Based on our Biotic Brand Cultivation® methodology, I have linked every of 9 Key Relationship Indicators (we call then Key Growth Enablers, as they really contribute to growth) to a Brand Equity level. The ultimate level of Brand Equity is to become an irreplaceable brand. However, before reaching that level there is a long way to go. Here is how I see the different brand statuses.

Level 1: Elegible brand
Level 2: Preferable brand
Level 3: Desirable brand
Level 4: Wanted brand
Level 5: Commendable brand
Level 6: Expandable brand
Level 7: Shareable brand
Level 8: Contribute brand
Level 9: Irreplaceable brand

How can you reach each level?
Level 1 can be reached by answering the rational needs of the customer
Level 2 can be reached by become a setting the standard and conquer a referential position
Level 3 can be reached by meeting the emotional needs of the customer
Level 4 can be reached by having a passionate brand story or brand universe
Level 5 can be reached by always showing talent as brand by innovating and refreshing the offer
Level 6 can be reached by inspiring the customers to buy into the peripheral offers or to upgrade to a higher standard product
Level 7 can be reached by exceeding the customers expectations and surprise them in a positive way
Level 8 can be reached by inviting customer to contribute to the improvement of your brand
Level 9 can be reached by positively discriminating customers who are committed to your brand and building a durable relationship.

On what level is your brand? Level 1 or level 9?
Make sure that your brand is irreplaceable, than all you efforts will generate return on a short and long term.
Happy Branding

There is much written about Customer Relationship Management, that sometimes I feel embarrassed to even use the word in my writings. There a many ‘cold’ and ‘analytical’ tools out there to allegedly improve the customer relationship. In my paper (click to download) you can read how I look at CRM today. The conventional CRM is everything but ‘customer relationship’.

Customer Service is a very powerful instrument. It has the power to develop instant ‘word of mouth generators’. The questions is how you do this? Are there some promotions, tricks, techniques, etc… that make customer tick?
In effect there is – it is a simple principle. Customers have a peer to peer communication based on strong experiences. Experiences that are so intense that customers cannot keep it for themselves.

Well, how do you generate strong experiences? Again, there is a simple principle. Surprise your customer. Make sure that in the relationship with your customer and especially with customer service, there is a positive unexpected element. It is that unexpected element that has the intensity to build up energy, strong enough to be shared with fellow customers.
Customers don’t talk about what they expect. What they expect is their right. If you deliver 99% instead of 100% then this is a negative brand experience. They expect 100%, instead they receive 99%. It is this surprise element that will be shared with more other customer than you would like to.

However, the principle of generating positive brand experience is exactly the same: do the unexpected. Especially during moments of customer service, don’t communicate everything. Surprise the customer in doing something that you intended anyway, however deliver it as something extra.

My formula for customer service is: 80% + 20%= 125%. This is no magic, this formula actually works. This principle is based on the Pareto principle. Let me explain. You intend to deliver a number of services and benefits to your customer. This package represents 100% of your intention to deliver.
Instead, communicate on 80% of what you want to deliver. Make sure that the 80% is appealing and strong enough to please the customer. When you have serviced the customer, add the other 20% of deliverable service as a surprise. The customer was not expecting it. For the customer the 80% of announced deliverable was already the 100%, now he/she will perceive the 20% as an extra on top of the 100%. 20% is a fourth of 80%, so the customer will perceive an extra fourth of service, hence the 125%. Before accusing me of joggling with numbers, this is off course no exact science, though the principle is valid and works.

It is the 20% unexpected experience that will generate word of mouth, not the 80%. This principle always works, though requires well-thought out expectancy management. Most of the marketing budgets are spend to generate leads and by the time we you a customer, there is no budget left to turn the customer into a powerful ‘word of mouth generator’. Think about how your brand can benefit from this principle. Try it, you will see that it really works.

One of the growth ‘miracle tools’ promoted in the past decades was CRM (now referred to as CRM 1.0). Despite of the exhilarating promises made, we know today that CRM produced a lot of hype and tons of data, yet little or no insight into the relationship or engagement of the customer.
The problem with CRM 1.0 is that it has not much to do with ‘relationship’ in the first place. At best, it can be described as a sophisticated Customer Data Management system.

How can companies define a ‘relationship’ with its customers solely on the socio-demographic and behavioral information about its customers, unilaterally? Since when is ‘knowing a lot about someone’ the definition of a relationship? In marketing this is called CRM, in the real world this is called ‘stalking’.
Isn’t a relationship by definition bilateral? No wonder that in the end CRM became ‘the emperor’s clothes’ of marketing.

Now, the business principles driving CRM implementation were not wrong. If you want to grow, your best multipliable assets are your customers. However, the key to unlocking this growth potential is understanding how your customers rate the quality of their relationship with your brand/company. And what you need to do to improve and strengthen that relationship. This is the fundamental difference between CRM 1.0 and CRM 2.O.
It’s not about the information companies have about their customers. Rather about the information customers give about a company. It is the customers who define the quality of this relationship and not the company.

A qualitative customer relationship has many benefits for a company or brand. According to research done by Susan Fournier (The Brand Relationship Model, Fournier 1998), a strong brand relationship will deliver the following benefits:
• Accommodation – Customers feel comfortable within their choice of brands
• Tolerance/forgiveness – In case of errors made by a brand, customers will be patient
• Biased Partner perception – Negative opinions about the brand are dismissed
• Devaluation of alternatives – All other brands are considered less valuable
• Attribution Biases – Brands are attributed higher qualities than usual
All these brand benefits are crucial for your growth, especially in the current times. On top of that, a strong customer relationship has a strong leverage effect, by turning customers into fans and endorsers of your brand.

Neither of these concepts are wrong or right. Every businessman should always aim for short-term and long-term results in all actions. In my approach and strategies, I always have two key objectives and I believe any businessman can share these objectives. I always aim at immediate sales results and long-term brand equity.

Let me give my definition of brand equity. For me brand equity is the value of a brand as a result of its irreplaceable status by another brand. The more irreplaceable a brand is, the higher the brand equity, the more replaceable a brand the lower the brand equity.

Why is brand equity so important for companies? Let me put it this way: what is the point investing in marketing to achieve quarterly results and after 10 years finding out that you need to invest as much or more marketing budget to achieve your quarterly sales? In other words, your company has not increased its customer equity. What is the point of investing marketing budget to get new customers, when after 10 years you still have the chance of loosing them?

What will be the value of your company if by the time you want to sell it, your brand and customer equity is low? Consider brand and customer equity as the fruit of hard years of work. Consider it as your pension fund.
If you want to make money when selling your company, you better make sure that you customers would not want to replace your company or brand by another.

How do you generate brand equity? Here are a few suggestions:
* Make sure your brand-DNA is strong (coherent), with clear values, vocations and visions.
* Make sure that in all the expressions of your brand you are consistent with your brand-DNA
* Make sure that your brand has an unique personality
* Make sure that in every actions towards the customers, they can experience that personality
* Make sure your brand is altruistic
* Make sure your brand improves the life of your customers
* Make sure your brand can deliver unique benefits
* Be integer as a brand
* Keep all your promises
* Make sure you invest in durable customer relationships
* Make sure your brand is alive and always improving
* Don’t let advertising agencies redefine your brand. Your brand is your responsibility
* Never compromise your brand equity for short-term profit

If every businessman would focus on only these 2 objectives then he will be successful in the long run. Every time you develop a concept, set objectives, introduce new products or services, advertise your brand or hire new people, ask yourself 2 simple questions; am I going to attain my sales targets and increase my brand equity at the same time? If one does not truly invest in brand equity, then all you will get is short-term benefits, with short-term security and short-term return.

Before anyone accuses me of discrediting the importance of marketing, we are talking here about the accuracy of disciplines to deliver relevant output. In my experience whilst having dialogues with marketing and communication managers, many times the question arises “what about the perception of the consumer”? These questions make sense within the context of measuring the temperature of the needs and expectancies of the consumer. But when it comes down to defining the brand’s DNA (building block of the brand), I am somewhat puzzled to understand why major companies show lack of personality.

If we inquire the consumers, we will obtain information that is useful for the investigator but also for competitors. A consumer is self-centered. He is looking for self-accomplishment. Even on marketing level, the consumer will not be able to predict his future needs. How much does he know about technological and non-technological possibilities that will facilitate his life? Can you imaging a man on his way to conquer a classy woman with the question, “who do you want me to be”? One possible answer could be “how about just being yourself”. Ridiculous? This is what many brand owners are doing.

I believe that the ultimate goal of a brand is to establish a relationship with its customer. I am not talking about loyalty. A loyal marriage between two people does not mean that they are committed. I am talking about a relationship in which the consumer turns into an endorser of the brand.
So, do you really want to ask the consumer how you should behave and look like? Most probably he has already given the same answers to your competitor for another survey.

Since the consumer is need-driven, he will answer from his needs point of view. It should not surprise you that if you define your brand-DNA according to these conclusions you might look a lot like the other brands. I compare it to the anecdote of a woman buying a dress for a party and facing the nightmare of an encounter with another female specimen being dressed in exactly the same outfit.

What is the chemistry between a brand and the customer? The conversion of their needs throughout the identity of the brand. What creates relationship is not simply the conversion of the needs but the way the brand does it. This is what makes brands unique. So, the question is not ‘how you would like me to be’, but rather ‘tell me your needs and I will respond to them my very own way’.

Responding to these needs in complete unity with the personality of a brand is creating opportunity for a relationship. How your brand converts those needs, nobody else can. Consumers even accept some weaknesses if they are involved in a relationship. Otherwise, there is someone else ready to take it over.

Marketing is the tool to define the needs of the consumer. Yet a brand has to look for his proper coherent DNA and identity and stick to it. Don’t be surprised when consumers are drifting to other lovers once your brand behavior is showing inconsistency. Do you feel comfortable with a person who is always in a changing mood, always looking for his inner self? Tiring isn’t it? Why should the consumer put up with a brand that is always searching for his “proper identity”? Or worse, changing his identity depending on what is hot with the target group.

Branding is showing outside what your are inside. It takes more than marketing to develop a strong brand. It takes, guts, character and vision.

75% of Marketeers want More Control over their Marketing Spending – do You?

(source: CMO Council Research)

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