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Creating Brand Advocates

You don't own your Brand....your customers define it for you. What you do - how you do it - how consistent are you - online - in person - customer support ?

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Creating Brand Advocates

  1. 1. Your Customers Become Your Best Channel Joe Orlando Director
  2. 2. What is a Loyal Customer?  One Who is Highly Satisfied  One Who Keeps Buying from You
  3. 3. What is a Brand Advocate?  A Highly Satisfied Customer  Who Keeps Buying From You  AND Recommends You to Others
  4. 4. The Customer Hierarchy Brand Advocate Loyal Customer First Time Customer Prospect Target **everyone focuses on the bottom two and too little focus on top two
  5. 5. Who Has Brand Advocates?  Apple  Compaq  Dell  Starbucks  British Air  Singapore Air  Ritz Carlton  Four Seasons  Lexus  Marks & Spencers  Can you explain why you “feel” something when you think of these brands?
  6. 6. 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
  7. 7. Counter Intuitive - Loyal Customers are More Profitable Customers
  8. 8. 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
  9. 9. Additionally, Brand Advocates  Are more tolerant of failures  Are most willing to work with you to enhance offerings and develop new products
  10. 10. What Contributes to Customer Satisfaction?
  11. 11. 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  Don’t drink the kool-aid – BE REAL about why we are the best at what you do.
  12. 12. Five Steps to Creating a Brand Advocate  Define your BEST customers (not ALL of them) SEGMENT PROFILE  Define what motivates them to buy your product (BUYER CRITERIA AND BEHAVIOUR)  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 CONSISTENCY IS CRITICAL
  13. 13. Do we have brand advocates?  Measurements  Satisfaction  Repeat Purchasers  Share of the Customer’s spend  Lifetime value  Recommendations to others  Online Support (Likes; Ratings; Stars, etc)  Willing References  Proactive Collaboration
  14. 14. 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  Carve out a space where YOUR value proposition sets you apart from your competition – don’t lose at their game – create a new game – on a new playing field – turn your weaknesses into positive differentiators
  15. 15. 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?  Why and when do you lose?
  16. 16. 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?  What are their priorities and pain points?  How are they solving their problem today?  You hunt deer where the deer live – not in a parking lot at the mall…
  17. 17. 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
  18. 18. 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
  19. 19. 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
  20. 20. 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
  21. 21. While most focus on how the products match the customers  MUST look at how the customers view the products  Positioning?  Points of contact?  Easy to purchase?  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?
  22. 22. 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
  23. 23. 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!”
  24. 24. Don’t Differentiate Just 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?
  25. 25. 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 ARE THE RELEVANT DIFFERENTIATORS?
  26. 26. Brand is NOT The Marketing The Logo The 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.
  27. 27. Classic Examples 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?
  28. 28. Never Forget While the Company Owns the Trademark The Customer Owns the Brand An industrial brand won’t sell in a consumer market – would you expect high quality furniture from Home Depot?
  29. 29. 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
  30. 30. Every Contact Adds or Detracts from the Brand The Brand is Communicated with EVERY Contact a customer has with your company It has body and verbal language Trace every point of contact and establish – did I win or lose than opportunity to delight the customer?
  31. 31. 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?
  32. 32. Look at Lexus 21% of Luxury Car Market Highest Customer Satisfaction for seven years running Highest customer retention of any car manufacturer 65% and rising
  33. 33. Great Products Don’t Create Great Brands 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”
  34. 34. Know thy Customer  HAD to get Customers Previous European luxury car owners Replacing or adding an automobile  Nice to Have Customers Current mid price Toyota customers who are trading up
  35. 35. Customer Insight 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
  36. 36. 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!
  37. 37. To Wrap it Up for Lexus FOR past owners of European luxury cars WHO feel they deserve the ultimate in service OUR PRODUCT IS a cocoon of luxury THAT makes you feel honored and catered to UNLIKE any other luxury product LEXUS 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.”
  38. 38. 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
  39. 39. 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
  40. 40. How often does the customer’s success come into everyday communications? Is the focus on making the sale… or making the customer successful? Many Mission Statements fail to address the customer!
  41. 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 Confidential Joe Orlando 41
  42. 42. Let’s Test Your Brand  What’s Your Mission Statement?  Where are Your Customers?  Which Values are Most Prominent? Confidential Joe Orlando 42
  43. 43. Thank you! EVERY action should star with… “WHY SHOULD A CUSTOMER CARE?!” If it takes more than one minute – you aren’t there yet. Confidential Joe Orlando 43

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