In the first of this two-part series, we explore a new era of brand experience. Every company must deliver financial performance but to thrive in this new paradigm, brands must demonstrate how they are making a positive contribution to society. We look at who actually owns your brand, how they shape it, and what you can do to stay relevant beyond the basics of brand awareness and advertising.
In part two you’ll discover which companies in Cayman are leading the purpose-led revolution and find out how to apply their successes to your own brand strategy.
Until recently, the question of who owns your brand would have evoked puzzled looks. For generations, there was only one answer: A brand belonged to the company that invested in shaping it.
Today, the question is no longer rhetorical. Brands are community property. Shareholders own a stake, and so do employees who bring the brand experience to life. And then there are the customers who sustain it through their purchases and shape it with their demands and feedback. Together, these stakeholders continually improve the brand experience and, knowingly or not, refine what the brand stands for.
They effectively form a brand ecosystem. For businesses looking to maximise their brand ecosystem, they should routinely collaborate across their networks of suppliers, partners, and customers to create new solutions and innovations that bolster their competitive advantage. There’s no reason companies shouldn’t apply an ecosystem strategy as part of their wider communications strategy to scale the relevance of a brand or broadcast its purpose to a larger audience.
While business leaders, investors, and employees all bring unique and necessary perspectives and capabilities to a brand ecosystem, customers are frequently the swing vote. They aren’t just buyers anymore. They’ve got the power to demand experiences on their terms. Never has this been more powerful than in a small community where word of mouth – positive or negative – is arguably just as influential as the curated messages brands serve to their audiences.
Customers readily influence others to buy (or not buy). They co-develop products or services, invest in brands they believe in, or even act as sales channel partners. Through their words and actions, they provide insights that can enable companies to hone their competitive agility. One of the most visible ways customers demonstrate their influence on brands is by pushing companies to participate in social, cultural or even political debates. Ask most customers and they’ll likely tell you they believe their actions — from posting comments on social media to participating in boycotts — can influence a brand’s reaction to an event or its stance on an issue of public concern.
Consumers’ expanded roles make them highly valuable stakeholders in an extended brand experience ecosystem. They insist on transparency at the corporate level, as well as about the products, services and promises they find meaningful. They reward principles such as family connections, health, security, sustainability or respect for religious beliefs.
Consumers act as champions of brands they believe in—and foils to those they don’t. Price, product quality and customer experience are important and expected attributes that customers consider when making their purchase decisions. But they’re now a mainstay. Commonplace expectations that are unlikely to move the needle beyond the norm. Companies looking to build their competitive agility need to find new ways to stand apart. Purpose provides the differentiation that many seek.
A brand’s purpose must be as unique as the brand itself. While purpose must be carefully honed and aligned to the values of the customers a company hopes to engage, certain dimensions of purpose outshine others. Intangible components of a brand’s essence such as culture, transparency and ethical values are particularly important.
Purpose-led brands have the potential to create stronger and more resilient customer relationships. That translates into more sales and greater customer lifetime value. Purpose also bolsters confidence in a brand. That provides an extra layer of protection from the almost inevitable “trust incident” and ultimately protects the bottom line.
Defining and activating a meaningful purpose can potentially mitigate the damage a trust event might have on a customer relationship (and sales) by giving consumers another reason to believe in the companies with which they do business. At a minimum, a meaningful and relevant purpose can increase the likelihood that customers will give companies a second chance if trust is otherwise tarnished.
In our follow-up article due out in November we explore how to create purpose for your brand and shine a spotlight on which companies in Cayman are leading the purpose-led revolution.
Rob Barton is a Design Director & Principal at Big Panda, Cayman’s leading brand consultancy.
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