Most trusted brand 2010 lecture.docxPresentation Transcript
WINNING AND RETAINING CONSUMER LOYALTY IN A RAPIDLY CHANGING WORLD Udeme Ufot December 2010 MOST TRUSTED BRAND AWARDS NIGERIA,2010
CHALLENGING OPERATING ENVIRONMENT
The world in recession
The mighty have fallen
Public confidence in institutions, in brands shaken
Nigeria not spared from this experience
- R8 Banks
- Oil Marketers
- Debt recovery by banks
- Liquidity squeeze
- Diminished consumer purchasing power
HOW HAS THIS IMPACTED THE WAY CONSUMERS RELATE TO BRANDS?
Brands have become vulnerable
WHAT ARE BRANDS?
A brand is a bundle of tangible and intangible benefits comprising of: name, term, symbol, image, personality, perception, emotion, style, associations, feelings, customer service, guarantees
WHAT ARE BRANDS?
… a multitude of good, neutral and bad encounters, such as the way a product performs, an advertising message, a press report, a telephone call, or a rapport with a sales assistant.
WHAT ARE BRANDS?
… a brand is the effect on the user of everything the company does and how it behaves. Brands may start life in planning documents but ultimately they rest in the minds and hearts of people.
THE TIMES THEY ARE A CHANGING …. The Information Economy The Attention Economy The Knowledge Economy The Experience Economy THE ATTRACTION ECONOMY All about connections between people and brands, products…The emotional contract
THE NEW WORLD OF CONSUMERS
High powered messages
Larger than life
Return on investment
What you need
Return on involvement
What I want
The only currency of any sustainable value in the Attraction Economy is ideas that attract consumers.
For the consumers, as their choices grow wider, their loyalty to brands that don’t touch them in any personal way becomes shaky.
Brands need to get more emotional and begin to consciously build deep and lasting emotional connections with consumers.
How do brands create and build deep emotional connections with consumers that will make them become passionate advocates for the brand?
What are Lovemarks Lovemarks are brands that inspire action & loyalty beyond reason The degree to which a brand is a Lovemark can be measured by the behaviour of the brand users. What level of loyalty do they exhibit? What level of preference do they express?
Lovemarks are brands that people love passionately… sometimes beyond obvious reason… for example, English Premiership clubs & their fans.
“ The essential difference between emotion and reason is that emotion leads to action while reason leads to conclusions.” (Donald B. Calne – Professor of Neurology – University of British Columbia) Human beings are powered by emotion not reason
"I've learned that people will forget what you said, people will forget what you did, but people will never forget how you made them feel." Maya Angelou
Only Lovemarks explain why some brands, events, or experiences enjoy deeper emotional connections with the people they touch.
Defined by the attitudes and lifestyle of it consumers. Harley Davidson does not sell motorcycles. They sell a rebel lifestyle. Suzuki Harley Defined by features and Performance
Owned by people. Consumers are the people we should be paying attention to – understand what matters to them.
RESPECT LOVE + TRUST Reliability Honesty Ease Openess Security PERFORMANCE Innovation Quality Service Identity Value REPUTATION Leadership Responsibility Efficiency Heritage Respect and Love TWO COMPONENT OF LOVEMARKS
BRANDS High Respect Low Love PRODUCTS Low Respect Low Love FADS High Love Low Respect High Love High Respect LOVEMARK QUADRANT
Enthuser: Consumers who monitor, critique, set new trend, spread word-of-mouth, or engage with a brand through actions beyond purchasing but not connected on a long-term basis. User: Consumers who use a product without emotionally connecting or engaging in action beyond random purchase. Low loyalty, vulnerable to competition. Chooser: Consumers who rationally connect with a brand long-term but who do not engage in action toward the brand’s producer beyond always choosing it. Speak in terms of benefits & attribute words. Successes built on the ‘er’. Inspirational Consumer: Long-term emotionally connected consumers who inspire action in others by taking steps to ensure the success of the relationship they “own” by whatever means possible. CONSUMER ACTION/ENGAGEMENT
THE JOURNEY TO A LOVEMARK. Unknown Known Known for something Known for things that are different Known for good things Known for things that I care about Getting to Lovemark status means you need to go beyond what you are known for and instead focus on what ‘people’ care about
A brand I identify with
The journey to a Lovemark
turning brands that are respected into brands that are loved too
Unknown Known Known for something Known for things that are different Known for good things Known for things that I care about Source: Harvard Business School LOVEMARK
Brands too often become trapped around here Unknown Known Known for something Known for things that are different Known for good things Known for things that I care about LOVEMARK
And start battling each other for differentiation – often rationally Unknown Known Known for something Known for things that are different Known for good things Known for things that I care about LOVEMARK
Need to break out to find a more EMOTIONAL territory where the brand becomes something people care about, LOVE and identify themselves Unknown Known Known for something Known for things that are different Known for good things Known for things that I care about LOVEMARK
The Future Beyond Brands
Built on Respect
Create Loyalty for a Reason
Drive solid performance
Great Brands are irreplaceable
Built on Trust, Performance & Reputation
Owned by managers, marketers & shareholders
Built on Respect & Love
Create Loyalty Beyond Reason
Adds Mystery, Sensuality & Intimacy
Owned by the customers who love them
The combination of three qualities separates Lovemarks from brands
Keeps our interest
Mystery draws together stories, metaphors, dreams and symbols. Mystery is also what keeps long-term relationships alive. If we know everything, there is nothing left to catch us unawares and delight us.
Great brands have always been surrounded by great stories. Every brand has a story – the best one often come from consumers
Dreams is the key motivations for human actions and decisions. It is personal, possessive and aspirational
People live for adventure, anticipation and surprise
The ten conditions common to all Lovemarks 1 2 3 4 5 6 7 8 9 10
CONSUMER UNDERSTANDING 1 A lovemark acts from an intimate understanding of customer needs and desires
ONE WORD EQUITY 2 A lovemark captures its emotional essence in a single word Optimism Pride Perfection Curiosity Invincible
ATTENTION 3 A lovemark surges through the clutter with ideas, emotions and experiences
EMOTIONAL CONNECTIONS 4 A lovemark acts on the fact that human beings make their decisions emotionally
LOCAL CONNECTIONS 5 A lovemark keeps relationships alive with insights from the local USA Football UK Football
CUSTOMER OWNERSHIP 6 A lovemark is only a lovemark when its customers says so
DISTINCTIVITY 7 A lovemark is distinctive and easily recognized
TRANSPARENCY 8 A lovemark connects the company with its people and its brands
TOTAL EXPERIENCE 9 A lovemark designs compelling and sensuous experience at every point it touches people
NURTURE THE FUTURE 10 A lovemark fosters long-term relationships with constant attention
Recent global developments have shaken consumer confidence in brands.
More than ever before, companies must build from the inside-out,
consistently engaging with their consumers to build credible and sustainable
Inner strengths and values must be aligned to what customers value.
Web communities have wrestled control of brands from brand managers.
Integrity and consistency is key to brand survival.
SUMMARY “ Great companies pay attention to every point of interaction with the customer. That’s how great companies become great brands.” Claude Singer: Branding Worlds Collide.
SUMMARY “ Lovemarks is the ultimate in brand status… A stage in brand evolution to assuming a special place in the heart of the consumer where it becomes virtually unassailable engendering cult like belief and followership – the Superbrand.” Kevin Roberts Worldwide CEO Saatchi & Saatchi.