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Posts Tagged ‘Richard Moss’

“In a world where all products are increasingly the same, marketers have to appeal not to consumers rational decision making processes, but to their emotional ones. No stronger emotion exists than the need to belong” Douglas Atkin The Culting of Brands

In late 2010 I ranked the UK’s leading brands by how effective they were at marshalling a brand movement. I did this by measuring how active their advocates were – how often their  advocates recommended them to others. We then studied the top performing brands and  found that they displayed four key characteristics that we concluded are necessary to create a vibrant brand movement.

1. A Cause.

At the heart of any brand movement is a cause. This is the belief system that an audience buy into and champion. These belief systems tend not to appeal to everyone, but for some they create an intense sense of belonging.

Lifebouy soap is a great example of a brand cause. How do you create a great sense of belonging, amongst mums, around a bar of soap? Unilever’s solution, noting that hygiene standards in the third world was the primary cause of child deaths, was to develop the cause of helping to halve these deaths in the world. What mum wouldn’t want to support a cause like this.

2. Communities

Around the cause, successful brand movements foster, build and support vibrant communities. On and offline they encourage regular contact between members, develop shared experiences, co-create agendas, build their own symbols and most importantly actively encourage peer to peer recruitment. Kelloggs do this well with Special K

There are four different community segments that influence brand movements – Personal (friends,family, work colleagues), Expert (doctors etc.), Social (Mumsnet, Woman Institute), Media (newspapers, magazines etc.). These can be easily measured for impact and influence to identify those who will deliver the greatest return.

3. Contagious Stories

Research has shown that stories stick better than facts and figures. If you were raising money for children in Africa, a real boys story would raise twice as much as the cold facts and figures behind any plight. Leaders of brand movements need to become expert storytellers, sugar coating their messages with stories that will get retold. Great stories have a structure and many blue chip organisations use this as a framework for their external communications.

4. Campaigning

Movements die if they are not constantly fuelled by new thinking and disruptive content. Our 24/7 world has increased the ‘wear out’ of brand ideas ten fold since the dawn of the internet. A great multi million pound advert today, can be viewed a million times on Youtube tomorrow and then forgotten by next week. Unless it starts a conversation,that is further fuelled and re-energised, the movement will wither and die. Brands today need to campaign for their Cause, taking the threads of conversations that appear  each day in Newspapers, on Facebook or around the Coffee machine and inject their point of view. As Seth Godin says, if you stand still you become invisible. It’s why many brands today are setting up campaign teams, editorial teams and newsrooms.

Movements are the future of brands. Bain & Associates have proven this conclusively with their Net promoter Score measure. The challenge for marketing and communication managers today is to mastermind the creation and maintenance of these movements. The 4C’s provides a framework to support this.

4C’s Copyright Richard Moss 2012

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Who cares if your customers say they will recommend your brand… if they never get round to doing so. Realising the potential of advocacy requires active advocates, but can you influence this? This was the question we set out to answer in our research project ‘Leading by recommendation’. We studied 120 brands in the UK and 4000 customers. We found significant differences in activation levels between brands in the same sectors. We also found striking similarities in the way these brands approached their marketing. We distilled these findings into a model, the 4C’s of advocacy activation. A model which can be applied to build advocacy, build activation and build the momentum of brands.
View more presentations from Wordofmoss

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If you don’t represent me and what I care about, then get lost! In the world where executive power has moved out of the boardroom and onto the street, where there are a 1000 choices in life when one will do, where the values and behaviours of a brand have become as important as their benefits -brands have a simple choice. Become an extension of their consumers lives – thinking and acting as they would, or die.

Research conducted by BritainThinks this month should therefore be especially interesting to brand marketeers. They asked consumers to think about which brands best represented them and their lives today. The top three answers – Apple, Sony and M&S.

The research is interesting, but the insight behind it is key. In marketing today, in my opinion, three questions rule.

1. Do I represent my  consumers – fight their cause?

2. Do I behave as they would wish?

3. Do they recommend my brand?

The research can be accessed by clicking on the link below:-

TimeCapsule Research – Most Defining Brands 2011

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Research by Harris recently showed that 45% of people claimed they are influenced by who they follow online, with almost a fifth saying they are more likely to buy products from companies they have “liked” on Facebook. Indeed Facebook itself demonstrated that the number of Facebook fans a candidate had in the US mid term elections was a good predictor of election night results.
Tweets have also been shown to correlate neatly to sales. Research by Hewlett Packard showed that tweet volume was a very good predicter of box office success in the film industry. Indiana University demonstrated that tweet sentiment on a given day could predict the direction of changes on the Dow Jones three days later with an accuracy of 86.7%.
Recent TNS data shows that 30% of peoples leisure time is now spent online. In volume terms it overtook email in 2009! 90% of mobile traffic is still however just voice….yet those who access social networks via mobile do so at twice the rate as their non mobile counterparts.
Who isn’t going to own a Smartphone or device in the next few years? Who isn’t going to put Facebook and Twitter at the centre of their marketing?

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I received an interesting offer this week. If I plugged a company’s Ugg boots on this blog, they would pay me $50. Product placement is about to become big business in the UK. As of tomorrow, companies will be able to place products in programming. ITV’s “This Morning” is leading the way with a coffee machine from Nestle. Look forward to a “P” appearing on your screen warning you that what follows is marketing managers dream rather than necessarily..reality. It will be interesting to see how ITV manage this editorially and how consumers receive it. It’s clearly not as powerful as earned editorial but it’s another useful addition to the marketing mix.

 

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There’s a fantastic article in the Economist this week talking about the revolution happening in the manufacturing sector. This revolution is being driven by the falling price of 3D printing – a technology that allows you to build a three dimensional object from something that can be no bigger than a laser printer.

The implications of this are potentially huge. Imagine a world where you can customise almost everything at a touch of a button and still produce it at the same price as mass production. Imagine a world without factories…a world where every town or village has one of these printers churning out everything from lampshades to spectacles…all from digital files supplied by you and me. This will takes co-creation to the next level…to an individual level. Amazing!

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An interesting question is raised by the Times this morning in an article about the Richard and Judy Book club. The club was started as part of their C4 TV show, but now apparently is being relaunched in a solo deal with the book sellers W H Smiths.

The article claims that to get recommended by the club, authors need to pay W H Smiths up to £25k. In return it seems they get not only a recommendation, but a best seller (the first book they recommended by a debut author, went straight into the best sellers list).

The above may clearly show the effectiveness of advocacy but is it really ethical?

I have a simple belief here….as long as Richard/Judy have total editorial control i.e. they make the recommendations, it’s fine. The fact that W H Smiths then go to the authors and request monies to get this recommendation promoted and sold, is simply commercial sense.

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Earlier this year I launched a research study, Leading by Recommendation, which I conducted together with Alain Samson of Enterprise LSE. It aimed to identify how actively UK brands are being recommended and the characteristics of highly recommended brands.
As an ex marketer of everything from lager to puppies (sorry Toilet Paper) it was the results from the FMCG sector that I most eagerly awaited. I’d always understood that the FMCG sector was intrinsically low interest and hence mass scale awareness strategies were always the most effective. Our results indicated something different.
Using the Net Promoter Score as our base, we isolated those who claimed to be strong promoters of individual FMCG brands (at a brand by brand level) and then looked at how often these individuals actively promoted that brand. We found that on average, across the 50 or so brands we researched, more than half (55%) had actively promoted their recommended brand to someone over a three month period.
This was interesting. What was even more fascinating was who lead the way in activating their advocates. Our most actively recommended FMCG brands in the UK turned out to be:-
1. Activia Yogurts (76.9%)
2. Kelloggs Special K (76%)
3. Lucozade Sport (72.7%)
Looking behind these results and those of the other 120 brands in our study, we found that the leaders in just about every industry sector met a set of clear criteria. We called these criteria the 4C’s of advocacy activation – Cause, Community, Contagious Stories and Coverage.
We believe this study has many implications but probably the most fundamental is that it conclusively demonstrates that brand advocacy (recommendation) can be systematically built. With a 7% increase in NPS score equating to a 1% increase in growth this we believe has profound implications for FMCG marketing strategy in the future.

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Occasionally, you read something that catches your breath, stops you in your tracks and makes you re-evaluate everything that has gone before. It happened to me at 10.25am this morning as I was reading an article in the Times magazine about Jamie Olivers attempts to conquer the USA.  Read this…

Rather he (Jamie Oliver) has come round the belief that “the healthiest thing in the world is a commercial business with a massive social heart. Having something you believe in and stand for and say we are going to give 5% of our revenue to this pot, to spread the great stuff”

This is Jamie Oliver (the cook) telling us about the importance of belief based business branding … a concept that many CEO’s haven’t yet understood. No wonder Jamie’s business has declared pre tax profits of £6.8 million!

Belief based branding is built on the premise that in this cluttered cynical age, the only way to grab the attention of your stakeholders (consumer, employees etc.) and turn them into advocates is build your business/brand around a cause. By a cause we mean something that has meaning in society …. a fundamental angst that exists amongst your stakeholders that you (as individuals, a brand and an organisation) can authentically champion. Think of brands like Harley Davidson, Innocent and Apple. They are businesses that are built on belief …the belief of their CEO’s and management teams…and take day-to-day actions that are the living embodiment of these beliefs. These brands have real followers, highly active advocates and outgrow their competitors.

The journalist who interviewed Jamie, asked him whether he had political ambitions. Jamie replied “the time isn’t right”. I’m sure it’s not. I don’t know the age of the youngest Peer in the House of Lords however, but Lord Oliver…don’t you think it’s a real possibility?

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If you’ve made a million and want to be to leave a legacy,  a clock isn’t the most remarkable of choices you can make. Ask any 15-year-old … they’ll yawn and say who needs clocks today when everybody has a mobile phone in their pocket! Clocks are boring …unless of course you spend a million designing something quite as hideous as the corpus Christi Clock in Cambridge.

My Mother took the family on an outing to see this yesterday. It had become quite a talking point in our family, the neighbours, the Cambridge WI …………… As I stood there, desperately trying to tell the time, I started to think of Marmite…a simple, insignificant and quite boring spread that manages to get itself talked about almost as much as this clock. Think about it, I bet sometime in your life you have felt compelled to say to somebody you either love of hate Marmite. Today, they even have the Marmarati, a group of loyal advocates who are encouraged to spread (excuse the pun) the word in exchange for limited edition pots of the black stuff.

Over the years I’ve heard many FMCG marketers say that word of mouth or advocacy strategies are less relevant to them. That their products don’t have the same potential to generate spontaneous involvement and discussion as other sectors. This of course is untrue. Any object can be involving as long as it stands for something and stands out. Go on a day trip to Cambridge at some point ….and you will see!

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