Brands + Experience = ......
As a life long champion of building strong brands, I have been challenged recently with one burning question: What do we need to do, to build brands that will thrive beyond 2020? We think the rules have really changed.
How do we define brand equity nowadays? Remembering that by definition brand equity is the additional value the ‘brand’ adds to the basic product/service. In its simplest terms 'Nikey' without Nike, is just a shoe.
Back in the day, equity was about awareness, consideration and image – these were the things that built powerful brands. This is the classic brand equity equation, thanks to Aaker in the 1980’s.
However, in the post digital world, consumers slip into brand relationships much earlier. In fact, consumers are now part of creating a brand, curating the brand with every shared experience and conversation.
We need powerful, profitable brands – but how do we build new brands or reinvent existing brands in the new environment? Where should we invest? What makes a brand relevant to tomorrow's consumer? Also as a brandsearcher (a brand researcher) – are we measuring what really matters to consumers? (I’ll leave that for another time)
Recently I read a statement : "The Future of Brands is Experience", when I read this statement it immediately resonated with me.
In the new brand world, where marketers and consumers co-create brands, the customers' experience and journey collides with traditional branding. While they have always been inextricably linked, today a customers’ experience with the brand must significantly contribute to a brands equity. And therefore, by default, engagement ensues from these experiences. So, it stands that engagement and experience must be added to the brand equity equation. Are you adding these to your definition of brand?
We leave you with a question – what is the definition of brand equity in 2016? What should we focus on to build strong relevant brands? We have some strong points of view, but we are keen to add others to this conversation.
PM
7y我说两句a very good point--engagement and experience must be added to the brand equity equation.…
Really useful viewpoint Elisa. Brand equity as a construct should be updated to reflect the depth of brand relationships which of course includes interaction and engagement and the way that brands are incorporated into the social world. Brands will continue to be short cuts for decision making and choice, because this is a fundamental to the way the human mind works - humans are drawn to summary constructs like moths to flames. Of course Tim makes a good point about algorithms, but are we not then trading one brand for another (eg. Google). We trust Google (as a brand, algorithm call it what you will) to deliver on our search needs and this has already substituted or aided our choices. Trust Nike the algorithm to deliver you the perfect shoe that is 3D printed to your every whim. The battle of the algorithms will become a battle of the brands.
CEO Sprout Strategy HBS, QPR, AICD, BBus
8yThanks Tim, so great to hear your thoughts. So producers will still need a value proposition that aligns with customers? This will truly be the transformation economy at full speed.
Impact Measurement, Nature & Systemic Investing @ Purpose Made | Wholesome Dad Stories | Certified B Corp.
8yHi Elisa - I believe brands will begin to completely disappear - at least in their current incarnation. People will become their own personal brands and take on roles as producers and consumers, making intermediaries unnecessary. You'll also be dealing with algorithms, bots etc that work on people's behalf bypassing brands as shortcuts....they'll look at more practical aspects like $, function and alignment to values.