Sound the trumpets. Marketing world rejoice. Kantar Millward Brown have recently revealed the secret to creating brand value for customers, by analysing 3.6 million consumer interviews concerning perceptions of 122,000 brands across 51 markets over the past 12 years. It all boils down to 3 key points: creativity, disruption and advertising. This may seem obvious, but it’s how you leverage these factors that can build and bolster your value. In this post, I look at how to do this to your benefit, as well as key findings from the research.
The Key Facts:
- Brands perceived as creative have grown their brand value by 69% during the past 12 years.
- Those seen as disruptive have grown their brand value by 123%.
- Brands considered both creative and disruptive, have seen a 154% growth.
- Creativity, disruption and great advertising can boost a brand’s value by 265%.
How have brands managed this? It may come as no surprise that topping the global leader board are tech giants such as Google, Apple, Amazon and Microsoft, with tech companies making up 92% of the Top 100 Most Valuable Brands. Their products have not only infiltrated our daily lives, but proved how they can make them easier. Take Amazon’s Echo for example. Its value comes from how you can use one device to find recipes and order ingredients, shop for clothes, films and that last-minute birthday present, pay your bills and find out cinema times and book tickets, instead of having to input your card details into every single website you wish to purchase something from. Seemingly mundane tasks, but promoted in a way that shows its benefits:
Great Advertising: Most notably the, ‘Alexa Loses Her Voice’ Super Bowl advert, having amassed 46,710,900+ views, and named, ‘Most Entertaining’ and ‘Best Overall’ in Ad Age’s survey of 3,956 participants working within advertising and marketing.
Creativity: For example, by integrating itself into TV storylines. Family Guy even had a main character, Brian, fall in love with Alexa in a season 16 episode.
Disruption: Not just unexpected and memorable advertising that breaks through the noise, but creating a community around Amazon and mind-set that hits home with consumers. Having Alexa in your home is a modern way of living.
“Having disruptive creativity at the heart of a business is about more than product and R&D, and being creative is not just about communications. The best way for brands to influence consumer perception is through effective communications, by experimenting with new formats and, most importantly, by delivering a great brand experience.” – Doreen Wang, Global Head of BrandZ at Kantar Millward Brown
How Can You Build Brand Value?
Kantar Millward Brown concluded there were 5 key ways to build and sustain valuable brands:
- Invest In Long-Term Brand Growth – To create meaningful products/services, experiences and relationships with customers.
- Pre-Test New Ideas In China – Customer expectations are higher in the East due to a more developed brand ecosystem, so testing products and services there before bringing them to market in the West will ensure you’re putting the best you have out there.
- Broaden Communication – Meet consumers at every social touchpoint. For example, don’t just tweet, but create hashtags, engage in conversations and livestream big announcements or promotional events.
- Develop The Brand Ecosystem – Connect with consumers across multiple aspects of their lives.
- Build Meaningful Difference – Give customers reasons to choose your brand over countless others. Give it a purpose, help it solve a (if not numerous) problems and, if you can, create an emotional connection, that goes beyond the functional benefits your offering provides.
How Will Building Brand Value Benefit Your Business?
- Customer Loyalty: They’ll choose you over all others. They’ll stick with you through price increases and occasional hiccups such as a bad experience or product defect. They’ll rave about you to all of the friends and family.
- Competitive Advantage: Also known as the ‘Halo Effect’. Should you release a new service/product that will revolutionise the market, having your company’s name, logo or reputation attached will make customers want to try it out.
- Facilitates Long-Term Growth: Whether that’s allowing you to create new departments within your company, expand into new markets or develop new products.
- Recognition and Credibility: You’ll be part of new customers’ consideration set due to your value-adding persona, and as you grow your customer base, you’ll gain respect within your market and industry.
Value for you. Value for your customers.