Day: 24 August 2016

IN AN AGE OF HIGH COMPETITIVE INTENSITY AND A TOUGH ECONOMIC CLIMATE, COMPANIES ARE STRUGGLING TO DRIVE BRAND DIFFERENTIATION AND ATTRACT TOP TALENT. AS A RESULT, IT IS CRITICAL TO EXPRESS WHO YOU ARE AS A COMPANY WITH A DISTINCTIVE SET OF VALUES.

Indeed, strong values provide a unique window into workplace cultures, they drive internal behaviours and they guide decision-making frameworks within businesses. In essence, values that truly mean something to employees will be profoundly felt by the customers and communities they serve.

Sadly, we regularly see outdated and clichéd company values such as ‘integrity, teamwork, quality, customer satisfaction, respect, excellence and innovation’ bandied about – without taking into account what they really mean to the business or staff. In a study of 150 multinational companies, 74% claimed integrity as a core value, 41% espoused concern for customers and 39%, respect. Yet employees, for the most part, just don’t know what to do with such generic brand values…

SO WHO IS GETTING IT, RIGHT?

Brands that have a strong, values-based approach to doing business drive individual accountability and engagement through their inspiring, high-performance workplace cultures. Uber, Google, Wholefoods and GE are standouts. Their organisational cultures are grounded in a set of core beliefs and commitments expressed through values that steer their respective business strategies and determine their ways of working. For them, it’s not about the writing on their office walls but about the people that are committed, live the brand and to do their part in achieving the business goals.

For example, one of Uber’s values is to encourage employees ‘to take big bold bets’ so that in the ever-changing world of tech, the business continuously moves forward. Uber has recognised that only by constantly seeking better ways of doing things, can it really guard against nimbler and more agile competitors seeking to up-end it.

WholeFoods, an organic food retailer, specifically states that they believe in ‘selling the highest quality natural and organic products available’ – which makes it very clear to employees how they should be sourcing, delivering and designing their products.

Similarly, Google doesn’t just claim ‘customer-centricity’ as a core value. Instead, employees adopt the mantra ‘focus on the user and everything else will follow’, which translates into meaningful products and services that truly serve the needs of their users.

SO, WHEN IS IT A GOOD TIME TO CONSIDER RELOOKING AND ADJUSTING YOUR COMPANY’S VALUES?

• When your company is going through massive organisational change and/or brand repositioning.
• When social and economic contexts change thereby changing your customers’ needs and expectations.
• When it’s clear your company’s current values hold little meaning for your employees.
• Lastly, when your ‘company values’ are different from your ‘brand values’ – these should be consistent.

HERE ARE SIX TIPS ON HOW TO CREATE DISTINCTIVE VALUES WITHIN YOUR BUSINESS:

1. Make sure your values are aligned with your purpose and positioning and bring these to life in tangible and practical ways.
2. Try ‘bottom-up’, not just ‘top-down’: through collaborative workshops, involve people from all levels of the organisation in the creation of values.
3. Select a core group of brand advocates to lead the change: 5-10 individuals (depending the on size of company) from anywhere in the organisation that best represents what the brand stands for, have a gut-level understanding of the culture of the organisation, and have the highest level of credibility with their peers.
4. Reinforcement is critical – repeat, reward and recognise.
5. Involve the people that interface with your customers on a daily basis.
6. Treat the process with respect and have patience.

SUCCEEDING AS A MARKETER IN AN OVERSTIMULATED, CHOICE-FLOODED, OMNICHANNEL WORLD IS NO SMALL TASK. WE HAVE TO REMIND OURSELVES TO STOP WHAT WE’RE DOING, TAKE A DEEP BREATH AND LOOK AT WHAT’S GOING ON OUTSIDE OUR OWN ENVIRONMENT.

Interestingly, we can take some important lessons from the analytical, numbers-driven world. More specifically, there are some clear equations involved in creating sustainable and valued relationships between brands and consumers. These could be very informative for savvy marketers.

1. BRAND VALUE: VALUE = BENEFIT / COST

Let’s not forget that value is how the consumer defines it. However, by understanding the equation of how value is created, you give consumers a reason for consideration. Consider how the equation is applied in the medical insurance industry, where customers are anxious about the cost of cover and frustrated with the complexity of policies. In order to derive value, customers want to feel they’re in control; they need to understand what they’re buying and at what cost. Therefore value = benefit of (control +simplicity) / cost of (premium + efforts).

2. TRUSTED BRAND STATUS: TRUST = FN (CONSISTENCY + HONESTY + QUALITY + EXPERIENCE)

Before the economic downturn, consumers were willing to gamble on new products and services. However, within the current economic climate, things have changed. According to the 2016 South African Customer Satisfaction Index (SAcsi) results, the top five positions are dominated by restaurant industry players. Customer Satisfaction is a measure of the brands that display the best overall quality, meet customer expectations and have the highest perceived value. Wimpy took the top spot and achieved a satisfaction score of 83,6 out of 100. How do they do it? They consistently deliver a quality product; you know what you’re getting as a consumer and the Wimpy experience is the same wherever you go.

3. CONSUMER CONNECTIONS: CONNECTIONS = (PLATFORM + EXPERIENCE + RELEVANCE) X (ADVOCATES + TIME)

Today, brands from all industries are facing one primary challenge: how to build a strong emotional connection with their consumers. Without that personal relationship, their names mean very little and business could suffer. A brand that is connecting strongly with consumers is Nike. They are masters at creating meaningful experiences by building platforms that open the door to relevant emotional connections and essentially help create brand advocates.

Ultimately, you don’t need to have a maths brain to know that consumer needs are constantly changing and that expectations of value are changing with them. If you have an understanding of the marketing equations involved in delivering on your brand objectives, you have the means by which to evaluate how you’re doing. The key to successful evaluation is to tailor the variables in your equations to your category, your consumers’ needs and to your brand objectives, which hopefully reflect the business strategic intent.