Brand Equity and the New Language of Relationship Marketing - GfK Insights Blog
Strong focus on business development and client relationship management. For now more than 3 years I am managing GfK's global research portfolio of. GfK has developed a new quantitative approach to brand and customer management research based on the idea that human relationships. GfK to Share New Brand Relationship Insights in Two Presentations at The At The Market Research Event (TMRE) in Nashville next week, GfK will Executive Vice President of GfK's Brand and Customer Experience team.
You also have to think about how it serves the consumer. The majority of brand followers want to be compensated for that support, and brands have to realize that.
Is Your Brand a “Partner,” a “Best Friend” or a “Secret Affair” For Your Customers?
What is the relationship between strong brand equity and customer loyalty? Marketers define brand equity in a variety of ways. Even so, it has a similar profile across the companies that measure it — moving from awareness to familiarity, to consideration, to purchase intent — while offering a unique selling proposition that establishes a compelling reason to buy.
For example, for decades, focus group moderators have utilized personification exercises to get a sense of how people feel about brands.
That provides a lot of insight into how quickly people build relationships with different brands; and those relationships lead to a sense of loyalty or disloyalty. The interesting thing is that, while projective exercises are used to develop brand positioning, marketers are not using the same techniques to measure brand equity. Do you find that customer loyalty today is as strong as it was in the past, given the numbers of options and channels available? Are consumers as emotional when it comes to loyalty to their favorite brands?
A colleague put it this way: There are also generational differences; the Millennials have a very different perspective on life than previous generations.
So Millennials may be less brand-loyal in a given category; in others, however, loyalty may be rooted in infancy or carried over from their parents. And we see different levels of loyalty, just as people have different types of relationships with brands. Overall, I would say that loyalty still exists. I would also say that the choice of brands has exponentially grown, so I would imagine that consumers have formed relationships with far more brands by default. But, at the same time, I imagine that those are probably more fleeting and vulnerable relationships than ones in the past, particularly in the technology and Internet space.
Smartphones and mobile media allow for increased customer engagement and analytics. Are we able to take the improvements in targeting and personalization that we experience online and manifest those in the in-store experience? The issue revolves around presenting complementary brand messages using the different media that people use to communicate with brands.
There is still some work to be done in terms of getting all of the marketing and mediums to complement each other. However, as I mentioned earlier, there are many apps and sites dedicated to real-time deals for restaurants and other businesses.
Couponing and other efforts in this space will very quickly develop into truly addressable advertising communication. How much value do you place on consumer analytics and metrics when evaLuating customer loyalty programs? In loyalty programs, behavior is the key.
Winning brands get their competitive edge from memorable customer experiences
Obviously, recommendation goes a long way, as well; but in terms of analytics, behavior is one the key drivers of loyalty programs. What do you foresee as the greatest challenge for marketers going forward? I think the Obama campaign in the last election showed the private sector and brands how efficient micro-targeting and using social networking platforms could be. Knowing how to turn big databases into strategic communications was key for that election and trumped large, conventional advertising spend.
The integration of all of the databases marketers have regarding consumer behavior is one of the key hurdles. People have been talking about Big Data for quite a few years now, but not everybody knows how to analyze it or what to do with it.
So the analytical process for understanding behavior in Big Data remains one of the big challenges. The other hurdle is understanding why all of these behaviors occur, and Big Data is only part of the answer. From an analytical viewpoint, understanding how each experience and communication point fits into the eventual behavior of a customer is still fleeting.
Those are the things that brands are wrestling with; and we are working with them to make smart product and marketing decisions. Over the past few years, we have really been focusing on understanding the relationships that people have with brands they keep or discard as a way of bringing insights to brand managers and agencies for the development of positioning and creative briefs.
This is how people relate to brands; we should use the language of relationships to talk about brands in this way, as opposed to strictly using sterile brand equity jargon. Eric Villain Eric has over 25 years of experience in marketing insight, spanning a wide array of brand management disciplines, including innovation, positioning, communication development, tracking, brand equity, market segmentation, and customer satisfaction.
Eric also has a passion for creating successful, highly collaborative teams. Eric has worked in virtually every industry, while focusing the last seven years in the media and technology sector.
Earlier, Eric worked at McCann Erickson. He has also been a qualitative expert, having conducted several thousand focus groups, in-depths, and workshops over the years. Brand equity is an ever-changing, rich, and complex territory in which Eric spends much of his time analyzing and developing insights with his clients and peers. Chris has more than 30 years of experience in sales, marketing, and business development for information technology and professional services companies.
Prior to his current position, Chris held executive leadership roles for technology solutions and consulting companies including Avaya, Capgemini NA, ExpandNetworks, and Fujitsu Consulting where, as a member of the executive management teams, he was responsible for developing the global strategy and increasing revenue streams across each company.
People increasingly agree that the thrill of a purchase fades quickly, but the memory of a great experience lasts a lifetime. Rather than wanting to spend money on expensive possessions, we are seeing consumers gravitate towards low-cost experiences such as visiting the beach, listening to music, playing video games, going to church, or watching televised soccer with friends.
Online shopping sets the trend Online shopping is on the rise. Though we are a long way from the maturity of the United States and Europe when it comes to e-commerce, it is a trend that will accelerate the trend of valuing experiences over possessions. When customers can flick from site to site looking for the best deal on a TV or a dress, they will spend less time shopping in physical stores.
Loyalty drives brand growth | WARC
Our data shows that people who shop in brick-and-mortar stores do so because they can physically see the product before they buy, they shop there routinely, and they get instant gratification by getting the products much sooner. When they shop online, however, it is for saving money, better selection, and the overall ease of shopping. Thus, we can expect to see brands thinking about how they can combine digital and physical channels to deliver the best customer experience and get a competitive advantage.
Experiential destinations Mall operators are including more experiential elements in their design, putting entertainment-based locations like movie theatres and gyms at their heart. Physical shops are transforming from transactional shopfronts into immersive showrooms and leisure destinations.
The point is no longer to close a sale but to build a brand relationship. The objective is happy, satisfied shoppers that keep coming back. When they are ready to purchase, they will do so at the places that offer them more than a place to pay. For example, Virgin Holidays has said: