Things have changed. Consumers now possess the ability to shape brand messages and broadcast it to their peers in real time. Whether you like it or not, the people you once saw as passive audience members have become co-authors of your brand's message. These consumers are more value-conscious than ever and, beyond responsibility, they demand social intelligence from the brands they advocate.
For a brand to do well in sales over the longer term, it needs to score well on three measures:
- Brand Equity
- Shopper Appeal
- Social Intelligence
1. Brand Equity
This traditional measure of brand equity hasn't changed much in recent years, with the exception that brand citizenship and integrity increasingly influence consumers' affinity to a brand.
2. Shopper Appeal
With the foundation of brand equity laid, shopper appeal is where the rubber hits the road to convert positive sentiment into sales. As with brand equity, it is composed of three elements:
Trial-abilityTrial-ability refers to how easy it is for consumers to get their hands on your products. Take, for example, the recent relaunch of a well-known handset manufacturer. Their brand equity was still good, but existing and new customers were not given enough opportunity to experience the new phone first-hand.
Without trial-ability, the new product felt remote and disconnected from current and prospective users. When you allow customers to interact, touch, taste and experience your product, it also boosts the second metric of shopper appeal...
Confidence
Confidence comes into play at the moment of truth when a customer weighs up the risk before parting with their hard-earned cash.
Consumers need assurance that they won't regret the purchase. The greater the price of the item being sold - or the bigger the risk associated with failure - the greater the need for assurance. Hyundai understood this when they entered the South African market in 2000. They spent a disproportionately large amount of money punting their five-year motor plans and opening high profile services centres with quick-service guarantees.
Added Value
This is the limited time offers, buy-one-get-one-free world that most marketers are cautious of because it can dilute brand equity. Yet even the most premium brands are doing it. No one will dispute that Woolworths is a brand built on quality, and yet they have been advertising a "meal in for 4 for under R100" and offering R10 off double purchases - unheard of in Woolworths a mere ten years ago.
3. Social Intelligence
The importance of social intelligence has been elevated with the rapid rise of social media. Consumers expect brands to exhibit social intelligence - to engage in dialogue, allow participation and inclusion, and to be honest in their marketing and accountable for what they do.
Social intelligence is a combination of appreciation, responsiveness and share-ability:
AppreciationToday, brands share social spaces and conversations as if they were people, and only marketers that rehumanise their marketing will get it right. Tangible signs of customer or loyalty appreciation (such as coupons or rewards) are a good first step in building long-term, profitable relationships.
FNB and Discovery are good at this. These brands appear to treat their customers like gold (or platinum), generating more loyalty and positive word of mouth.
Responsiveness
Customers want to feel involved in determining the future of the brands they hold dear, and brands that allow their customers to do this score brownie points very quickly. Brands that show they are always listening to social channels - and respond in respectful, brand-appropriate ways - quickly turn customers into passionate brand ambassadors.
Share-ability
The name of today's game is CONTENT. Your brand needs to be producing content that really appeals to your target market. There is no bought attention anymore - it needs to be earned through entertaining, informative or 'cool' content that your fans would love to share. When they share, it automatically endorses you and this has an impact on how their friends feel about you.
An unlikely brand doing well in this space is Marmite. They created a mock secret society, the Marmarati, where fans can prove their love for the brand and be rewarded with merchandise, products and secret taste trials of new flavours.
Ultimately, the traditional scores of brand equity form a good foundation to track, but only a comprehensive score that takes into account Shopper Appeal and Social Intelligence will provide a useful measure of marketing effectiveness and brand power. Measuring and committing to improve your scores on all three facets of brand power is guaranteed to have a positive impact on sales figures.
For more information, please contact Yellowwood on +27 (0)11 268 5211, email az.oc.doowy@ofni or visit our website: www.ywood.co.za.
