Tuesday, September 29, 2009

The Brand Experience Cycle

When we think about people's interactions with a brand, we think of all the various touch points where we can influence a person's perceptions of a brand and encourage purchase. Often, we think of these interactions in terms of a purchase funnel, which begins with fostering awareness and ends with a purchase, as shown below:

Personally, I feel this is incomplete. In fact, I think the point of purchase is when a brand truly begins to prove itself - there has been a lot of talk but very little action. This is an extremely short-term view of customer interactions with a lack of long-term vision in developing a customer relationship!

To illustrate a more long-term view on interacting with customers I like to use, what I call, the Brand Experience Cycle:
There are a lot of similar steps leading up to purchase that involve learning about the brand through various means. However, there are 3 big differences:
  1. It includes post-purchase steps that help foster a relationship with the customer
  2. It's cyclical, rather than linear, because it knows the customer relationship, if positive, will continue and grow as advocacy leads to repeat purchase and the spread of positive word of mouth (WOM)
  3. Lastly, it centers on the brand's purpose - every interaction and message relates back to the organization's brand promise!
In essence, this diagram can be split in half:
The first half of the cycle (Awareness, Desire & Immersion) is an opportunity for the organization to communicate its brand purpose and promise to consumers - making promises. And the back half (Purchase, Nurture & Advocacy) is where the brand puts its money where its mouth is by engaging with customers - validating those promises. It is here, in the back half, which is so often forgotten, where customers form strong perceptions of a brand, which will determine how they will talk about the organization to others.

Naturally, we trust our friends and family more than advertising, because, to consumers, it's more credible. So, if a brand follows through on its promises with actions (reasons to believe), customers will begin to trust the brand because it has established credibility. In turn, these happy customers will begin to spread positive WOM, causing new consumers to enter and move through the cycle! So not only has the organization satisfied its customers, but it has also gained additional customers! Talk about win-win!

Buck Rogers, a former VP of Marketing at IBM, once said:
"It takes $1 to maintain a customer; $10 to gain a new customer & $1,000 to win back a lost customer"
I think this quote exemplifies the importance of considering the back half of the Brand Experience Cycle, because if you don't nail the back half of the cycle, the brand runs the risk of losing a customer - a costly situation!

So, it is imperative that when you think about the various touch points for potential customer interactions, you don't neglect or consider the post-purchase experience as an after thought, because it is in these interactions where organizations can validate their brand promise, influence perceptions and help spread credible 3rd party recommendations!

6 comments:

  1. Great post. The great Harvard Business professor, Dr Theodore Levitt once said, "The sales begins when the deal is signed". In 1983 he proposed a definition for corporate purpose: The purpose he said, "is to create and keep a customer". His words are an authoritative and insightful statement about the purpose of an enterprise. They go far beyond the hackneyed belief that business exist only to make money

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  2. Excellent post, Nik. Ultimately business is in the relationship game. Get to know me, learn about me, date me, and continue. After all, it's far more effective to retain customers once they've come on-board (a la Apple) rather than generate new customers continually. This is why great brands continue. They have a following of existing customers who, by their very nature, freely assist with growing the awareness of the brand.
    Even in the corporate environment this is the case. Proponents of brands perpetuate the advantages of that brand and -- sometimes -- affect change within the organization which then embraces that brand at a higher level via purchasing.

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  3. I like the Brand Experience Cycle. The thinking is very close to what I keep banging on about on my blog. It is all about making a brand promise to the consumer (the marketing), delivering it (in store and when you use it) and then delighting them, so the buy again and maybe even tell their friends (http://brandexperiencematters.blogspot.com/2009/01/driving-advocacy-is-not-just-job-of.html)

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  4. Hi Andrew,
    Thanks for checking out my blog! I'm totally with you! Why make promises if you're not going to uphold them! Thanks for sharing your blog!

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  5. Customer retention is the idea of making a point to maintain a long term relationship with your clients and listening to what they need from your product and/or service.

    Service after the sale is critical in the ongoing success and growth of your business. Your happy customers will become your advocate and bring more to your door. Those that speak highly of your services and products will do more for your bottom line than the best sales person.
    Implementing a client retention program is a key strategy that each and every CEO should institute. This may include the following areas:

    • Customer User Groups
    • Periodic Surveys
    • Review of Support tickets to identify patterns and business opportunities
    • Focus Groups to discuss future product direction
    • Social Networking or Blog management

    http://myprvideo.com/retention-customer-ideas/

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  6. Purchaser storagegw2 gold may be the thought of making a indicate conserve a long lasting partnership together with your customers and enjoying what they really want from the solution and/orDiablo 3 items support.

    ReplyDelete