We live in a conversation driven world. Even if your brand is not an active user of social media, your customers and potential customers are. This is revolutionizing the way brands have to think about themselves and how they choose to compete.
In a conversation driven world, the real threat is not conversation itself, but commoditization. Unless customers have reason to talk, they won't. And a brand that generates little or no conversation will be killed by one that does.
The challenge is that the active commoditization of brands has been happening for years--the same McKinsey business strategies, the same technology platforms, the same customer service outsourcing, the same customer research data and the same Wall Street pressures, all combining to create less meaning and not more.
Fighting these forces of same will be extremely difficult, but absolutely necessary. There are many who feel that combining a commoditized offer with differentiated advertising will lead to achieving their 'fair share' of the market. They are wrong for two simple reasons:
But brands that live their difference do exist, and no surprise, they represent the kind of brands we all know and talk about most often. Brands like Apple, Amazon, Nike, or Whole Foods.
So next time you're thinking about your brand, you may want to consider three of the traits that these brands all seem to have in common:
Long term consistency of purpose
Successful brands apply a long term sense of purpose, rather than an ever changing cycle of campaigns and positioning statements. This sense of purpose is what drives differentiation--it represents your unique reason to exist; the unique value that you bring and used properly ensures that over time everyone within that organization makes decisions that are consistent with this purpose.
Innovation as a core competence
Within the frame of the purpose for the brand--the core value that the brand brings, successful brands place innovation at the heart of what they do. What uniquely separates these brands is how their innovations are always true to the purpose of their brand. Take Nike+ for example. This isn't just an innovation that anyone could have delivered--it is absolutely tied to the Nike area of purpose around participation and competition.
Culture as decision making filter
When your purpose is clear, and consistent over time, one of the most powerful uses is as a driver of culture. For while your consumer may buy products, services or experiences, it is your people who decide what these should be. In the organizations that are delivering the kinds of brands we want to talk about--those few brands who create compelling experiences, it is clear that the decisions that lead to the experience, are very much focused on what is right for that brand. It is only when every employee can make that designation--whether a decision is right for the brand or not, that you will have the glue that you need.
Read more of Paul Worthington's blog
Paul Worthington is head of Strategy for the New York office of Wolff Olins, a global brand and innovation consultancy. You can find both Paul (@pworthington) and Wolff Olins (@wolffolins) on Twitter.
Related Stories: | Topics:Leadership, Magazine, Paul Worthington, branding, Marketing Shift, Marketing, Wolf Olins, Wolff Olins Ltd., Paul Worthington, Nike Inc., Twitter Inc., Wall Street |
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Recent Comments | 28 Total
August 4, 2009 at 11:53am by Steven Moore
Social Media is not for the confused or uninspiring for sure. The tasks for the future in a lot of businesses will be in the area of who are we and why are we really doing this and how can we meet the "real" customer and inspire if we can or for sure not bore them. This is a great time if you are in the business of helping businesses figure this out. Look forward to your next post....
August 4, 2009 at 3:12pm by Freddy Nager
Nice indictment of "best practices" as a recipe for commoditization. Instead of considering "What would Google do" or "What would Nike do," brands should first ask "What would Monty Python do" then say "Now for something completely different..."
August 5, 2009 at 7:46am by Bruce Temkin
Interestingly, the items you've described represent 3 of the 6 new management imperatives that I've defined in a free eBook called "The 6 New Management Imperatives: Leadership Skills For A Radically Changed Business Environment." Here are all 6 imperatives:
1) Invest in culture as a corporate asset
2) Make listening an enterprisewide skill
3) Turn innovation into a continuous process
4) Provide a clear and compelling purpose
5) Extend and enhance the digital fabric
6) Practice good social citizenship
You download the free eBook from my blog, Customer Experience Matters, at http://experiencematters.wordpress.com
August 5, 2009 at 2:33pm by Ravi S. Kudesia
Great article - I'd certainly caution you against generalization. Any pair of jeans, designer or otherwise, are purely commoditized offerings with differentiation strictly through advertising. This translates into real, tangible and economic benefits.
But, talking more specifically about some of the firms you've chosen, take Nike. "Nike" actually means "victory" in Greek. This is a great example of the product being secondary to the larger purpose of the firm. A vision or purpose should be the firm's true north, not the short-term strategy (http://tinyurl.com/q7534w).
This spawns the true brand evangelism that helps firms thrive and succeed.
"A mind all logic is like a knife all blade. It makes the hand bleed that uses it."
www.bladeandgrip.com
August 6, 2009 at 9:33am by Nikos Mourkogiannis
Dear Paul
I think you are making three great points about Brands:
Only Purpose driven Brands can last.
Innovation is neither bad nor good for Brands. It has to be fit for Purpose.
Companies with Purpose driven Brands walk the talk.
All the good luck with your work,
Nikos Mourkogiannis,
Author, " Purpose The Starting point Of Great Companies ."
Nikos@Nikos.com
August 6, 2009 at 9:33am by Nikos Mourkogiannis
Dear Paul
I think you are making three great points about Brands:
Only Purpose driven Brands can last.
Innovation is neither bad nor good for Brands. It has to be fit for Purpose.
Companies with Purpose driven Brands walk the talk.
All the good luck with your work,
Nikos Mourkogiannis,
Author, " Purpose The Starting point Of Great Companies ."
Nikos@Nikos.com
August 6, 2009 at 9:33am by Nikos Mourkogiannis
Dear Paul
I think you are making three great points about Brands:
Only Purpose driven Brands can last.
Innovation is neither bad nor good for Brands. It has to be fit for Purpose.
Companies with Purpose driven Brands walk the talk.
All the good luck with your work,
Nikos Mourkogiannis,
Author, " Purpose The Starting point Of Great Companies ."
Nikos@Nikos.com
August 6, 2009 at 4:11pm by Michelle Chun-Hoon
Conversation is key to a business, big or small. That is what makes online social media so useful; it is a convenient way to communicate to people and possible future consumers. Conversation is something that should not be overlooked.
Michelle Chun-Hoon
CKR Interactive Intern
CKRinteractive.com
September 28, 2009 at 3:41pm by Justeen Long
Long term consistency is key to maintaining customer loyalty. Consistent messaging and outreach to the public will ultimately determine the outcome of brand identity. Active involvement of an organization with its target audience will allow the company to make decisions that will likely result in positive feedback. With various online social media outlets, the possibilities for innovation are endless - keep the conversation going!
September 28, 2009 at 3:42pm by Justeen Long
Long term consistency is key to maintaining customer loyalty. Consistent messaging and outreach to the public will ultimately determine the outcome of brand identity. Active involvement of an organization with its target audience will allow the company to make decisions that will likely result in positive feedback. With various online social media outlets, the possibilities for innovation are endless - keep the conversation going!
September 28, 2009 at 11:19pm by matt caropino
I agree with the statement that says “Unless customers have reason to talk, they won't. And a brand that generates little or no conversation will be killed by one that does,” and I think that social media can be a very valuable tool in starting conversation among customers. However, brands/companies need to keep value creation in mind when utilizing various social media techniques. Creating a social media site simply because everybody else is doing so is not the way to go. A brand/company will find true benefits in a well planned and well executed social media strategy that presents value to the customer.
October 1, 2009 at 3:34pm by Lindsey Harrie
This is a great article that recognizes both the importance of social media and the brand to a successful company. I liked how you pointed out the three important traits the must occur for a brand to be successful, but I think it would be informative to describe the important of keeping the brand current throughout all of the social media outlets your company is using at well. Keep the brand current throughout all of the advertising and innovations is crucial, but if your company is not using the same consistancy with social media it could be damaged just the same.
October 1, 2009 at 4:05pm by Eriks Rungis
Of the three traits that you discuss I feel that long term consistency of purpose is the most important. This was seen recently when Starbucks began the "re-branding" process and received massive backlash from the public and from within the organization.
October 1, 2009 at 6:48pm by Bridgett Montgomery
This is a great article that encompasses what building a brand is all about and the three traits that are in common are very important to the success of not only these brands but other brands that a company would try to build.
October 1, 2009 at 6:49pm by Bridgett Montgomery
This is a great article that encompasses what building a brand is all about and the three traits that are in common are very important to the success of not only these brands but other brands that a company would try to build.
October 1, 2009 at 6:49pm by Bridgett Montgomery
This is a great article that encompasses what building a brand is all about and the three traits that are in common are very important to the success of not only these brands but other brands that a company would try to build.
October 1, 2009 at 6:49pm by Bridgett Montgomery
This is a great article that encompasses what building a brand is all about and the three traits that are in common are very important to the success of not only these brands but other brands that a company would try to build.
October 1, 2009 at 6:50pm by Bridgett Montgomery
This is a great article that encompasses what building a brand is all about and the three traits that are in common are very important to the success of not only these brands but other brands that a company would try to build.
October 1, 2009 at 6:50pm by Bridgett Montgomery
This is a great article that encompasses what building a brand is all about and the three traits that are in common are very important to the success of not only these brands but other brands that a company would try to build.
October 1, 2009 at 6:51pm by Bridgett Montgomery
This is a great article that encompasses what building a brand is all about and the three traits that are in common are very important to the success of not only these brands but other brands that a company would try to build.
October 1, 2009 at 6:55pm by Kelly Antonczak
This is a great article! The statement that really stood out to me was ...
"In a conversation driven world, the real threat is not conversation itself, but commoditization. Unless customers have reason to talk, they won't. And a brand that generates little or no conversation will be killed by one that does."
It's proven that people will talk about negative experiences before positive ones. It is important to remember that customers reason to talk may be because of a negative experience. What a better way to get feedback and be able to immediately respond to individual customers and improve your brand and customer experience.
October 1, 2009 at 7:01pm by Kelsey Bates
I think "you can't spend your way to success" is only becoming more and more true. With so many avenues that are essentially free, the idea of branding has become more about utilizing the communication to the best of its ability. With so many brands choose from, social media allows brands to create a relationship with their consumers and turn them into a life-long follower.
October 1, 2009 at 7:01pm by Chantel Booker
The information in this article is becoming more relevant and current than we may know. Social media is playing a significant role in many aspects of our conversation driven world. Each brand that is "purpose driven" as Paul stated tend to have more success. If the brand is going to be successful it has to be well represented and keep a good reputation to build confidence and trust with customers. People will have their presumptions due to past experiences and culture, but by being respectful and recognizing differences of the public the brand shall have a better chance of succeeding.
October 1, 2009 at 7:07pm by Malcolm Hong
This is a great article and I appreciated how the author pointed out that you “can't spend your way to success.” Online conversation definitely helps your brand stands out from many other similar products, and if used properly, social media can help generate these conversations in order to have your brand and products resonate with consumers.
October 1, 2009 at 7:07pm by Malcolm Hong
This is a great article and I appreciated how the author pointed out that you “can't spend your way to success.” Online conversation definitely helps your brand stands out from many other similar products, and if used properly, social media can help generate these conversations in order to have your brand and products resonate with consumers.
October 1, 2009 at 7:14pm by Sean Winnett
Paul,
I really enjoyed this article on developing your brand. Developing your brand online is necessary, especially with the advancement of Social Media and Web 2.0. I especially enjoyed the beginning of this article that talks about the importance of driving online conversation about our brands, as if nothing is said about a brand it will be drowned out by the brands that everyone is talking about.
Another part of this article that i enjoyed was the focus on long term consistency. You will not have a successful brand without sticking with the tactics that you choose to promote your brand. Consistency is key with developing your brand and making sure you are not constantly changing the way you run your campaign.
October 1, 2009 at 7:34pm by Brooke Berston
Mr. Worthington could not be more right by saying that between long term consistency of purpose and a brand being talked about there is little likely hood that a brand will survive for long. Finding a brand and product that sets you apart from the others and finding a product and mission that will last through the trends is key. The brand needs to make the effort to be talked about in positive ways and have specialized products that people will rely on that brand and that brand only for.
October 1, 2009 at 7:40pm by Chris Clark
I liked this article because it talked about how a brand "embodies" an organization. This is something that people identify with. However, they must stay up to date with what is currently going on in the marketplace to be successful. Social media is an outlet to create interaction with consumers, which is very important. Great article.