by Aaron ShieldsJan 14, 2011
Over half a century ago, consumer research was considered irrelevant and the ad-man-as-god model ruled the landscape: whatever the advertising said the product was, that’s what the product was, and you needed it.
Forward thinkers caught on early: Theodore Levitt in his classic Marketing Myopia argued that the downfall of companies is a lack of focus on the consumer perspective; and advertising guru Bill Bernbach realized that consumers really weren’t paying attention to everything the companies were shouting in their ads:
Do you know that 85% of ads don’t get looked at?…They ignore us…We’re right about everything, but nobody looks.
Decades later, spurred on by the rise of the Internet and consumer generated media, focus shifted to the opposite end of the spectrum, and shouts from the advertising world echoed around the world: “Help! The consumer is now in control!”
The latest incarnation of the consumer-in-control model was explored by Rob Walker in his popular Buying In: the best brands act as blank slates for consumers to craft their own personal history. One brand Walker highlights is Red Bull, showing how a variety of different people from extreme-sports enthusiasts to club goers have latched onto the drink. Yet, despite never telling consumers what they should think of the product, Red Bull, as detailed in Alex Wipperfurth’s Brand Hijack, releases a manual to determine which events are on brand and off brand—hardly the behavior of a company that gives over total meaning to the consumer.
The truth is that consumers never were and never will be in control, and neither were or will the companies and their advertising agencies. Great brands have always realized that, just like in all aspects of life, there are two parts to great relationships—it’s a constant give and take.
Over at The Cult Branding Company, we help clients understand the nature of this relationship—we like to use the term “coauthored brands.” The brand sets the initial context, grounded in the nature of its products (Red Bull can’t get away from its extreme nature, it’s an energy drink, and Apple would be hard pressed to anchor its brand away from beauty and creativity), of what its value is for the customer, but from that point it becomes altered and refined through a constant dialogue between the customers and the brand.
This coauthored experience is something that it is hard for many brands, especially large ones, to understand and even harder to implement. One brand that really gets it is Wine Library TV and its creator Gary Vaynerchuk.
After transforming his parents’ alcohol business into the over $45-million-a-year wine business Wine Library, Gary picked up early on the trend of social networking (a Twitter user since 2006), and promoting his brand online. With that in mind he created Wine Library TV where he regularly broadcasts episodes of him tasting and evaluating wine.
His goal with the show is to inspire passion for wine among his viewers, inviting them to find wines that “bring the thunder” for them—wines that excite them and deepen their passion for the Dionysian juice.
And this is where Gary really excels. Although he rates the wines on his show, he reiterates how important it is to find your own taste in wine, and explore the wine world, making it okay if you like a wine he doesn’t.
Gary even admits he likes drinking wines he doesn’t rate highly, because they expand his knowledge of wine and he finds them interesting. This is in contrast to other critics in the industry whose reviews that focus on a point hierarchy that gives the wine drinker little incentive to try a wide variety of wines.
Gary counts more than 80,000 viewers on Wine Library TV daily (in addition to over 850,000 Twitter followers), with his most devoted fans deubbing themselves Vayniancs. This Vayniac nation cuts across demographic barriers, ranging from people who started out like Gary—those interested in wine who are too young to drink and yearning for the time they can try their first glass—to even seasoned wine professionals.
Gary understands that the real force behind changing people’s opinions on the accessibility of wine, and therefore building his brand, lies with his viewers.
Gary signs off each show with, “You, with a little bit of me, we’re changing the wine world.” It’s rare for brands to understand the nature of a co-authored brand and how critical it is to developing a successful, lasting following. Kudos to Gary for getting something so few brands do.
Now that Gary is expanding his business into the consulting business Vaynermedia with his brother AJ Vaynerchuk, he is conveying the same message to his clients. In a video blog post in May, Gary speaks of what he likes to call storytelling, and how great storytelling becomes the property of the group by the end, as everyone adds a little bit to it. Gary’s use of storytelling is another way to think of a coauthored experience.
Many companies entering the “social media” stream (Vaynerchuk hates the phrase and so do I, my part because it encourages thinking of it as just another media channel alternative to radio and television) are treating it just like another channel for broadcasting messages. The ultimate use of this medium will for brands to be able to establish a strong connection with their fervent consumer base, deepen their understanding of their passionate fans, and do more of what all great brands have always done: create coauthored experiences.
by BJ BuenoNov 18, 2010
BRAND JORDAN is among the most interesting brand case studies I’ve ever had the privilege of studying.
When we take a close look at most brands one will quickly realizes that most companies lack powerful brand DNA–core brand principles that attracts loyal customers.
BRAND JORDAN’s constitution and magnetism has created legions of loyal followers that celebrate the authenticity of this brand.
Jordan’s Driven from Within offers a wealth of insights on the art of making your brand authentic, real, and powerful. Here is a brief synopsis:
The Birth of BRAND JORDAN
The year was 1984, and Michael hesitantly took a flight to Portland, Oregon. It was the day that he would meet Nike Founder Phil Knight for the first time.
BRAND JORDAN: EARNED
But when the players can’t live up to the expectations, the programs fall apart. You can’t fake out the consumer. To build Brand Jordan, each step would be earned.
BRAND JORDAN: UNCOMPROMISED
Going beyond a fad and becoming a brand takes a real connection with people….
BRAND JORDAN: ASPIRATIONAL
One can never imagine everything that will happen. But dreams are like that. That’s what makes the journey amazing. You have to see your plan and be willing to invest in your vision.
BRAND JORDAN: AUTHENTIC AND BEYOND
But true authenticity is about being true to who you are, even when everyone else wants you to be someone else. BRAND JORDAN took this idea to heart.
BRAND JORDAN: Uncovering The Soul of the Brand
Today Brand Jordan is an international icon. Creating this magic was about getting some amazing people ( Jordan + Nike + Design + Soul) together and allowing each do what they do best.
Driven From Within: by Michael Jordan
Michael Jordan was named the NBA MVP five times. He led the Chicago Bulls to six NBA championships. And he helped the ‘Dream Team” the USA Basketball Team bring home the gold medal. Driven from Within, includes vivid stories, anecdotes, drawings and bold photographs that capture Jordan’s exceptional combination of grace, grit, power and artistry. Jordan introduces the reader to some of the people closest to him, including Dean Smith, the former UNC coach who saw Michael’s superstar potential; his mother, Delores Jordan; and Tinker Hatfield, the design genius behind 14 of the 20 Air Jordan shoes. In every chapter, MJ offers examples of his values in action, on and off the court.
by Scott JeffreyNov 11, 2010
Every interaction your brand has with your customer is important. Each point of contact (or touch point) provides your brand with the opportunity to strength your customer’s tie with you. Conversely, if you’re not careful, any touch point can damage your customer relationship.
A blaring example is the growing call center industry. Why invest in full-salary employees with benefit packages for in-house customer service reps when you can outsource to India at a fraction of the cost?
Here’s why: Not only are you going to frustrate your customers and weaken your relationship with them, you are going to lose a precious opportunity to strengthen your customer’s commitment to your brand.
Plus, you make it easy for your competition to steal your market share:
- Online retailer Zappos has grown by a staggering annualized growth rate of 7,800% over the past 8 years, growing sales to over $1 billion. Its stellar in-house customer service team provides a powerful competitive advantage.
- L.L. Bean has always been known for world-class customer service. I’ve been a loyal customer for over a decade and can attest to the fact that I’ve never waited on hold for more than a few seconds. You automatically get a knowledgeable customer service reps who is also an L.L. Bean Brand Lover.
- DVD-by-mail provider Netflix has dominated the industry they invented and their online customer service, rated #1 by Nielsen Online, has helped them grow to almost 10 million subscribers. Realizing that their savvy customers prefer addressing customer service issues online, Netflix has anticipated virtually every potential issue and set up easy and quick ways to solve customer problems.
Every touch point matters. Your call center is just one touch point, but it’s a big one. Your website, advertising and packaging—everything you do either reflects your brand and strengthens your customer’s bond, or weakens it.
by Scott JeffreyNov 04, 2010
If you run your business strictly by the numbers (merchants, I’m mainly talking to you), you will ensure lower levels of profitability and greater levels of competition in the long run.
How is that possible?
Profitability is driven by loyalty. Your loyal customers shop you more often, tell their friends about you and tend to avoid your competitors. Loyalty develops as a consequence of doing something meaningful for people. “The numbers” strip out the human element—it doesn’t help you focus on what’s meaningful to your customers.
A blaring example is the decision to outsource your call center operation for customer support. No question—the cost savings in the short term can be enormous. But what’s the long-term customer attrition rate?
It costs fives times more to acquire a new customer than keep an old one. A high attrition rate means you have to funnel your resources into marketing and advertising in order to continually acquire new customers because you can’t keep your old ones.
Online retailer Zappos has over 75% repeat customers. Yes, they invest heavily in training and supporting their in-house customer service staff, but their 62,000% growth rate over the last 8 years speaks for itself. CEO Tony Hsieh doesn’t run Zappos strictly by the numbers, but instead keeps his focus on loyal customers and innovates around their needs.
Honor the human element in your business. Celebrate your customers. Support your employees. You’ll build more profitable businesses and you’ll also feel better about yourself.
by Scott JeffreyOct 20, 2010
People “get” what you’re feeling—consciously or not. If you don’t really care about your customers, they’ll be the first ones to know.
Great brands don’t just create meaningless slogans like “Customer Service Excellence”—they champion customer-centric values as a way of operating every aspect of their business.
These businesses excite us and make us happy to conduct business with them. It’s a symbiotic relationship between business and customer. The business provides products and services customers need and, in turn, the customers willingly patronize the business and support its existence.
Have many companies forgotten about the nature of business itself?
Outstanding businesses go above and beyond to better their customers’ lives:
- L.L. Bean wants you to be completely satisfied with your purchase. Don’t like the way a shirt holds up after a few years of use? Return it—L.L. Bean has no time limit on customer satisfaction.
- Online retailer Zappos offers free shipping both ways and a 365-day return policy.
- Along with one-click shopping, Amazon offers a Prime program that gives customers free 2-day shipping on most items and their Subscribe and Save feature offers both convenient and economical shopping.
- In addition to creating beautifully-designed products, Apple supports their Mac User Groups (MUGs) and Genius Bar to help educate their customers on how to better use their Apple products.
- Harley-Davidson sponsors HOG groups around the world and annual mega-rally events.
- Search and online advertising giant Google offers a robust offering of free services that help their customers in their daily lives from Google Reader, Google-411, Desktop Search, Google Earth, News Alerts, Google Calendar and Google Docs.
What does your business do to better serve its customers?
by Scott JeffreySep 08, 2010
Here are five more reasons to focus on your Brand Lovers:
1. In The Loyalty Effect, Frederick Reichheld explains how a 5% increase in customer loyalty can increase a company’s profitability by 40 to 95%.
2. Think about what would happen if you turned just 10% of your occasional customers into Brand Lovers. For large enterprises, this shift represents billions in additional revenue and radically higher profit margins.
3. By focusing on your Brand Lovers, your cost of acquiring a new customer decreases.
4. Your marketing effectiveness soars as a result of building a stronger brand presence focused around the needs of your best customers.
5. By focusing on your Brand Lovers you can build a powerful brand that stands for something meaningful to your special customers. This gives you clear differentiation and helps you organically attract more of your most profitable customers.
The bottom line is that serving your best customers is the surest way to grow a profitable business—in any economic climate. To serve your best customers, you must understand them first. To identify and understand your best customers, you need an effective brand model.
by Joze PerezAug 12, 2010
How to build a mass movement behind your brand and unlock the secrets of true customer loyalty.
by Scott JeffreyAug 10, 2010
Your best customers are your Brand Lovers. Understanding the needs of your Brand Lovers and serving them better than anyone else is critical if you want to outmaneuver the competition and grow a long-term sustainable business.
Here are five reasons why your Brand Lovers are so important:
1. Your Brand Lovers choose you more often than your competitors. To most Mac users, there’s no alternative competitor to choose from.
2. Your Brand Lovers spread the word about your brand and create new customers for you. Basically, your best customers are the source of your word-of-mouth stream.
3. Your Brand Lovers are by nature loyal customers. Customer loyalty is a better determinant of profitability than mass appeal. (Again, just ask Apple.)
4. Focusing on your Brand Lovers and cultivating customer loyalty can help you double your return on assets (ROA).
5. Similarly, serving your best customers can lead to explosive return on investment (ROI). Example: When Apple opened their retail stores they expected to generate $1,000/square foot. They actually generated $4,000/square foot.
Ultimately, your Brand Lovers drive the profitability of your business. A Brand Model helps you attract more profitable customers.
by BJ BuenoAug 03, 2010
“Brand Jordan exists because of what Phil Knight created
before I ever came along.” – Michael Jordan
The year was 1984, and Michael hesitantly took a flight to Portland, Oregon. It was the day that he would meet Nike Founder Phil Knight for the first time. Neither of them could imagine what the next 20+ years would bring.
Realizing that nothing of value comes without hard work, the partnership between Jordan and Nike was born. The idea was so big that it created something no one could have envisioned. By committing to their shared values, Nike and Jordan created an amazing brand that has endured.
Starting Conditions:LOVE for the game. LOVE for Innovation. LOVE for the customer.
The end is determined by the starting conditions. The outcome of our plans follows its own design and patterns. What vision do you see emerging for your Brand?
by Scott JeffreyJul 27, 2010
What drives your business? Most executives and entrepreneurs would say sales or revenue.
But where do those sales come from? Customers, right?
Now, are all customers created equal? Of course not. Most customers will remain indifferent to your brand. They will buy from you on occasion—when it’s most convenient—and shop elsewhere when it’s not.
Amazingly, most businesses cater to these nomadic customers. Most executives think mass appeal and believe an untargeted marketing plan that casts the widest net will generate the most sales.
In the short run, they might be right. The fickle, nomadic customer might jump at a great promotion. But they will jump at your competitor’s great promotion just as quickly.
If you try to build your business around these fickle customers, the only way you can show increased profits on your balance sheet is to increase your growth curve. For retailers, this means continually opening more stores. Ultimately, this is not a sustainable model and profits erode over time as your market gets saturated.
The key to growing a profitable business is to build it around the needs and wants of your best customers. We call this special breed of customers Brand Lovers. Focus on serving your Brand Lovers and you’ll naturally attract more of them.
All great businesses—big and small—have Brand Lovers. All great brands learn to cater to and serve their Brand Lovers better than anyone else.
If your Brand Lovers represent your most profitable customers, why would you try to serve anyone else?
Focus on your Brand Lovers as the core of your business. Talk to them. Listen to them. Learn from them. Try to understand them. Co-create your business around their needs. The rewards for doing so will translate to the bottom line. Guaranteed.
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BRAND JORDAN is among the most interesting brand case studies I’ve ever had the privilege of studying. 
