Blog

BLOG

Meet the Prophet Board 

Learn about the esteemed behind-the-scenes advisors who play an active role in shaping Prophet’s business.

We are lucky to have a diverse set of leaders at Prophet who bring unparalleled expertise and experience to their roles – advancing our firm’s transformation and grooming rising stars in our community, all while showing up as thought partners and allies to clients and peers. Day in and day out we see them lead by example and help propel Prophet’s growth.  

There is also a set of esteemed behind-the-scenes advisors that play an active role in Prophet’s business trajectory, providing nuanced POVs to help us make big strategic decisions.  

Introducing… Prophet’s Board of Directors 

We asked members of the board about their experience working with the firm – and some of their favorite stories from having a seat at the board table.  

If I was a fly on the wall during a Prophet board meeting, what would I see and hear? 

David Aaker: “It should first be known that when you have a well-run and well-managed company at the top like Prophet, it says a lot about what the board will do and what their role is. It’s painful to be on a board that lacks good leadership. It’s a joy to be on a board of a company with a strong CEO and staff. Given we have that, the composition of the board is exceptional. Many have been on the board for a long time, with our newest members now having been on for a couple of years now. During Prophet board meetings you hear experts with relevant backgrounds that are reinforcing and providing input into the strategies that are leading the company in the right direction. The meetings are supportive and encouraging, using their experience and expertise to guide, lead and provide suggestions to the strategies that are being pursued or influencing new strategies to try. They are also encouraged to be critical, as its an open and respectful environment.”

Niels Nielsen: “It’s very similar to what you see and hear on client teams in the company: Sincere and sometimes heated discussions with a commitment to substantive outcomes. More questions and suggestions than statements. A tonality of no mercy, no malice. Some bantering and teasing. Lots of laughter and good humor.” 

Chan Suh: “If I were to take the question literally, I’d say a bunch of people crammed into a room – or sometimes Zoom – and, as the hours go by, you will see people wilt a little bit over time. The table gets messier and there’s usually plenty of sugar and calories. There’s always seriousness to the questions we are asking, but not about ourselves. There’s good humor, which is remarkable and makes the time together light-hearted and fun. While we spend a lot of time as a core board, we also spend plenty of hours talking and exchanging information with different leaders and peers. Any given board meeting there could be five to seven different teams of people coming in and out and participating in the discussion.” 

William Dean Donovan: “I always thought that the best consultants are experts at the art of supportive confrontation.  You would find a fair amount of that at one of our board meetings.  The Prophet team works hard to put high-quality ideas in front of the board and asks us to challenge their thinking to help make the best decision and create understanding among everyone on the team.” 

What is one thing you’ve learned since serving on the Prophet board? What is one thing you’ve taught other members?  

Chiaki Nishino: “As a Board member who is also an operating executive at Prophet, managing the day-to-day of our business, it’s been valuable to deliberately put on an external shareholder lens on top of the client and employee lens I always have on. It helps me take a step back to evaluate Prophet from a long-term value creation perspective on a quarterly basis. Our board members come from very different backgrounds, so the questions asked in the board room are just as valuable as the discussions we have.” 

Niels Nielsen: “Out of the more than 35 boards, on which I serve/have served, Prophet is one of the few that have excelled in the sense that building a company is much more than growing its business. It makes me proud to be part of a company that is a consistently successful business, but which is successful because it is a company that grows its people; grows through its people, and consistently strives to do right.” 

David Aaker: “As a Board member who is also still putting out thought leadership into the market, I periodically I bring my books and IP to the meetings. Both to maximize reach and get thoughts and opinions on it. During the meetings, I share my expertise on the strategies we are discussing. In general, it’s a joy and fun to be around such interesting and capable people.”

Michael Dunn: “Management teams can sometimes see the board in an adversarial way, spending more time “packaging” information for board consumption than digging into the real issues the company is facing. But I really view it as a space for enrichment and exploration. That mindset has allowed us to really guide and steward the firm into a much more authentic place. We are so lucky to have such a strong group of collaborators with diverse experiences and expertise. I’ve learned that the more open and transparent the key questions we are wrestling with, the more we gain from our time together. If we are vulnerable about our challenges and shortcomings, we are able to get into the rigorous discussions that lead to better thinking and an increased probability that our solutions will be successful.”  

Chan Suh: “I’ve learned the different decision-making and execution. The board alternates: So sometimes the board sets direction and other times the board absorbs the direction that the firm has taken and helps to advance it. I’ve been on different boards for nonprofits and I’ve led my own board for an enterprise before. But as a board member at Prophet, I’ve learned more about how to balance the two. In terms of teaching, I’ve brought energy around trying and starting new things – and bringing them to either success or failure quickly. That’s always been a part of my DNA and I’ve certainly shared it with the board.” 

What excites you the most about Prophet’s transformation and growth trajectory?  

William Dean Donovan: “Prophet is at the intersection of analytics, design, brand and marketing strategy.  Those are threads that can create an enormous impact if woven together properly.  Prophet’s interdisciplinary approach stitches the pieces in a unique way.  That creates unique thinking and big impact.”   

Chan Suh: “Transformation and growth is the ultimate destination of a marketing, brand, organizational, experience consulting. Externally, the world needs this in a way that we have now been able to formulate. I really feel like we’ve hit the nail on the head in terms of relevance and need. Internally, what excites me most is that it’s a big tent. And as long as we keep it a big tent, we will be able to welcome a lot of skill sets that we don’t yet have and we will be able to grow the expertise and stay ahead of the competition.” 

David Aaker: “It’s amazing that we’ve come this far as a firm and have worked with the caliber of clients we are and have driven the impact we have for our impressive roster of clients. The problem, of course, is to get credit for it in the market and to be known for it. We do so much beyond brand that the world doesn’t yet know. For now, we are our client’s biggest, best-kept secret and I see that changing soon.”

What Prophet value resonates with you the most?  

Chiaki Nishino: “Share Joy – we constantly discuss at the board how we partner not only with our clients but with each other as team members in a way that’s incredibly unique and authentic. We don’t take ourselves too seriously and take the time to connect as teammates and people. I strongly believe that our success comes from not only the capabilities we bring to bear for our clients, but the way in which our people team and relate with each other.”

Chan Suh: “Give and Grow is a value that we exercise, demonstrate and live every day. It is visible in how we work and how we operate the business. We are constantly trying to create one team by investing in the personal and professional growth of our people and our clients. We do so by being a coach, a sounding board or a cheering section. And while we all have unique needs and goals, we all have a shared understanding that we’re in this together—and by offering our time, empathy and brainpower to support the collective potential of our teams, clients and communities, we flourish together. We may work in different areas and have different skillsets or expertise, but we believe in something central that is greater than the sum of its little subgroups.”

Michael Dunn: “It’s a toss-up between Create with Courage & Open Minds. Our Create with Courage value focuses on the entrepreneurial spirit that is foundational to Prophet. When something could be better, we don’t settle—we lean in and create. We help clients push boundaries when they are tackling their biggest challenges in order to drive growth and impact. When we put our heart into our work while applying intellect, creativity and rigor to execute, we can push boundaries. I am quite fond of Open Minds because Propheteers are unmistakable—we’re upfront about who we are. We’re united, but different, which allows us and our clients to achieve more together. It’s in our nature to seek diverse voices and embrace all backgrounds and lived experiences. We feel that by showing up honestly and openly with each other and clients, we discover new paths for connection and creativity. It’s a culture we’ve built that we are incredibly proud of.”

To learn more or be connected with one of Prophet’s leaders, reach out today.  

Identify
Growth
Pathways

RELATED SERVICE

FINAL THOUGHTS

We are grateful for the tremendous support from this all-star group of leaders – individuals who have led powerful careers and are committed to paying it forward. As our firm continues to grow, we thank the Board of Directors for pushing the direction of our firm and advising us throughout our transformation.  

CONNECT WITH US

BLOG

Elevating Wellbeing Can Inspire Change in Healthcare Organizations

Since the onset of the pandemic, mental health and burnout have become more common topics of conversation in the healthcare space and within the broader culture. The use of #MentalHealthAwareness in more than four million Tweets in 2021 alone, for example, shows just how common conversations about mental health have become.

Increased consciousness of behavioral health and wellbeing was one of the driving forces behind the Great Reshuffle, which significantly hit the healthcare industry. It’s estimated that almost 20 percent of healthcare workers quit during the pandemic. And because behavioral health is very much on the minds of workers, it’s an urgent topic for employers too, in healthcare and nearly every other industry.

Forward-looking organizations are leaning into the critical issue by seeking ways to facilitate more productive conversations and provide additional behavioral health support.

Why Employers Should Support the Health of Healthcare Workers

Today, wellbeing in the workplace has evolved to become more holistic, including both physical and behavioral health. As we highlight in our POV on employee wellbeing, Prophet believes a balance of flexibility and connection is key to promoting wellbeing among employees across industries; empathetic leadership and emotional support also play important roles. This can help workers feel free to bring their authentic selves to the workplace and have candid conversations about sensitive topics, including mental health.

“Employers can enable a sense of belonging, where workers see how their own values align with the organization.”

By talking about the health of healthcare workers and creating space for conversations on wellbeing broadly, organizations send the message that their people are not alone in navigating stress, anxiety and fatigue. In proactively helping healthcare workers live their best lives both on the job and outside of work, employers can enable a sense of belonging, where workers see how their own values align with the organization.

How to Prioritize and Boost Wellbeing Across Healthcare Organizations

Prophet’s Human-Centered Transformation Model focuses on four elements key to organizational health and success: DNA, Mind, Body, and Soul. By changing the way wellbeing is talked about in the workplace, each element contributes to a healthier workday and more effective employee retention.

The ‘DNA’ is the Heart of Wellbeing

Wellbeing can – and should – be a part of an organization’s purpose and employee value proposition. Whether an organization has long provided behavioral health benefits or is just now considering doing so, supporting ongoing conversations around wellbeing can provide deep and authentic connections. This is especially important at a time when healthcare workers are prioritizing wellbeing in their workday and are more likely to move on if those expectations are not met.

The ‘Mind’ is How to Enable Wellbeing

Drive change across the healthcare workforce by actively promoting greater wellbeing. The organizational mind can be shaped by educating workers on the importance of behavioral health, providing useful resources, and building awareness of these offerings. Across industries, many companies are offering subscriptions to mental health platforms and meditation apps (e.g., Calm Business and Headspace for Work), which offer exercises and tips to stay focused and mindful throughout the day.

The ‘Body’ is How to Act on Change

To help healthcare workers feel equipped in prioritizing their wellbeing, organizations can change their operating model by putting in place processes and systems that support greater behavioral health and continuously measure their effectiveness. While workers navigate implementing wellbeing tools, organizations can encourage workers to share what is and is not working so that the types of resources being provided can simultaneously evolve.

The ‘Soul’ is How to Ignite Belief

These are the mindsets, behaviors, and rituals that continually demonstrate that wellbeing is an organizational priority. For instance, when leaders in the healthcare space open up and share their own stories on behavioral health and wellbeing, people get the message that it’s an important consideration. By furthering the dialogue on behavioral health and creating a sense of belonging, organizations will have happier, healthier workers.

Empower
Employees

RELATED SERVICE

FINAL THOUGHTS

While healthcare organizations are limited in their ability to provide the flexibility (e.g., remote working) that some workers want, there is an opportunity in the healthcare space for organizations to support their employees’ behavioral health deeply and authentically.

As talk about behavioral health becomes the norm in the workplace, companies are seeking to build more genuine connections with their employees. Removing the stigma of talking about mental health is a great first step to creating lasting change. Robust behavioral health programs will become standard features of benefits for those organizations that want to stand out as “employers of choice.”

Get in touch with our Healthcare specialists and our Organization & Culture experts if you would like to learn more.

CONNECT WITH US

Brand Equity – Brand Value_1_A

BLOG

A Six Step Guide to Digital Product Creation

Launching successful digital products is extremely difficult. In fact, 95% of products that are introduced each year fail. The digital product landscape has become much more complex and specialized – from grocery delivery apps to customer service chatbots – digital products shape the way we live, connect and do business.

However, it takes more than a killer novel idea to make it rich and successful. The process of bringing the digital product to life, from an idea on paper to practical reality, with development, testing and refinement is daunting and where many fail. While you can never guarantee success (who knows when a once-in-a-lifetime pandemic will dramatically change the world and markets), you can greatly reduce the risk of product failure by taking a methodical and intentional approach to how you build digital products.

While each product is different, successful digital product creation requires an intentional chain of steps to validate. Through our tried, tested and validated iterative approach, we collaborate with clients across industries and verticals to define, launch and scale successful digital products in-market at pace. A digital product is not simply a mobile application or a website. We think of a digital product as having these four components:

(1) A clear user value proposition, that is (2) delivered through a value-generating business model and is (3) supported by an operational model that optimizes consistent delivery of services, which (4) customers and/or employees interact with through digital interface(s).

As you can see there is a lot necessary to get right in building digital products. So, where do you start?

The Six Stages of Digital Product Creation

At Prophet, we take an agile, insights-driven approach to helping our clients develop valuable and successful new products. As quickly as possible we move from assumptions to concrete knowledge fueled by market evidence around every element of the potential product. Our approach breaks the process into six specific stages:

  1. Opportunity Definition
  2. Rapid Experience Design
  3. Alpha
  4. Beta
  5. Core
  6. Retirement

Let’s dig into how these phases work in sequence to reduce risk and increase chances of success.

Stage One: Opportunity Definition

The opportunity stage is one of the most critical phases of digital product creation. Before even beginning to sketch a design or write a line of code, it all starts with defining a valuable opportunity asking, ‘what is the problem that needs to be solved, is it worth solving and does it match the strategic goals for the company?’  Often, businesses think they already understand the problem, and this is precisely why many new products fail.

Prophet’s Experience and Innovation experts bring a human-centered design approach to the process of defining and designing these opportunities. It will often start by uncovering and designing a compelling experience strategy for how a company can distinguish and deliver value for its customers in desirable ways across the entire customer journey. This perspective, along with our deep expertise in service design and business design, defines initial concepts and objectives that formalize compelling product opportunities aligned to our client’s business strategies.

Questions we focus on answering in this phase are: 

  • Can we find valuable opportunities that match the strategic goals?
  • Who is the target audience, and do they have a large enough problem in line with the client’s aspirations?

Stage Two: Rapid Experience Design

The goal of this next stage is to iteratively validate and refine the opportunity and assumptions with target customers to gain essential evidence, deep dive into their unmet needs and embed decisive learnings. This level of fast-paced evidence-driven learning can be eye-opening for clients used to longer bureaucratic cycles of decision making and analysis paralysis.

Through this rapid process, we quickly arrive at a minimum viable concept (MVC). There are many steps to get to a fully finessed product, but we need to start with a concept from which we can get quick iterative end-user feedback so that we can best understand the opportunity and a possible solution. In this way, the MVC lets us quickly and cheaply test while we are iteratively improving our understanding of the opportunity.

Questions we focus on answering in this phase are: 

  • Can we design a solution for the target audience’s needs?
  • Does our evidence indicate the solution can deliver on the target audience’s unmet or underserved needs?
  • Can we define the functional capabilities necessary to deliver the solution?

Stage Three: Alpha

Armed with the best probable solution to the problem, the alpha phase is focused on the design, build and testing of the components of the product offering. Technical functionality, customer support, business models, content and data requirements enabled by strategic organizational coordination all become the levers we nimbly adjust to build the product offering. This requires frequent and consistent testing with target customers to refine every element of the product offering. Ultimately, the goal of this phase is to deliver the minimum functionality necessary to achieve product/market fit.

Questions we focus on answering in this phase are: 

  • Is this a sustainable product people will consistently reuse and/or pay for?
  • Does the evidence indicate that this solution would deliver differentiation and is there a viable business model?
  • Is there the will/skill/bandwidth to deliver this minimal viable product (MVP)?
  • Have the necessary people/process/data/capabilities been identified to deliver this solution at scale?

Stage Four: Beta

At the beta stage, the mythical product/market fit has been reached and now it’s about proving active customers would use the product consistently through a valuable business model. Groups that may have lightly engaged previously across marketing, sales, corporate development, legal, compliance, operations and others, now become fundamental to the success of the product and its go-to-market strategy. This is when we actively pursue approaches to grow the audience, reduce operational and customer acquisition costs and build new functionality to attract new customers without losing existing customers. It is an artful dance requiring sizeable bets to be placed on people, process, data and technology all while taking a measurable outcome-based focus on how to grow the business.

Questions we focus on answering in this phase are: 

  • Can we build scalable and profitable business value?
  • Does our evidence identify a scalable business model with a route to profitability?
  • What is the go-to-market strategy for scaled commercialization?

Stage Five: Core

This fifth phase is the promised land, where all the work has paid off and we have a validated product in the market, delivering customer and business value.  At this stage, we no longer need proxy metrics for product success but can move to standard business accounting and processes to support sustained growth in the enterprise – the scaling phase.

Despite the effort that has been expended up until this point, this is still a very common point of failure for products as they transition from incubating a new product to delivering through existing business metrics and accounting. This is part of why it is important to bring the company along on this incubation process to avoid organ rejection and yet keep enough distance to give novel and innovative ideas the space to grow. This product can be sustained either through an existing business unit within the company or by creating a wholly new business unit.  Either direction will require the product team to adopt a new set of goals, focus and investment to scale in a competitive market while consistently delivering value for customers.

Questions we focus on answering in this phase are: 

  • How do we structure the functional and operational capabilities within the company to scale this product successfully?
  • Which capabilities require partnership with outside companies, where might new capabilities need to be built or companies acquired to fuel growth?

Stage Six: Retirement

All products and services companies deliver will, at some point, outlive their value to the business and/or their customers. The ability to objectively evaluate which products and business lines to employ focus and resources is critical to the longevity and stability of the company.  In this way, we need to understand not only when it has outlived its use, but how impactful it will be to sunset the product line to the brand, the bottom line, the current customers and the larger market.  Through these lenses, we can begin to understand whether we will need to plan a migration of customers to another product offering, spinoff or sell this product to remove it from the brand and company responsibility, or simply turn off the lights.

It is very difficult to deprecate something that has been such a part of your company’s history, but being a resilient business requires tough choices about capital and resource allocation for sustained growth.

Revolutionize
Experiences

RELATED SERVICE

FINAL THOUGHTS

No digital product development will be identical. However, by planning for each of these six stages you can set your product up for success. As a growth and transformation consultancy, it is central to our ways of operating to help our clients navigate all stages of the product lifecycle, particularly as they look to embed new capabilities, grow their audiences and differentiate themselves in volatile and competitive marketplaces.

From proposition to product, Prophet’s Experience & Innovation experts can uncover valuable insights, validate innovative ideas and design intuitive and engaging digital products and services to help your business achieve and maintain a competitive advantage.

CONNECT WITH US

BLOG

Nine Brand Building Lessons for Marketing in Web3

Blockchains and the tokenization of assets allow marketers to unlock new forms of community development and value exchange with consumers. In this article, we outline how marketers will need to re-evaluate brand building in Web3 based on nine observations. To do this, we’re drawing perspectives from the recent launch of Moonbirds, a non-fungible token (NFT) developed by PROOF Holdings.

While many likely don’t know Moonbirds as a brand, we’re using it as a case because we admire the brand-building mechanics this project is demonstrating within new Web3 possibilities. Moonbirds is an Ethereum-based collection of 10,000 unique Profile Pictures (PFPs). Each token doubles as membership of sorts, granting owners access to an exclusive Discord (a server where owners chat and hang out) along with unique in-real-life (IRL) events and digital membership benefits. The brand mirrors and further builds on proven tactics leveraged by NFTs like Bored Ape Yacht Club (BAYC) from Yuga Labs.

For context, Moonbirds launched on April 16, 2022, raising $66 Million in a matter of hours. In just 48 hours from its launch, it became the top traded NFT by volume, created more than $210 million in additional secondary sales and had a floor price of $62,000 (the cheapest bird available for purchase). Additionally, Moonbirds is already pushing into popular culture. Celebrities like Jimmy Fallon have even changed their verified NFT profile pictures on Twitter.

Though it’s the early days of brand building in Web3 with Budweiser, Taco Bell, Campbell’s, Adidas, Twitter, Gucci and countless others having launched NFTs, we can see why many of these big brands have been comparatively less successful in adopting some of the new rules of brand building.

Let’s use Moonbirds to illustrate nine brand-building lessons for Web3.

People are at the Heart of a Brand’s Reason to Believe (RTB)

Moonbirds was built out of PROOF Holdings which had already successfully launched PROOF Collective, a proven NFT community. The belief in the team – Kevin Rose (Revision3, Digg), Ryan Carson (founder of Treehouse), and Justin Mezzell, an experienced artist, illustrator, and product designer – is the core of why there is a demand for this project. At Prophet, we talk a lot about human-centered transformation. So, much of a brand’s success in Web3 will be built around having strong people committed to building the brand in addition to driving demand, engagement and the overall experience.

Leaders that Drive Brand Content Development and Community Engagement

Content and community for Moonbirds have been largely driven by its founders. Kevin is an avid podcaster (Proof, Modern Finance) and Ryan is one of the more prolific people on Discord and Twitter. Ahead of the launch, they’ve been on a roadshow translating the brand’s vision and building demand and understanding of the project. Web3 brand building will require a greater emphasis on leaders’ ability to be the marketers building demand for their brands vs. the legacy approach of the most junior or outsourced teams managing customer relationships, content creation and communications.

Evolved Monetization Strategies Pushing Perpetual Brand Building

Moonbirds is committed to reinvesting all raised funds in delivering for the community. This means that token holders are delivered value ahead of the brand capturing it. Over time, Moonbirds allows PROOF Holdings to build valuable infrastructure like new technologies, a strong team, community and much more which can be monetized in the future. Tokenizing these assets broadly contradicts the “create demand and sell” model of traditional commerce in favor of developing an always-on, brand-demand flywheel – one that creates ongoing value for a community of token holders. Web3 will push business model design to create sustained demand that engages communities gated by tokens. This will allow brands to collect perpetual royalties in a brand-demand flywheel.

Influencers Become a Rising Channel for Brand Building

Moonbirds unlocked a host of ecosystem partners beyond PROOF’s 1,000-member community to grow the brand. This includes some of the most influential bloggers, vloggers, podcasters, social posters and other Key Opinion Leaders (KOLs) in the space. As media is becoming increasingly decentralized, brands will need to partner and engage KOLs to play a very important role through longer-form audio, video and visual content.

Community Shares in Brand Marketing and Brand IP Ownership

Moonbirds (and other Web3 projects) violate a long-held brand-building belief on Intellectual Property (IP) rights being sacred to the brand. Every owl in the Moonbirds collection is owned by the community member that buys it. These owners have unique rights that unlock new possibilities; from making it their digital identity to designing clothing, to creating a gin brand featuring their unique owl. Some creators go as far as putting brand-built IP for owners into full creative commons (CC0).

“Prophet sees the next wave of brand building in Web3 where marketers rethink IP ownership and its value exchange with their communities.”

While this won’t happen in all industries, Prophet sees the next wave of brand building in Web3 where marketers rethink IP ownership and its value exchange with their communities. These communities will play a powerful role in the brand’s marketing army, sharing in the monetary reward, and helping the brand unlock uncommon growth.

Disruptive Design and Brand Visual Identity Systems

On the surface, Moonbirds design is basic pixelated art. That choice was deliberate so the art itself can live fully on the blockchain. What’s innovative about each bird is a design system that stretches the visual identity of the Moonbirds parent brand into unique community expressions of the owl for each community member. This flexible design system allows for many permutations. The process for building these also involves greater inclusion using a panel of diverse team members to inform design decisions. While not all Web3 brand building will result in individual NFTs, the design will stretch brands into more flexible, disruptive, inclusive, and adaptive visual systems that allow the brand to be more self-expressive, community-minded, and unique.

Continuous Brand Feedback Loops

Moonbirds leverages the 1,000 members of PROOF Holding’s PROOF Collective community to build the brand. These members became an idea engine and feedback loop that drove continued innovation for the Moonbirds launch. Decisions large and small were sourced to make the project more exciting and successful. We see a future of brand building in Web3 that doesn’t purely rely on smart product teams and strategists building brands, but also on open-sourced innovation and rapid, continuous feedback loops from brand communities that shape a number of brand-based decisions and capabilities.

Brand Roadmaps with an Ongoing Sequence of Innovative Activations

Moonbirds’ day-one announcement included a set of innovative experiences and activations they had planned for the communities. These included community meetups along with other IRL events, exclusive merchandise and access to a new version of the Metaverse called Project Highrise. Many legacy brands that have launched NFTs have fallen short by not thinking through such ongoing engagement and gamification or play with their communities. The best brand building in Web3 will solve the Brand-Demand equation by using a series of unique, ongoing and inspiring activations that will propel the brand and communities forward.

Moats Build From a Brand’s Unique Capabilities

Well-known personalities such as Alexis Ohanian (co-founder of Reddit), Tim Ferriss (best-selling author), Gary Vaynerchuk (entrepreneur), along with artists like Snowfro (also ArtBlocks founder), Xcopy, Larva Labs and Justin Aversano make up a partial list of the powerful network built by the founders of Moonbirds. This network allows the team to drive unique relationships and brand activations that can’t be achieved by others. One such signal for Moonbirds was the development of birds with unique space helmets, possibly getting special private tours of the SpaceX facility. We believe the future of brand building will rely on connecting tokenized goods like an NFT into gated access passes to both digital and physical products and experiences that only your brand can uniquely provide. These sources of value will be the true moats for brand building in Web3.

Drive
Customer
Demand

RELATED SERVICE

FINAL THOUGHTS

NFTs provide a clear long-term value proposition for consumers that is hard to ignore: verifiable ownership, sharing in a brand’s value and near-frictionless sale and transfer of unique digital goods. This technology will inevitably disrupt nearly every industry (e.g., ticketing, membership, deeds for physical property, all forms of media, etc.).

With NFTs, it is fair to acknowledge some speculation around profile pictures (PFPs) and other art being created as a Ponzi scheme or a way to “get rich quick.” However, adoption continues at an exponential rate and what we see emerging early on, is that these types of NFTs are serving a fundamental physiological function that mirrors luxury goods in terms of belonging and self-esteem. That, coupled with strong communities and different practical use cases (meetups, physical spaces, exclusive access to events) are still being developed.

As brands continue to enter the proverbial build a presence in Web3, much will evolve and marketers should continue to watch the space and learn from projects like Moonbirds.

Want to learn more about partnering with Prophet on driving growth? Contact us today.

CONNECT WITH US

Brand Equity – Brand Value_1_A

BLOG

How We Connect in a Hybrid and Remote Work Environment

Working in a hybrid environment for the past two years has shifted our approach to how we build and sustain our culture at Prophet. With 14 global offices and 600+ Propheteers, finding opportunities to connect and create a stronger community is important to the health and vitality of our firm. Our culture has always been a distinct reason people join and stay at Prophet and after two-plus years of being virtual, we knew we needed to reinvigorate how we connect and build relationships with each other.

In addition, we also wanted to recognize our talent and show them our appreciation for all the ways they contribute to Prophet’s success. How do we achieve this? Our answer – Prophet Connects. Focusing on our three key pillars of what makes a strong culture–connection, inspiration and appreciation–our Culture & Engagement Team created curated moments throughout the month of March to bring our employees together and create more personal and meaningful connections with Propheteers globally.

Inspired by the amazing talent within Prophet, we aimed to create a space that allowed us to learn more about each other and understand the different journeys and experiences of our teammates, to bring in outside inspiration and external speakers to share their stories, and to show our appreciation for our teams, leaders, and out people.

Week One: Connection

To respect the diverse time zones of our global team, we used a regional approach for week one. With 30 minutes on the calendars, Propheteers in each region were invited to join a call with very limited information about the event. Would these calls be exciting? Nerve-racking? Thrilling? The answer was yes to all of the above!

Small groups of Propheteers were placed in breakout rooms and tasked with two items. The first task was to answer the question: “What’s your connection?” Each group had several minutes to figure out what they had in common. Many found they all love camping, others discovered that everyone in their group enjoys the beach and some had travel dreams of visiting Paris. Once groups found their connection, they were then asked to create or find a meme and/or GIF that captured the spirit of their commonality. And boy did they deliver!

Propheteers who participated in this first event had two opportunities to walk away winners. However, just by showing up to the activity, they had the opportunity to win a truly special prize–connecting with their peers. This first event proved to be a great success. Not only did we make personal connections within the breakout teams, but we also provided an escape from the reality of everyday work, a moment to laugh together and simply an opportunity to have fun with one another while connecting with our people.

Week Two: Inspiration

Building culture and connections in a hybrid/remote world is hard. We miss the days of being in the office, sharing lunch or a cup of coffee together and catching up on each other’s lives. Our people wanted the opportunity to have smaller, more intimate connections on topics outside of current projects and work-related tasks. Inspired by TED talks, Prophet Talks emerged. Prophet Talks was all about inspiring our teammates. Over the course of three days, we had a line-up of 21 speakers on diverse topics. Space was limited in each talk as we wanted to keep the groups small for a more personal experience.

“Not only did we make personal connections within the breakout teams, but we also provided an escape from the reality of everyday work.”

Day one focused on finding purpose. We had regional, external speakers, like Culture and Innovative Curator Andy Stefanovich, share stories of how they found a sense of purpose in their work and personal lives. Prophet alums, Blums Pineda, MD and global head of internet and tech investment at banking for Standard Chartered Bank, and Wisdom Mak, a strategist for Chanel’s regional fashion team, shared their experiences of being leaders in a virtual environment, what it takes to keep your team engaged in a hybrid environment, and how you can be a strong thought leader in your career.

“Don’t stop me now” was the theme for day two of Prophet Talks. We highlighted Propheteers from all types of roles and areas of expertise and had them share their stories of success. Chiaki Nishino shared her journey from engagement manager to senior partner and president of North America. While another Prophet leader, Jeff Abbott, shared his process of writing over 20 novels in the last 20 years.

Day three’s theme was “all about the why”. Why is creativity at Prophet so awesome? Why is Dave Aaker so important? Why do we offer design services at Prophet? Digital? Healthcare? Social impact? Those were just some of the topics that were covered by our own Prophet experts. For example, London office Creative Director and Partner Gregg Finlay shared and inspired us with his passion for design and creativity. Also, from our Berlin office, Partner Layla Keramat explored the world of X&I and motivated us to think from different perspectives.

Week Three: Appreciation

Our people are what matter and what makes Prophet such a great organization to be a part of. We took this opportunity to recognize our people for the amazing work they do every day. From a slow reveal poem highlighting each class-to-class playlist to internal kudos and shout-outs, our team introduced something new each day to our fellow Propheteers. The finale of our three-week event was a class assignment where we asked each Prophet class what makes them the best. Teams were tasked to create 60-second videos answering the question, putting their creative minds and humor to the test. The activity wrapped up with a viewing of all the videos and participants voting on a favorite.

We won’t tell you the winner, but they have bragging rights and some pretty cool swage headed their way.

FINAL THOUGHTS

Why We Loved Prophet Connects

Those who participated in Prophet Connects felt more connected, inspired and appreciated by this experience. We set out three primary goals for this event. One–to help build stronger connections across regions. Two–to bring smaller, intimate groups together to bond over shared interests and passions. Three–to show our appreciation and gratitude to our people through sincerity and fun interactions.

We achieved all our goals and more. We made new friends, learned about each other and had a ton of fun along the way. Our event provided Propheteers the jolt of connecting energy they needed to kickstart the year. What we loved most about Prophet Connects? It sparked ideas across the firm and at a local level, inspiring Propheteers to make their own journey, bringing people together and building those important relationships. Looking to the future, we are excited to find new ways to connect, inspire and appreciate each other. Stay tuned…

Interested in learning more about Prophet culture? Visit our Life at Prophet page.

CONNECT WITH US

Brand Equity – Brand Value_1_A

BLOG

Growing Sustainable Fashion: Inspiring Brand Moves for DTC Companies

Although the fashion industry traditionally follows seasonal trends, sustainability is proving to be a year-round wardrobe staple among DTC brands and their customers. Recycled materials, circular fashion and ethical supply chains are capturing headlines as brands depart from a legacy of wasteful production processes and find new ways to revolutionize the fashion industry’s carbon footprint.

Despite the ongoing buzz and urgency, among both customers and brands, to address such issues, the sustainable fashion market remains a fraction of overall fashion sales. Additionally, consumers’ intentions do not yet match their purchase habits. As documented by ecological certification company Oeko-Tex, 69% of millennials report an interest in purchasing sustainable fashion, however only 37% purchase sustainable fashion. This points to a meaningful opportunity to convert that interest into a purchase.

As DTC fashion companies look to expand the ethical and sustainable share of the overall fashion market, they must consider the factors that are hindering consumers from purchasing more sustainable garments. The high price point of sustainable clothing, low awareness of the environmental impact and lack of trust in sustainability claims have been clear limiting factors.

Brand loyalty stands out as a key strategic move that DTC companies can immediately pursue to increase their share of the sustainable fashion market and help grow the industry overall. Brand loyalty can help DTC companies increase their relevance amongst consumers and break down some of their hesitations about sustainable fashion.

To increase brand loyalty in fashion sustainability, successful DTC brands often focus on one, or both, of the following:

  1. Brand message
  2. Brand inspiration

These levers are powerful ways to shape consumer perceptions and drive enduring loyalty.

1. Building Loyalty Through Pervasively Innovative Brand Messaging

DTC fashion brands that are truly pushing sustainability forward and not resorting to greenwashing are building lasting brand relevance and loyalty. Some consumers are wary of brands that talk about sustainability without the innovations in the supply chain, or a business model to back up the claims. DTC fashion brands that create innovative messaging on sustainability have a chance to win in the market.

The LA-based sustainable clothing brand Reformation offers a powerful example of a profitable DTC fashion retailer that has managed to combine growth with genuine innovation in sustainability. Reformation has made understanding sustainability more accessible for consumers, by publishing environmental impact data and content for each individual item on its website. Its sustainability report from 2020 also highlights how it works with supply chain partners to utilize clean chemicals and ensure that 75% of its fibers meet its two highest standards for sustainability.

Reformation has also been a pioneer in making sustainability content feel approachable through clever taglines like “Carbon is canceled” and “Being naked is the #1 most sustainable option, we’re #2.” All in all, its commitment to building a community of loyal and environmentally conscious customers through DTC brand practices has shown great success.

2. Building Loyalty Through Distinctive Brand Identity

While important, innovation in sustainability messaging isn’t the only tactic necessary to drive DTC brand loyalty. DTC fashion companies must have distinctive, inspired products and a brand identity to match. The Business of Fashion’s profile of the divergent paths of DTC brands Vuori and Entireworld offers a cautionary tale of what happens when companies are not distinctly inspired. Vuori is a clothing brand that sells activewear and athletic clothing, while Entireworld was a leisurewear brand.

In October, Vuori secured hundreds of millions in investment to expand its activewear brand, while Entireworld shuttered. In addition to profitability, much of Entireworld’s failure was due to its undifferentiated product. Vuori launched new segments like men’s activewear and surf apparel, whereas Entireworld struggled to compete solely on its sweatsuits. Without new inspired apparel pieces and adjacent products, Entireworld failed to stand out in the marketplace.

“The high price point of sustainable clothing, low awareness of the environmental impact and lack of trust in sustainability claims have been clear limiting factors.”

Distinct inspiration has also allowed emerging fashion brands like Ahluwalia to gain an obsessive customer following. Ahluwalia’s designer Priya Ahluwalia has built her collection around repurposed vintage pieces. This signature look is gaining attention for breaking the mold and Priya has received industry-wide recognition winning the prestigious 2020 LVMH award amongst others. Ahluwalia’s pieces stand far outside the fashion norms that retailers like Zara and H&M adhere to, and this has built a small but loyal following for the brand.

However, the pressure doesn’t stop with consumer demand and creative competition, recent legislative pushes, like the Fashion Act in New York state, could require companies to “map at least 50% of their supply chains and disclose impacts such as greenhouse gas emissions, water footprint and chemical use.” This development indicates that the mandate for a more sustainable fashion industry will not diminish anytime soon.

Drive
Customer
Demand

RELATED SERVICE

FINAL THOUGHTS

Reformation, Vuori and Ahluwalia demonstrate that on the path towards sustainability, DTC fashion brands are far from uniform. However, at their core, these brands share a drive to grow through innovation and inspiration that sets them apart from competitors. Most importantly, sustainability is at the heart of their brand story.

Prophet’s Vice Chairman, David Aaker says “The concept of a signature story – an intriguing, authentic, involving narrative – applies the power of stories to strategic messaging.”

Learning to create and leverage signature stories has truly become a “must-have” management competence. Companies that focus on brand loyalty through innovative brand storytelling and an inspired identity have an opportunity to grow market share now and in the future in the sustainable fashion market.

Prophet is working with leading DTC companies in fashion and across industries on brand strategy, growth strategy and performance marketing. Interested in finding out more? Contact us today. 

CONNECT WITH US

Brand Equity – Brand Value_1_A

BLOG

Three Examples of Successful Business Model Innovation

A business model is the backbone of how a company creates, delivers and captures value. When a company innovates on just the customer experience without considering the underlying business model, it not only reduces the value that can be delivered to customers but also fails to realize the full value that can be captured by the business. Over time, that reduces the business’s ability to invest in creating experiences that will power the business of tomorrow. As Ben Thompson wrote in his analysis of Facebook, “succeeding on the Internet didn’t simply mean making a digital product, but also finding a business model that was native as well.”  

Business model innovation is the creation of outsized value – in the form of market share, margin and defensibility, by reconfiguring multiple elements of the business model. Here are three examples of business model innovation that created more value for customers while also increasing the amount of value available to be captured by the business: 

Amazon’s Subscription Model Grows Customer Lifetime Value

Customers can automate the replenishment of household items through Amazon’s Subscribe and Save program. Many parents struggle to equitably distribute the management and execution of tasks in their household, with the greater share often defaulting to women. 

For instance, before buying detergent, someone must remember that it needs to be bought and what type to buy in the first place. This idea leads to friction that forces customers to outsource tasks in order to better distribute the load. The Subscribe and Save program makes it easy to personalize recurring deliveries and gives members the benefit of saving more as they spend more. For the business, it creates a recurring revenue stream while decreasing customer motivation to shop around and price compare each month. And finally, sending multiple items in one box each month lowers the marginal cost of fulfillment. 

Airbnb’s Value Chain Grows the Total Addressable Market

Airbnb modularized the supply of short-term rentals available, making it easy for travelers to compare options, read reviews and book. By integrating the supply of rooms onto its platform and completely owning the customer relationship, it created the conditions necessary for guests and hosts to trust one another, even without Airbnb owning a single room. In digital businesses, the winner is often the company that can reconfigure the value chain to modularize supply and own demand because it makes it difficult for suppliers to squeeze margins and it creates a virtuous cycle of new demand driving new supply. Airbnb is an example of disruptive innovation because it began in the underserved, low-end part of the travel market by offering inexpensive room rentals outside of tourist districts. After building a great reputation based on customer experience and trust, the platform was able to move upstream to mid-tier, business and luxury segments of the market. 

Microsoft’s App Store Pushes the Industry Towards Open Marketplaces

During its acquisition of Activision Blizzard, Microsoft announced a set of open app store principles, just months after Epic Games accused Apple of anti-competitive practices in the iOS app ecosystem. Microsoft’s leadership is seeking to create a “universal store” in direct contrast to Apple because it believes that outside developers must thrive in its ecosystem to deliver the best experience to customers, even if this means forgoing near term profits that could be gained by showing preference to its own apps, requiring its payment systems be used or acting as a gatekeeper between developers and customers.  

An NFX assessment recently found that 70% of value in tech is driven by network effects. By creating an open app store, Microsoft is betting that network effects will grow the overall value of the gaming industry enough to make up for leaving some value on the table in the near term. By focusing on overall value creation rather than just profit maximization, business model innovation prioritizes models that will create the most sustainable value for all stakeholders in the ecosystem.  

And When it Goes Wrong – Clubhouse’s Fatal Flaw

The goal of business model innovation is to configure business model components in a way that maximizes the total amount of value available to be created, delivered and captured. An offering that fails to solve a real customer problem will never gain traction in the market and a desirable value proposition without a mechanism to capture value for the business won’t last long.  

For example, Clubhouse quickly attracted a sizeable user base by solving a unique problem presented by Covid 19 – the newfound difficulty of getting together. The audio-only, originally invite-only social media app allowed newly homebound people to gather for live conversations around common interests. Rather than commercializing components of the value proposition, such as through subscriptions, advertising or commission fees, the founders focused only on user growth.  

“Business model innovation is the creation of outsized value – in the form of market share, margin and defensibility.”

However, the problem was that Clubhouse’s value proposition was easy for tech giants to replicate. Twitter quickly rolled out Spaces, which solves the same user problem without requiring users to join a new platform. Additionally, due to network effects, these features are more valuable on a platform with a larger user base. Twitter also already had a mechanism in place to allow hosts to monetize, making it a more attractive platform for content creators, while also offering the capability of capturing value with commission fees, as well as growing a new offering that will be valuable for advertisers in the future. 

Revolutionize
Experiences

RELATED SERVICE

FINAL THOUGHTS

Because business model innovation is about exploring what could be rather than what has been, there is no standardized answer—but we do have a standardized approach based on human-centered design methodology. The process begins with a thorough economic analysis of the existing and adjacent markets, consumer behaviors and new technology to model many configurations of value exchanges.  

A successful business model innovation will solve new problems for customers and create entirely new use cases – such as employees using Airbnb to work from anywhere during the pandemic. Business model innovation requires multidisciplinary teams of strategists, designers, and technologists to think divergently about what could be, model the highest value opportunities and rapidly test and iterate in-market. At Prophet, we are uniquely equipped to do this because we always start with the customer and the problems they are trying to solve, so we create business models that are in harmony with getting the experience right.  

Interested in learning more about how business model innovation can enable and sustain both incremental improvements and disruptive paradigm shifts in your market? Get in touch.  

CONNECT WITH US

Brand Equity – Brand Value_1_A

BLOG

Organizing Brand-Demand Marketing Teams for Success

In the fifth and final installment from our Brand-Demand Love series, informed by our conversations with marketing leaders across industries, we’ve outlined the steps to integrating brand and demand marketing capabilities to win in a complex and dynamic landscape.

If we think of marketing organizations as households, they are often not very harmonious, thanks to the common tension between brand and demand generation teams. Our blog series has described why these two marketing disciplines struggle to work together to achieve mutual success. To attain productive and peaceful integration, brand and demand teams must define the best ways to organize people and teams, collaborate productively and deploy the right capabilities and tech.

Overcoming Fragmentation 

In our discussions with marketing leaders, the brand-demand split in organizational structures was a common challenge. “One of the big barriers for marketing in our industry is how we’re structured,” a technology CMO told us. “There’s the performance marketing team on one side and then there’s everyone else, including brand people, on the other.”  

In many businesses, brand and demand are viewed as unrelated capabilities, run by disparate teams with little to no insight into each other’s activities or results. Other common symptoms of unhealthy brand-demand organizational structures include:  

  • Separate planning cycles and budgeting exercises 
  • Distinct KPIs that often do not align with broader business objectives
  • Lack of knowledge sharing
  • Talent deployed to standalone channels or capabilities, with little cross-functional collaboration or rotational assignments  

When marketing teams are organized this way, it’s impossible for brand and demand teams to communicate openly, share data freely, or collaborate productively – much less fall in love again. 

A manufacturing vice president of marketing told us that fragmentation is largely down to leadership:

“If your teams are fractured and chaotic, that’s because your leadership is fractured and chaotic.”

This speaks to the importance of leadership in ensuring different functions work together toward shared, big-picture goals. 

Rethinking the Marketing Organization Chart  

There’s no single ideal structure for a marketing organization, but certainly, brand and demand should not be managed as separate entities. Some top performers organize their teams around customer type, while others use product line, channel or functional discipline. Again, there’s no definitive best practice. A B2B manufacturer that restructured its marketing operation around how customers buy, rather than product lines, became more responsive to business needs.  

Marketing at 7-Eleven is organized by discipline, according to CMO Marissa Jarratt, but with a recognition that no one works in isolation. For instance, the company established a customer analytics and insights team to inform business decisions. “Then came the responsibility to socialize those learnings across the organization in a thoughtful way,” she said. “You can have really smart people, but it has to be a team sport.”  

Fostering Collaboration 

No matter the organizational model companies choose, collaboration is key. Collaboration can take many forms:  

  • Joint strategic planning sessions 
  • Monthly knowledge-sharing sessions 
  • Flexible campaign planning exercises and roles, including metrics definition and budget allocation  
  • Integrated campaign performance readouts 

All of these activities can – and should – include external agencies, consultancies and other third-party providers, as well as in-house agency capabilities where relevant. “We need holistic collaboration from our partners to help us work through our evolution,” said Shelley Haus, CMO of Ulta Beauty. Indeed, several marketing leaders who we interviewed considered external partners to be part of the marketing organization and capable of helping bridge the brand-demand divide. 

Collaboration can also help solve tactical issues. For instance, brand and demand teams both want efficient and effective content marketing capabilities, which require coordination and asset sharing. “We need atomized content approvals and integrated digital asset management flows so content and images can be reused quickly and easily by many teams,” said a senior marketer at a large financial services firm. “Otherwise, teams can’t streamline timing or use a ‘test-and-learn’ approach based on integrated results from everywhere.” 

Boosting Brand-Demand Integration Through Capabilities, Talent and Tech 

Several marketing leaders we interviewed talked about the pressing need for new talent. Everyone is looking for data scientists, business analysts and digital strategists; thus, brand and demand teams should look to share in-demand specialist resources.  

More than one marketing leader described the need for more communication and training across disciplines to promote better understanding. Job shadowing and rotational assignments can help in these areas. Another challenge involves varying experience and backgrounds: “Brand marketers run the show and they all went to the same business school, while performance marketers all come from DTC brands,” said Ashley LaPorte, ex-CMO at Seventh Generation. Organizational design and cultures that emphasize collaboration and shared goals can help overcome these barriers.  

Compensation models and incentives are other effective levers for driving integration between brand and demand. Defining joint performance goals tied to overall business performance may facilitate the shift away from time and expense cost models to more incentive-based pay models, which would encourage brand and demand marketing teams to collaborate more frequently.  

Technology has a role to play as well. A strong MarTech stack can successfully integrate data across disparate sources and promote connectivity among different functional areas. Adopting content personalization at scale requires integration across brand and demand teams – and their corresponding tech stacks. Performance marketing functionality can also be embedded directly into tech platforms to give brand teams more access to relevant insights and tools.   

The new research report, “Brand and Demand: A Love Story” is here! Learn how today’s Brand and Demand Generation leaders are bringing their functions together to drive greater impact.
Download today!

Drive
Customer
Demand

RELATED SERVICE

FINAL THOUGHTS

We believe the most successful and productive relationships – in business and in life – involve shared goals and commitments. Achieving these goals requires collaboration, communication and an effective division of labor. For brand and demand teams to deliver optimal performance in line with their shared goals, they must organize their “home” in ways that reflect and support these principles. Because brand and demand must live together, we’d recommend they aim to do so with utmost harmony and respect for each other’s unique genius and power. That’s how they can reignite the love in their relationship.  

Do you need help breaking down the silos separating your brand and demand marketing teams? Our Marketing & Sales practice can integrate your teams to achieve mutual success. Get in touch. 

CONNECT WITH US

Brand Equity – Brand Value_1_A

BLOG

Teladoc Health: Building Purpose-Led Consumer and Employee Experiences

Every year, Prophet surveys thousands of consumers and asks, “Which brands play an important role in your life at why?” And every year we crunch the numbers, synthesize their feedback and produce a ranking and insight-rich report for business leaders to leverage as they transform and grow their businesses through innovative customer and employee experiences.

This year’s survey focused on questions about the “head” and “heart” of consumers. While companies that won over the “heads” of consumers brought pragmatism and convenience, “heart” winners found ways to connect with them on an emotional level. The top brands – aka relentlessly relevant all-stars – did both.

In the 2022 Prophet Brand Relevance Index® (BRI) leading healthcare entities—pharma, providers, suppliers—gained traction and awareness for bringing innovative solutions during the COVID-19 pandemic. Pharma giants like Pfizer, Moderna and Johnson & Johnson grew in name recognition and brand value as they stepped up to the world stage with life-saving vaccines. Non-traditional care platforms also gained traction as consumers opted for telemedicine experiences.

But which healthcare organization was the most relevant to the lives of 13,500 U.S. consumers? Teladoc Health, the multinational telemedicine and virtual care healthcare company, ranked as the #1 healthcare organization and #21 overall.

The pandemic forced the adoption of virtual care and Teladoc Health’s newly transformed experience was there to meet the moment – providing whole-person digital-first solutions to patients. And with gaining momentum, more and more consumers have begun to embrace digital native health platforms. These platforms are rapidly scaling to become not only the digital care continuum for patients but the care continuum. Traditional sectors of healthcare are drawing inspiration from modern digital healthcare players like Teladoc Health who are taking center stage (and top spots in rankings).

Stephany Verstraete, chief marketing and engagement officer at Teladoc Health, joined Prophet’s brand leadership team in the Prophet BRI webinar to share her take on the organization’s rise in consumer relevancy.

What was the focus of Teladoc Health’s brand in 2021 and is that changing as we step further into 2022?

The pandemic created this unique moment where Teladoc became relentlessly relevant – hitting both on the needs of the ‘head’ and the ‘heart.’

We’ve reached an inflection in the adoption curve of virtual care. Which is something that is pretty rare in the world of healthcare. And I think that really stemmed from being there in the moment of people’s needs. In 2020, suddenly something they had taken for granted – access to a doctor – was compromised. And fundamentally, it transformed the relationship they had with our brand, from being largely “head” dominated, focused on convenience and value, to increasingly meeting those needs of the “heart” side as we became a place that they could safely turn to, speak to, without leaving their home.

How do you ensure brand relevance is at the core of building the brand and customer experiences?

We have been digesting our recognition on the list for the first time and are using the brand relevance construct to put a framework around what we are focused on this year.

People naturally gravitate to Teladoc for the “head” needs – like simplification and transparency – and how it can provide individuals in system-centric environments with experiences that are more “person-centric.” As we think about moving forward, we want to focus on how to make those deeper focuses on the “heart” as we deliver innovative experiences. We want to change the way people think about the Teladoc Health experience – from just sick care to healthcare. This brand thinking is transformative for how we go to market, from a marketing perspective, all the way through how we infuse it in our experiences.

Outside of marketing, what do you do to drive relevance in other aspects of the business? How do you inspire the rest of your organization around a brand?

Getting your employees to be power users makes them your greatest brand evangelists. They are the first line of feedback that we incorporate into our experience.

Fundamentally, the Teladoc Health team is inspired by our mission of enabling all people everywhere to live their healthiest lives. Our 5,000 global employees are really the power users of our services. And I would tell you, as a marketer, who has not spent a career in healthcare, this is unique.

We are very intentional about keeping consumers front and center in all of our strategic conversations. For a lot of our DTC marketers, this would seem like an obvious statement but as you get into a healthcare context, it’s really important. For example, we start every strategic meeting with a story from one of our members. It really has a powerful impact on how to keep us grounded in our company’s true north. That is the experience we are delivering and the people we are helping. We are defining a category and something for consumers that is new. When I talk about the brand, it is critical because our brand relevance is still being formed for a lot of consumers.

It is rare to see a study of this kind that can parse out innovative and traditional brands in a way that is relevant and meaningful for all of them. That’s something that we’ve really appreciated.

Revolutionize
Experiences

RELATED SERVICE

FINAL THOUGHTS

The Prophet BRI serves as a roadmap for building relevance with consumers, the type of relevance that leads to business growth. Contact our team to learn how to apply the insights from the 2022 Index to your organization.

CONNECT WITH US

Brand Equity – Brand Value_1_A

BLOG

How Sales and Marketing Drive Relevance

While sales and marketing have always required a bit of art alongside science, Prophet’s latest 2022 Brand Relevance Index® (BRI) shows that the balance is shifting. The COVID-19 crisis has changed how people consider brands, increasing the human tendency to consume emotionally. In today’s climate, we want to feel brand love before we deploy our dollars. We want to buy from companies that make us feel good, seamlessly marrying depth of relationship with convenience and meaningful experiences. And, ultimately, that’s changed how demand is actualized.

Leaders of this year’s index–our seventh–reveal these new patterns. The best brands are increasingly finding success in our new normal by the way they connect with us as humans. Some go right to the heart, building emotional resonance. Others appeal to the head, drawing us in with practical benefits. A small group of all-stars, led by Apple, Peloton, Spotify, Bose and Android, manage to do both.

Even when faced with significant speed bumps, these companies know customer relationships are everything in the world of demand generation. Relationships sit at the intersection of growth, experience and data. Brands that understand that dominate this year’s index. They are prioritizing innovation investments in the service of customer needs. The most relevant marketers push beyond the status quo, driving brand marketing investment to conversion.

We see them acing demand generation in two ways. Relevant brands are …

Deepening Relationships

The next iteration of acquisition and retention is maintaining devoted relationships with customers. Peloton, which ranks #2 overall and comes in first in our “Heart” metrics, perfectly illustrates that brand passion. Devotees could care less about its sputtering stock valuation. They just prize it for the rich experience, and the ongoing value exchange between consumer and company, across channels and touchpoints.

Relevant brands like Peloton have built products that seamlessly integrate into the lives of their customers and then rely on advocacy to promote pipeline. When something is indispensable to us, it’s easy to inspire others to participate. Tactics like Peloton’s “refer-a-friend” are mutually beneficial and authentic.

Spotify (#3), PlayStation (#7) and USAA (#10) are also thriving on the rich sense of discovery and community-building.

Fostering customer relationships requires a transition from investment to brand perception metrics. And it calls for prioritizing improved retention and loyalty models that focus on relationship longevity.

Demand generation and performance marketing allow brand marketers to relentlessly test and learn. When relevance is a moving target, performance branding will enable us to reach customers in new ways and experiment with tactics. Performance marketing is the finger on the pulse of all relationships.

Monetizing Experiences

It’s not news that the brands at the top of the index are known for providing engaging and unforgettable experiences for customers. In turbulent times, relevant brands help people feel safe and make life easier. They encourage us to experience parts of ourselves that we’ve missed in this constrained pandemic period. Generating demand and monetizing these trusted experiences requires careful finesse.

Increasingly, we see opportunities for investment in revenue streams through user interface and experience. Innovative brands are reframing go-to-market strategies. For example, some are redefining sponsored commerce beyond traditional search and banner ads, building an ecosystem for media that can extend into brand-owned properties, channels and ad units. These brands have an opportunity to explore what we call “BYO (build your own) Walled Garden,” obtaining both valuable first-party data and ad revenue.

“Innovative brands are reframing go-to-market strategies..”

Apple is the most obvious example, moving from device-driven relationships to becoming an arbiter of news, music, video and apps. It’s no surprise that it’s ranked #1 since we started our relevance research in 2015.

Companies like Fitbit (#8), TED (#9) and Teledoc (#21) are also flourishing through expanding ecosystems.

Others are gaining relevance through the rise of open payment architecture. Afterpay (#11) leads our index in financial services, showing that consumers value digital-first, customizable solutions that are reliable and transparent. Of the 293 brands we measured, it ranks #1 in the “Lives up to its promises” attribute. These “Buy Now/Pay Later” models afford trusted and convenient opportunities for customers to transact in channel. And they create new revenue streams for savvy organizations.

These customer-acquisition efforts have a direct influence on brand perception–both positively and negatively­­. And they are increasingly defining cross-channel customer strategy. As the marketing value chain collapses, we have instantaneous feedback between brand-marketing investment and revenue attribution. Growth-minded CMOs find the delicate balance in customer experiences that support both brand and demand.

Drive
Customer
Demand

RELATED SERVICE

FINAL THOUGHTS

The Future of Branding is Performance-Oriented and Vice Versa

We see first-hand the value clients achieve when they overcome capability silos–even within marketing. Coordination across customer-facing disciplines is fundamental for building relevance through customer understanding, targeting and addressability. It’s also critical in achieving greater precision in measuring upper-funnel brand impact, both due to data and experiential continuity.

To achieve uncommon growth, brands have to measure the sales stimulation that arises from brand awareness and perception shifts. With marketing fatigue and increasing budget pressure, the onus is on brand advertising to evolve from “spray and pray” to value-added and relevant placements.

Likewise, performance marketers need to lean into the incredible value of a beloved brand. Demand generation must support–not undermine–brand trust, love and relevance.

Get in touch today if you’d like to learn how to develop effective go-to-market strategies to unleash your company’s “Brand-Demand Love.”

CONNECT WITH US

Brand Equity – Brand Value_1_A

BLOG

Brand-Demand Love: Achieving Success and Satisfaction Together

Informed by the conversations we’ve had with CMOs across industries, this fourth installment from our Brand-Demand Love blog series explores how to integrate brand and demand marketing capabilities to win in a complex and dynamic landscape. 

Even in the most complimentary relationships, financial matters are often a source of significant stress. For brand and demand-gen marketing teams to achieve the fully integrated and highly productive marriage we have been describing so far in our series, they must address the potential friction points involving budgeting, investment and performance measurement.

Agreeing on big-picture goals and investment priorities is the first step, followed by defining metrics to track performance. Receptivity to new approaches and flexibility to adjust as needs change is also key. As our research with marketing leaders has made clear, these issues are critical to unleashing uncommon growth through more effective and agile marketing capabilities across the customer lifecycle. Brand and demand teams ultimately share a pocketbook and prosper (or struggle) together.

Building Balanced Budgets and Allocating Investments Equitably

Many marketing leaders confess to being “obsessed” with finding the right investment mix. There is no shortage of conventional wisdom on how to allocate budgets and balance the investment mix. One common industry standard is the 60/40 rule, an investment recommendation proposed by Binet & Field’s 2013 study. The thesis: Allocating 60% to brand and 40% to demand yields the most effective balance of near-term acquisition and long-term performance.

Such rules of thumb seem to offer quick, evidence-based solutions. They also help defend brand investments, as many marketers want—and feel an urgent need to do—as e-commerce and digital have gained the upper hand in budget battles. However, this may not fully account for the variables of consumer behavior, broader market trends or the unique business contexts faced by different organizations. Modeling investment and measurement decisions against product lifecycle stages (e.g., product launches, mature offerings) can help marketers track progress toward specific goals.

Marissa Jarratt, chief marketing officer of retailer 7-Eleven, seeks to manage marketing investments like a portfolio. She balances higher-risk bets that offer big potential upside while also making safer plays that bring more predictable returns. “This is becoming more of a science,” said Jarratt. “We’ll take risks if we think it can drive a target downstream impact or outcome.” Such a balanced view of risks and rewards helps optimize the media mix across funnel stages and seasons.

Sudden market shifts put a premium on agile planning and budgeting. As Ashley Laporte, director at communications firm RALLY, told us:

“It’s not about finding the perfect proportions to balance brand and demand but finding a flexible framework that understands how everything connects.”

Mastering the Metrics and Digging into the Data

Performance metrics and attribution models continue to proliferate and evolve. There has been a pronounced shift away from brand surveys toward more agile measurement approaches. The leaders we interviewed expressed uncertainty about which metrics and KPIs are the most accurate and how to enable insight-based decision making.

Even firms that can transcend traditional difficulties in measuring brand performance face challenges. As Jennifer Warren, VP of global brand marketing at Indeed, told us, “Business and finance leaders want to know how a 2% lift in consideration translates to sales and revenue.” Such visibility is difficult to achieve, as is determining ROI on long-term, multi-year brand investments. Marketers are now being asked to develop KPIs to measure the effectiveness of purpose-driven strategies around sustainability, for example, or diversity and inclusion efforts.

Despite the challenges, being data-driven enables marketers to speak the language of the business. As Portia Mount, VP of marketing, commercial HVAC Americas at Trane Technologies, put it, “When financial leaders say, ‘let’s cut all the brand stuff and just do demand,’ our job as marketers is explaining what the impact will be if we shut something down.” Better performance data and stronger customer insights make for more productive conversations in explaining that choosing between brand and demand is not a zero-sum game.

“I don’t think that there is a silver bullet for measurement,” said Tyrell Schmidt, U.S. chief marketing officer, TD Bank. “We are really careful not to oversell performance, which is easy to do because it always drives the fastest results.”

A Shared View Builds a Shared Stake

Demand-gen leaders also face challenges in tracking performance as major tech companies like Google and Apple work to shift away from the use of cookies. Consumer goods firms struggle to get point-of-sale performance data from partners (e.g., e-commerce platforms and big-box retailers) and look to fill the gap with third-party data (e.g., credit card records, basket analysis). The bottom line: as much data as marketing leaders have, they are always looking to attain the most relevant data.

The lack of alignment between brand and demand adds another layer of complexity. Today’s “incongruent” KPIs result from a lack of incentives to “play nice,” according to one CMO. Ideally, rich data and aligned KPIs are used within an agile budgeting and forecasting model that incorporates multiple time horizons (annually, quarterly, daily) and enables opportunistic, real-time adjustment.

Integrated performance dashboards accessible by both brand and demand teams have enabled some firms to generate holistic insights by combining both short-term (e.g., search data) and long-term (e.g., Net Promoter Scores) metrics. These efforts reflect the need for marketers to experiment and innovate in their approach to financial matters. At Prophet, we recently partnered with a health services client to develop an integrated performance dashboard across brand, demand and customer experience teams, enabling a cross-functional understanding of campaign performance.

Summarizing the Questions You Need to Ask

Looking ahead, brand and demand teams must commit to open communication and engagement to achieve a strong and harmonious relationship. When it comes to financial matters, flexibility is also key. In order to pave the way to a household of shared finances, you need to ask the right questions and the following are worth considering in setting the right investment priorities and measuring the effectiveness of collective efforts:

  • How much impact does brand marketing have on conversion?
  • What impact do customer acquisition efforts have on brand perception?
  • What’s the appropriate level of investment across brand and demand without sacrificing overall performance?
  • What do specific metrics tell us? Which metrics are most meaningful and why?
  • Are we measuring campaign performance holistically and across the funnel?
  • Do we have a shared view of brand and demand and how they connect to the business in the short and long term?
  • Are key measurements used to inform annual planning cycles?

The new research report, “Brand and Demand: A Love Story” is here! Learn how today’s Brand and Demand Generation leaders are bringing their functions together to drive greater impact.
Download today!

Drive
Customer
Demand

RELATED SERVICE

FINAL THOUGHTS

In our next post, we’ll look more closely at how to set up a “happy household” ­– that is, organizing teams and building the right capabilities so brand and demand can have a comfortable nest for their life together. 

If you’d like to learn more about how your organization can overcome common challenges while integrating brand and demand marketing capabilities then get in touch here. 

CONNECT WITH US

BLOG

How Financial Services Brands Can Become Relentlessly Relevant

Prophet has released its latest Prophet Brand Relevance Index ® and it’s clear that banks, insurers and other financial services firms need to do more to energize their brands. This has been true for large and traditional financial services brands for several years running, though newer digital-native brands and fintechs have gained traction quickly, both in the market and the Brand Relevance Index.

At a high level, it’s clear that consumers are increasingly willing to give new and emerging brands a chance and will reward those that offer compelling value or a winning experience. In some cases, the edge comes from building a better mousetrap (e.g., easier payment transactions); in others, it’s more about articulating clear values and attracting people who share them.

For this year’s study, Prophet’s BRI team updated the methodology with more detailed questions about how consumers engage with brands emotionally (the heart) or intellectually (the head). Not surprisingly, financial services brands rate more highly in the latter category, particularly in areas like dependability, consistency and filling important needs. The best brands, however, are capable of connecting through both the head and heart, which is how they become brands consumers can’t live without.

Looking at our rankings, we can identify what differentiates the top brands across all sectors and how financial services firms might bolster their brands and become relentlessly relevant.

Top Ranked Financial Services Brands Showcased Two Things

1) A Clear Purpose That Creates Relevance and Passion

USAA, the top-ranked financial services brand in our index at #10, might show the way forward for financial services firms. It has a clearly articulated purpose and mission and a strong customer-centric orientation. Put simply, USAA knows its job and whom it serves. That clarity results in stronger emotional connections with customers, as evidenced by USAA’s top heart score among financial services brands. Online bank Ally (#87) also communicates a notably customer-centric value prop in its marketing efforts, which helps explain its relatively high heart rankings for the category.

Once an organization has made clear what it is and who it’s for, it can reorient the customer experience with a laser focus on customer needs, as well as align the organization around the vision. Our latest research into customer-centricity shows what success looks like for banks and other financial institutions and some recommendations for how they can achieve it.

2) A Sharp Focus and Frictionless Experiences

Among our top 10 brands, Peloton (#2), Spotify (#3) and PlayStation (#7) all have well-defined value propositions and deliver people exactly what they want again and again. Within financial services, highly focused and easy-to-use apps – such as Afterpay (#11), Zelle (#39), CashApp (#52) and PayPal (#56) – that do one thing (or just a few things) very well far outrank financial supermarkets. The same is true for TurboTax (#46), digital insurer Lemonade (#100) and trading app Robinhood (#107).

These brands are relevant because customers know the value they receive for engaging. Highly effective – even elegant – experiences that remove friction from core transactions are also part of the success equation. For these brands to continue growing, they must retain the focus even as they add more services.

Afterpay and Robinhood are very much “of the moment” brands, so it will be interesting to see how their relevance rises or falls in future surveys. For traditional firms to compete more effectively against these “less is more” experiences, they need to ensure their transformation investments are aligned to innovation and growth.

All Head, More Heart

Consumers understand the usefulness of and need for financial services firms. They provide vital services that are indispensable to the daily lives (not to mention the long-term plans) of countless people and businesses worldwide. But they are, for the most part, not very inspiring and rarely make emotional connections with consumers.

“There’s a real opportunity for banks, insurers and investment firms to meet people where they are emotionally.”

After two years of widespread financial uncertainty and with more consumers looking to boost their financial confidence, there’s a real opportunity for banks, insurers and investment firms to meet people where they are emotionally. Insurers that have offered premium holidays and discounted rates for people driving less are on the right track. So too are banks looking to lead on sustainable finance and “greening” the economy, provided their commitments are backed up with meaningful action. Financial services brands that can show some emotion and empathy and demonstrate their human values will have the best chance to increase their relevance.

For newer financial services players, the growth challenge starts with retaining customers and expanding their offerings once they’ve reached a critical mass. How far will inspiring brands take them if they can’t master the practical, “head” side of customer relationships?

More established brands should look for ways to emulate the energy of their newer competitors, injecting some emotion into their customer relationships. At the same time, they should seek to refine their operations to achieve the optimal balance of head and heart.

Reimagine
Brands

RELATED SERVICE

FINAL THOUGHTS

It’s safe to say that uncommon growth – the type of growth that is purposeful, transformational and sustainable over time – in financial services won’t be possible without increasing brand relevance. Consider how banking, insurance and investment brands increasingly compete with companies from outside the sector, including many that are absolute masters at brand relevance. The top-ranked brand in our study this year was Apple – a technology company that has become a leading player in mobile payments and has an expanding pool of customers for the Apple Card. Their presence makes brand relevance a strategic imperative for incumbent financial services companies.

These are just a sampling of our findings. To see where your brand ranked, you can find the full 2022 Prophet Brand Relevance Index ® here.

CONNECT WITH US

Brand Equity – Brand Value_1_A

Your network connection is offline.

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