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~ by GroPartners Consulting CEO Greg French

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Tag Archives: brand

Cause-Driven Business: Galvanizing the Value Chain

10 Tuesday May 2016

Posted by French On Brand in Branding

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B2B branding, brand, brand marketing, branding, cause-driven brand, marketing strategy, value chain

HumanPic1What do you think of when you hear the term cause-driven marketing? Is it about charity? Marketing? Brand? Or a company? The hazy cloud around this type of positioning makes me pause, considering that the basic function of marketing is pretty clear: activities involved in bringing products, service, or ideas to market. In essence, meeting demand with supply. So what does “cause driven” have to do with demand and supply?

I’ve worked in the marketing and promotion business for more than 30 years, and though everything is different, nothing has changed. Since the days of Darrin Stephens and Don Draper (or Draper Daniels, as it were), the promotional “P” of the marketing mix has scorched a path of skepticism between consumers and cause. Even as sustainability and cause- or purpose-driven campaigns trend higher, there seem to be only a few organizations that use these labels as little more than an emotional corkscrew to open consumer pocketbooks. And the organizational commitments often seem to fade as fast as the campaigns themselves. In my experience, weak credibility is often the consequence of attempting to position marketing as philanthropy.

All this said, the few organizations that base their corporate visions and values on a focused humanitarian purpose truly enrich society in ways that exponentially improve the quality of life for creatures of Planet Earth. In my opinion, the brands owned by these organizations earn their right to profitability every day in a way that deserves longevity. And today’s new millennial mind set contributes a very effective “BS filter” to help police exploitation of real causes. This blogpost presents some important distinctions between the different types of cause-driven efforts; distinctions that can make the difference between exploitation and salvation.

Type 1: Cause-driven campaigns

These are marketing campaigns for goods and services in almost any category that donate a portion of their profits (in money or resources and/or supplies) to a cause, such as a charity.

Type 2: Cause-based organizations

In contrast to campaigns, cause-based organizations directly tackle a social problem with a donor-funded business model. Saha Global (http://www. http://sahaglobal.org) for example, began by enabling Ghana’s women—traditionally the ones in the home who are in charge of water—to become entrepreneurs through a training and monitoring program. Saha Global programs like this one teach the Ghana women how to collect and purify water by hand, and then sell the potable product at an affordable price. It addresses the issue of scarcity of potable water for villages while providing income for the women entrepreneurs.

Type 3:  Cause-driven brands

Brands that are driven by cause focus on developing commercialized products, services, or programs to help solve issues that benefit society. Examples can be found in biological pest control (biocontrols) or crop protection product companies who research, develop, and manufacture natural solutions to keep insects and weeds from reducing food production of farmland or threatening public health. Considering that the earth will need to produce as much food in the first 50 years of this millennium as it did in the last 10,000 years, and the threats of vector disease such as the Zika virus, biocontrols are a big deal to everyone. Add to this many centuries of chemical pesticides stripping soil of nutrients and accumulating toxic residue that can end up in the food chain, and you’ve got a bona fide cause within a for-profit business model.

Another example of a cause-driven brand is Toms Shoes (http://www.toms.com/improving-lives). Toms Shoes is a unique socially conscious shoe company with a mission to improve the conditions of children living in poverty. There are no complicated formulas, simply for every pair of shoes purchased, Tom’s donates a second pair to a child on in need.

CAUSE-DRIVEN2A conspicuous distinction of cause-driven brands is that they don’t focus on only cause-driven marketing, but operate on a commercial cause-driven business model. There’s a huge difference. A true cause-driven brand exists to serve its selected humanitarian issue by applying specific commercial solutions to targeted facets of that issue and thus leverage the economics of mass consumption to serve the cause. Unlike campaigns that come and go, donations that are ad hoc, or non-profits that directly address a humanitarian cause as their main course of activity, the cause-driven business model unites commercial and humanitarian motives. Rather than manufacture need, as in the case of the vast majority of brand marketing—or ask for handouts as in the case of cause-based organizations—cause-driven brands tackle existing humanitarian issues continuously as a part of their pursuit of profitability.

The cause-driven brand perspective can help unite and galvanize the entire value chain. The participants in the value chain—consisting of manufacturers, distributors, processors, retailers, and consumers that bring value to one another—can all focus on a purpose of greater good as common ground. This facilitates commerce among them all while solving real world problems.

Wouldn’t the world be a better place if every commercial brand operated this way? Let us know your thoughts.

 

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For more perspective on bridging strategy and execution, including practical tools and processes for brand operationalization, get a copy of Getting There From Here: Bridging Strategy and Execution, by Greg French, founder of GroPartners Consulting. E-book at iBooks or hard copy from Amazon.com.

http://amzn.to/1Jcli0A

How to Get Everything You Want at Work This Year

13 Tuesday Jan 2015

Posted by French On Brand in Alignment, Measurement

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B2B branding, brand, corporate vision, Employee collaboration, Employee engagement, Employee recognition, Engagement strategies, operationalization, Peer-to-peer, strategic alignment

 One word. RAPPORT.

What are the ingredients of powerful RAPPORT? How can you harness the force that projects charisma, persuasion, negotiating power, and credibility to all the stakeholders who affect your work life? Not only your boss. Not just your team. But people within every function of your organization and all your brands’ stakeholders, including customers.

To take it even further, RAPPORT can be scaled to unite brands and their customers, employees and employers; all to achieve real business results.

Believe it or not, this kind of power can be acquired by following only seven down-to-earth steps called The RAPPORT Process™.

Print(R) Research — Know your stakeholders

(A) Analysis — Determine not just what they want, but what they need to do to get what they want (your strategy). Pick your battles by focusing on needs that your solutions can best facilitate, and the segments that value them most.

(P) Positioning — Develop a way to deliver your strategy that addresses your stakeholders’ perceived wants. Begin with their objective and work backwards to your own. Focus on the single facet of your stakeholders’ want that you can “own.” Let them discover all the other great benefits later. Be big somewhere, rather than small everywhere.

(P) Planning — Once you know what your stakeholders want and what they need to do to get it, you need a detailed approach. Formalize the events, costs, benefits, and sequence in a plan.

(O) Operation — Execute your plan…roll it out…take action

(R) Results — Measure your outcomes and progress toward your goals

(T) Translation — How can you do this better next time?

Imagine everyone in your organization—from the stockroom to the boardroom—using this process to deal with every kind of issue from improving shipping efficiencies to launching new brands. Minds aligned. Conflicts averted. Cultures united. Commerce accelerated. Efficiencies unlocked. Common process means common language and focus. And that means a better rapport, which opens a whole new universe of benefits—all from operational alignment through The RAPPORT Process.

Much like the Quality movement in decades past, the RAPPORT revolution can help businesses achieve greater customer satisfaction, increase revenues and margins, and improve operational efficiencies. GroPartners is launching a multi-year trial of our trademarked RAPPORT Process for organizations that believe alignment sets into motion a chain of heightened customer and employee satisfaction, which leads to enhanced revenues and margins. Our aim is to build a case of solid metrics on actual organizational implementation.

Contact us if you’d like to participate in our trial. This process might be a way for you (and your fellow employees and your customers) to get everything you want at work this year, and beyond.

You can read more about the RAPPORT Process in my new book, “Getting There From Here: Bridging Strategy and Execution” available on Amazon http://amzn.to/1yK9DTG or digital version on Apple iBooks.

GroPartners Consulting

Bridging Strategy and Execution for Better Business Results

06 Thursday Nov 2014

Posted by French On Brand in Alignment, Branding, Measurement, Messaging

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B2B brand equity, B2B branding, brand, brand marketing, brand metrics, brand positioning, brand promise, brand ROI, brand scope, brand strategy map, branding, Bridging Strategy and Execution, Employee engagement, Getting There from Here, internal branding, marketing branding, marketing strategy, operationalization, positioning, virgin companies, vision, what is brand strategy?

It takes both to succeed

Many organizations are very good at developing brand and marketing strategies that have the potential to produce excellent business results. But often these strategies become diluted or even derailed due to misaligned execution. Other organizations are experts at flawless execution of strategies that may not align with actual customer behaviors and organizational goals. The reality is that it takes both to succeed. And that requires a holistic approach, connecting internal and external components to create a symbiotic brand.

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My new book is available now at http://amzn.to/1vh6ATG

When marketers fail, it is generally tied to their inability to connect strategy with in-market execution. My new book, “Getting There from Here: Bridging Strategy and Execution,” takes on the task of not only outlining how critical it is to bridge this gap but also identifying the rewards on the other side: operational excellence and in-market impact. It is an excellent reference for perspective and processes that help bridge expectations, experiences, and behaviors among all brand stakeholders at every touchpoint.

Visit http://amzn.to/1yK9DTG to download a copy. Whatever your goals, it will help you get there from here by giving you tools and processes to effectively bridge strategy and execution for better business results.

Getting There from Here: Bridging Strategy and Execution

Page 15:     The power of the bridge between strategy and execution

Page 59:     The RAPPORT Process; a master process and language that helps align every level of your organization

Page 125:   How to conduct an effective Strategic Summit

Page 42:     How to know a good vision statement when you see one

Page 116:   How to build a metrics bridge dashboard

Page 17:     The true relationship of brand and marketing

Page 21:     Harnessing the relationship between business, brand, and innovation

Page 34:     Finding strategic alignment control points

Page 53:     How to be sure you’re selecting the right opportunities

Page 56:     When estimating can be better than counting

I’d love to hear from you how this book helped improve your business results. Post your comments here or email me gregf@gropartnersconsulting.com.

GroPartners Consulting

Webisode “Infotainment”: Can it Boost Your (B2B) Brand Profitability?

21 Thursday Aug 2014

Posted by French On Brand in Alignment, Branding, Social Media and Branding

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brand, brand marketing, brand metrics, brand positioning, branding, branding ROI, marketing strategy, positioning, social media, track ROI, webisode, what is brand strategy?

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A creatively relevant story about people’s lives can lead to stronger brand relationships…even in B2B.

Over the past decade, content marketing has become the staple best practice for strengthening brand relationships. Blogs (like this one), white paper marketing, book authorship, branded documentaries, and one of the most intriguing and creative forms—branded webisodes—provide today’s marketer with an expanded palette of options to deepen and broaden customer relationships. The use of Webisodes—part of a trend called branded entertainment—is growing because marketers are compelled to find new methods to reach consumers in an era when traditional media are losing personal engagement time to the Internet. Webisode formats can range from a previews/trailers; a promotional series, part of a collection of shorts, or conversely, segments of a long form piece such as a TV series.

In any of the above formats, effective webisodes:

  • Use entertainment and video storytelling to engage stakeholders
    Television and movies taught us that visual storytelling is the “killer app” for engagement. Done well, ironic humor and humanitarian appeal are especially effective approaches.
  • Emotionalize the brand
    Emotion adds dimension more powerful and motivating than even logic to any relationship.
  • Relate to issues first
    Focusing on issues or cause (social, life stage, cultural, moral, political, or other lightning rods) tap into people’s mind at a visceral level in contrast to sales approaches that trigger emotional barriers.
  • Promote buying v selling
    When people “buy in” to a cause or an issue, selling isn’t needed to make a transaction.

Historic analogies

As my mom used to say, “Everything’s different but nothing has changed.” Blogs are really just reincarnations of the company newsletter with one big difference: WordPress and other digital blogging tools make it easier for anyone with a computer to be a publisher. White papers are still one of the best tools for thought leadership positioning. The difference here is digital creation and access. And webisodes are very much like early radio and TV serials, sponsored, owned, and produced by advertisers and their agencies instead of by producers and networks. The difference is the medium: broadcast versus the internet, the latter providing some game-changing advantages.

Media trending toward web video

It’s no longer news that web video is taking a bite out of TV viewership. Nielsen’s (television audience research) most recent study indicates that viewing by 18-24-year-olds dropped by a little more than 4-and-a-half hours per week. http://bit.ly/1p7nVvc That’s equivalent to roughly 40 minutes per day.

At the same time, YouTube now reports that:

  • YouTube reaches more US adults ages 18-34 than any single cable network
  • More than 1 billion unique users visit YouTube each month
  • Over 6 billion hours of video are watched each month on YouTube—that’s almost an hour for every person on Earth
  • 100 hours of video are uploaded to YouTube every minute
  • YouTube is localized in 61 countries and across 61 languages

My purpose in citing these stats isn’t to diminish TV advertising. It’s still the 800-pound gorilla to beat. But rather, my point is to emphasize that webisode marketing done right—with focused objectives, cogent strategies, and the right metrics attached—can now create a serious competitive advantage with clear ROI. For many brands that either can’t afford TV time or don’t fit into the TV advertising model (such as B2B), webisodes can present a green field of opportunity.

Can webisodes deliver real business results?

Many media historians portray our current period as the “post-broadcast era,” implying that audiences are sharing more of their video consumption with the web and media other than broadcast. Not to say that web entertainment will replace broadcast or cable TV. That would be like doomsters of the 1940’s and ‘50s who presaged TV replacing radio.  And though it probably won’t displace TV, web video does contribute to an ever-fragmenting, increasingly complex media landscape in which consumers have so much choice that traditional media-driven marketing it is neither practical nor effective. That’s why content-driven marketing provides a sorely needed solution. It creates valuable, targeted content to repurpose in as many media as possible.

On the flip side, in order to get views, web video needs to be supported with targeted search marketing, SEO techniques, social media, and traditional promotion. This support allows audiences to discover what’s important to them, in a compelling format, on demand—when they have a specific heightened need or interest. Webisodes fit this solution profile like a glove, versus dubiously relevant promotional content force fed as an inline component of entertainment programming (aka TV).

Early webisodes

On October 6, 2006, rapper Sean Combs (aka P. Diddy) debuted DiddyTV, sponsored by Burger King. Today, YouTube shows the first webisode garnering more than 993,000 views and 70,000 subscribers while building a social web brand community for a cultural niche. Not bad for an inexpensive webisode series. However, if you look deeper into the comments and thumbs down click counts, you might see a balanced story.

The following year, Mini Cooper launched Starsky & Hutch/Dukes of Hazzard webisode spoof “Hammer & Coop.” The effort, which centered around a six-episode web series, generated 1.5 million views and consumer interest that eventually translated into 800 vehicle sales (at least that’s the official report). But Mini didn’t just entertain visitors, it also presented a Mini web configuration tool to bring visitors closer to buying. The official report is: “Three hundred seven thousand unique visitors went directly to Hammerandcoop.com and spent an average of six minutes viewing the videos. Another 722,000 connected there through miniusa.com. Of the 722,000, 355,000 of them configured a Mini (by model, engine and extras); 22,000 people saved their configurations; and 2,400 of those sent them to dealers. Min reports that data represented about a 33% conversion rate that translated to about 800 vehicle sales.” http://adage.com/article/madisonvine-case-study/initial-results-mini-s-hammer-coop-effort/116193/

While I see a couple holes in the metrics strategy (from what I can tell, the 307,000 hammerandcoop.com visitors weren’t directly connected to configuring a car or the resulting sales funnel), this early example of webisode infotainment broke new ground for the medium. Bottom line: Mini Cooper sales were down 4% Q1 2007 YOY. However, US Mini Cooper annual sales hit their highest historic point to date in 2008, at 54,077 units. http://www.goodcarbadcar.net/2011/01/mini-cooper-sales-figures.html It gives pause for thought.

Webisodes for B2B

What about for business to business brands? Blendtec makes blending technology for home, manufacturing, and foodservice.  They launched their webisode series “Will it Blend” (www.willitblend.com) in 2007, featuring its founder, Tom Dickson, in a wacky role as a lab technician attempting to grind up everything from cubic zirconium “diamonds” to iPhones in Blendtec brand blenders. YouTube shows more than 6.7 million views on the “diamond blend” show including more than 16,000 likes and only 2013 thumbs down.

 

AnotherB2B example is an animated production by Lawson, a provider of software and service solutions in the manufacturing, distribution, maintenance and service sector industries. This webisode provides a good competitive positioning tool, effectively promoting Lawson’s “Simpler is Better” brand. It’s no slouch for such a nichey industrial target at more than 89,000 views. I’d like to see a metrics bridge that connects these views to results in a shift in positioning, revenues, and/or margins.

 

Business-to-business brands can use content marketing—including webisodes—to exploit market niches with a fresh approach to engaging their customers, limited only by imagination and, of course, budget. Unlike broadcast TV, web presence is free, so the only cost in getting a series on the web is production, which can be managed incrementally with theme, creative development, and production values, which new technology has made dramatically more efficient.

But wait. TV has built-in audiences (that’s what you pay the stations and networks for). With webisodes, you’ll have to generate the audiences yourself (you knew there had to be a catch). This “detail” has been the primary barrier in the success of many web videos.

What’s the right objective for webisodes?

Social media and advertising can get pretty expensive in the quest to promote your webisodes for customer acquisition. So why not start by using them to improve the lifetime value of your current customers? One excellent use for webisodes is cross selling lines to existing customers. Webisodes can provide context (relevant issues and situations that uncover real needs) in dramatic, comedic, or simply interesting ways (how to, etc.). This leads the customer to buy into a larger brand context and a larger solution set. With effective funneling surrounding the webisodes, it’s possible to tightly track ROI on existing or past customers.

A proven ROI formula?

Despite a few days of exhaustive research on the web, I haven’t been able to identify any recent B2B webisode examples. Maybe that’s because there’s not yet a tried and true formula that links webisodes to ROI. GroPartners is now engaged with one of our clients in an effort to do just that. We’ll keep you posted.

Meanwhile, if you have any additional information on webisodes that you’d like to share on my blogpost, please leave a comment (link top of page). I’d love to post it.

GroPartners Consulting

LinkedIn Endorsements: Do they help or hurt your reputation?

17 Tuesday Dec 2013

Posted by French On Brand in Social Media and Branding

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brand, branding, endorsement, LinkedIn, personal brand, personal branding, recommendation, social media

LinkedIn logo

Do you think LinkedIn’s Endorsement feature is less credible
than real recommendations?

LinkedIn is one of the greatest networking tools in history. By and large, its networking, research, sharing, employment opportunities, security, thought leadership and other features have changed the way the world does business. But how many times have you endorsed someone on LinkedIn for skills you really weren’t familiar with? It’s ok. Most of us have done it (though we might not admit it). But what does that say about the value of the endorsement feature of LinkedIn?

It seems that when you accept an endorsement from anyone, the next time you login you’re greeted (or assaulted, depending on your perspective) by a large endorsement panel featuring profile blocks with the smiling faces of people you know. I’m sure you’ve been through this: You see one of your close business buds in the first group of endorsement blocks and you want to support him or her, so you click the Endorse button. But it doesn’t stop there. The endorsement panel continuously reloads, going through your entire contact network soliciting every possible endorsement for each contact until you just give up and run.

Does it look legit?

How does it look to legitimate employers or prospective business partners and clients when they see one person endorse you for every skill set listed? It can look like a love fest or reciprocal pay-off, but probably not an earned endorsement for highly developed skills, right? I don’t know about you, but I’ve rarely–if ever—tapped all of the skills of any single contact. So how could I legitimately endorse them all? The endorsement generator asks, “Does (fill in the name) know about (fill in the skill)? Even if the answer is yes, there’s a big difference between awareness and expertise.

In my opinion, the most credible endorsement blocks show a bell curve with the most endorsements in core skill areas and fewer in peripheral skills. Theoretically, the graphical layout of the endorsement section could be used as a credibility gauge for each of one’s skill sets. In reality, however, LinkedIn endorsements have turned into a popularity contest, spiraling out of control, diverting the original intent and undermining its own credibility. LinkedIn is classified as social media, but unlike Facebook “likes,” LinkedIn endorsements can build an erroneous profile of an individual that is less likely to be scrutinized in an open forum. Imagine if people were able to comment on the validity of the endorsements!

Credibility isn’t the only thing potentially undermined. Security can be at risk as well. Recently I experienced an incident where a virus caused a former client’s LinkedIn account to endorse my skills every day for two weeks! Creepy.

Remember real recommendations?

Remember the pre-endorsement days of LinkedIn, when there were real recommendations? People had to actually write an original statement of tribute and confidence.  It may have been difficult to get people to devote the time and energy to provide recommendations, but that’s what gave them real value. Today’s endorsements are just too easy to click off, cheapening the currency of real, thoughtful recommendations. Why?

  • They have no QA process
  • They’re too easy to create and distribute
  • They’re not discerning
  • They are “suggested” by LinkedIn rather than “originated” by the contact

Maren Hogan on Recruiter.com wrote a good article on how to use endorsements to your best advantage (http://www.recruiter.com/i/6-ways-to-make-linkedin-endorsements-worthwhile/). She suggests the following ways to create value with LinkedIn endorsements.

  • Add strengths to your profile
  • Skip endorsements that don’t speak to your best strengths
  • Accept the LinkedIn endorsements only from people you know
  • Endorse selectively
  • Start using and providing ‘old fashioned’ recommendations

Do you feel LinkedIn’s endorsement tool is credible? Could it actually harm your reputation? Share your comments by clicking the link at the head of this post.

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The Sad State of Corporate Vision Statements

13 Monday May 2013

Posted by French On Brand in Branding

≈ 2 Comments

Tags

brand, brand brand focus, brand vision, corporate vision, vision

shutterstock_94813702In their book, “Built to Last, Successful Habits of Visionary Companies,” Collins and Porras found “companies that enjoy enduring success have core values and a core purpose that remain fixed while their business strategies and practices endlessly adapt to the changing world. The dynamics of preserving the core while stimulating progress is the reason that companies such as Hewlett-Packard, 3M, Johnson & Johnson, Procter & Gamble, Merck, Sony, Motorola, and Nordstrom became elite institutions able to renew themselves and achieve superior long-term performance.” Collins and Porras found that these companies, and those like them, have outperformed the general stock market by a factor of 12 since 1925.

How Corporate Vision fits with Corporate Objectives

Corporate vision is what provides a long view; a plumb line to reference in all decision making. If the vision is aimed at the greater good, all business objectives will be guided by those tenets and act as guidelines within which the business must operate. Consequently, business objectives should always be subject to the boundaries of the vision. That means the vision should be carefully thought through at the highest levels of the organization and articulated with crystal clarity. Often a facilitator skilled in this area is needed to offer perspective.

What makes for a terrific (or horrific) corporate vision?

Vision statements should not be long or complicated. Too many times I’ve walked into company lobbies to see a plaque on the wall with three paragraphs of “mice-type” under a bold headline “Our Vision.”

What makes for a great corporate vision? I decided to reach out to a few leading brands to provide examples of solid vision statements that bridged the gap between business and customer objectives. Instead of clear vision, what I found (for the most part) were horrifyingly ham-fisted collections of words thrown together into heaps of nonsense.  Few of them were well written. And the meaning of them was often even worse.

Let’s Grade Some Vision Statements

Keep in mind that a good vision statement is one that balances the health of the business, the customer relationship, and the greater good of society.

HP: A++

“Human Progress”
(http://hpbrandcenter.com/strategy_overview.html)

This one blows my mind. I don’t believe I have heard two words together that have resonated more deeply. Like chest-rumbling summer thunder in the distance, these words communicate on a visceral level. The HP Brand Strategy website continues, “Brand strategy is the connection between our business goals, our marketing tactics and our company’s soul — turning theories and ideas into tangible actions that build the brand we want customers and other audiences to experience when they think of HP.” Wow. These guys get it.

Virgin Atlantic: B

“Our vision is to contribute to creating happy and fulfilling lives which are also sustainable.”
(source:
http://www.virgin.com/people-and-planet/our-vision)

This vision statement is directionally valid because it speaks to improving the quality of life of people, and not the company. In order for a corporate vision statement to endure just about any external force, it should speak to what it’s endeavoring to do for the world, not just for itself. With this sustaining energy, the brand can transform to adapt to anything in the future because it’s not product based, market based, or even industry based. It’s about making people’s lives better, no matter what business they’re on. Virgin started as a record store. Now it has more than 50 branded companies in businesses as diverse as space travel, wine, and charities. To founder Richard Branson, it’s all about the experience – making people happy with sustainable living. I must admit, though, it could be a little more focused, and better written.

Pearson Education: F-

“To fulfil the educational needs across a spectrum of individuals with reliable experience and technology.”
(source: http://www.pearsoneducationservices.com/visionmission.php)

Even if you could forgive the spelling error (it was published on their website), the syntax indicates that Pearson’s target is a segment of people with reliable experience and technology. I don’t think that’s what they really meant. It’s one thing to get the purpose and focus of the vision statement wrong – it’s a whole different level of brand neglect to post something this important on a corporate website with incorrect spelling and syntax errors. And OMG, from an education company? Seriously?

Microsoft C+

“Create experiences that combine the magic of software with the power of Internet services across a world of devices.”
(source: Seattle Times, blog by Benjamin J. Romano, September 8, 2008)

(delivered by COO Kevin Turner at a buzz event, circa 2008)
Updated from the former original Bill Gates and Paul Allen vision of, “A computer on every desk,” neither of these statements are very altruistic in their service to mankind. But then again, I guess Gates was pretty good at separating his philanthropy from his juggernauts, waiting until after the corporate rat race was behind him to get all humane and everything.

B-  Walmart:

To promote ownership of Walmart’s ethical culture to all stakeholders globally.‘
(source: http://www.ask.com/question/wal-mart-s-vision-statement)

This is less of a vision statement than an internal cultural objective. At any rate, I didn’t downgrade this one too much because it speaks to ethical treatment of stakeholders and not to its own capitalistic interests and because it’s supported by values of being fair, having integrity, respecting others and embracing diversity.

Get the picture?

The vision should be in the service of people first while balanced with the corporate health. That’s what makes brands sustainable. And that’s why you’ve got to start with a really grounded vision before you can focus your corporate goals, objectives, and strategies. Take a look at your vision, does it pass the “vision test?”

  • Speaks to how the brand will make life better for people
  • Implies how the brand will sustain its business continuity and economics
  • Is short enough for every employee and customer to internalize and evangelize

What’s your idea of a great corporate vision? I’ll grade it for you 😉

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How to Get More Brand Funding from your CFO

19 Tuesday Feb 2013

Posted by French On Brand in Branding, Measurement

≈ Leave a comment

Tags

B2B brand equity, B2B branding, brand, brand metrics, brand ROI, internal branding, marketing branding, marketing strategy, operationalization, operations, what is brand strategy?

How to get more budgets for brand building

B2B marketing folks are often deer in the headlights when their CFOs challenge them for proof that brand building funds return value on their investments.

Financial executives – especially in B2B organizations – often have a hard time justifying brand-building investments. That’s mostly because when marketing folks like us are asked to provide ROI calculations for the big bucks we request, we morph into deer in the headlights before their very eyes.

So what do we do? We cloak brand building in marketing execution expenses that the financial guys can wrap their heads around. Simply put, we expense it. Feeling wimpy yet? You’re not alone. But now it’s time to help your CFO understand the value of building brand equity and put it in the asset column where it belongs…because investment in assets and a solid valuation methods are things they can relate to.

Who Doesn’t Want Higher Business Valuation?

For many middle-market B2B companies, brand equity falls off the financial radar completely, mostly because there’s no official GAAP measurement formula for organic brand equity. In a survey of nearly 200 senior marketing managers, only 26 percent responded they found their “brand equity” metric very useful. That’s pretty sad, considering that some prominent marketing researchers believe brands are one of the most valuable assets a company owns. This is a measure brand and marketing managers should leverage in their stakeholder relationships.

B2B branding metrics

Who doesn’t want 5% – 20% more company valuation?

Even in B2B, where “branding” is looked upon as something more suited for consumer products, brand equity can account for 5% – 20% or more of a company’s market value.  And who wouldn’t want that (except maybe for that Cheerio-lobbing cherub who disses Jimmy Fallon on those Capital One commercials)?

In certain industries, increasing customer loyalty by 2% can impact the bottom-line in the same way as a 10% reduction in costs (The Market Research Executive Board, “Measuring Brand Equity”). The report continued to cite that a composite of companies with brands considered by business leaders as “superior” grew 402% in the 1990s while the Dow Jones Industrial Average rose only 308%. And if that tidbit doesn’t cause pause in your CFO, toss this one at her: research finds that companies with the largest gains in brand equity generated an average current-term stock return of 30%, while companies with decreases in brand equity lost 10%. This is the kind of cred bean counters need to begin viewing brand as an investment instead of an expense.

What is brand equity really?

Brand equity trends are a good barometer overall brand health. But much like measuring the happiness of hippos, no single, comprehensive, industry-wide definition for brand equity exists. If pressed for a broad definition, brand equity essentially addresses the financial value that a brand’s identity, persona, and emotional appeal add to a product or service. It’s less about function and more about the customer experience and relationship.  It all comes down to RAPPORT.

“Emotional value” is a pretty squishy thing to measure in financial terms, but it is undeniable that even in B2B, emotional attachment is a powerful issue. Though it may be expressed on different levels than B2C, people are still involved in the decision-making, influencing, and purchasing processes. And where there are people, there are emotional attachments.

The bottom line is…well, the bottom line…meaning that even if a brand has an emotional connection with its stakeholders, differentiation in the marketplace, high awareness, and easy accessibility, but not sustainable sales and margins; what’s it worth? This could be one reason why many B2B financial folks hold limited regard (and approve fewer, smaller budgets) for supporting this “phantom asset” than in B2C.

The flaws in most approaches to B2B brand equity measurement are their overemphasis on marketing factors and diminished emphasis on business, financial, and operational efficiency factors. After all, equity is a financial concept, so brand equity measurements – especially in B2B companies – should be less about the marketing aspects and more about the business and financial impact, right? One hitch: Marketing folks are more comfortable identifying and measuring brand equity drivers (marketing factors) that are great for prescribing ways to improve the financial equity of a brand, but not so good for measuring the equity. See the difference?

A Scorecard Just for B2B Brand Equity

To provide measurement of brand equity specifically for middle-market B2B brands that balances the marketing (external) and financial (internal) dimensions of the brand, I’ve crafted a scorecard that balances the two. The scorecard framework is based on the perspective that brand and business objectives always work hand-in-hand, because neither would exist without the other (if you believe that brand is a relationship with stakeholders). Another point to keep in mind is that the scorecard metrics are not meant to be used as isolated snapshots, but rather assessed in trends, taking the measurements at different periods over time and watching the delta and direction. This trending approach averages temporary influences and favors long term outlooks for valuation and predictive modeling.

B2B branding

The Devil’s in the Details

Category headers

Dimension: The aspect of the brand to be measured

Eight select business and marketing dimensions of the brand are identified from a balanced “branded-business” perspective

Internal/External: Categorizing each metric as internal or external

Internal factors are things that can be controlled internally, such as setting pricing, aligning people, or switching operational processes or investing in specific capital equipment. These are business metrics. External factors are controlled by forces outside the brand organization. They include factors such as media, marketing, events, economics, etc., and affect the dimensions of external culture, awareness, and preference.

Loyalty is a bridge between internal control factors and external control factors because the organization (internal) has control over loyalty programs, but customers (external) are ultimately the ones who control the loyalty score. These unique qualities make loyalty a very powerful indicator of brand health because they provide an ultimate measurement for the faithful delivery of the brand promise.

Metric: The specific measurement for each dimension

1. Financial: Price premium and positioning over median category pricing

This is a traditional brand equity measure. One caveat: Make sure the category is segmented very carefully (whether you are valuing a product or corporate brand). Price premiums can skew heavily either way if the category includes competitive alternatives or substitutes positioned off your target. If you’re valuing a corporate brand, you can quantify corporate perceived price positioning by using a “basket of brands” approach against the market median pricing of an equivalent basket for each competitor.  This is an internal metric because the B2B brand has control over its pricing.

2. Operational: Operational alignment score

Operational alignment occurs when the operational aspects of an organization and its people are all in alignment with the brand strategy. This means that everyone in a line position knows what to do on a daily basis in their jobs to support the brand’s delivery to its customers. This often combines elements of the corporate and product brand strategies. Operational alignment is not given much credit in the brand equity spreadsheet, but it can dramatically reduce costs in many ways. This is an internal metric because the B2B brand has control over its operational investments, processes, and policies.

3. Efficiency: Employee/customer brand delivery alignment score

Brand delivery is a brand touch point metric that assesses the alignment of stakeholders’ beliefs of what the brand delivers to them, above and beyond the functional aspects of the product or service. When employees and customers share the same understanding of what the brand is delivering (attributes beyond the functional), a brand is well aligned. When operationalized in every employee and customer group, this metric can pinpoint areas of misalignment, leading to clues for significant improvements in customer satisfaction. This is an internal metric because the B2B brand has control over setting and meeting customer expectations.

4. Loyalty: Net Promoter Score

The Net Promoter Score (NPS) is a measure of customer advocacy and evangelism. Essentially, it measures the percentage of branded customers who actively refer a brand within their personal and professional networks. High NPS has been related to strong brands and sustainable financial success. This is a hybrid internal and external metric because the B2B brand and the customer each have some control over loyalty.

5. Awareness: Brand awareness score

Brand awareness alone is a measure of marketing success and not necessarily financial success. But combined with the other metrics in this scorecard, it can help drive financial success. This is an external metric because awareness is a customer perception factor.

6. Recognition: Logo/packaging

Brand recognition is an important dimension that helps quantify not only differentiation, but also the degree to which a brand cuts through the noise of the modern marketing landscape.  It is an external metric because it is customer perceiption-based.

7. Preference: Market share trend

This metric is a traditional bell weather and helps round out the competitive success of the brand. This is an external metric because it deals with the external market competitive milieu.

8. Cultural: Buzz metrics (segment or industry)
Social media has made “buzz” an undeniable part of our brandscape. Measuring resonance with brand positioning amidst current socio-economic trends is another facet of awareness, but includes richer customer positioning connotations. This is a purely external factor because it is in the control of customers.

All metrics should be expressed in percentages and averaged together for a composite score. Each or any of these factors can be weighted to accommodate specific industry peculiarities.

Once you begin treating your brand investments like investments instead of expenses, you’ll be surprised at how much more confident you’ll be in your brand budget discussions.

Contact GroPartners Consulting for guidance on how to measure your B2B brand equity, either corporate or product. 847-845-6970

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Brand Strategy Roadmap

22 Tuesday Jan 2013

Posted by French On Brand in Branding

≈ 1 Comment

Tags

brand, brand experience, brand marketing, brand metrics, brand positioning, brand promise, brand ROI, brand scope, brand strategy map, branding, branding ROI, change management, marketing strategy, operationalization, positioning, virgin companies

A strong corporate brand strategy is one of the most powerful forces an organization can marshal. Properly operationalized, it can mRoad mapeasurably improve top-line effectiveness for product brands and bottom line efficiencies throughout the organization from the stock room to the board room − and everywhere between. In the best brands, the strategy acts as a guide for every stakeholder decision, from the highest level to the most granular, which can result in reduced management costs and greater employee satisfaction.

But just as any other kind of strategy, the true power of brand strategy is activated only with aligned execution. A brand strategy road map helps brands stay on track with clear process, aligning business, vision, people, and process.

Brand strategy originates in your organization’s  vision and values. Aligning business goals, customer wants and needs, and employee satisfaction with that vision is critical to sustainable growth.

Virgin Logovirgin brandsVirgin operates 53 separate brands, as diverse as airlines, records, books, and health. All Virgin brands are based on the same vision and values:

“Virgin believes in making a difference. We stand for value for money, quality, innovation, fun and a sense of competitive challenge. We strive to achieve this by empowering our employees to continually deliver an unbeatable customer experience.”

Experience…Founder Richard Branson showcases the Virgin brand with his swashbuckling extreme sports, spaceships and experience-steeped TV commercial roles. By contrast, many organizations mistake the branding process for an identity exercise. And while that is an essential piece of brand, there are three major components to branding:

  • Brand Strategy
  • Brand Development
  • Brand Engagement
Brand Strategy Road Map

A brand strategy road map helps communicate the process to senior management and provides “gates” that must be sequentially satisfied to move through the process. (Click graphic to enlarge)

Your company’s best branding strategies will almost always come from aligning customer insights with organizational vision, values and business objectives. Those strategies are brought to life with brand development (logos, messaging, governance, programs, products, services) and should permeate your organization’s processes and culture/employees. Only on this strategic footing is the brand ready to push outward to customers through sales and marketing touch points. This process helps organizations “live the brand,” so customers’ and consumers’ brand experience is consistent with what the brand stands for. This consistency provides a host of business benefits from enhanced productivity, support for premium pricing, and deflection of competition, to higher revenues and margins.

shutterstock_32689690Mergers & Acquisitions

When a merger or acquisition occurs, though there may be solid business due-diligence behind the transaction, brand misalignment is likely. Rarely are two brand cultures so similar that an alignment action isn’t needed to optimize business performance. Developing a brand strategy roadmap, along with some seasoned facilitation and guidance, helps resolve brand misalignment issues so people and processes support a common goal.

Get the (big) picture?

Alignment essentially assures that people, processes, and business goals all understand the vision and support each other. Alignment of talent, brand delivery, marketing, operations, and other functional areas and stakeholder groups make up the entire alignment picture. “People” include not only employees, but also distributors and customers.

Chicken and egg

There’s a debate among brand consultants about whether business strategy drives the vision or vice-versa…that business strategy may change the organizational vision. I’d like to hear your thoughts on this. Leave a comment (see top of post).

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The True Measure of Customer Delight

07 Wednesday Nov 2012

Posted by French On Brand in Measurement

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Tags

brand, brand brand focus, brand marketing, brand metrics, brand positioning, brand promise, brand ROI, brand scope, branding, branding ROI, change management, internal branding, marketing branding, marketing strategy, operationalization, operations, positioning, social media

Delighted customers are worth more than their individual revenue streams.

In my August, 2010 frenchonbrand.com, “Is Customer Delight Overkill?” (http://wp.me/pU6PC-25), I downplayed the concept of customer delight as potentially over-performing on the premise that people don’t necessarily want to be delighted, merely satisfied. My logic was that over performing in this area causes excess cost. Since then, and as a result of one of my reader’s well-informed and thoughtful comments (thanks, John H. FMB!) —  and more research on the subject — I’ve moderated my position on customer delight and pass along the following convincing metric: a way to measure the impact of customer delight on word-of-mouth promotion to optimize the investment.

I realized the impact of customer delight extends far beyond the customer, after a review of W. Edwards Deming’s Profound Knowledge and Fred Reichheld’s “The Ultimate Question” (Net Promoter Score a.k.a. NPS). In this holistic approach to business, operationalizing customer delight becomes essential to its importance. Instead of viewing “delight” as overkill, I can now reconcile it with other favorable business results, such as increasing the lifetime value of a customer (promoter) beyond the customer revenue stream, and into areas such as:

  • Low-cost customer acquisition via referrals (reduced marketing costs)
  • Viral customer acquisition (referrals of referrals)
  • Lower customer attrition (customer loyalty)
  • Lower employee attrition (employee loyalty)
  • Lower customer price sensitivity (perceived value)
  • More nimble market response due to vibrant customer connections (innovation)
  • Continuous improvement of operations through cultural alignment (operationalized brand)
  • And many more

The result is sustainable growth.

To measure customer delight word-of-mouth radiance, Reichheld offers the following formula (this can be modified per individual situation). A customer survey is needed to capture the information needed to perform the calculations below (contact GroPartners for specific survey content).

Pick a benchmark date in the past (for example,  the past 12 months, or last fiscal year). Then use this measurement process.

1. How many delighted customers do you have?
Find out how many of your new desirable customers were referred by other delighted customers (NPS of 9 or 10, meaning “on a scale of 1-10, how likely would you be to refer a friend or colleague to your brand?)

2. What is your average new customer worth?
Calculate (or see industry analysts’ calculations) what your average new customer is worth in dollars and cents.

3. Calculate the total value of those new delighted customers
Multiply the data from #1 (above) by #2 (above)

4. Calculate the value of positive comments
In your NPS survey, also ask respondents for positive or negative comments that support their NPS rating. If x number of positive comments generated $y in revenue (from 3 above), divide y/x to calculate the value of each positive comment

6. Calculate the value of each promoter
In your survey, find out the number of people per year to which each promoter might have commented, and multiply the average number by the value in #4 (above) to get the value of word-of-mouth per promoter.  This is the “magic number” that helps optimize customer delight.

Anything can be measured. Even the power of customer delight. Now I’m a believer. How about you?

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GroPartners Consulting helps middle-market organizations bridge strategy and execution for better business results.

Brand marketing. Oxymoron? Or CEO Secret?

24 Monday Sep 2012

Posted by French On Brand in Branding, Measurement

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brand, brand brand focus, brand marketing, brand metrics, brand positioning, brand promise, brand ROI, brand scope, branding, branding ROI, change management, internal branding, marketing branding, marketing strategy, operationalization, operations, positioning, social media

Brand is the network of relationships that surrounds a business or product, including all its touch points.

I once spent the better part of a year convincing the CEO of a marketing organization that brand was not a subset of marketing, but instead, the reverse. To my surprise, during that year, I noticed his perspective is fairly common, even among marketing folks.

To many people (especially direct marketers and finance folks), “brand” associates with really fluffy connotations. In reality, brand is much bigger than marketing. In fact, it’s bigger than the products brought to market and even bigger than the companies that make the products that go to market. Why? Because the brand includes not only the company and its products, but relationships among its people, all its functions, channels (distributors, etc.), customers and even – to a degree – its competitors. It encompasses values, purpose, beliefs, and ultimately, identity. Essentially, brand is about that precisely dicey issue of “what you stand for” and what that means to people in the context of their lives. Finance guys often get heartburn from brand discussions mostly because they can’t easily and accurately prove out ROI on brand investments. An operationalized approach to brand investments can quench the heartburn. This means placing strategic metrics among and between internal operations, customer touch point metrics, marketing results, and financial results.

The difference between Marketing and Brand

Click image for a larger view.

Marketing builds and measures transactions. Brand builds and measures relationships. Even though marketers refer to building relationships through marketing, the goal is transactions, so technically, there’s a little brand blended in with the marketing mentality.  Brand relationships continue after marketing has delivered products to customers. The goal of branding is to build relationships as a pipeline for transactions.

Where marketing is about all the intelligence and activities it takes to drive transactions, brand focuses on the underlying relationships and expectations among stakeholders around the transactions. When positive relationships exist and expectations are met, the stage is set for a continuous stream of transactions (i.e. successful sales and marketing campaigns).

This sets into motion a chain of operational implications, both internal and external. Brand-aligned organizations use this as an opportunity to examine the dynamic and causal relationships among employees, customers, and operations. Identifying cause-and-effect among these forces builds business value – the goals at the core of business operations. To do this successfully, an operationalized brand metrics program should first be in place (for more on this, contact Gropartners).

The truth is, most people feel more comfortable gaining a level of trust before they take the leap into a transaction. Until they experience a level of satisfaction or value as “compensation” for the currency they trade, customers experience anxiety and feel vulnerable. But they may not even take the leap until they feel they can trust the seller (kind of “chicken-or-egg” first). So whether an ad campaign puts a friendly face on the brand, a sampling campaign lets you “try before you buy,” or a recommendation from a trusted friend disarms you, some level of pre-transaction relationship is usually required to help minimize the feeling of risk and start the flow of transactions. This, and it’s post-transaction counterparts (“customer care,” etc.), wrap the transactions up in “relationship wrappers.”

Brands are relationships between people and products, services, or ideas, which are made of three fundamental elements: focus, distinction, and trust. The word “brand” should be distinguished from  ‘branding.” “Brand” focuses on the strategic dimensions of a relationship while “branding” refers to execution. “Branding” is a term that broadly defines the scope of activities that bring the brand to life for stakeholders –- creative application of brand values, identity and communications (logos, taglines, guidelines, messaging, etc.). These activities “voice” the brand to stakeholders. And while these are certainly essential elements of brand, they are usually products of creative execution under strategic direction.

So when you hear or use the phrase “brand marketing,” it generally relates to issues about customer relationships and delivering on the promise. In contrast,”product marketing,” issues are mainly about transactions and delivering the product. That’s how brand marketing and product marketing work hand-in-hand to build business value. And that’s why you find many high-profile CEOs personally driving brand conversations and initiatives. The big picture guys get it.

Your thoughts? Post them below!

### GF

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