Trust and the speed of business

Last year I spend a fair bit of time talking to a senior People officer, can’t say I fancy their company (in my opinion most are not a whole lot more than policy police and many times a little on the dimmer side to my liking) but this one was strange and I like strange. Discussions were often at philosophical levels and usually open ended and vague. It’s just the kind that gets my creative juices flowing. Over several rounds of conversations we talked about talent one of my most favorite topics after brands.

We talked about talent and business models, talent acquisition, talent preservation, talent development and also talent decimation (no I am not kidding, that what most organizations do, they bring talent, morph it to a mold and destroy the ingenuity, the very thing they paid top dollars for. Fostering mediocrity in the process and obliterating any innovation prospects). To add to the challenge establishing guard rails in the form of bureaucracy to making any real significant contribution.

As we continued to discuss these topics we stumbled upon the speed of business model evolution and the factors that drive the speed. We talked about Clayton Christensen and even Joseph Schumpeter for perspectives on innovation. The one and only element of success behind discontinuous innovation is not funding, is not the creation of skunk works, it is not even intelligence it is TRUST! It is the pill that enables organizations to let individuals try new ideas, concepts and models outside the realm of ‘Business as Usual’. It is the panache that lets individuals the ability to take calculated risks FAST.

Later while thinking about this essay I did some basic research and found this book by Steven Covey.

Watered down-Conflicted-Democratic ~ Point of Difference

Tom Fishburne captures the essence of strugles most companies that are trying to find their core equity experience and then the challenges of translating those equities into sensory and executional experiences.

Tom, Thanks for a another fabulous encapsulation of the concept!!

Brand experience panacea

Ever since AG Lafley brought attention to two of the consumer strategic decision points in buying and using fast moving consumer products the concept of brand experience has been played over and over. The two windows, the first at point of purchase and the second at use leave a strong and lasting impression on the consumer mind and psyche.

The actual execution often leaves more to be desired!

So what is with the lacuna between the desire and actual execution? We have all heard about the service excellence at a Lexus dealership, we have also read about the standards of customer service at Nordstrom’s and yet the variance between the best and good is huge. Neither of the stores are pedestrian by any stretch and the difference in demographic is reflected in the clientèle.

Brand experience can many times be the elixir to differentiation but relevance is the first rung in that ladder. Without knowing her and without knowing what matters to her it would be impossible to know the value-benefit equation. Marketing must start with positioning, targeting and segmentation!

Buying loyalty

I had a strange and uncomfortable conversation recently about some consumer research revealed a fact that shouldn’t have been surprising. We are humans; We are intelligent (We may choose not to exercise it at times, but we are intelligent); We are individualistic (we do have some what of a herd mentality but we are each unique in our own ways) but most of all, We make choices and decisions based on our own definition of “SELF ACTUALIZATION”!

The conversation related to consumers exercising opinions contrary to executive belief that people should invest in their own business. What is the ‘All powerful’ consumer to do if the brand does not meet her needs, even if it is her own business? Old school thinking does not hold any longer! Consumer choice is a moment of truth when rational people can sometimes make irrational decisions driven by their values, their experiences, their personalities and their psyche.

Loyalty cannot be bought and more over loyalty cannot be taken for granted! Loyalty is priceless and needs to be respected. Drawing on Steven Covey’s ideas from Seven habits of highly effective people, brand stewards need to invest actively in the loyalty ‘capital’ pool before making any withdrawals (in form of repeat purchase even when prices creep higher, brands morph packages or when brands stretch into newer pastures).

Brand Fatigue

I recently consulted on reviving a brand that seems to be suffering from a certain level of exhaustion. Although the brand has strong equity it seems to lack vigor and more importantly distinctiveness. We have all suffered fatigue at some point in time or the other so I decided to look up synonyms to the word to describe my thoughts and feelings about the brand. At my favorite destination Wikipedia I found several links for the definition of fatigue, I started with medical. Fatigue also called exhaustion, languidness, languor, lassitude, or listlessness). The more detailed definition of the term and its implication were in metals, structures and metallurgy – fascinating stuff!

Do brands really suffer from fatigue? Of course they do!
· Brands are quickly diluted if they are not differentiated.
· Brands get stale if not perturbed.

Many well known and strong brands like – JC Penny, Swanson frozen entrée, etc. have experienced phases in their lifecycle where they need new energy to avoid the much feared lack of distinct recognition.

What is a brand to do to keep the brand cheerful, exciting and lively? I usually like to start with first principles and what better place than Brand basics? Defining that target consumer and knowing her is the first step. Who is she? What does she desire? How can we titillate her senses? What else is she considering? How does she engage with our brand and the competition?

Service based brands have a particular advantage when circumventing fatigue the opportunity to close the loop on the consumer experience enables a distinct advantage to learn and fix problems as quickly as they happen. Obviously nothing happens with out a keen focus and deep commitment.

Above all one can never under estimate the power of active listening!

Trust as a Tangible Brand Attribute

Very foundational article on brandchannel.com - Trust as a Tangible Brand Attribute.

Here are some top lines from the article.

Organization’s core values can be projected through an authentic brand platform, then consistently walking the talk

Authentic brand platform is the foundation of employee and customer trust and loyalty—both of which directly affect your bottom line

“Your brand promise is shorthand for everything that your company stands for,”

“Your ability to keep that promise is critical to establishing and maintaining credibility with both employees and customers.”

Trust: The Core of Tangible Brands
Trust is the engine that powers your brand. When a brand delivers consistently on what it says it will do there are tangible results. When the visual brand is aligned consistently with the experience it communicates an honest, reliable organization and there are tangible results. It’s all about building loyalty and long-lasting relationships.

Authentic Values: The Backbone of Your Brand
Trust results from a reliable cache of perceptions and experiences, built over time. We think of organizations just like we do people we know. If I have heard of you I am more likely to trust you. If you do what you say you are going to do, my level of trust will increase. If you do this over and over, I will become a raving fan. It all boils down to consistency and authenticity. If you say one thing and do another, or look and act differently each time I interact with you, that will chip away at my trust. I’ll go elsewhere to work or do business.

Sometimes, it’s the smaller daily actions and interactions that show you a brand is working beyond the logo and tagline.

Making Your Brand Tangible Leads to:

• Ongoing affirmation of purpose
• Organizational alignment
• Differentiation
• Stronger relationships and connections
• Increased recognition
• Stronger recruitment
• Increased ROI

Positioning across generations

As we continue to make progress in medical technology and develop a better understanding of our bodies we have made significant strides in extending human life. Our brand lifecycles unfortunately don’t have the same luxury, with lifecycles shrinking ever shorter. That’s not to say we don’t know what is causing length of brand life to suffer. The list is long and obviously contextual, lack of a clear focus for the brand, increasing diversity and varying emotional needs of consumers, pressure from distribution channels, economics and many more. Survival of brands is solely a function of focus! This can sometimes create a whole new challenge how does one balance the relevance of the positioning across a population that can now live longer and longer?

As brands position and reposition to increase appeal beyond their primary targets on to their secondary and strategic targets how should brand manage the risk of alienating the prime prospect? Brands like to stay Young, Fresh and Interesting, but the scope of Young, Fresh and Interesting is function of the age. Brands like Unilever’s AXE makes innuendoes to sex appeal as it attracts the Gen X & Ys, Procter’s Tide appeals to the quintessential mom that identifies herself self-esteem in how clean her kids clothes appear, Loreal’s Revitalift speaks of ageless beauty for the Boomer in helping her age gracefully.

Since survival of consumer brands is so heavily dependent on the volume the question on the table is how does a brand strategize targets? How does the brand stay relevant? How does the brand differentiate itself not just by “Who am I ?” but “Who should I appeal to ?”. Me too is a great strategy if the brand wants to follow the leader, but if you want to be the leader, the brand needs clarity. Positioning is a brand metaphor in the consumer’s mind and metaphors are contextual generations and age clearly affect what is meant and how it is interpreted. A strong and robust brand architecture and support for the brand portfolio can take the brands to new levels of leadership!