the brand advocate
DESCRIPTION
Branding is not an event but a cultural philosophyTRANSCRIPT
The Brand Advocate
Your Customers Become Your Best Channel
JOE ORLANDOPricewaterhouseCoopers
Your Customers Become Your Best Channel
JOE ORLANDOPricewaterhouseCoopers
What is a Loyal Customer?
• One Who is Highly Satisfied
• One Who Keeps Buying from You
• One Who is Highly Satisfied
• One Who Keeps Buying from You
What is a Brand Advocate?
• A Highly Satisfied Customer
• Who Keeps Buying From You
• AND Recommends You to Others
• A Highly Satisfied Customer
• Who Keeps Buying From You
• AND Recommends You to Others
The Customer Hierarchy
Brand AdvocateLoyal CustomerFirst Time CustomerProspectTarget
**everyone focuses on the bottom two and too little focus on top two
Brand AdvocateLoyal CustomerFirst Time CustomerProspectTarget
**everyone focuses on the bottom two and too little focus on top two
Who Has Brand Advocates?
• Apple• Compaq• Dell• Starbucks• British Air• Singapore Air
• Apple• Compaq• Dell• Starbucks• British Air• Singapore Air
• Ritz-Carlton• Lexus• Marks & Spencer
• Can You explain why you “feel” something when you think of these brands?
• Ritz-Carlton• Lexus• Marks & Spencer
• Can You explain why you “feel” something when you think of these brands?
Impact on Profitability• According to Opinion Research,
Corporation & Profit Impact of Marketing Strategies Database– “Companies that achieve the highest level of
customer satisfaction and retention are significantly more profitable than those who do not”
• Bottom 20% in Customer Satisfaction average 3.8 % Return on Sales while Top 20 % in Customer Satisfaction enjoy 12.4% Return on Sales
• According to Opinion Research, Corporation & Profit Impact of Marketing Strategies Database– “Companies that achieve the highest level of
customer satisfaction and retention are significantly more profitable than those who do not”
• Bottom 20% in Customer Satisfaction average 3.8 % Return on Sales while Top 20 % in Customer Satisfaction enjoy 12.4% Return on Sales
Counter Intuitive - Loyal Customers are More Profitable
Customers
Why Are Having Brand Advocates Profitable?
• Reduced Marketing Costs
• Higher Profits since they readily buy again and willingly recommend to others
• Willing to pay a slightly higher price
• Buy new offerings more quickly
• Buy across the product lines
• Reduced Marketing Costs
• Higher Profits since they readily buy again and willingly recommend to others
• Willing to pay a slightly higher price
• Buy new offerings more quickly
• Buy across the product lines
Additionally, Brand Advocates
• Are more tolerant of failures
• Are most willing to work with you to enhance offerings and develop new products
• Are more tolerant of failures
• Are most willing to work with you to enhance offerings and develop new products
What Contributes to Customer
Satisfaction?
Focus – Focus – Focus
• Know Who We HAVE to Get
• Who we would like to get – Nice to Have
• Who the entire market is – Be Particular
• Know Who We HAVE to Get
• Who we would like to get – Nice to Have
• Who the entire market is – Be Particular
Five Steps to Creating a Brand
Advocate• Define your BEST customers• Define what motivates them to buy your
product• Identify all the Brand Contacts which drive
satisfaction– All points of contact that for them define your
brand – from the receptionists to the support desk
• Orchestrate a single brand experience across every Brand contact
• Define your BEST customers• Define what motivates them to buy your
product• Identify all the Brand Contacts which drive
satisfaction– All points of contact that for them define your
brand – from the receptionists to the support desk
• Orchestrate a single brand experience across every Brand contact
Do we have brand advocates?
• Measurements– Satisfaction– Repeat Purchasers– Share of the Customer’s spend– Lifetime value– Recommendations to others
• Measurements– Satisfaction– Repeat Purchasers– Share of the Customer’s spend– Lifetime value– Recommendations to others
Strategic Value Marketing
• Don’t be tempted to market with your Mission Statement and define your customer as the entire market opportunity
• Focus only on the BEST customers for your products and capture them first
• Don’t be tempted to market with your Mission Statement and define your customer as the entire market opportunity
• Focus only on the BEST customers for your products and capture them first
Profile your best customers
• Satisfaction• Profitability• Retention• Penetration
– What characteristics do they all have in common?
– What other variables describe these customers?
– What value do they place on your offering?
• Satisfaction• Profitability• Retention• Penetration
– What characteristics do they all have in common?
– What other variables describe these customers?
– What value do they place on your offering?
How do you use the Profile?
• You have now profiled your ideal target- – Where do they shop? – What do they read? – Where do they eat?– You hunt deer where the deer live – not in
a parking lot at the mall…
• You have now profiled your ideal target- – Where do they shop? – What do they read? – Where do they eat?– You hunt deer where the deer live – not in
a parking lot at the mall…
Airline Example
• If Revenue Growth is the Objective– We Target 100,000 miles a year fliers– Business travellers– Long haul domestic flights– At least twice a month– At least 4 international flights a year
• If Revenue Growth is the Objective– We Target 100,000 miles a year fliers– Business travellers– Long haul domestic flights– At least twice a month– At least 4 international flights a year
Airline Example
• If Profitability is the Objective– We must attract people who pay a lot for
their tickets• Assess more points or First Class Travel 1.5 mile points
• Business class 1.25 mile points
• Full Fare Economy – 1 mile points
• Discounted Economy .5 mile points
• Delta now has a zero points fare to compete at low end
• If Profitability is the Objective– We must attract people who pay a lot for
their tickets• Assess more points or First Class Travel 1.5 mile points
• Business class 1.25 mile points
• Full Fare Economy – 1 mile points
• Discounted Economy .5 mile points
• Delta now has a zero points fare to compete at low end
Consider This
• It costs five times more to get a new customer than it does simply to keep you you have- - and still, most companies allocate six times as much to the process of acquiring new customers than they do to the less expensive process of retaining and growing current customers
• It costs five times more to get a new customer than it does simply to keep you you have- - and still, most companies allocate six times as much to the process of acquiring new customers than they do to the less expensive process of retaining and growing current customers
Gaining Customer Insight – After
Identifying the Ideal Target
• Gaining “insight” into the Customer motivations is the path to creating a relevant and personal connection with customers
• Gaining “insight” into the Customer motivations is the path to creating a relevant and personal connection with customers
While most focus on how the products
match the customers
• Why not look at how the customers view the products– Positioning
– Points of contact
– What is in place to “delight” the customer?
– What steps are in place to create an advocate?
– When is the last time you showed you cared?
• Why not look at how the customers view the products– Positioning
– Points of contact
– What is in place to “delight” the customer?
– What steps are in place to create an advocate?
– When is the last time you showed you cared?
Consider From Your Personal Experience
• What makes the experience worth recommending?– “They knew me and what I
wanted!”– “They anticipated my needs – the
service was exceptional!”– “It was a pleasure to do business
with them!”• Doesn’t matter if it’s a cab ride, auto
service, restaurant or home purchase
• What makes the experience worth recommending?– “They knew me and what I
wanted!”– “They anticipated my needs – the
service was exceptional!”– “It was a pleasure to do business
with them!”• Doesn’t matter if it’s a cab ride, auto
service, restaurant or home purchase
Ssssshh… the secret?
• Respectful, empathetic and comprehensive understanding of a customer – like each was the only one!– Not demographic profiles, not target
audiences – but reflective, direct• “It was as though he was singing right to me!”
• Respectful, empathetic and comprehensive understanding of a customer – like each was the only one!– Not demographic profiles, not target
audiences – but reflective, direct• “It was as though he was singing right to me!”
Don’t Differentiate Your Products – Differentiate the Experience
• The ideal restaurant experience starts with when you pull up outside – how you are greeted – where you are seated – the place settings – the atmosphere – the wait staff - … is it really just the food?
• The ideal restaurant experience starts with when you pull up outside – how you are greeted – where you are seated – the place settings – the atmosphere – the wait staff - … is it really just the food?
Can You Answer?• For Whom (the relevant target) • Does (the insight of customer relevance and
motivations)• What we Offer (whole product/experience =
the BRAND)• That Delivers (benefits directly related to
motivating insights)• Unlike (relevant competitor)What is the Relevant Differentiator?
• For Whom (the relevant target) • Does (the insight of customer relevance and
motivations)• What we Offer (whole product/experience =
the BRAND)• That Delivers (benefits directly related to
motivating insights)• Unlike (relevant competitor)What is the Relevant Differentiator?
Brand is NOT
The MarketingThe LogoThe Advertising
It is an emotion – what does it evoke? The first 1000 Miatas off the line were ALL red. This was due only to what emotion a red convertible sports car can create as people see it for the first time.
The MarketingThe LogoThe Advertising
It is an emotion – what does it evoke? The first 1000 Miatas off the line were ALL red. This was due only to what emotion a red convertible sports car can create as people see it for the first time.
Classic Examples
Candies in foil wrappers are better tasting and more expensive than candy in plastic wrappers?
Candies in foil wrappers are better tasting and more expensive than candy in plastic wrappers?
Beer in Clear Bottles – more or less expensive than beer in dark green bottles?
Beer in Clear Bottles – more or less expensive than beer in dark green bottles?
Never Forget
While the Company Owns the Trademark
The Customer Owns the BrandAn industrial brand won’t sell in a consumer
market – would you expect high quality furniture from Home Depot?
While the Company Owns the Trademark
The Customer Owns the BrandAn industrial brand won’t sell in a consumer
market – would you expect high quality furniture from Home Depot?
To Steal a Quote:
“Brands are built like birds build their nests – by the scraps and twigs they chance upon,” Stephen King, WPP Group, London
“Brands are built like birds build their nests – by the scraps and twigs they chance upon,” Stephen King, WPP Group, London
Every Contact Adds or Detracts from the
BrandThe Brand is Communicated with EVERY
Contact a customer has with your companyIt has body and verbal language
Trace every point of contact and establish – did I win or lose than opportunity to delight the customer?
The Brand is Communicated with EVERY Contact a customer has with your companyIt has body and verbal language
Trace every point of contact and establish – did I win or lose than opportunity to delight the customer?
Every Contact Sends a Message
Is it consistent across every point of contact?
Does it match the Customer’s expectations?
Does it match and remain consistent with the insight?
What message did they get?
Is it consistent across every point of contact?
Does it match the Customer’s expectations?
Does it match and remain consistent with the insight?
What message did they get?
Look at Lexus21% of Luxury Car Market
Highest Customer Satisfaction for seven years running
Highest customer retention of any car manufacturer 65% and rising
21% of Luxury Car Market
Highest Customer Satisfaction for seven years running
Highest customer retention of any car manufacturer 65% and rising
Great Products Don’t Create Great BrandsFocus at Lexus is to deliver the total
customer experience – Lexus stated strategy – “To create a total
consumer service experience, including product, for a very specific consumer segment”
Focus at Lexus is to deliver the total customer experience – Lexus stated strategy – “To create a total
consumer service experience, including product, for a very specific consumer segment”
Know thy Customer
HAD to get CustomersPrevious European luxury car owners
Replacing or adding an automobile
Nice to Have CustomersCurrent mid price Toyota customers who are
trading up
HAD to get CustomersPrevious European luxury car owners
Replacing or adding an automobile
Nice to Have CustomersCurrent mid price Toyota customers who are
trading up
Customer InsightElite professional who are used to, expect and
demand high service/support
They deserve to be able to avoid the everyday hassles and discomforts of common every day life
Elite professional who are used to, expect and demand high service/support
They deserve to be able to avoid the everyday hassles and discomforts of common every day life
Luxury Car Ownership is a Reward
The consumer insight – “I earned this!”
If I pay more for “just a car” I should get more than a typical car owners experience!
I deserve to pampered!
The consumer insight – “I earned this!”
If I pay more for “just a car” I should get more than a typical car owners experience!
I deserve to pampered!
To Wrap it Up for LexusFOR past owners of European luxury carsWHO feel they deserve the ultimate in serviceOUR PRODUCT IS a cocoon of luxuryTHAT makes you feel honored and catered toUNLIKE any other luxury productLEXUS DELIVERS the most deferential and
supportive ownership experience you can have as long as you own your car
LEXUS MOTTO: “ We treat you like a guest in our own home.”
FOR past owners of European luxury carsWHO feel they deserve the ultimate in serviceOUR PRODUCT IS a cocoon of luxuryTHAT makes you feel honored and catered toUNLIKE any other luxury productLEXUS DELIVERS the most deferential and
supportive ownership experience you can have as long as you own your car
LEXUS MOTTO: “ We treat you like a guest in our own home.”
Building the Whole Brand
Behavioural Targeting
Key Insights and Whole Brand Positioning
Key Whole Brand Contact Points
Priority List for Improvements
Consistent “litmus test” and continuous improvement
Behavioural Targeting
Key Insights and Whole Brand Positioning
Key Whole Brand Contact Points
Priority List for Improvements
Consistent “litmus test” and continuous improvement
Barriers to Overcome
• Business Models which de-emphasize the customer• Lack of continuous pulse checking with the insights,
behaviours and motivations of the customer• Internally focused structures• Functions driven by internally focused structures• Poor cross functional relationships create poor customer
hand-offs• Metrics focused on market performance rather than
customer performance• Inability to maintain ongoing connections with the
customer – not an event – a culture
• Business Models which de-emphasize the customer• Lack of continuous pulse checking with the insights,
behaviours and motivations of the customer• Internally focused structures• Functions driven by internally focused structures• Poor cross functional relationships create poor customer
hand-offs• Metrics focused on market performance rather than
customer performance• Inability to maintain ongoing connections with the
customer – not an event – a culture
How often does the customer’s success come into everyday communications?
Is the focus on making the sale… or making the customer successful?
Is the focus on making the sale… or making the customer successful?
Confidential Joe Orlando 41
Where Do You Keep Your Brand?
• Let’s Explore Your Brand Policy– Look, Color, Placement– Process, Action, Empowerment
• Value to Make the Sale
• Value Beyond the Sale
• Value to Your Customer
• Let’s Explore Your Brand Policy– Look, Color, Placement– Process, Action, Empowerment
• Value to Make the Sale
• Value Beyond the Sale
• Value to Your Customer
Confidential Joe Orlando 42
Let’s Test Your Brand
• What’s Your Mission Statement?
• Where are Your Customers?
• Which Values are Most Prominent?
• What’s Your Mission Statement?
• Where are Your Customers?
• Which Values are Most Prominent?