the brand advocate

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The Brand Advocate Your Customers Become Your Best Channel JOE ORLANDO PricewaterhouseCoopers

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Branding is not an event but a cultural philosophy

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Page 1: The brand advocate

The Brand Advocate

Your Customers Become Your Best Channel

JOE ORLANDOPricewaterhouseCoopers

Your Customers Become Your Best Channel

JOE ORLANDOPricewaterhouseCoopers

Page 2: The brand advocate

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

Page 3: The brand advocate

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

Page 4: The brand advocate

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

Page 5: The brand advocate

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?

Page 6: The brand advocate

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

Page 7: The brand advocate

Counter Intuitive - Loyal Customers are More Profitable

Customers

Page 8: The brand advocate

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

Page 9: The brand advocate

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

Page 10: The brand advocate

What Contributes to Customer

Satisfaction?

Page 11: The brand advocate

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

Page 12: The brand advocate

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

Page 13: The brand advocate

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

Page 14: The brand advocate

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

Page 15: The brand advocate

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?

Page 16: The brand advocate

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…

Page 17: The brand advocate

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

Page 18: The brand advocate

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

Page 19: The brand advocate

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

Page 20: The brand advocate

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

Page 21: The brand advocate

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?

Page 22: The brand advocate

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

Page 23: The brand advocate

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!”

Page 24: The brand advocate

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?

Page 25: The brand advocate

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?

Page 26: The brand advocate

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.

Page 27: The brand advocate

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?

Page 28: The brand advocate

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?

Page 29: The brand advocate

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

Page 30: The brand advocate

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?

Page 31: The brand advocate

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?

Page 32: The brand advocate

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

Page 33: The brand advocate

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”

Page 34: The brand advocate

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

Page 35: The brand advocate

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

Page 36: The brand advocate

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!

Page 37: The brand advocate

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.”

Page 38: The brand advocate

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

Page 39: The brand advocate

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

Page 40: The brand advocate

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?

Page 41: The brand advocate

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

Page 42: The brand advocate

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?