurance) and WebMD (managing health); all of which provide health-related solutions that people can access on their own terms. Further, over 50% are willing to use telemedicine. They rely more on input from friends and family and less on their providers than did previous generations.

3. Providers overestimate their current ability to satisfy patients by more than 20 percentage points. For example, only 40% of consumers feel they are receiving a quality experience, but over 60% of providers believe that they’re delivering a quality experience. performance gap.

4. Healthcare companies want to improve patient experience but focusing on and implementing the strategy is proving to be elusive due to competing priorities. In a 2014 survey from the American College of Healthcare Executives, 75% of providers say that patient experience is critical to their success but on the list of the CEOs’ top concerns, patient satisfaction doesn’t make the top five. It is a priority that falls well behind managing the massive amounts of industry consolidation and finding the right merger partner(s). In the Prophet and GE Healthcare Camden Group study, 85% of providers admit they don’t have a clear picture of how to improve the patient experience.

5. There is a remarkable ROI story behind improved patient experience but it doesn’t always carry the day because it is not well documented or communicated. Patient experience investment drives increased capacity, reduces operating costs, improves employee retention and build an enhanced brand that creates loyalty and thereby increases revenues. One study showed an improvement in on-time appointments from 18% to 84% and led to measurable payoffs in terms of productivity and impatient referrals translating to $460,000 average additional patient revenue per physician per year.

6. Improving the patient experience will require medical systems that break down the siloed nature of the industry, including the payment sector. And that is not easy. It requires structural change with established organizations merging or creating close partnerships with other organizations with a different discipline and objectives, often with people, culture, and processes that are also dissimilar. Structural change often slows the pace of progress in improving the seamless integration of medical services.

7. Kaiser Permanente and Mayo Clinic show strong cases of success. Kaiser Permanente with its comprehensive health care model has the highest customer loyalty ranking in the health insurance category with a net promoter score 23 points higher than the industry average. Mayo Clinic has a strong reputation for delivering an amazing patient experience with concierge-level services. In both cases, it is the empowered people and culture that largely drive the service levels and customer satisfaction, although smart use of enabling technology is also a factor. They both go beyond fixing what is broken to surprise and delight their customers.

“All aspects of the experience are intertwined in the minds of patients.”


FINAL THOUGHTS

This study is noteworthy because it focuses on the holistic healthcare experience rather than components which is more relevant to customers and providers going forward. And it provides a data-based indicator of where the industry is, while also suggesting the types of initiatives and changes that will improve the patient experience while driving loyalty and ROI.

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Patient Experience: Rethinking the Healthcare Journey

Our new research reveals why patients–especially younger ones–are so unhappy with healthcare providers.

Providers and insurance companies are scrambling to adapt to a new landscape fraught with changing government regulations and growing consolidation pressures. But many are so focused on their own survival that they’ve missed the biggest change: consumerism. The same revolution that’s reshaping the way people buy financial services and airline tickets is finally underway in healthcare. Consumers—especially millennials—are unhappy with what they’re getting, and want more control.

“Consumers—especially millennials—are unhappy with what they’re getting, and want more control.”

For more insight into this power shift and its impact on the healthcare industry, Prophet and GE Healthcare Camden Group dove into the minds of providers and patients in a study titled “The State of Consumer Healthcare: A Study of Patient Experience.”

Here’s what we learned about the patient experience:

[Click here to see the full results of the study]

  • Providers are aware the situation is bad…it’s just worse than they know. Providers are somewhat aware that people aren’t thrilled with their healthcare experience, but our research found an alarming perception gap. About 81 percent of consumers say they are dissatisfied with their healthcare experience, yet providers overestimate the overall quality they give patients by more than 20 percent.
  • Gen Y is really unhappy. Discontent is highest among millennials. And while providers often argue that Gen Y has minimal financial impact since younger people are healthier and spend less on healthcare, they also realize these consumers will soon account for 50 percent of the workforce. And payers need the younger, healthier generation as members to ensure they have a diversified and financially healthy member base. It’s simple: This generation has different expectations. They value traditional care less than previous generations, relying more on input from friends and family, and less on their provider. [clicktotweet]Only 28 percent of millennials visit a doctor for existing conditions, compared with 53 percent of Baby Boomers.[/clicktotweet] And just 22 percent of millennials visit a doctor for a new condition, versus 45 percent of older patients. Gen Y also values convenience and digital ease and adores brands like Uber, Starbucks, Zappos and Square that provide it. So companies like ZocDoc, Oscar, and WebMD, which provide health-related solutions people can access on their own terms, are among their favorites. Millennials are also the most open to alternative sources of care, with 73 percent willing to use on-demand medical centers, 64 percent retail clinics, and 52 percent telemedicine.
  • Providers struggle to make the case for investing in experience. With companies under enormous financial pressure, it’s very hard to make investing in patient experience a priority. But such investments generate real ROI. Improving patient experience drives increased capacity and access for consumers, creates leverage with payers, and improves efficiency. It also boosts employee retention. And it builds a brand and a reputation that encourages people to consolidate their care within one system, which increases its revenues. By crafting a distinct brand, providers will be able to build an identity special enough that consumers will embrace and be loyal to them. Progress is slow. But the smart healthcare systems are realizing that happy patients are essential to their survival.

Read the complete study hereFor information on how Prophet and GE Healthcare Camden Group can help your organization improve its patient experience, contact us today or view the State of Consumer Healthcare webcast.


FINAL THOUGHTS

Our research proves two unhappy truths. First, patients are overwhelmingly dissatisfied with their healthcare, with 81% saying they’re not happy. Yet healthcare providers are fooling themselves into thinking they’re doing well, and overestimate the quality of their care. It’s time to invest in patient experiences, understanding it’s essential for increasing loyalty.

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8 Factors of a Successful Digital Transformation Strategy

A closer look at customer experience can reveal whether transformation initiatives are paying off.

“The one constant of change is that it’s always for someone else…except it’s not.”

Today’s customers demand to be recognized across every channel, whether online or offline. They don’t care about which part of the company they are dealing with, to them, there’s only one brand.

Yet, companies continue to give customers a disconnected experience, with sales, service and marketing each working to engage the audience on their own, without coordinating their efforts. It makes customers frustrated, disengaged and disloyal; in fact, one survey found that one-third of Americans consider switching companies after just one poor experience.

“The convergence of technology and behavior is only accelerating, and the butterfly effect it causes is transformative and disruptive.”

The convergence of technology and behavior is only accelerating, and the butterfly effect it causes is transformative and disruptive. Markets are shifting to such an extent that they open the door to innovation with new products, services and ways of doing business becoming the norm as a result.

All of this is (and has been) playing out at the expense or demise of those who continue down a path of business as usual. The need to change is no longer something for everyone else; it is the first step toward one of the most important movements in business evolution today… digital transformation.

Leading Digital Transformation

At Altimeter, a Prophet Company, I have led several research studies on digital transformation. As part of this work, we’ve interviewed many executives who are leading transformation to document the challenges they face, the opportunities they uncover and more so, what it is they do to navigate the complexities of uncertainty, bureaucracy, politics, skepticism, fear, etc., to make progress.

Along the way, we’ve observed a series of patterns that help executives make the case for change, earn support and take the little (and sometimes big) steps that lead to digital transformation.

8 Factors for Successful Digital Transformation

Change always starts with one step and more often than not, I found that zeroing in on the digital customer experience uncovers areas of immediate opportunities to learn, experiment and eliminate existing hurdles and points of friction in the customer journey.

Altimeter’s  “OPPOSITE” framework is an acronym that represents the best practices guiding transformation efforts around the digital customer experience

1. Orientation

Establish a new perspective to drive meaningful change. If your organization is built on the “inside out” model, meaning that it is organized around your internal processes and functions, update to focus on customer needs, wants and priorities

2. People

Understand customer values, expectations and behaviors. This requires digital transformation buy-in at all levels— all employees and leadership— so that the entire organization is aligned with digital goals and strategies.

3. Processes

Assess operational infrastructure and update (or revamp) technologies, processes and policies to support change. Start with the contact center, which is a key platform for delivering great customer experiences, and make it collaborative, unified, and intelligent

4. Objectives

Define the purpose of digital transformation, aligning stakeholders (and shareholders) around the new vision and roadmap. Set goals for your digital transformation— what specific areas do you hope to improve through digital? What kind of metrics are you hoping to achieve? Setting quantifiable KPIs can help ensure that you meet your digital transformation objectives.

5. Structure

Form a dedicated digital experience team with roles/responsibilities/objectives/accountability clearly defined. Ensure the entire team is aware of objectives and processes so that you are centered on purpose.

6. Insights & Intent

Gather data and apply insights toward a strategy to guide digital evolution. Data can help you streamline experiences across customer journeys, no matter how they interact with your brand. Data can also help you evaluate the results— brand relevance, increased revenue, and more— of your digital transformation

7. Technology

Re-evaluate front and back-end systems for seamless, integrated and native customer experiences and, ultimately, employee experiences. Use technology to promote trustworthiness and meet ever-increasing customer expectations. Ensure your content and communications are platform-proof so that algorithm changes do not interfere with customer experiences

8. Execution

Implement, learn and adapt to steer ongoing digital transformation and customer experience work. Evaluate the state of your transformation frequently so you can make adjustments if necessary.

When planning and implementing a digital transformation strategy, keeping “OPPOSITE” in mind can help your organization be successful.


FINAL THOUGHTS

For companies looking to jumpstart their digital transformation efforts, these factors provide a blueprint for stakeholders across the organization to come together, create a shared vision and take the first steps towards thriving in the new digital reality. Change starts with you.

Learn more about creating and implementing a successful digital transformation strategy.

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Relentlessly Relevant Brands: The Role Models

Dependability, inspiration, engagement and pragmatism all figure prominently in this year’s list of winners.

Earlier this week Forbes ran an article announcing the release of a Prophet brand ranking Index which ranks the “relentless relevance” of 400 top brands from 29 categories. The respondents were U.S. consumers, active in the category and familiar with the brand, so the results go beyond visibility and reach to understand the attachment to the brand.

Relentless relevance was measured by four dimensions:

  • Customer Obsessed: Being important to a person’s life, connecting emotionally, and creating happiness.
  • Ruthlessly Pragmatic: Makes life easier by being dependable, available, and delivering a consistent experience.
  • Distinctively Inspired: Inspires, has a meaningful purpose, is trustworthy, and in-touch.
  • Pervasively Innovative: Pushes the status quo, engages with customers in new and creative ways, and finds new ways to address unmet needs.

Brands that are relentlessly relevant are likely to be dominant leaders of a subcategory which is usually the best route to growth as I explained in my book Brand Relevance.

Several findings caught my eye:

1. The top three brands, Apple, Samsung and Microsoft, are considered highly reliable enablers of what is important in the life of respondents. They score high across all dimensions. All of these brands are highly visible and have been the subject of positive news as well as controversy. But at the end of the day, their customers still love them, and loyalty wins. I recall hearing Phil Knight commenting on why he was running highly-controversial Nike ads. He noted that all he cared about was his core target markets, and they loved them. It’s that intense focus on the core customer that creates brand enthusiasts that stick with your brand through thick and thin.

2. Involvement is a driver of relentless relevance. The scale “engages me in new and creative ways” helped give the brands PlayStation, Xbox, EA and Etsy a place in the top 50. Etsy, admittedly a surprise to me, helps those in the Maker Movement reach a bigger pool of shoppers. The e-commerce company has devoted itself to building an authentic, people-driven marketplace, with 23 million buyers to date.

3. The Ruthlessly Pragmatic (dependable) dimension is more influential than expected in weighting the relevance score. After the first three brands, three of the next five, Netflix, Chick-fil-A and Spotify all scored extremely high on the Ruthlessly Pragmatic dimension that includes concepts like availability, consistent experience, dependability, and making life easier. It is great to be inspiring, innovative and central to a person’s lifestyle but simply delivering your brand promise is of very high value to consumers.

4. Fifteen of the top 50 brands were classic brand names that largely delivered functional benefits, or so it seems. Leading the way with positions in the top 25 were Betty Crocker, Band-Aid, Clorox, KitchenAid and Folgers. All were extremely high on the Ruthlessly Pragmatic dimension, reinforcing the hypothesis that delivering to expectations may not be glamorous, but can drive a brand’s ability to create and keep a loyal segment which can be the basis of a healthy long-term business. There’s also likely to be some emotional benefit linked to the nostalgia of growing up with these brands – they become part of the fabric of people’s lives. Likely connected: Many of these brands had relatively high scores on the “trust” dimension as well.

5. Four of the top brands including Netflix at number 5, Spotify at number 8, Pandora at Number 19, and YouTube at number 43 are Internet media brands and score high on the “important in my life” dimension. Two more, Pixar at 11 and Disney at 24, are entertainment brands and were extremely high on both “makes me happy” and “connects with me emotionally.” Not only are these companies providing a more fun experience for their customers, but they are innovating the experience and constantly keeping it fresh and relevant in consumers’ lives.

6. Seven fashion-connected brands populated the top 50 including Nike, Sephora, M·A·C, North Face, Under Armour, Adidas and Victoria’s Secret. Many had high scores on the “distinctively inspired” dimension. All involve a high level of involvement and energy as well. Relentless relevance measured on those that are active in the category and familiar with the brand provides a key brand equity indicator that is not available on other brand strength scales and represents a brand relationship that is a key to business success.

“Brands that are relentlessly relevant are likely to be dominant leaders of a subcategory.”


FINAL THOUGHTS

Relevance is always changing, as consumer perceptions, wants and needs shift. Brands gain and lose relevance by how well they keep up, offering products and services that inspire loyalty, enthusiasm and brand love.

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Creating Compelling Brand Stories: Lifebuoy

Few brands save any lives, let alone thousands. And it did it all using stories from real parents.

In my last post, I wrote about why I believe Lifebuoy’s “Help a Child Reach 5” campaign is the most effective social responsibility program running today. The program’s mission is to help one billion people develop better handwashing habits and thereby prevent some of the two million deaths of children under five that occur annually due to poor health and hygiene.

In this post, I discuss why two particular stories Lifebuoy shares in its program are so powerful. Brand stories are the hot, new currency of content marketing as firm after firm hires editors, writers, and videographers to find and record these narratives. Lifebouy seems to have cracked the code. The following two videos produced by Lifebouy provide insights into what it takes to tell an impactful story in a mere three minutes.

The first video was filmed in the Indian village Thesgora. Because of the village’s high rates of disease, Lifebouy chose it as the site for its pilot handwashing program, which resulted in a reduction in diarrhea from 36% to 6%.

In the film, a father is shown walking a long distance on his hands through fields, puddles, and a stairway to the nearby temple to seek God’s blessing. As the man walks, he is accompanied by villagers and people playing music. Inspiration for the story is rooted in the local practice of expressing gratitude by doing something like sacrificing a favorite food or walking a long distance.

We then learn the reason for the man’s journey. He finally saw one of his grandchildren reach five and is overcome with delight. The video ends by telling the viewer that two million children die before their fifth birthday because of diseases that can be combated by better handwashing. The emotional impact is powerful and reinforces the importance of Lifebuoy’s handwashing program.

In the second video, we are introduced to Utari and her tree. Utari has an attachment to the tree: she waters it, dances around it, protects it from water buffalo and stands by it late into the night. Why? We learn in the video that Utari’s son will turn five the next day, and it is a village tradition to plant a tree when a child is born.

For far too many mothers in Utari’s village, only the tree remains after five years. But Utari is one of the lucky ones and her worship of the tree reflects that gratitude. The video closes with an explanation of why the Lifebuoy handwashing program works is vital to reducing those deaths.

“The first video was seen by over 19 million people and the second by over 11 million.”

The first video was seen by over 19 million people and the second by over 11 million. Why were these videos so powerful and influential in helping the Lifebuoy program get 250,000 people – one-fourth of their overall goal – to adopt effective handwashing habits? There are many reasons including:

  • The characters are real, interesting and authentic.
  • Curiosity about who the characters are and what they are doing drew people in.
  • The video showed real emotions, which generated a connection with viewers.
  • The statistics of global infant deaths, which can be addressed with a simple and effective program were shocking.
  • There was a direct connection to Lifebuoy and the impact of its hand washing program.

FINAL THOUGHTS

Brand stories can be much more powerful than plain, stated facts. However, the stories can only have an impact if they are seen by an audience. Getting exposure for your brand stories requires exceptional content and a bit of luck. But first you need to start with an intriguing narrative and surprising facts, to draw people in; authentic characters and emotions to create a connection; and a relevant, direct brand message to make people remember.

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Lifebuoy: The Best Social Program Ever?

Few brands stories have the resonance and impact of Lifebuoy’s “Help a Child Reach 5.”

My current nominee for the best social program ever is “Help a Child Reach 5”— a hand-washing program sponsored by a brand that virtually disappeared from the U.S. a half-century ago, Unilever’s Lifebuoy soap.

However, Lifebuoy is far from dead internationally. The brand is dominating the market in India and other emerging countries, with a fourth-place ranking in Kantor World Panel’s 2015 valuation of users and their buying frequency of 11,000 global brands in 35 countries—only falling behind Coca-Cola, Colgate, and Maggi.

With “Help a Child Reach 5,” Lifebuoy’s mission is to save lives by spreading the importance of good handwashing habits around the world. This campaign is driven by two facts:

  1. Every year, 2 million children fail to reach their fifth birthday because of diseases like diarrhea and pneumonia.
  2. Handwashing with soap at key occasions can reduce diarrhea by 45% and pneumonia by 23% worldwide, thus reducing infant deaths substantially.

A pivotal event in Lifebuoy’s “Help a Child Reach 5” effort was the implementation of a showcase program in Thesgora, a 1,500-home Indian village. The program, which showed a reduction in diarrhea from 36% to 6%, became the subject of a three-minute video featuring a grandpa walking on his hands through town to celebrate one of his grandchildren finally reaching 5 years old.

The video has now been seen over 19 million times and the resulting case study helped Unilever accelerate the program throughout India and in 24 other countries. Lifebuoy executes the “Help Children Reach 5” program with creativity and flare.

In India, 1,500 Unilever employees have volunteered to help teach school children the importance of handwashing through child-friendly materials, including comics, songs, games, and rewards. The importance of washing for 20 seconds on five key occasions throughout the day is driven home through a device that illuminates germs that are still around after one hand wash.

But it doesn’t stop there. Mothers are educated because over 40% of infant deaths in India occur during the first 28 days of life. Unilever retrofitted water pumps so that children can embrace the habit more easily. Unilever even put the phrase “Did you wash your hands with Lifebuoy today?” on over 2.5 million pieces of flatbread called “rotis” during a Hindu holiday.

“Leon Kay of triplepundit.com, posited that this was the most impactful program ever in terms of the number of people reached.”

Plus, the company has created dozens of videos expressing the impact of this initiative on children, parents, and communities as a whole. Lifebuoy is also leveraging Global Handwashing Day, October 15th, which was established in 2008. In fact, on October 15, 2012, Lifebuoy’s office in Dubai set a Guinness World Record when they got people from 72 countries to simultaneously wash their hands.

“Help a Child Reach 5” is a winning social responsibility program. It has already reached more than 250 million people and is on target to reach a billion people by 2020. One observer, Leon Kay of triplepundit.com, posited that this was the most impactful program ever in terms of the number of people reached. It certainly adds energy and a higher purpose to the brand and generates social and emotional benefits too.


FINAL THOUGHTS

In my view, there are three reasons why this program stands out. First, it attacks a visible, meaningful, and emotional problem that is relevant to Unilever’s core international markets—the life expectancy of infants. And it does so with a concept (handwashing) that has demonstrative value. Second, the design and execution of the program is creative and effective. Kids and moms are taught and motivated to wash “the right way,” using a wide variety of tools and methods. Third, the program is intricately tied to Lifebuoy as hand washing suggests the use of Lifebuoy soap. Further, the linkage draws on Lifebuoy’s heritage as a disease-fighting soap product.

Although other organizations are also active in the handwashing movement, Lifebuoy, for many, has become the exemplar.

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3 Branding Trends You Need to Know

Purpose, storytelling and subcategories are trends too big to ignore.

There are three accelerating branding trends that affect nearly every business. The winners of tomorrow are going to be riding these waves rather than swimming against them.

First, there is a trend from “my brand is better than your brand” marketing to subcategory competition driven by the fast pace of innovation in the marketplace and a growing recognition that, with some exceptions, meaningful brand growth spurts are caused by a new “must-have” defining a new subcategory for which competitors are not relevant.

The evidence that subcategory competition is driving growth is abundant. For me, the insight started with my analysis of some 40 years of Japanese beer data. During that time there were only four major changes in the market share trajectory. Three of these were caused by new subcategories being formed or solidified: Dry Beer, Ichiban, and Happoshu. The fourth was when two subcategories, Dry and Lager, were simultaneously re-positioned.

I have found the same pattern in dozens of categories such as cars, financial services, computers, retail concepts, water, airplanes and many more. Growth, with rare exceptions, comes only when new subcategories are formed.

In the automobile space, for example, we know that was true for the Chrysler minivan, Prius, Enterprise Rent-A-Car, Tesla and others. There are several implications. Firms need:

  • To shift some investments from incremental innovation to “big” innovations.
  • The ability to recognize what is a “must-have” in the marketplace and what is not.
  • The will and capability to manage subcategories rather than brands, to make sure that their subcategory wins and that it evolves so it keeps winning.
  • To own the subcategory by creating barriers to competitors.

One route is to brand the “must-have” innovations. A branded technology, for example, like Uniqlo’s HeatTech fabric that retains heat, is hard to duplicate because Uniqlo owns the brand.

Second, there is a growing shift from communicating facts about the brand, offering, or firm to developing content that interests and involves customers and populate that content with stories in addition to facts. The digital world, where customers are increasingly gaining control of the communication vehicles, is one driver of that shift. The tragic reality is that people are not interested in your brand, offering, or firm. They are just not.

An alternative is to look to what they are interested in, what activities occupy them, what they talk about, what are their passions. I call it the customer “sweet spot.” Then, find or develop content or programs around that interest area with the brand as an involved partner. Customers are not so interested in:

  • Diapers, but they are in baby care and the Pamper’s LoveSleepPlay baby care site.
  • Cosmetic products, but they are in beauty and Sephora’s BeautyTalk.
  • Farm equipment, but they are in improving farming and the rural lifestyle and in John Deere’s Furrow magazine now over 100 years old and read by over 2 million farmers around the world.
  • Hardware products, but they are in building homes for the homeless and thus Home Depot’s link with Habitat for Humanity.

A sweet-spot-driven content or program can generate interest and energy, create or enhance perceptions, engender trust and authenticity, and stimulate a social network.

“A sweet-spot-driven content or program can generate interest and energy, create or enhance perceptions, engender trust and authenticity, and stimulate a social network.”

Third, the trend toward having and elevating a higher purpose should continue to grow. In addition to being the right thing to do and addressing real social problems, a higher purpose can provide inspiration and meaning to employees. Being engaged in reducing global warming or enabling students to be more creative is more rewarding than just increasing sales and profits.

A higher purpose can also promote cross-silo collaboration by providing a common goal that encourages people to perceive colleagues as teammates instead of being irrelevant or even competitors. It comes more likely for the employee to assert “How can I make us succeed?” than “How can I get ahead?”

Another motivation for a higher purpose is to provide a route to customer relationships. Starbucks quest to inspire and nurture the human spirit one person, one cup and one neighborhood at a time provide a way to connect that means something to customers. Patagonia, the ultimate in having environmental considerations in their heritage, in their products, and in their programs attracts customer loyalty among those that share their values.


FINAL THOUGHTS

Even if a modest percentage of the market is motivated to buy based on the respect and shared values of the higher purpose, the result can mean the difference between struggling in the marketplace and success. A higher purpose can be and often is simply empty words. To impact internally and externally, it needs to be and feel genuine with substance behind it. Actually, substance is becoming more common as more and more firms are supporting a higher purpose with links to organizational culture and meaningful programs that draw upon the assets, skills, and strategies of the organization and are guided by tangible measurable objectives.

However, for customer relationships, this substance has to be not only real but visible. Making a higher purpose known and meaningful to customers is for many a huge branding challenge going forward. These trends represent forces in the marketplace that are making a real difference, determining winners and losers. Every firm would do well to assess how these trends will affect strategies going forward.

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4 Ways Customer Experience Drives Business Growth

New fans matter. But it’s real secret is deepening relationships with its most devoted customers.

How Customer-Led Experiences Drive Business Growth

Customer experience used to have a clear beginning, middle and end. And most customers followed a similar path. But traditional customer journeys no longer exist. Today, these experiences are non-linear, unpredictable, and shared; and only a few companies are taking advantage of this new reality. Most still view customer experience through a traditional lens: What’s wrong, and how can we fix it? But for those willing to widen the aperture and obsessively follow customers in all directions, experience-led thinking is creating new value, revenue growth and profit.

Customer experience (CX) is at a tipping point: The only brands winning love and loyalty are those taking engagement to a deeper, more complex level. In fact, digital has given companies the power to easily add new moments and touches, and remove steps, streamlining the experience. By following customers through the crisscrossing network of real-world, social and digital experiences, organizations find a deeper understanding of people, as well as opportunities to use those insights to create signature moments that drive relevance, word-of-mouth, and loyalty.

With the blending of digital and physical worlds and virtualizing of brands, customer experiences are being transformed while becoming even harder to control.  This means that authenticity has become critical.  As emotional decision-makers, customers are constantly seeking experiences that go beyond function.

Transformation requires seeing customer experience differently. Customer experience is no longer just an output or something brands create and exclusively own. It’s also an input, a valuable conduit. It is a collection of all the moments and interactions that build and shape customer expectations. It is a series of experiences that engage and inspire – strong empathy compels customers to share those experiences with others.

Non-Linear Customer Journey

While experiences may once have been linear, today they are unpredictable. People may stumble across you on their tablet at 3:00 am, dismiss you while reading reviews on their phone, only to rediscover you in an enthusiast’s blog. Customer experience is now the sum–the collection–of all those moments and it is imperative that companies engage and inspire through those moments.

Some experts describe the journey itself as broken, but we prefer to think of it as rerouted—it’s now part helix, part labyrinth, and part maze. People interact with brands across many touchpoints, and they determine their own path to purchase. And whether they are in the pre-purchase, post-purchase or ongoing-use mode, one thing is certain–they are no longer spectators or co-creators. They are in the driver’s seat.

Customers are continually talking with other people about brand experiences–those that thrill and those that disappoint. And they’re doing it publicly, and on social media. Given these shared experiences, the most important part of the experience is fast becoming not just what impacts one particular person, but all the potential customers around them.

Industries that have been the most disrupted by technology seem to understand this better. In travel, for example, airlines are increasingly recognizing that mobile technologies are everything to frazzled travelers. But brand parity has made physical comfort more important than ever—look at Delta’s renovated JFK Terminal, which includes spa services and better food (a Shake Shack, for example), more security lanes, and a lounge luxurious enough to make layovers more bearable.

“Companies that are truly customer obsessed put peoples’ needs and aspirations ahead of technology, business operations and other processes.”

Healthcare is another example. As consumers, providers, hospitals, and insurers have become increasingly disenchanted with the status quo, smart companies are pioneering powerful experiences via patient portals, telemedicine and even virtual doctors.

Four Essentials to Grow the Customer Experience

What successful companies have in common is that they’ve adopted an experience-led mindset that allows customers to lead the way. Reaching this higher level of thinking requires following four principles:

1. Customer obsession

Customer experience efforts are routinely based on insights, but the most successful companies are those that gather intelligence at a ferocious pace, and constantly put customers at the center. They are tireless in their quest to understand and think like their customers. They invest time–lots of time–listening, watching, and interacting with people to plumb their “absolute truths” and build insights.

Sephora, the beauty retailer allows consumers to build in-depth profiles of their skin tones and favorite products – yielding a wealth of intelligence but also allowing them to deliver a seamless transition between online and store.

And Starwood Hotels & Resorts, with intense analysis of its weary business travelers, uses its obsession to create experiences customers didn’t even know they wanted, such as Keyless Entry to streamline getting to the hotel and entering the room

Creating a breakthrough experience starts with the customer. Companies that are truly customer-obsessed put peoples’ needs and aspirations ahead of technology, business operations and other processes. This is not about just conducting customer research­­–it’s about allowing people to co-create and join in the development cycle. Customers are the independent variable that comes first. Everything else comes later.  As obvious a point as it may seem, customer experience is about customers and if you do not understand customers deeply it is hard to achieve successful growth.

2. Ruthless pragmatism

Companies need to stay focused on essential objectives, prioritizing investments that add the most value. It’s important to understand what part of the experience truly matters to customers and then align that to feasibility and operational efficiencies.

“Some experts describe the journey itself as broken, but we prefer to think of it as rerouted.”

This also means adopting a test-and-learn mentality that allows piloting the most promising ideas, as well as metrics to kill initiatives that aren’t working. Google conducts thousands of tests every year, but on very small groups of users. Relatively few go on for additional testing. This hard-nosed thinking is critical to determine where to focus investments: Which areas matter most, and have the greatest impact?

3. On-brand authenticity

Fueled by customer insights, it’s important to shape experiences that are consistent with a brand’s core equities, translating them into signature touches. What are the brand attributes that need to be reflected in every aspect of the experience? Patagonia excels at authenticity, making high-quality, multifunctional clothes that “last a long, long time.” It delivers on its purpose in inspiring ways, from the “Better than New” truck that repairs items, the “Worn Wear” campaign that celebrates the stories “we wear” and by featuring interestingly sourced materials (such as recycled plastic soda bottles) in its products.

Tesla is another, with customer advocacy that extends beyond its interactive, educational showrooms into its hassle-free servicing. With a vow to never have service as a profit center, most repairs are completed remotely through “over the air upgrades.” And when a car does need dealer attention, Tesla provides a loaner, delivered directly to the owners’ doors.

4. A Connected Mindset

This is often the most difficult and involves working across silos, bringing people together around a shared goal in effective cross-functional teams. Aligning incentives and processes allow people to think outside of their functional groups and business units, because to consumers, that’s all irrelevant. Tech companies often have an inherent advantage, simply because they’re newer and less entrenched in their respective silos. From PayPal to Facebook to Amazon, they’re known for pulling together for bold moves.

But any company can learn to work this way. GE Healthcare, a Prophet client, traditionally led from its own engineering prowess. But by working across departments, it switched its focus to the crushing dilemmas of large hospitals. To streamline purchasing and maximize machine use to improve care and lower costs, it allowed its customers to lead it to a new selling focus, one that elevated it from a vendor to a true partner.


FINAL THOUGHTS

To win in today’s competitive marketplace companies must adopt experience-led thinking to drive growth. At Prophet, we’re working with clients every day to make such leaps, and with our ability to leverage brand as a key asset for the company, we are pushing past the basics of customer experience to develop signature moments and enhancing experiences at every possible touchpoint. Customers can lead the way to this expanded mindset if brands are willing to follow them.

If you know you need to focus on customer experience but don’t know where to begin, speak to Prophet who can help you to move your organization forward.

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How General Mills Gained Brand Relevance

Food companies are using different strategies to enter the organic and better food universe.

A sizable and growing customer segment is looking for organic and natural products, and as a result, packaged food companies are facing a brand relevance problem. One company that has done well in this difficult and changing environment is General Mills.

The General Mills Acquisition Strategy

There is a lot to like about their acquisition strategy. Take major General Mills acquisition, Annie’s, bought in 2014 for just under one billion dollars: Annie’s makes Mac & Cheese, snacks, dressings and frozen food all under the organic and natural labels. The brand is fast-growing, authentic and high quality with an expanding product footprint. The purchase provides General Mills with another growth platform in the healthy eating arena. And there were important acquisitions even before the purchase of Annie’s.

“These acquisitions provided not only new growth platforms but an injection of knowledge and passion around organic and natural.”

Back in 1999, General Mills acquired Small Planet Foods, owners of Cascadian, which is a maker of organic frozen fruits and vegetables and Muir Glenn, the maker of canned organic tomato products. In 2008, Larabar, a fruit and nut-based energy bar that has become a player in the healthy end of a growth segment, was purchased. And in 2012, General Mills bought the “Food Should Taste Good” line of snacks, also marketed as organic and natural. These acquisitions provided not only new growth platforms but an injection of knowledge and passion around organic and natural.

How General Mills’ Acquisitions Power Relevance

Brand relevance is a measure of how integral a brand is to people’s lives— the more relevant the brand, the more equity, presence, and importance the brand has. General Mills took a unique approach to boosting relevance by recognizing new customer demands— in this case, the demand for healthy foods— and acquiring other brands that offer innovative, healthy products across different areas of customers’ lives.

Annie’s in particular is credited with providing leadership in product innovation and distribution. Several of the long-held General Mills brands joined the effort. Fiber One had been a leader in the fiber race for years – first in cereals, then in snacks – and is currently on a growth surge. If fiber is your concern, Fiber One will be preferred.

Nature Valley connects to the core health segment not only through its products but also because of its support of the national parks. The Nature Valley Trail View provides 360-degree views of 400 miles of national park trails across the country. Yoplait Greek 100 also has a lot of healthy characteristics and is one of GM’s current winners.

General Mills has also made product changes that have been responsive to the healthy eating trend as well. In 2004, it changed its cereal line to whole grains and reduced sugar levels sharply in kid’s cereals. Yoplait also reduced the amount of sugar in its products.

In 2011, General Mills begin to source eggs from cage-free sources. It was an early leader in gluten-free products, long before gluten-free became trendy. By adding gluten-free options to top-selling brands such as Cheerios, General Mills now has 600 products that are gluten-free. And of course, they have Betty Crocker to lend her credibility to their effort to improve food choices.

A Different Route: Kellogg’s Approach with Kashi

In contrast to General Mills, Kellogg’s, only a bit smaller in sales than General Mills, has gone a different route. Kellogg’s bought Kashi in 2000, its “healthy” entrée into the market, but it’s performing badly because it lacks the organic and natural focus of the brands that are competing for the knowable, health-conscious segment.

Rather, Kashi emphasizes whole grains, high protein and fiber, which is not enough today. It has experienced difficulty in connecting with the target segment, as exemplified by their response to a grocer who posted to social media accounts that Kashi uses genetically modified organisms (GMOs) despite their claim to be natural. Kashi replied that the FDA does not regulate the use of the word “natural.” And while this may be true, most people imply that natural means that processed food has no artificial ingredients, pesticides or GMOs. In part because of the decline of Kashi sales, Kellogg saw its earnings per share in 2014 decline sharply. In contrast, the earnings per share at General Mills continued a healthy increase year by year that it has enjoyed for the last five years.


FINAL THOUGHTS

General Mills was able to gain relevance in this important growth segment for one reason: They saw a relevance challenge early and responded with acquisitions, investments in products and programs, and a sense of direction powered by their mission and values. The value of real commitment shows.

Learn more about achieving brand relevance in innovative ways.

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The Uniqlo and MoMA: A Partnership That Wins

The sponsorship adds to the retailer’s reputation for smart design and enhances its commitment to the arts.

On May 3, 2013, Uniqlo became the exclusive, multi-year sponsor of the New York Museum of Modern Art’s Friday night program, which offers free admission in the evenings. Almost a year later in March of 2014, Uniqlo launched SPRZ NY (Surprise New York) in partnership with MoMA.

Under SPRZ NY, Uniqlo puts artwork inspired by top contemporary artists such as Andy Warhol, Jean-Michel Basquiat, and Keith Haring on some 200 items that will sell from $6 to $50. Some of the artists, including Ryan McGinness, will personally design clothing items based on their works hanging in the museum. It’s “the place where art and clothing meet.” The sponsorship is designed to showcase the huge signature 5th Avenue Uniqlo store that is located around the corner from MoMA.

“The place where art and clothing meet.”

The store redesigned the second floor so it looks and feels like a museum, with framed pieces of art-stimulated clothing on the wall. A Starbucks was added that provided more destination appeal and energy. A one-year anniversary of the launch saw a month of special events such as an Art of Discovery scavenger hunt in the museum, a design your own t-shirt program for kids, and a special New York art tour featuring secret locations.

The partnership works for four reasons:

It provides a brand image lift. The association and the programs provide a lift to the Uniqlo image of representing quality, innovation and contemporary fashion that works in everyday living. The art provides self-expressive benefits to some and a sense of being contemporary and fashionable without being trendy to others. It gives energy to the brand, the store and the store experience. Just think of having unique designs attached to interesting and visible artists. The MoMA connection is not possible to duplicate; it’s the ultimate characteristic of an exclusive sponsorship.

It energizes the flagship store. It provides a spotlight on the flagship store and by extension the Uniqlo effort in US major cities, which also offer many of the MoMA-inspired clothing items. It gives the Uniqlo 5th Avenue store a burst of energy and differentiation. Both are highly sought after and hard to attain for retailers, especially prime competitors like Zara and H&M. The fact that the store is around the corner from the MoMA cements the relationship.

It’s dynamic. The sponsorship was not simply an association based on paying more money than others, but it was alive, active and anything but static. Each year, Uniqlo not only sticks with the sponsorship but leverages it in new and creative ways. And all along, Uniqlo stuck to the core features of the MoMA and the SPRZ concept of creating surprising experiences.

It links back tightly to the Uniqlo brand. Free Fridays are labeled as Uniqlo Free Friday Nights. SPRZ NY clothing is featured in the Uniqlo 5th Avenue store and is available elsewhere. Except for the MoMA store, the only place that clothing appears is within Uniqlo. It fits Uniqlo, a brand with an emphasis on contemporary fashion for everyday living, on innovation and on having a distinctive in-store experience.


FINAL THOUGHTS

The Uniqlo/MoMa partnership works in so many dimensions. It adds value to the brand and its offering by creating energy and interest in Uniqlo clothing designs, a very basic brand value. It allows the flagship store to be more visible in its role in showcasing the brand. The store has become a destination attraction, the ultimate achievement for a retailer. It adds energy to the brand in multiple ways, from the experience in the 5th Avenue store to designs that people talk about, to the involvement with the MoMA, and more. And it all ties tightly to the brand. It is a wonderful role model.

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