Lois Brayfield, CEO
Good news! According to new research published by McKinsey & Company, consumers are feeling better about their financial situation than they did throughout the 2008-2012 recession. And yet, there’s bad news: consumer morale remains challenged, and consumers continue to look for ways to save money. With so many options at their fingertips, consumers have the ability to shop where they want, when they want. This means that customer loyalty is at risk. Even if it’s only a few dollars, consumers will continue to be lured away by a deal.
So, what’s a brand to do? While you can’t change the new consumer paradigm, youcan create a tighter bond between your brand and its customers. Multiple studies have proven that nearly 90 percent of consumer behavior is driven by emotions. In fact, Martin Lindstrom, author of “Buyology,” has been able to prove through neuromarketing studies that the consumer doesn’t know the emotion that drives a purchase.
Those brands that understand the emotional reason customers do business with them create marketing filters, or a language, that ultimately increases the bottom line while creating an increase in brand loyalty.
How can your brand achieve this same magic? By taking an honest look at the following three questions:
1. Who are you? For many brands, this is a fairly easy question. The answer is the products you offer, and how they relate to your competitive niche. It’s not unusual to sell the same items as your closest competitor. As we move into the next phase of this exercise, answering the question “What do you do?” will define what you offer that’s truly different.
2. What do you do? Or, what do you do that’s unique, exclusive or differentiated? This requires a closer look at how you do business. If your product line isn’t exclusive, how do you serve your customer in a unique way? Does your brand have a differentiated personality? This question requires a close look at your competitors, knowledge of how they do business and what they own in the marketplace. The kiss of death is to land on the same three attributes that every other marketer seems to tout: price, quality and service. Hear me loud and clear: these are not differentiating factors! Force yourself to dig deeper.
Ideally, what YOU own is one thing; not many things. Consumers don’t have the capacity to remember every marketing message you throw their way. However, if you deliver the ONE thing you own, over and over again, the message will stick. A great example of this is the luxury car category. Lexus is known for luxury, BMW is known for performance, Mercedes is known for engineering and Volvo is known for safety. It doesn’t mean that each brand doesn’t deliver on all four attributes; it means that each one has successfully staked its claim and has developed a laser-like focus.
3. Why does it matter? Clearly, this is the hardest of all three questions. While many brands have spent millions identifying their brand attributes and creating exhaustive brand manuals, few have drilled down to the WHY. Or, what we call the “higher order benefit,” the emotional reason consumers choose one company over another. For example, Disney understands it’s not in the business of selling a theme park; it sells “magic.” Starbucks grew into the powerhouse it is today because it understood it wasn’t selling gourmet coffee, but the ability to “escape and indulge.” Each of these brands has been able to drill down to a core emotion and then weave it throughout their marketing messages and, most importantly, they lead with their WHY.
Your higher order benefit already exists; it’s just a matter of connecting with your customer to discover what it is. A carefully crafted survey will help you drill down and discover your customers’ perceptions of your brand. With open-ended questions, a reoccurring theme will reveal itself. If you have a retail presence, begin by asking your customers why they choose to do business with you. At first, you’ll get the typical “price, quality, service” response, but encourage a deeper conversation and you’ll be surprised at what customers will reveal.
Dove is a 60-year old brand that capitalized on its higher order benefit and breathed new life into its legacy by understanding it’s not just selling soap, but “beauty.” Through customer research, Dove also discovered its audience held a skewed view on what true beauty is. Thus, the “Real Beauty” campaign was born and successfully connected with customers on an emotional level. The campaign was so successful, it continues to this day with different themes (e.g., Sketch Artist and the Selfie Campaigns).
I didn’t invent this theory, but I’ve seen it realized repeatedly throughout my 30 years of marketing. I’ve seen brands undergo this journey of brand discovery, craft their marketing message around that central idea and see an immediate lift in response by as much as 30 percent! This works. If you’re still not a believer, spend 18 minutes with the most watched TedTalk of all time: Simon’s Sinek’s “How Great Leaders Inspire Action.” You’ll be inspired.
What Do These 3 Questions Mean to You?
Well, they should change everything about the method in which you do business. First, there must be a consensus within your organization, from the top down, on how to answer these three questions. Second, you must commit to explore every facet of how you do business and how you will prove your higher order benefit in everything you do. Third, you must train your “internal customers,” also known as employees, so they understand why they’re coming to work every day. As a result, everything is up for grabs – from how you answer your phone to how you greet customers when they come into your store to how you promote your business, offers and calls to action … every customer touchpoint.
It doesn’t matter what you sell or what medium you choose to market your brand, you should be able to achieve the same results above. However, it requires not only incredible discipline to agree on your “one thing” and “higher order benefit,” but the fortitude to stick with it as well. This isn’t a one-time exercise, but an ongoing discipline that continually defines and refines how you do business.
As seen on Women In Retail Leadership Circle
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