1990s Digital Brands Outrank Social Media Brands In Forrester's TRUE Brand Rankings

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.  
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Digital Marketing Is Dead; Long Live Post-Digital Marketing: What It Means For CMOs

In days gone by, when a British monarch died, the town crier would roam the streets of London calling out, “The king is dead. Long live the King.” This seemingly contradictory statement announces the beginning of a new regal era. The old king is dead; long live the new king. In 2013, the old era of siloed digital marketing ended and a new era of what Forrester calls post-digital marketing began. There was no official town crier and so perhaps you missed these headlines:
  • January 2013: Forrester’s David Cooperstein observed, “We are at another inflection point, as we move from digital marketing as a renegade effort to post-digital marketing . . . We are entering a world where digital innovation is merging with traditional marketing fundamentals to create new approaches, new brand leaders, and new models for success.”
  • September 2013: Procter & Gamble’s Global Brand Building Officer Marc Pritchard echoed this sentiment when he declared the end of the digital marketing era, saying that all digital marketing is “just brand building.” 
  • November 2013: L’Oreal’s Marc Speichert comments that his top priority in his new role as global Chief Marketing Officer (CMO) "is thinking about digital as a catalyst for change and marketing reinvention.
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Why Microsoft Trumps Apple In The Battle For Consumer Mindshare

As the opening of the 2014 Consumer Electronic Show (CES) dawned in Las Vegas, consumer technology firms pitched their innovation wares. Forrester’s latest TRUE brand compass research shows that innovation is a key to successfully building a sustainable consumer technology brand, but that innovation alone is not sufficient. 
 
In August 2013, Forrester conducted Consumer Technographics® research with 4,551 US online adults to uncover the drivers of a successful 21st century consumer technology 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.  
 
In a surprise upset, Microsoft trumped Apple and Samsung in the TRUE brand rankings. In fact, Microsoft was the only brand in the survey to achieve the coveted trailblazer status— indicating that the Microsoft brand is “at the forefront of brand building with a unique and distinct brand identity that sets it apart from other brands.”  Both Apple and Samsung achieved leader status.
 
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In The Age Of The Customer, Superior Customer Experience Differentiates Retail Brand Leaders

In “Competitive Strategy In The Age Of The Customer,” Forrester shows that “in a world where empowered customers are disrupting every industry . . . the only sustainable competitive advantage is knowledge and engagement with customers.” This is not about mere customer centricity. This is about customer obsession. 

This customer obsession is particularly crucial in the world of big-box and online retail. With so much pricing and product information available at customers’ fingertips — at home and in the store — retailers are highly vulnerable to price undercutting and switching. Big-box retailers compete fiercely on price, and providing good value is a customer requirement. But our research shows that to be a leading retail brand, retail marketers must differentiate through the promise and delivery of superior customer experience. 

In May 2013, Forrester conducted Consumer Technographics® research with 4,575 US online adults to uncover the drivers of a successful 21st century big-box retail 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. The TRUE brand compass ranking gives a snapshot of a brand’s resonance — the emotional connection a customer has with a brand. Is your brand a trailblazer — winning consumer mindshare — or astray — lost its way and connection to consumers? 
  2. 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?
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Financial Service Brands Fail To Win Baby Boomers' Trust

The financial market is slowly recovering from the 2008 financial crisis, and J.D. Power and Associates found a significant improvement in retail bank customer satisfaction in 2013. But Forrester’s own research shows that brand confidence lags behind as financial service marketers fail to win back customer trust, particularly among the all-important Baby Boomers. 

In May 2013, Forrester conducted Consumer Technographics® research with 4,575 US online adults to uncover the drivers of a successful 21st century financial services 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. The TRUE brand compass ranking gives a snapshot of a brand’s resonance — the emotional connection a customer has with a brand. Is your brand a trailblazer — winning consumer mindshare — or astray — lost its way and connection to consumers? 
  2. 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?
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Will Celebrity Star Power Help Build Your Brand?

The power of celebrity is like catnip for marketers. Celebrity or athletic association adds an aspirational edge through outright paid endorsement or coveted “as seen on” editorial placement. In the world of beauty, brands from Cover Girl to L’Oreal add a sheen of glamour to their brands through celebrity spokesmodels. In the field of sports marketing, brands from Nike to Gatorade borrow equity from high-powered athletes to bolster their athletic credentials. And in retail, mass retailers from Macy’s to Sears offer eponymous product lines from celebrities as diverse as Sean Combs to the ubiquitous Kardashians. Q scores are tracked, contracts are negotiated, and millions of dollars exchange hands.  But is it worth it?  
 
If you ask consumers how important celebrity endorsement is to their brand selection, most will vehemently deny it. In fact, our North American Consumer Technographics® data shows that only 19% of consumers rate celebrity or athlete endorsement as important when picking a brand. But most people will probably tell you that advertising doesn’t affect them either. So we decided to dig a little deeper. Forrester conducted a driver analysis in the big-box retail category to identify which category attributes and behaviors have the most meaningful impact on key outcomes like being a more trusted or essential brand. Our research showed that in big-box retail, celebrity or athletic endorsement:
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What Can WWE's John Cena Teach You About Brand Building?

Source: WWE/superstars/johncena
Earlier this summer, I attended an Experian marketing conference in Las Vegas, where I was rather surprised to see WWE champ John Cena on the agenda. Intrigued, I stuck around for his late afternoon session to see what he had to say. I’m glad I did. It turns out John Cena is a great brand builder. This Massachusetts-born native is a $100 million brand with 5.3 million Twitter followers and more than 15 million Facebook fans — just behind Kobe Bryant at 16 million. What’s his secret? Here are three brand-building lessons from John Cena: 
  • Be customer-obsessed. Forrester believes that in the 21st century, the single source of competitive advantage is to be customer-obsessed. Cena gets this. He understands that his brand is only as strong as his relationship with his fans. And he takes that responsibility seriously. Cena claims you won’t find pictures of him at a Miami club, surrounded by a bevy of scantily clad women. His tweets depict his clean-cut image and are PG-appropriate. 
  • Guide your journey with a clear North Star. Leading brands guide their brand, messaging, products, and organization by the light of their North Star — that core brand essence. Oreo’s North Star is to “celebrate childhood.” Cena guides his career with the mantra “hustle, loyalty, and respect.”
  • Build a trusted brand. Cena is trusted by his fans because he is authentic and passionate about who he is and what he does. As he commented, “you have to be authentic, even when you are falling down in a fake fight in a fake universe.”  
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Will Social Listening Supplant Brand Health Tracking?

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. 
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Trust, Not Buzz, Builds A Strong 21st Century Brand

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):  
  1. 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?  
  2. 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? 
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Want To Know Your Secret Brand Building Weapon? Sshh, It’s Your Employees.

There’s a lot of effort exerted by marketing leaders to turn customers into brand advocates. But their customers have a lot of brand choices and a lot of other things on their minds. What these marketers are overlooking is the potential brand advocates in their own backyard. Their employees. Employees are fundamentally connected to, thinking about, and representing your brand every day. They are often your biggest fans.

Indeed, our research shows that one of the biggest shifts of brand building in the 21st century is that — for leading brands — it is now a companywide effort. A unanimous 100% of marketing leaders surveyed by Forrester agreed that brand building requires all employees to be brand ambassadors. But the companies they lead are not yet living up to this aspiration. While many marketers’ eyes light up at the prospect of tapping in to their employees' Twitter networks, just focusing on social is missing the point. Yes, social is a valuable tool to create conversation. But true employee brand advocacy requires chief marketing officers (CMOs) to go deeper. They need to make delivering a superior brand experience part of the enterprise culture. Brand advocacy can’t be another task on someone’s to-do list. Make brand building part of how employees do their job and guide them by the light of a clear brand North Star so that your powerful new army marches to the same drumbeat. Forrester’s three-step framework guides the way:

  • Excite with an inspiring brand experience. A PowerPoint presentation at the company meeting just won’t cut it. Bring the brand to life for your employees. Starbucks invested a staggering $35 million to create an interactive brand lab to bring the brand experience to life for its frontline employees. 
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