Friday 23 December 2011

Low-Interest Brands can be Sexy. Rob Wilson.

Our Head of Planning and Strategy, Rob Wilson, believes that functional, low-interest brands can be made more exciting if you simply follow five rules of Engagement.

Too often when marketers are asked to describe successful brand experiences, they default to traditionally high engagement ‘sexy’ brands from sectors such as fashion, sports and alcohol. We all get excited at live music experiences hosted by alcohol brands at festivals, or events like Microsoft’s Secret Cinema project in London. But engaging brand experiences can also play a role in functional or low engagement brands, such as energy, finance, telecommunications and insurance.

Often not seen as the most appealing or interesting, these functional brands face a unique set of challenges. Most of the brands that are categorised as functional and low engagement have intangible products. This means that, while essential, they are naturally seen as dull and uninteresting to consumers. Furthermore, these brands tend to operate in highly commoditised markets where people distinguish between brands solely on price and offers available and are increasingly promiscuous, tending to switch providers regularly for a better deal. There is little brand loyalty or affinity, to say the least.

Despite consumers feeling less emotional towards functional brands, they often need the products and services these offer more than the high engagement lifestyle products. As any phone operator who has had to talk to a furious customer when their phone or electricity has been cut off can testify, people do feel strongly about these functional products and services. But people only tend to feel strongly or talk passionately about these brands when there is a negative or serious issue. This is why it is so important for functional brands to engage with their customers with a positive experience, before problems occur.

Mobile network providers have led the way in functional brand engagement. O2 is far better known for its music affiliations and innovations. Similarly, Orange mobile network’s Orange Wednesdays cinema promotion gives the brand relevance beyond its core service of providing a mobile network service. These connections make sense to consumers because the brands’ marketing highlights the value of the mobile as a way of connecting people, in the same way that experiences do.

In fact, the opportunity for functional, traditionally low engagement brands to make the most of live activation is often higher because they can behave completely differently to the competition within the category and really create stand-out. Through identifying emotional drivers around their brand or service offering, they can begin to shift consumer perception from being cold and rational, to being open and engaged. Many functional brands lack the high street presence of others, such as those in automotive or retail. Establishing an emotional relationship rather than a functional one puts a face and a feeling to the brand.

That said, functional brands must do more than simply replicate the tactics of their high engagement counterparts. Those that have tried this approach quickly see that without a valid reason for creating a brand experience, consumers may interact but not really engage with them.

When energy giant E.ON approached us a year ago, the brand had recognised that its customers cared about the environmental impact of their energy consumption and were also concerned with reducing their energy bills to save money. They also understood that they needed to do more than simply tell them what to do. So, E.ON launched an Energy Fit roadshow designed to kickstart the energy debate with its customers and provide them with practical advice to help them understand how they could reduce their consumption and bills.

The rules of engagement
Yes, the final manifestation of campaign activity can be significantly different depending on brand and sector. But the fundamental principles of engagement are universal. It is frustrating to see how many marketing campaigns are not as effective as they could be simply because they haven’t followed these five basic rules of engagement.

1. Define ‘shared purpose’. This is about taking the insight brands have and going one step further. A shared purpose is an insight that links the consumer need to a credible role for the product. Whether that’s Sky encouraging a million people to get back on their bikes, or M&S encouraging their consumers to be more environmentally aware through its Plan A programme; it’s becoming clear that brands can play a genuine and valuable role in society.

2. ‘Say and Do’ – show integrity through action. Brands absolutely must show their integrity by walking the walk. For brands to have credibility they must lead by example. So a vodka brand marketed as being ‘clearly original’ must create clearly original marketing that allows the audience the opportunity to participate, like Smirnoff Nightlife Exchange. Live brand activation is a powerful way of creating this kind of engagement, but walking the walk doesn't have to involve an event. Ultimately, doing something is about the brand's ‘owned’ assets, which can involve sponsorship, retail space or digital innovation.

3. Understand the value exchange dynamic. Consumers are savvy. They appreciate that they don’t get anything for free. Likewise, rarely will they be loyal to a brand without a solid motivation for doing so. The third rule, therefore, is to create a ‘value exchange’. In its simplest form, this is often a transactional deal, such as Facebook campaigns that encourage fans, followers and ‘likes’ in exchange for competition entry, exclusive offers or voucher deals. This rule doesn't stand on its own as a route to engagement - more likely you are simply measuring the number of people that would like a free voucher or holiday (irrespective of the brand). Brands should think about different types of value exchange such as entertainment, information, a community to talk with like-minded people, content people can swap, or useful tools that help the audience find or do the things they want to do. Last year, Aviva’s incredibly successful 'You are the Picture' campaign gave customers the opportunity to have five minutes of fame on their billboards, but remember that not everyone wants to create content for you or influence the design of your product.

4. Find the best path to participation. Creating live brand experiences are becoming more central to marketing plans and, as a result, the process of effective media planning has changed. So, it is vital that a clear ‘path to participation’ is created, which makes it as easy as possible for consumers to get involved. Consumers, aware of live events but unable to attend in person, still view the brand more favourably and are likely to interact with any event activity online. When running live experiences for E.ON, we looked at those who didn't attend but were aware of the activity via direct mail. The results showed that they were as positively disposed to the brand as those who actively participated.

5. Capture the imagination. Imagination is intangible, which makes it tricky for marketers to predict, but brands that are able to break category rules or show they are sparking imagination in their consumers benefit hugely. Renowned projects such as the YouTube Orchestra, the Greatest Job in the World or the Great Schlep create buzz and excitement around a brand, as well as long-term engagement and positive interaction and endorsement. This is the Holy Grail of engagement and why creative thinking should run through every part of the campaign from the planning, through to the messages and the execution on the day.

Brands are not automatically low engagement or high engagement, and there is no reason for a traditionally low engagement brand to fail to capture the imagination of its target market through a brilliant campaign. As successful functional brands such as 02 and Aviva have shown, it is possible to break the mould and excite customers. Ultimately, behaviour defines whether the brand is engaging to its target audience. Experiences can assist engagement through creating participation and involvement, but it is not enough to use them as a quick fix solution. Before planning can begin for live events, the right foundations for meaningful interaction and sustained conversation need to be in place.

Rob's piece was published in Admap, December 2011, and it can be viewed online here if you are a paying subscriber: http://www.warc.com/

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