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OMVO Branding
an outcome-based approach to brand strategy




            Rob Hinckley   •   August 2011
Do you have a brand?
• Brand = competitive separation

• Competitive separation means our competition cannot
  or will not follow us

• Resources spent to differentiate your business, that fail
  to truly separate your business, are wasted

• The opposite of branding is commoditization
Is your brand valuable?
• Customers are only interested in outcomes. The
  outcomes they are willing to pay a premium to have
  satisfied by others are considered market-valued

• If we can fulfill an outcome better than anyone
  else, we own that outcome in the minds of our
  customers; we achieve separation

• A successful brand is an Ownership of Market-Valued
  Outcomes (OMVO)
The benefits of successful branding
• Branded products command pricing
  premiums, commoditized products can’t

• Staking our claim to valued outcomes allows us to be
  recognized and rewarded for them as well as
  permanently associated with them

• The discipline to maintain ownership focuses our
  resources and efforts—we get more bang for each buck
  and more stretch in each dollar
The 3 Essentials of outcome ownership
• We cannot own an outcome that we could not
  hypothetically service 100% of, i.e. we must be the big
  fish in a small pond

• True owners clearly understand both what they own
  and what they do not own; it’s critical to deliberately
  exclude

• Ownership is not a marketing message—our claim has
  to be true
Step 1: Identify outcomes
• Segment your potential market into a group of
  customers that self-identify and reference one another
  Ask yourself: Are we a big enough fish to handle this
  entire pond, 100% ? If not, keep segmenting down

• Identify the top outcomes that are important to your
  group but unsatisfied (outcome innovation research)

• Create a strategy canvas that maximizes competitive
  separation while maintaining standards (Context)
Step 1a: Market Segmentation:
                The 100/40/51+ formula

• Potential markets include those we currently compete
  in, those who appear to be a match for our resources
  or expertise, and those we are passionate about

• Begin segmenting by traits that a customer would self
  identify with: Where they live, their interests, their
  stage in life, and their affinities; Would they
  affirm, “Yes, I am ______ ” ?

• Create a strategy canvas that maximizes competitive
  separation while maintaining standards (Context)
Step 2: Validate solutions
• Create a prototype product, service, or customer
  experience based on our strategy canvas; Start with the
  solution of the unconstrained customer, then refine

• Launch our innovations and ensure our outcome-
  driven solutions are getting customers talking and
  making recommendations within their “pond”

• Ensure that the value premium is profitable and that
  we can reduce the price year-over-year
Step 3: Establish ownership
• Articulate a single Dominant Selling Idea (DSI) whose
  theme runs through your set of targeted outcomes
  Your DSI is the foundation of your brand’s messaging

• Align all operations, internal messages, and marketing
  (Consumer Pathway) in order to reinforce your DSI and
  the veracity of your claim to own your outcome set

• Velocity Check: Will you capture 40% of your target
  market with the first year? exceed 51% in year two?
Step 4: Leverage with discipline
• Your clear ownership of one segment will lead to
  related opportunities for continued growth

• Expand, but always maintain your core brand, i.e.
  Ownership over your outcome set; expansion should
  be about taking your OMVO Brand to tangent markets

• If the outcome value jump is too great, don’t dilute
  your brand. Create a new brand, or a sub-brand to own
  the new opportunity (keeping the 3 Essentials in mind)
Outcome-based brand strategy
• Strategy is about developing a plan to guarantee
  victory—at least, a good strategy eliminates as much
  risk as possible

• Traditional branding and growth strategies over-
  emphasize a company’s abilities at the expense of their
  customers’ desired outcomes and their own profit

• OMVO Branding reverses this; building a brand around
  valued customer outcomes reduces waste and risk

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OMVO Branding

  • 1. OMVO Branding an outcome-based approach to brand strategy Rob Hinckley • August 2011
  • 2. Do you have a brand? • Brand = competitive separation • Competitive separation means our competition cannot or will not follow us • Resources spent to differentiate your business, that fail to truly separate your business, are wasted • The opposite of branding is commoditization
  • 3. Is your brand valuable? • Customers are only interested in outcomes. The outcomes they are willing to pay a premium to have satisfied by others are considered market-valued • If we can fulfill an outcome better than anyone else, we own that outcome in the minds of our customers; we achieve separation • A successful brand is an Ownership of Market-Valued Outcomes (OMVO)
  • 4. The benefits of successful branding • Branded products command pricing premiums, commoditized products can’t • Staking our claim to valued outcomes allows us to be recognized and rewarded for them as well as permanently associated with them • The discipline to maintain ownership focuses our resources and efforts—we get more bang for each buck and more stretch in each dollar
  • 5. The 3 Essentials of outcome ownership • We cannot own an outcome that we could not hypothetically service 100% of, i.e. we must be the big fish in a small pond • True owners clearly understand both what they own and what they do not own; it’s critical to deliberately exclude • Ownership is not a marketing message—our claim has to be true
  • 6. Step 1: Identify outcomes • Segment your potential market into a group of customers that self-identify and reference one another Ask yourself: Are we a big enough fish to handle this entire pond, 100% ? If not, keep segmenting down • Identify the top outcomes that are important to your group but unsatisfied (outcome innovation research) • Create a strategy canvas that maximizes competitive separation while maintaining standards (Context)
  • 7. Step 1a: Market Segmentation: The 100/40/51+ formula • Potential markets include those we currently compete in, those who appear to be a match for our resources or expertise, and those we are passionate about • Begin segmenting by traits that a customer would self identify with: Where they live, their interests, their stage in life, and their affinities; Would they affirm, “Yes, I am ______ ” ? • Create a strategy canvas that maximizes competitive separation while maintaining standards (Context)
  • 8. Step 2: Validate solutions • Create a prototype product, service, or customer experience based on our strategy canvas; Start with the solution of the unconstrained customer, then refine • Launch our innovations and ensure our outcome- driven solutions are getting customers talking and making recommendations within their “pond” • Ensure that the value premium is profitable and that we can reduce the price year-over-year
  • 9. Step 3: Establish ownership • Articulate a single Dominant Selling Idea (DSI) whose theme runs through your set of targeted outcomes Your DSI is the foundation of your brand’s messaging • Align all operations, internal messages, and marketing (Consumer Pathway) in order to reinforce your DSI and the veracity of your claim to own your outcome set • Velocity Check: Will you capture 40% of your target market with the first year? exceed 51% in year two?
  • 10. Step 4: Leverage with discipline • Your clear ownership of one segment will lead to related opportunities for continued growth • Expand, but always maintain your core brand, i.e. Ownership over your outcome set; expansion should be about taking your OMVO Brand to tangent markets • If the outcome value jump is too great, don’t dilute your brand. Create a new brand, or a sub-brand to own the new opportunity (keeping the 3 Essentials in mind)
  • 11. Outcome-based brand strategy • Strategy is about developing a plan to guarantee victory—at least, a good strategy eliminates as much risk as possible • Traditional branding and growth strategies over- emphasize a company’s abilities at the expense of their customers’ desired outcomes and their own profit • OMVO Branding reverses this; building a brand around valued customer outcomes reduces waste and risk