Trust means your future customers believe you’re likely to be honest and competent, and will deliver a good experience. Sometimes trust comes from friends telling friends they had a great experience. But most of your future customers wont have word-of-mouth to rely on. They have to decide on their own whom to trust. Thats the mission of your logo, website or brochure, to create your business dress and body language–your visual branding.

Here are a few basics to help your business look credible:

1. Go for simplicity and lack of clutter. (Think Apple, the master of simplicity in branding.)
2. Create or demand a clean, well-balanced graphic design.
3. Use one or two basic colors that go well together, not a hodgepodge.
4. Choose one font and stick with it. You can express almost anything by using variations within a single font family: size, weight (boldness), italics, etc. If you really must, choose a second font for major headlines. But first try it with one font.
5. Coordinate a single look – design, colors, etc. – across everything you do, including your logo, website, brochures, ads and signage.

Read full article in Entrepreneur.com

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The conclusion of the article tells it all: It’s time to remember that advertising needs brands more than the brands need advertising. A good product creates its own relationships.

Understanding what the consumers want and bringing solutions that will inspire them is the most powerful way to support any business strategy. Putting consumers and the product at the center of the equation is fundamental to a brand’s success. Design then becomes the message and the advertising, as it’s proof of a company’s commitment to people and to innovation.
In an emotional economy, success is judged by a profound and indelible connection with people through sensory experiences. The challenge for CEOs, CMOs, and clients the world over is to remember what’s at the soul of their brand: the credibility of a well-respected product and the passion of the culture behind it. Design is the expression of that culture and the link that will cause people to be irresistibly drawn to the brand. If your brand doesn’t connect emotionally, you will have to rely on media or advertising hype, a short-term and risky proposition.

By forgetting to focus on the way your product will be experienced, and failing to respond to people’s need to be stimulated, you fail their expectations. No amount of money can buy the media to fix a boring product, no PR message will work once you lose that trust. The best brands of all jam with their consumers to invent and imagine ideas designed for the future—ideas designed to revive the advertising impact and exponentially maximize your communication dollars.

Read full article here.

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While the summed importance of branding (of the carrier and the phone) in purchasing decision seems to remain constant at a total of 59% it is worth noticing that 19 percent of customers cite the type or brand of cell phone as a key factor during the initial process of selecting a wireless service, up from 11 percent in 2004. While the brand of wireless provider is still the most popular reason influencing the initial selection process, it has decreased significantly in importance, down 8 percentage points from 2004 to 40 percent in 2006.

Other key factors that influence the initial selection process are price/promotion (29%) and retail location (12%).

While this strategy is adopted due to high competition in the field, I honestly don’t find it sustainable on the long term because promoting the cell phone instead of the service plan and the carrier that provides that service may lead to sales growth in the short term, but it can potentially have a negative long term impact with higher churn rates.

The study actually shows this. As such, among customers who are most influenced by the cell phone brand, the likelihood of switching carriers in the next 12-month period is 60 percent higher than among customers who cite the brand of the wireless provider as their key factor in the selection process.

On the other hand study shows that among major wireless carrier-owned retail stores, T-Mobile ranks highest in customer satisfaction for a fourth consecutive reporting period. T-Mobile receives particularly high ratings in all four factors that determine overall satisfaction. T-Mobile is followed in the rankings by Verizon Wireless and Alltel, respectively.

Volume 2 of the 2006 Wireless Retail Sales Satisfaction Study is based on experiences reported by 7,530 wireless users who completed a retail sales transaction within six months prior to being surveyed. The results are from the two most recent reporting waves, which were conducted in April and July 2006. More about the study here.

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Brand loyalty reduces customer loss, which improves business growth. You are not replacing lost customers to stay at the same sales volume. Customers must have a favorable attitude toward the product to develop loyalty.

Looking at the future of [tag]loyalty[/tag]-[tag]marketing[/tag] [tag]innovation[/tag], three major trends will emerge.

Trend #1: the power of the network

Marketers have long known the power of engaging in dialogue with customers. But those who push the boundaries of customer dialogue also understand the power of communities of consumers united in affinity for a brand, bound by geography, or engaged in similar lifestyles.

In the loyalty game, helping to create customer groups bound by shared interests is a way to develop a sense of community around your brand. The better your ability to grow dialogue between you and your customers and among your customers themselves, the stronger your brand will become.

Trend #2: the power of data

It’s a hoary truism: Information is power. Simply put, you can’t manage a relationship or enhance the in-store experience without knowing whom your customers are. And indeed, before you can really leverage loyalty-program information to enhance your company’s core product, you need to understand what insights you can glean from the data you’ve already collected. Basic ROI analysis is no longer the end game. It’s just the starting point.

Trend #3: the power of convergence

An epic confluence of events and factors outside the loyalty space will form the third seismic shift that will influence your loyalty strategy. In the global marketplace, three major areas of convergence are giving rise to a second generation of multimerchant loyalty coalitions: corporate convergence, in which mega-corporations continue to gobble one another up, with the corresponding size of their customer bases growing more astounding every day; CRM convergence, in which the next generation of CRM technology helps these same companies organize every aspect of their businesses around customer segments; and point-of-sale (POS) technology convergence, in which the next wave of payment and identification innovations will eventually collide in their ability to enable sustainable brand-customer relationships.

As consumers pull out their coalition cards several times a week while shopping at top brands, coalitions will win the battle for share of mind. And the first companies in each sector to align their brands with a top-tier loyalty coalition will enjoy a formidable first-mover advantage. The bottom line: You’ll need a strategy to evaluate whether an emerging coalition is the right one for you.

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1. An emphasis on “engagement.”
Inserting itself between traditional marketing activities and an increasing demand for return on investment assessments, engagement will become the Holy Grail for marketers and advertisers. Defined as the outcome of ad and marketing activities that substantively increases a brand’s strength in the eyes of the consumers, engagement will be used more and more to allocate marketing budgets.

2. Using technology to better meet consumer expectations.
Consumer expectations in all categories will continue to grow. Expectations have increased more than 26% in the past five years while brands have kept up with these expectations by only 8%! Watch for smart marketers to take advantage of unfulfilled expectations via such values as “convenience” and “customization.” More and more marketers will rely upon Web sites and high-tech capabilities to accommodate these values and differentiate themselves from the competition. Professional services and other non-traditional brands will probably take advantage of the new technologies and start build up brands for themselves.

3. Expanding the potential of Websites and blogs
Engagement concerns and attempts to meet or exceed customer expectations will fuse and be most observed online, particularly on blogs. Watch for increased development of blogs and Websites in general beyond propaganda, information, and use as an electronic cash register toward the creation of “communities of ones.”

4. “Recombinant” experiences.
Disney and Vegas: Oil and water? Consumer values indicate a bipolar continuum for recombinant experiences. Watch for this to reveal itself in more online gaming, especially for adults. Interactive gaming with more and more players being able to compete at once will become table stakes for online games. Marketers concerned with engagement will close their eyes to “appropriateness” and leverage online gaming as a more acceptable venue for virtually every brand.

5. More branded entertainment.
Popular culture, with its rabid consumption of music and technology, will see market and brand leaders leverage plugging-in as a method for customizing entertainment and selling products. For instance, music-related paraphernalia such as T-shirts, posters, and artist-related merchandise will infringe more and more on the dominance of bricks-and mortar retail.

Read full article here.

Tags: branding trends, blogs, branded entretainment

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People increasingly see the product experience as a key driver of the brand relationship. The quality of the product experience is growing in importance after a couple of decades when some companies perhaps lost focus on product performance, particularly in developed markets. If true innovation is defined as product change that provides real solutions to real consumer issues, then it’s not unfair to suggest that some brands ignored this in favour of quick-fix brand extensions which lacked any longer-term impact

Surface innovation that fails to truly innovate or differentiate can have a short-term positive impact on profits. This may be enough for a new product manager under pressure to deliver, but it can turn off consumers in the medium term, as marketing becomes a surrogate for product innovation and stops being truly effective.

Consumers buy products, and for many the product experience is by far their most important touchpoint. It should be stressed that, although it has been over-emphasized on occasion, the so-called softer side of the brand remains an important component of the brand alchemy. Through a brand’s emotional story, the product experience is amplified and linked to the consumer’s imaginative life – it is all a matter of balance.

The second trend is the development of corporate brands, which have traditionally stayed ‘behind the scenes’. Procter & Gamble’s name is increasingly visible on many of its brands. Its main competitor Unilever also announced early last year that they would use their corporate name in customer-facing marketing activities. We could also mention Nestlé, Danone and many others, which have been historically keen to hide their wide range of branded products from consumers. Many reasons drive the decision to appear as one company under an ‘umbrella brand’. In part it is a response to a global marketplace, but the main factor is the need to rationalise marketing spend.

Many companies have developed multi-layered and extremely complex brand architectures over the years – some for historical reasons (like brand acquisitions), some possibly due to a lack of internal cohesion or communication. The trends toward corporate branding and an emphasis on the product allow us a different perspective on what brand architecture could and should look like. They imply a simplified brand structure in which the corporate brand would directly endorse a range of product brands, with all intermediate brand levels progressively disappearing. This would clarify the offers, put the product back at centre stage for consumers, and force companies to really define their corporate brand and related values.

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Tags: branding, product branding, product experience, corporate brands, corporate branding

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The basic concept of branding will definetly remain unchanged — to create an emotional attachment between the consumer and a product — but the near future (or should I say present?) will demand from branding to adapt to consumers high demand for specialized – peronalized – customized products.

The new technologies are changing the way consumers interact with companies, or with other consumers for that matter, exchanging views, complaints, opinions and comments about products and services, about brands, about companies, about YOUR company.

On the other side there are companies already engaging creative customers in new ways. These companies are clearly aware that tapping into the collective intellectual capital of their customers yields great creative and “real” content. However, let’s not make the mistake to think that in the end these conversations will all be about communications and branding: how about extending this cooperation with consumers to virtually everything a corporation does, by making the customer an integral part of ALL creative and creational processes? There are companies inviting theis customers to engage in CUSTOMER-MADE goods, services and experiences?

Get ready for CUSTOMER-MADE: the phenomenon of corporations creating goods, services and experiences in close cooperation with consumers, tapping into their intellectual capital, and in exchange giving them a direct say in what actually gets produced, manufactured, developed, designed, serviced, or processed. Consumerism will never be the same!

Read a detailed analysis on the customer made trend.

More than that, Martin Lindstrom, a recognized branding guru and author of Brand Sense is presenting five reasons for which branding is changing and companies have to adapt to the customization and personalization trend:

• Brand blogging
• Brand Phishing
• Brand alliances
• Situation placement
• Me Selling Proposition

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The process of exposing consumers to the various attributes associated with a particular brand, a successful brand experience creates an environment in which the consumer will be surrounded by the positive elements attached to the brand.

The successful brand experience can operate on multiple levels, including adding a new communications channel to reach the consumer, adding a service element to the product that extends a stronger offer, and extending the brand across seemingly unrelated products and services. The overall brand experience represents a way to bring the consumer to the brand and establish a close relationship.

And a brand means much more even than its product and service features. Brands are built from nothing less than the sum of a customer’s experiences with a product, service or company. Customers’ total brand experience will determine whether they will buy anything more from the company and, just as importantly, whether they’ll spread awesome or awful word-of-mouth to friends and family.

The balance between expectation and experience is why I like to think of a brand as a promise, and the customer experience as the fulfillment of that promise. No doubt a customer experience that veers wildly from it’s brand promise will erode the belief in that brand promise pretty quickly. Companies that promise one thing through their advertising and branding and badly let customers down through the customer experience are undermining a huge investment and one of their most valuable assets. The difference between a brand promise and the actual customer experience is the “experience gap”, and that will erode your brand equity faster than anything else, no one likes to be promised one thing and delivered another.

Any company that wants to establish a customer experience strategy must do it with a full and realistic evaluation of what their brand stands for and what their brand promise is. Any company that fails to align their customer experience strategy with their brand strategy will be in danger of creating an “experience gap” that will erode any brand equity they have built in the marketplace.

To create excellent customer experiences, it’s essential to gain deep insight into customer needs and wants. Just as imperative is developing a core set of customer metrics that:

(1) accurately measure where your brand stands in areas most important to customers
(2) best reflect the health of your business.

In other words, brands are multifaceted and complex—certainly much more than a name or image. If you aren’t aware of a brand, you’ll never consider it even though it may be just what you want or need. First impressions and appearance are very important, and so is the quality of the foundation and building blocks, especially over the long term. Brands, like houses, have unique personalities. Customers develop relationships with brands that change over time as their needs and expectations evolve.

As you think about how your customers’ experiences add up to create their overall brand experience, it’s helpful to focus on the three most essential marketing objectives and the metrics that reveal how well you’re meeting those objectives:

1. Customer acquisition, with a goal of acquiring the right customers in a cost-effective way. Three critical customer experiences in the acquisition process are awareness, learning and persuasion.

2. Marketers must focus on product “wow” in delivering a “wow” customer experience that exceeds expectations. Three critical customer experiences required for product “wow” are great first-time usage, usability and benefit delivery.

3. Marketers must focus on customer retention—retaining and nurturing loyal customers, and turning them into advocates. Three critical customer experience elements in the retention process are long-term usage and satisfaction, the purchase of more products and services, and positive word-of-mouth.

Evaluating these essential business-building drivers within the customer experience framework will help you focus on the most important levers for achieving marketing results.

What metrics do you need to use to know how well you’re doing and where you want to go? How will you ensure that your customers’ experiences increase their loyalty so they will not only buy more from you but will also spread great word of mouth?

Brands are so much more than a name, logo or image. They represent nothing less than a customer’s complete experience with your product, service or company.

As Kevin Keller said: The power of a brand lies in the minds of consumers and what they have experienced and learned about the brand over time.

Readings on this:
Designing Brand Experience: Creating Powerful Integrated Brand Solutions
Experiencing the Brand – Branding the Experience (440K, PDF, registration required)

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