Despite a recent lackluster earnings call, there’s a bright spot on the horizon for Yahoo CEO Marissa Mayer. Forrester’s latest TRUE brand compass research shows a reservoir of consumer goodwill for the struggling brand.
In August 2013, Forrester conducted Consumer Technographics® research with 4,551 US online adults to uncover the drivers of a successful 21st-century media brand. This research is part of Forrester’s TRUE brand compass framework, designed to identify which brands are winning the battle for consumer mindshare and to help marketers build a brand that is trusted, remarkable, unmistakable, and essential (TRUE). This framework has two core components: 1) An overall TRUE brand compass ranking gives a snapshot of a brand’s resonance — the emotional connection a customer has with a brand, and 2) the TRUE brand compass scorecard reveals a brand’s progress along each of the four TRUE dimensions.
The results showed a tale of two digital media eras and the importance of brand building in the digital world:
1990s digital media brands reap the rewards of brand building investment. Established digital media brands from the late 1990s recognized the importance of building their brands with consumers. Yahoo was a TV ad mainstay for many years — “Do you Yahoo!” anyone? This early investment continues to pay off as, despite corporate turmoil, the Yahoo brand retains a reservoir of brand resonance with consumers. And the mighty Google, which was the only media brand surveyed to achieve trailblazer status, continues to invest in TV brand building ads.
Marketers have long relied on brand health trackers to take the consumer pulse of their brand-- to measure brand awareness, consideration and purchase intent. But with so many customers’ opinions now readily available through social chatter, are these entrenched and expensive budget line items still necessary?
Not so fast. Today’s brand measurement world is more complex than ever. Consumer behavior is changing rapidly and marketers have gone from data famine to feast. Today’s Chief Marketing Officer (CMO) needs trusted advisors to help her turn mountains of data into actionable insights. Forrester has identified three core disciplines of brand measurement to help marketing leaders navigate this complex landscape. These three disciplines are:
Brand equity reveals what people feel about your brand. Evaluating brand equity helps CMOs understand how consumers perceive a brand, without consideration for brand usage. What does the brand stand for in the eyes of a consumer?
Brand health quantifies the strength of a brand in the marketplace. Measuring brand health helps CMOs understand the relationship between how consumers perceive a brand and how that manifests itself in the marketplace relative to competition.
Brand value quantifies a brand as a financial asset. Quantifying brand value helps chief financial officers (CFOs) understand the financial value of a brand to a corporation. It is most commonly used for financial reporting to define goodwill, the value of an acquisition, or the appropriate price for licensing.
When I first moved to the US from the UK, grocery shopping at the West Lafayette, Indiana supermarket took forever. What took so long? No, it was not the slow pace of a small Indiana town. It was that I didn’t know any of the brands. So every selection from pasta sauce to laundry detergent to shampoo was a new decision. I had no relationship with the brands. No frame of reference to know which ones to trust. Every time we go to a grocery store or a drug store, we make a multitude of purchase decisions. Our brand relationships are a shortcut in that decision-making process, we select from a shortlist of brands that we trust. This means that household name Consumer packaged goods (CPG) brands that have been around for decades often control mindshare and thus market share.
Forrester’s new TRUE brand compass research proves this out. In February 2013, Forrester fielded the first in a series of quarterly Technographics® TRUE brand compass surveys that explore consumers’ attitudes about specific brands and how strongly they resonate with consumers. From this research we developed two new tools to help guide marketers on their brand building journey - to achieve the right balance of being trusted, remarkable, unmistakable and essential (TRUE):
The TRUE brand compass ranking gives a snapshot of a brand’s resonance. Is your brand a trail blazer – winning consumer mindshare, or astray – lost its way and it connection to consumers?
The TRUE brand compass scorecard reveals a brand’s progress along the four dimensions. Is your brand strong on being trusted? Weak on being essential?
I’m currently quite taken with the new Fox TV series The Americans, which features a chameleon-like Matthew Rhys and a kick-ass Keri Russell as deep-undercover KGB spies. They live an apparently normal family life in 1980s suburban cold war America, while unbeknownst to their two American-born children, they conduct brutal covert operations for mother Russia. A recent episode called “Trust Me” exposed the perilous shifting sands of trust in their relationships. It is a world where no one is quite what they seem to be, and every character is constantly reevaluating whom they can trust. It is exhausting. Because without trust, every decision or action is a risk.
This holds true not just for human relationships but also for brand relationships. In both, trust is the cornerstone. Brand trust makes purchasing decisions easier, quicker, and less risky. I choose Amazon because I trust that it will deliver the product I want when I want it. I trust that my Neutrogena sunblock will protect my skin. I trust that my Starbucks coffee will taste good. I recently attended an event hosted by the Marketing Science Institute (MSI) on the topic of “Building Trust In A Digital Age.” MSI seeks to bridge the gap between marketing academic and business worlds, by bringing together marketing thought leaders from both realms to research and discuss big meaty, marketing topics. For the Boston Spring session, attendees debated the nature of brand trust and how it is driven and measured. A couple of highlights: