EXTRAORDINARY BRAND RECIPES

What makes a brand extraordinary? What differentiates an extraordinary brand from its competitors? Why do we respond to powerful brands as we do? What is in the secret sauce of winners? Why do we want to associate with the best? What do extraordinary brands have that the others don’t?

Again and again we ask these questions. We want to know how to replicate that high level of success and make it our own. Whatever role we have in a company or team, we all aspire to be a part of something extraordinary.

First, extraordinary companies with extraordinary brands are well aligned. Their cultures and leadership are aligned to the company’s brand intention, which delivers in alignment to what the customer is buying.

Second, the company has a unique recipe, and the main ingredient is clearly articulated, understood, and focused on. The priorities of what to focus on in creating and delivering the company’s products or services are known to everyone and all act in alignment to that set of priorities. A sense of individual and shared commitment exists among company or team members, regardless of role or function, to relentlessly pursue and deliver the main ingredient to the customer.

While this may appear complex, it doesn’t have to be. The simpler the message, the more customers are able to see and feel the difference.

Simplicity is one of the attributes of extraordinary brands.

Complexity in a product or service often makes the customer anxious. While we like to have choices, having too many choices is not a good idea.

Have you ever felt uncomfortable when someone tries to sell you something with a lot of add-ons or options? Do you ever find yourself questioning the motives of the seller? When we’re given too much to think about, being sold too much, or being sold something more complicated than we want, we tend not to trust the seller. Or we don’t trust our own ability to make the right choice.

If the provider of a product or service claims that it will fulfill all your needs, that’s a pretty high mark to reach. You are likely to respond skeptically. I am not saying it’s not possible; I am saying it is highly unlikely. Therefore, we’re less likely to trust it.

Potentially, a customer may lack confidence in a company that offers a little bit of everything or tries to sell an overly broad range of products or services. We tend to place more trust in those that work to master a particular product, service, technology, or expertise. If a company offers a little of everything, it increases the likelihood that it’s not going to be great at any of them. The one exception is a low-price provider from which the customer is not expecting a high degree of product knowledge or service competency.

Extraordinary brands: a passion for music

I once read a poem in which the author compared walking into a bookstore to walking into a bakery. The scent of books evoked the emotion associated with the familiarity and anticipation of a fine bakery. He wrote that opening a book’s cover was like breaking into a freshly baked loaf of bread and that flipping through a book and stopping at a page and reading was like taking the first bite.

This is the experience I have every time I enter Wildwood Guitars. Whenever I set foot into Wildwood, I sense its uniqueness. By today’s standards, its approximately 500 square feet is a small space from which to conduct a thriving, rapidly growing retail business. It is also part of its charm and likely contributes to the concentrated, alluring aroma of the fine woods and finishes emanating from the guitars hanging on the walls. As customers walk into the store and across the old worn Italian rugs, they are quickly and warmly greeted by the artists sitting at the four desks that have, over the years, replaced the counters and display cases that once occupied the space. Calling them sales clerks (they don’t have official titles) would be a gross understatement. Each is an accomplished player, who leaves customers marveling when demonstrating a particular guitar. They don’t sell. They help you choose the guitar that’s right for you, that best fits the music you want to create. As they will tell you with conviction, it’s not about buying just any guitar. It’s about the art and your self-actualization.

When you enter Wildwood Guitars, it doesn’t cross your mind that it is a thriving leader in its market, an important player in a worldwide industry. Yet it is one of the largest independent sellers in the world. It achieved this by becoming a powerful niche player in an industry that has moved rapidly toward consolidation and where big is the norm.

The world’s largest retailer of musical instruments is Guitar Center. Owned by Bain Capital, “Guitar Center plunged into the new millennium with the forward-moving momentum of the previous decade and a vision of vast expansion.” Compared to Wildwood Guitars, the company is a giant, easily the Wal-Mart or Best Buy of music, with over 239 locations in the United States and over $2 billion a year in revenue. The company proves that a low-price brand intention and the ability to offer a large selection of items and brands can be a sustainable and growth-oriented path to success. Throughout its history, Guitar Center has grown through a strategy of leveraging acquisitions and opening new stores.

Like all great businesses, even large volume players need to change to succeed. Any great company must innovate and evolve to be competitive long-term, and Guitar Center has proven it can adapt. It has an operational capability and efficiency enabling it to quickly distribute its merchandise to the store level, to move it from store to store, and to swiftly respond to its customers. As part of its vision, the company states, “Guitar Center has no intention of slowing down and will be around for generations to come.”

Two different approaches

The difference in Wildwood Guitar’s approach to how the customer is treated and the intention of its brand couldn’t be any more different than Guitar Center’s, whose stated main customer objective is “to provide for the musician’s every need.” As a result, it offers a broad array of products—keyboards, drums, audio equipment, DJ turntables—pretty much anything you’re looking for. Guitar Center is a low-price retailer with an extensive selection, touting discount pricing. Customer service is naturally in alignment to that intention. While the sales associates at Guitar Center receive product knowledge training, they most often help customers find a particular product from the extraordinary range of choices and fill the role of sales clerk.

The low-price brand intention influences the sales associates and their perspective on the company’s culture.

The contrast with Wildwood Guitars couldn’t be any starker. While many of the influences of big-box retailing have found their way into the marketing of retail musical instruments (including competition on price and volume), Wildwood has resisted this impulse and has successfully held its own. In fact, it has done much better than that. It has become one of the most trusted independent guitar dealers in the world by carving outa niche that has resulted in a consistent growth. Year to year over the past decade, it has experienced double-digit growth by focusing on selling guitars, a narrow selection of high-quality ampliflers, and a few select accessories. It has moved away from selling low-priced items and taken a boutique approach by offering high-quality, vintage, custom, and rare guitars.

Wildwood is currently the largest Fender Custom Shop seller in the world. Among independent dealers, it consistently ranks among the top providers of Fender, Gibson, Taylor, and several other well-known brands. Among guitar makers, it has achieved an elevated status, resulting in several lines of “custom” guitars that include the Wildwood brand in their model names. The average price of a guitar sold at Wildwood is between $3,000 and $4,000.

Steve and Marilynn Mesple founded Wildwood Guitars in 1985. Steve has had “a lifelong love affair with music and guitars.” Their approach was to “sell the greatness and goodness of guitars.” Steve’s leadership approach and its influence on his team at Wildwood are evident and is an excellent example of a leader’s influence on the customer relationship, brand, and culture.

The relationship between Wildwood Guitars and its customers centers on the trust that comes from caring. Customers from far and wide interact with the artists who make up Wildwood’s team and, by phone and email, making buying decisions based on their input and recommendations. The members of the team build relationships, carefully listening to what the customer is looking for from a particular instrument—what they play, what they want to achieve, and what they aspire to—as well as what the customer likes in a guitar, including how it looks, feels, and sounds. Without ever playing the instrument, the customer makes a decision. That level of trust is compelling and is evidence of the caring nature of the Wildwood brand. It explains why the vast majority of Wildwood’s sales are not in-store. Steve makes it very clear. “We never try to sell the customer anything that they don’t want to buy . . . period. That’s not who we are and it’s not what our customers would ever expect from us. Everyone here knows that’s not something we would ever do.”

Steve Mesple has made changes along the way. And while they didn’t always get the results he was looking for, he has worked toward always making changes consistent with what motivates his customers, the alignment to the business’s brand, and what he sees as an unwavering culture of passion. He’s carefully recruits the right people for his team and rewards them for their passion and dedication. With the advent of the Internet, he expanded his sales capabilities and reach. The store’s website now offers over 2500 videos of great guest artists playing Wildwood’s offerings. The videos are not just entertaining. They are educational, inspirational, and in service to the customer. As Steve told me, “People love to hear great guitars played by great artists. It gives them the opportunity to experience what we can offer them, which is an unparalleled inventory of amazing guitars and trust. And we do it with unbridled passion.”

To compete with the appeal of the Wildwood Guitars of the world, Guitar Center offers through its brand Musician’s Friend, a single-person sales unit called Private Reserve. Customers can call and speak directly to the person at Private Reserve and get the expert assistance of an artist in the selection and buying of a custom or high-priced guitar. In relation to its brand and the perception of its customers, Private Reserve is much like a small stand-alone brand that lives within the larger brand intention of Guitar Center. While it offers a distinct service and product, the customer may not intuitively or intellectually find it to be in alignment with their interpretation of the Guitar Center and Musician’s Friend overall brand intention.

At the core of Wildwood’s achievement and the success of Guitar Center is what lies at the heart of the success of any business. It is alignment. For any enterprise, large or small, competing in a local, regional, or global marketplace, the required ingredient is the alignment of the customer’s expectation and their experience of how it is delivered. #is means that the company’s people work with one another and act toward the customer in alignment with the brand intention and the customer’s expectations.

DESIGNING CULTURE

Transforming or designing culture requires changing individual and collective behavior.

One of the greatest values to be gained from design thinking is the impact it can have on the culture of an organization and how it contributes to greater collaboration and innovation, regardless of its size.

Designing Culture: The Example of GE

In 2016, General Electric’s (GE) revenue topped $123 billion. GE has more than 330,000 employees operating in over 180 countries. It comes as no surprise that in a commentary published in April 2017, John G. Rice, the company’s vice chairman, shared his observation that it’s natural for a business of GE’s size and scale to see silos manifest along the way. He pointed out that the sharing of ideas and collaboration necessary to be innovative, and the ability of employees or team to add new value, have always been a challenge for the company:

Without a radical shift in everyday working behavior—in employee’s relationships with the company and one another—silos will remain, and the sort of cross-industry and horizontal collaboration that companies like GE need to foster for growth is not going to happen.
John G. Rice, Vice Chairman, GE

For any organization to undergo the continuous change required to sustain and grow, and to be innovative, its leaders and employees need to understand the tension between the paradigm of consistency offered by its culture and the ambiguity necessary for change. This means that they must be able to, at a root level, both trust in the necessity of their culture to evolve, while not relying on or creating unnecessary conditions of predictability.

It also requires being responsive to what is required to attract and leverage the ever-evolving world of talent.

Attracting creative talent

One of the keys to attracting creative talent is to create a culture that thrives on continuous learning and risk-taking.

This requires creating shifts in the culture to interest the new generation in the workforce, a group that wants to engage in a set of work experiences that are radically different from those of the past—a set of experiences that call for the greater levels of participation, and more collaborative and fast-paced ways that design thinking affords. It is about a more creative and engaging way to work and innovate together.

In its effort to become more design thinking–focused, GE moved its headquarters to downtown Boston.

Of the 800 positions at its new headquarters, 600 are designers, developers, and product managers—all evidence of the shift from being engineering-driven to design-driven, from product-centric to customer-centric, and from marketing-focused to user experience–focused. It’s also a sign of the need for executives to collaborate more with designers, design thinkers, and design leaders.

In a September 2016 interview with the Aspen Institute’s Walter Isaacson, when asked about the rise of the creative class and the company’s move to Boston, GE’s CEO Jeff Immelt explained:

I have to say it’s real. I thought it was a little bit of B.S. initially, I wasn’t sure. And when I looked out the window — when I was in Connecticut, it was beautiful, awesome, great office — but when I looked out my window, I saw nothing, there was nothing going on. I could watch cars go on the highway, things like that. I’ve been [in] Boston now six weeks and you just walk out the door. You’re in the middle of an ecosystem that quite honestly, for a big company, it makes you afraid. You’re where the ideas are. You get more paranoid when you’re doing that and that’s a good thing.
Jeff Immelt, CEO, GE

And how else is GE’s new headquarters different? “The new headquarters will be leaner, faster and more open with a constant flow of industry partners, customers and innovators.” The intent, execs say, “[i]s that it will be more like walking into a start-up in an urban setting than the remote suburban headquarters of the past,” helping to transform its culture from a functionally driven one with silos, to a culture focused on collaborative design thinking and creativity.

Taken from https://www.ge.com/reports/15169-2/
Architecture mockup from the planning stages of GE’s Boston HQ

From fear to transformation

What keeps us from realizing the tension between predictability and the ambiguity of change, the kind of real change that offers the opportunity for an organization to transform itself, and shift its culture?

One of the requirements to successfully implement design thinking to produce change and spark innovation is having a framework to understand culture. What is needed is a definition of culture and a means through which to assess the various aspects of an organization’s behavioral traits and leadership influence.

What culture does more than anything else is inform and reinforce its members how to individually and collectively attain success. It’s how to behave

The definition of what success is and how it happens is as unique to the organization as it is to an individual’s role. Culture speaks to the various aspects of behavior associated with attaining success. It includes the behaviors that support achievement or get in the way of it, resulting in a set of expectations and an understanding as to what is acceptable and unacceptable behavior.

One of the more powerful aspects of design thinking is its influence on culture. All organizations and businesses, including those that are much smaller, will encounter similar problems. Yes, the bigger you get, the more complex and difficult communication and collaboration become. Yet if you look at it through the lens of what drives these potential outcomes, the path takes us back to human behavior.

Cultures don’t create people. People create cultures.

 

 

Edgar Papke is the co-author of Innovation By Design and author of True Alignment and The Elephant In The Boardroom. He helps leaders and their organizations align to create greater levels of innovation, performance, and fulfillment. He can be reached by email: edgar@edgarpapke.com

FINDING THE UNIQUE RECIPE

In over twenty years working with and facilitating leaders and teams engaged in visioning and strategic planning, I have found that there are three key impediments to the alignment to brand intention. They appear at the highest levels of leadership and can be found throughout a company. In one form or another, they impede alignment and performance.

Agreement on brand intention

The first obstacle occurs when a company’s leaders, because of their experiences, do not agree about the brand intention that will best serve the customer. It’s not that there are too many chefs in the kitchen. It’s that each chef wants to cook his or her favorite dish.

While this can often be the case for a new group trying to evaluate and make a decision about what path to customer satisfaction to pursue, it can also affect an experienced group. Often, even with a group of seasoned and experienced leaders, I can be surprised at the level of disconnect and misalignment when it comes to clearly defining what they believe is in the best interest of the customer and the company.

Leaders want to do what they believe is competent and right. That doesn’t mean they will always be in alignment.

Typically, the opposite is true. Because each member of a leadership team has his or her own set of experiences, they have different interpretations of what works and what doesn’t. After all, if history is a good indication of what will happen and a predictor of future success, it is natural for people to pursue opportunities based on what was successful before. As a result, it’s not unusual for each member of the team to try to convince the others that his or her desired direction is the best one.

Personal Preference

The second obstacle to alignment is personal preference. As individuals, we all have a natural preference toward one of the three customer motivations and, therefore, will likely favor one brand intention over another. Underlying this is the desire to treat others in the way that we want, and expect, to be treated.

For example, one partner in the business has a preference for receiving attention. As a result, he advocates for the brand intention of customization, which aligns to preference. He believes the best way to build the business is to build relationships with customers and offer customized products that the customer is willing to pay more for. Based on his preference, he believes that the best course is to pursue a steady pace of growth while targeting higher margins.

Another member of the team prefers competency and advocates a strategic direction toward low price. Rather than taking a personal approach to the customer, she believes the shopper can be better attracted through discounted pricing. So, she advocates for building the business by gaining market share. She believes it is better to lead customers than be led by them. Because it is more in alignment with her preference for competency and control, she tries to persuade the other team members to pursue the brand intention of low price. She advocates a vision for the company that is anchored in and aligned to quickly building sales volume, taking market share, and operating as efficiently and effectively as possible to maintain lower margins of profitability and win by competing through price.

The purpose of this example is not to advocate for one or the other. It is to provide insight into how easily our preferences are communicated and how easily we allow our preferences, and ultimately our emotions, to guide our thinking and influence our decision-making.

Scenarios like this one are fairly common.

Depending on a team’s or leader’s chosen methodology, a group may engage in a competitive analysis, an assessment of market trends and variables, an opportunity and threat analysis, or a number of other processes that allow for the collection and analysis of information to incorporate and guide the strategic planning and decision-making process.

Finding the right approach is important. Making certain that everyone involved is aligned to the process is as well.

A team can easily find itself in a conversation or debate headed toward an outcome that reflects less of what may be in the shared best interest of the business and more of a contest over whose personal preference comes out on top.

Insecure Egos

The third obstacle is insecure egos. Every so often members of a team, or the leader, will advocate a direction or make a decision that does not align with what is in the best interest of the business. They want things their way or they may set out to prove that they are the smartest person in the room, regardless of the consequences to the business. They will sometimes set out to prove they can win the argument. It may be the result of a long-standing struggle or conflict with another member or an ongoing debate among multiple members. It can also be the result of partners disagreeing or a long-standing conflict between them.

In such instances, other team members can easily disengage, become disinterested, or decide they don’t want to participate in the argument and eventually acquiesce. Often, this results in members pursuing their own personal preferences by heading in the direction that delivers the best individual gain and shows little or no concern for alignment.

When leaders or members of a team act out of insecurity, they often abandon the pursuit of alignment and what is in the best interest of the customer. This can create challenges that are difficult to overcome and may cause misalignments that take a long time to recover from and result in time-consuming issues, unnecessary conflict, and dissatisfied customers.

Ultimately, a company’s success depends on the ability of its leaders to come into alignment and engage the remaining members in the process.

As a company grows and expands, its ability to align will be a key influence on its success.

To do this effectively, leadership must create a clear vision and strategies that create alignment at the organization and group level. These must then be clearly conveyed and further manifested in the roles, expectations, and goals of every member of the business. Studies show that all too often employees are disengaged and do not feel connected enough to the organization and its vision, strategies, and goals. These are symptoms of misalignment.

 

Edgar Papke is the co-author of Innovation By Design and author of True Alignment and The Elephant In The Boardroom. He helps leaders and their organizations align to create greater levels of innovation, performance, and fulfillment. He can be reached by email: edgar@edgarpapke.com

THE THREE CUSTOMER MOTIVATIONS: PART THREE

We all want to feel that whomever we are buying from is treating us well. When we pay for a product or service, we expect to be treated with dignity and respect and to receive what the provider promised.

Customers want to feel that they are cared for. Caring, attention and competency are the three motivators of customers.

Caring for customers begins with:

  • how well the provider markets what it is selling, and
  • how transparent and honest the company is in the message provided in its advertising.

Caring conveys that you’ll be truthful with me.

We have become accustomed to accepting less than we bargained for. We know that the advertising is not always accurate. Advertising often tests the boundaries of truth and reality. Still, we expect that the makers and deliverers of the products or services we want will inevitably do the right thing and deliver on their promise.

Caring for customers is shown in many ways

The expectation of being treated in a caring way often extends beyond the immediate locus of the customer to the communities, the environment, and other relationships. While truth in advertising is one example, social responsibility, fair trade, and societal benefit are examples of how caring is experienced in broader ways. Along with a customer’s singular experience, the failure to create a shared value is interpreted by customers as a lack of caring about them and their world. Often, this is measured by how truthful the product or service provider is; how what they do is measured in terms of what is ethical and “right.”

Why does caring motivate customers?

The motivation behind caring is the customer’s desire to feel affection and acceptance.

In addition to the sense of caring conveyed by honesty and openness, the customer can experience physical and emotional well-being, as well as a fulfillment of the ongoing desire for self-actualization, through products or services.

Thus, when we buy a product or service that delivers caring, we also care for ourselves. This means pursuing and becoming who we want to be physically and emotionally and learning what makes us happy about who we are. These desires show up in our appearance, our physical health, our energy, and so on.

We want to be cared for, care for ourselves, and care for others.

Whole Foods, the world’s largest retailer of natural and organic foods, has done a remarkable job of focusing on the customer motivation of caring. The idea of good food for good people and a good earth underlines the caring quality of the company and how it achieves this goal.

This experience is a key to the customer’s motivation. The emotional value is so great that the customer is willing to pay more for it. In paying more for caring, the consumers underlying expectation is to be treated in alignment to that intention.

Whole Foods Caring For Customers

Another aspect of the Whole Foods approach focuses on its authenticity and honesty in customer relations. There is a powerful element embedded in the idea that Whole Foods is in competition with the big grocery food chains that do not care enough about their customers.

Caring is also evident in the products or services customers engage in as part of their lifelong journey of self-actualization. The result is self-discovery and self-acceptance.

Often, such products or services offer philosophical approaches to life, ideas for living, and processes that customers use to reach their goals. As a result, the provider can often enjoy high-profit margins. People are willing to pay to care for themselves. What separates market leaders from their competitors is the ability to deliver through their product or service a uniqueness that differentiates them from the rest. To accomplish this means answering the question, “Why is the customer spending money with us rather than our competitors?”

The three customer motivations help us understand the sources of a customer’s emotional desire to buy and offer insight into what separates the winners from their competitors.

 

Edgar Papke is the co-author of Innovation By Design and author of True Alignment and The Elephant In The Boardroom. He helps leaders and their organizations align to create greater levels of innovation, performance, and fulfillment. He can be reached by email: edgar@edgarpapke.com

THE THREE CUSTOMER MOTIVATIONS: PART TWO

In addition to attention, one of the three motivators that we all share as customers is an expectation of brand competency. We expect providers of products or services to be competent both in creating and delivering whatever it is we’re buying.

Beginning with the design and engineering that goes into a product and continuing with how it is delivered, we expect a level of reliability and quality that reflects the provider’s competency. From the person making the sale to the delivery person handing us the product to the person on the phone (or online) helping fix a problem, we expect competency.

If we purchase using an automated or technology-based process, such as a website or telephone-based system, we expect that system to be designed in a customer-oriented and competent manner, allowing us to be successful.

Business competency affects customers perceptions of their own competency

A customer’s trust in the provider’s competency and the quality of a product or service is a direct reflection of the customer’s competency in making the decision to buy a particular product or service.

When customers make a good decision, they feel competent and conclude that they made the right choice. When customers feel they made a bad choice or decision, they feel incompetent. They then experience the anxiety that accompanies the embarrassment of making the wrong choice. The customer may even feel stupid, which is not a good outcome for anyone.

For the customer, status relates to competence.

The example of BMW

BMW is considered one of the most competent engineering companies in the world. BMW does not sell a car. It sells the “ultimate driving machine.”

The intention is to communicate that a BMW, through advanced engineering and design and the quality embedded in its manufacture, goes far beyond the expectations of other cars. It is much better than the average car.

To the customer, this easily translates to, “I am not your average guy.”

First, being able to afford a BMW demonstrates the owners’ competence. Second, ownership shows they are smart enough to know and drive a great car. Third, they are able to drive such a high-performing machine properly because they are competent drivers.

Drivers of BMWs often argue emotionally in support of BMW’s quality and craftsmanship and, thus indirectly, in support of their own competency.

When the expected competency is not provided, customers are naturally disappointed and resent the provider for letting them down.

We question whether we were incompetent in making the buying decision. We make comparisons about the quality, appearance, and associated pricing because we want to get the best value for our dollar. Making the best value for our dollar makes us feel competent and in control. If we are fooled or make a bad decision, we no longer feel competent. That is why we strive for predictable outcomes.

Every product or service must reach a bar that represents the level of competency that the customer expects. It is a source of trust between the business and its customers. Brand competency shows up in quality, know-how, expertise, reliability, sound advice, customer service, and durability.

All businesses must pay attention to competency as a motivator and always strive to meet that expectation. In order for them to feel competent, customers need to feel secure and trust in your competency. It is often at the center of why they are choosing to spend their money with you.

 

Edgar Papke is the co-author of Innovation By Design and author of True Alignment and The Elephant In The Boardroom. He helps leaders and their organizations align to create greater levels of innovation, performance, and fulfillment. He can be reached by email: edgar@edgarpapke.com

THE THREE CUSTOMER MOTIVATIONS: PART ONE

One of the three motivators that we all share as customers is attention.  

Attention fulfills our need to feel important and supports our desire to know that we count. The opposite is to feel ignored, which customers interpret as they don’t matter and are not valued. This is a powerful force and, as with most emotional responses, is immediate.

Think about the last time you called for customer service and went through several telephone prompts before you got a person on the phone. Like me, you probably tried to outsmart the recording by saying “customer rep,” “agent,” “customer service,” or by pressing “0,” “9,” or “1,” only to find yourself back at the main menu.

It doesn’t take much for this to make us anxious, upset, or angry. It’s hard for even the greatest of brands and businesses to recover from ignoring the customer.

Mutual Respect and Attention

In our relationships to one another, the first indicator of mutual respect is whether one person shows an interest in the other.

I define mutual respect as people treating one another in the manner in which they want to be treated. This is not possible unless each person is willing to pay attention and listen to the other.

The focus on attention is the key to the brand strength of Lands’ End and defines its customer service. Until the latter part of 2012, when it first incorporated a voice prompt system, customer calls were answered at any time of the day or night within two rings. Twenty-four hours a day, seven days a week, you found yourself talking to real person, not an automated system of multiple menus.

The speed with which the company connected by telephone, and now online chat, is vital to how its customers interpret the value of its products. This focus on customer attention is Lands’ End’s passion and shows up in every facet of the organization. Many businesses can sell you a quality shirt. It is how Lands’ End does it that makes the difference. By paying attention and thereby making the customer feel important, Lands’ End separates itself from its competition.

Many powerful and successful brands now motivate customers by paying attention to them.

Think about Facebook, YouTube, and the host of providers of social media. Being “social” is engaging in giving and receiving attention from one another. In light of our current demographics, this is a powerful force. Whether a business is large or small, demographics should not be overlooked when defining brand strategy.

Demographics support the significance of attention

As we move through the second decade of the twenty-first century, the baby boomer generation is the largest group in our economy and workforce. In the United States, there are 76 to 80 million people in this generation.

The second largest group is the Echo or Millennium generation, also known as Generation Y or the New Millennials—the children of the baby boomers. Born between the early 1980s and the early 2000s, this group is 72 to 75 million (U.S.) strong. Its members grew up with the new technology and have come to rely on it, spending endless amounts of time using it.

Depending on the study, sociologists claim that 35 to 45 percent of the formative years of New Millennials were spent alone in front of computer screens, televisions, and video games. As a result, they crave attention. As they moved through adolescence and entered adulthood as consumers, this need became a major influence—one well worth business leaders’ attention (no pun intended).

The generation immediately before them, Generation X, includes approximately 49 to 51 million (U.S.) people born between the mid 1960s and early 1980s. This is a much smaller group, often referred to as the ignored generation. When it comes to technology and need for attention, this group shares many of the characteristics of the GenYers.

In addition to explaining why social media has become such a global force and phenomenal marketing tool, the demographic data demonstrates how powerful attention is to businesses. There’s a significant benefit to understanding its part in the emotional attractiveness of a product or service. And how it can be leveraged through a company’s product or service and brand intention.

Attention is a key to building successful customer relationships. 

Customer attention is the cornerstone and foundation for many great brands and the intention of their products or services.

The importance of attention is not limited to large businesses. Like Disney, Harley-Davidson, and Lands’ End, even the smallest business can leverage attention as a key value and source of motivation.

 

Edgar Papke is the co-author of Innovation By Design and author of True Alignment and The Elephant In The Boardroom. He helps leaders and their organizations align to create greater levels of innovation, performance, and fulfillment. He can be reached by email: edgar@edgarpapke.com

TO KNOW OUR CUSTOMER IS TO KNOW OUR BUSINESS

What separates market leaders from their competitors? What makes your product or service different from the rest?

Although a number of factors are important, the one that matters most is the answer to:

“Why is the customer spending money with us rather than with our competitors?”

At the center of every great market strategy is the ability to clearly communicate and then consistently deliver what the customer is paying for regardless of the product or service, regardless of market complexity or size. This is what motivates the customer.

It is the difference between those companies that become market leaders and those that struggle to get and sustain customer attention. Whether competing in a small local market or on the global stage, such clarity and relentless pursuit of customers results in successful brand identities. They are the household names and trusted brands of the most sought after products or services.

Often, they assume legendary status.

Brand Clarity is the Key

Brand clarity and what it represents to customers are key to any business’s success. However, this is where companies often fall short and is the core reason why customers are not attracted to a particular product or service.

A lack of clarity also has an impact on employees, who are expected to successfully meet customer needs. It can also cause confusion and misalignment within organizations. This can create unnecessary and unproductive conflicts that inevitably erect barriers to performance. This results in:

  • imprecisely defined and interdependent strategies and goals,
  • anger pointing for performance failures, and
  • a lack of commitment and accountability.

It’s hard to create success when we’re not clear and aligned on what we’re selling to the customer.

To appreciate the extraordinary power of brand intention, we must understand more about why and how we buy what is being offered.

The what and the how are factored into the customer’s perception of the intention of the provider, yet neither would be necessary without first understanding why people buy.

In today’s ongoing battle to provide more and more to the customer and to increase value, products and services have grown enormously complex. Have you ever asked yourself “What am I really buying?” You probably have and can relate to the confusion.

In the blur of rapid improvements and accelerated changes, customers can quickly be confused by the number of options. Often, customers define success as the ability to select and buy more easily—to readily identify what they are looking for, to experience fewer complications, and actually get what they’re paying for.

Customer Motivation

To understand how a customer determines the true value of a product or service is to understand why we are motivated to buy a product or
service in the first place. The answer is simple—and powerful:

We buy products or services to fulfill our human wants and needs; that is, to make ourselves feel good.

This most basic of human motivations lies at the core of consumerism, including business-to-business transactions.

Beginning in the late the 1950s, Will Schutz, a research psychologist, presented a very powerful and simple explanation of human behavior and interaction known as FIRO (Fundamental Interpersonal Relations Orientation) theory. In 1952, Schutz was asked by the U.S. Navy to determine how teams of men could better work together to make better decisions. The intent was to improve team performance, particularly under pressure. Schutz theorized that all of our behavior and interaction is motivated by three fundamental desires to feel

  1. important;
  2. competent;
  3. accepted.

A powerful framework for understanding customer motivation

What Schutz probably didn’t see was that the profound understanding of human behavior he developed would provide a powerful framework for understanding:

  • why customers buy what they do in the way they do,
  • what they are seeking for themselves and their individual sense of fulfillment, and
  • how products or services are offered.

Schutz’s FIRO theory can also be used to better understand the what, why, and how of branding, marketing, selling, and product or service
delivery. It allows us to interpret why customers react to products or services with a range of responses from euphoria and joy to disappointment, anger and despair. It’s all about whether customers feel fulfilled by what they purchased.

As customers, the three sources of human motivation are consistent with how we react in other situations. It’s easy to underestimate the value of a customer’s experience and the power of our desires. When our needs are met, we typically feel good. When they are not met, we quickly become disappointed and angry.

meeting customer needs

As marketers, we should try never to overlook the human component of what makes the customer experience so powerful. We should try to always consider what motivates us as customers and respond to the three motivations that we all share. In no order of importance, customers want: attention, competency, and caring.

 

 

Edgar Papke is the co-author of Innovation By Design and author of True Alignment and The Elephant In The Boardroom. He helps leaders and their organizations align to create greater levels of innovation, performance, and fulfillment. He can be reached by email: edgar@edgarpapke.com

WE LIKE WINNING

We all engage in business. Every day, we take part in business. It may not be obvious, yet from the moment we wake, we are consumers — by turning on a light; running water; dressing; eating breakfast; gassing up the car; stopping for coffee; and, of course, texting and emailing. Throughout the day, you engage in activities that contribute to the creation and delivery of a product or service.

The more a product or service fulfills a need, the more we are attracted to it. The greater our attraction is, the stronger the offering. The stronger the offering, the more powerful the brand. The more powerful the brand, the
more value the product or service has.

Why are you in business? 

I often ask audiences, “Why are you in business? What is it you’re trying to do?” The most frequent and confident response is, “To make money!”

That’s not a wrong answer. There’s a great deal of truth in it. After all, one of the measures of business success is profit. Profit is part of the endgame; the scorecard. Making money is the measuring stick of capitalism.

In my view, the purpose of a business, regardless of the product or service and whether it’s a for-profit or not-for-profit enterprise, is to win the customer. That’s what business is all about.

I then ask, “What do you offer the customer that allows you to be successful and make money?” Answers include:

  • “Superior customer service!”
  • “Added value!”
  • “A product our customer can depend on!”
  • “We give them quality!”
  • “I offer them something they can’t get anywhere else!”
  • “We provide expertise!”
  • “A wide selection of options and choices!”
  • “We give our customers peace of mind!”
  • “To bring value to people’s lives!”
  • “We provide solutions!”
  • “Helping our customers reach their goals!”

It’s interesting when members of the same team give different answers. If there’s going to be misalignment among members of a group and a conflict over who is right and who is wrong, this is where it starts.

Winning the customer

Winning the customer is the result of delivering a product or service in a way that motivates the customer to buy it.

They choose to spend their money on your offering rather than on someone else’s—your competitor. Competition is a key driver and motivator of business. The foundation of our capitalist system is our shared desire to compete. The winners reap the benefits, so it is natural that we compete to win.

When a customer pays enough for your product or service to make a profit, you can invest that profit to increase your ability to win and build your business to win even more.

Winning isn’t our only motivation; several others contribute to our propensity to participate, including the social benefit we create and deliver.

A powerful aspect of an organization’s alignment resides in what is being created and delivered. Behind every product or service there is a purpose—a reason why the product or service has value. Finally, there is how the product is created and delivered to the customer.

These three are the centerpiece for what it takes to win in business, and together they provide the foundation for how the four elements of the Business Code, the customer, brand intention, culture and leadership, come together. In my book, True Alignment, we’ll explore how these forces influence the cultures of our teams and organizations, engage us in our leadership preferences, and result in the consistent thinking and behavior business demands.

 

Edgar Papke is the co-author of Innovation By Design and author of True Alignment and The Elephant In The Boardroom. He helps leaders and their organizations align to create greater levels of innovation, performance, and fulfillment. He can be reached by email: edgar@edgarpapke.com

STRUGGLING WITH INNOVATION

Throughout the history of business, we have found ourselves trying to figure out how to maximize our human potential. Meaningful innovation is the most important issue that organizations continue to grapple and struggle with.

As mentioned in a previous post, in our pursuit of innovation, we have created complex organizations, with many moving parts, all adding to the complexity of our solutions, of our lives—until we come to the place of recognizing what the great designer Dieter Rams pointed out many years ago: “less, but better.”

We want to innovate how our organizations can work more simply and allow for shared capacity to solve problems and innovate more freely.

To give you a sense of the magnitude of how important innovation is perceived to be to the success of today’s organizations, one just has to look at the title of KPMG’s 2016 Global CEO survey, aptly titled “Now or Never”. The executive summary delivers a clear message:

“[t]wo-thirds of chief executive officers (CEOs) believe that the next three years will be more critical than the last fifty years. The forces creating this inflection point are the rapidly evolving technology and the speed of transformation it unleashes. In four years’ time, 4 out of 10 CEOs expect to be running significantly transformed companies.”

A review of the results of a number of global surveys of CEOs, C-level executives, and leaders from 2015 to 2017, including the major studies conducted by KPMG, Fortune, IBM, and PwC, provide further insight. With the exception of the Fortune survey (500 companies), most of the surveys we reviewed included more than 1,200 participants. Among the key findings:

  • Fostering innovation is one of their top strategic priorities, placing among the top six in every survey.
  • Most CEOs are grappling with how to engage their cultures in the change necessary to be more innovative.
  • A significant majority (seven out of 10 CEOs) say it’s important to specifically include innovation in their business strategies.
  • The majority of survey respondents identify the need for transformational change in their organizations.
  • Eight out of 10 are concerned that their existing products and services may not be relevant in three to five years’ time.
  • The majority of respondents say their organizations are struggling with the speed of technological innovation.
  • Gartner reports that 89 percent of companies believe customer experience will be their primary basis for competition in 2016, versus 36 percent four years ago.
  • Accenture reports that 81 percent of executives surveyed place the personalized customer experience in their top three priorities for their organization, with 39 percent reporting it as their top priority.

Innovation and Tempting Failure

What is equally as telling is that, while innovation is consistently among the top six strategic priorities, less than a third believe their organizations’ cultures encourage risk-taking or safe-to-fail environments.

This is important to recognize. Among the more powerful aspects of motivation and human behavior are the needs for predictability and safety.

From childhood through to adulthood, we are literally taught, trained, and reinforced to find the safest paths. As a result, satisfying these needs is paramount to how people perceive the ability to express themselves and take risks. We discover that it’s not a good idea to tempt failure.

However, the process of innovation includes failure. Whether an organization’s temperament and messaging allow for exploration, experimentation, and the potential subsequent failure says a lot about how innovative an environment it provides for its members. It also doesn’t always fall within the context of processes and systems that are designed to limit risk. Or, ways of solving problems and making decisions that advocate adherence rather than possibility thinking.

This is about culture. This is about the pursuit of understanding human behavior and the role that awareness plays. These challenges are clearly defined in the KPMG report of findings:

  • Thirty-six percent of CEOs say their organization’s approach to innovation is either ad hoc, reactive or occurs on a silo basis.
  • Only one out of four says that innovation is embedded in everything they do.
  • Only 29 percent feel that their organization is highly capable of creating a safe-to-fail environment.

This data becomes even more powerful when one considers that only one out of five CEOs note that innovation is at the top of their organizational agendas. This last piece of insight tells us that when identifying an organization’s key strategic priorities, a top-six finish is likely still not good enough.

Why?

The most likely explanation is that, for CEOs and leaders, and the people in the companies and institutions they lead, the risk of being innovative is often what keeps their cultures from being more innovative. They are afraid of the risk of failure that comes from thinking outside the box, letting go of the familiar, seeking the possible over the predictable, all while falling into the trappings of that which they perceive will keep themselves safe.

This is a stark reminder that, as a leader, if you’re not willing to fail, others will not take a risk to succeed.

The data also raises the question of how the most successful organizations in the world go about innovating at the level they do, disrupting industries and market segments, quickly turning what were just yesterday stable technologies and ways of life into quickly outdated or obsolete ones. How do they go about creating new forms of industry and markets where none existed? How do they create more meaningful customer experiences and work across internal silos? What is the code to cracking their culture, and what do they do that is so different from the also-rans that they outperform? What are they doing that others aren’t? How did they identify the gap between the average and the means to becoming exceptional innovators?

 

Edgar Papke and Thomas Lockwood are the authors of  Innovation By Design and founders of InnoAlignment, a consultancy dedicated to assisting leaders in designing and building cultures of innovation.

 

INNOVATION IS WHAT WE DO BEST

“Imagination is more important than knowledge. For knowledge is limited to all we now know and understand, while imagination embraces the entire world, and all there ever will be to know and understand.” —Albert Einstein

The collective imagination is humankind’s greatest genius. Throughout our human history, as we developed and created the world around us, the sharing and building of one idea on another has been, and always will be, our best recipe for innovation.

The world we continuously create for ourselves is the manifestation of our collective imagination, the natural desire to come together in community; to collaborate, explore, and learn; and to create what we want and desire to have. It gives us the ability to respond to our basic needs, as well as solve even the most complex of problems. It fuels the innovation that is the foundation of our competitive global business society.

Innovation is who we are

Humankind’s desire and drive for innovation is breathtaking. Innovation is who we are. It is what we do best.

As our societies evolved, we creatively designed social structures that met the needs of and further relied on our shared ability to innovate. As we did, we were reminded that along with our innate desire to innovate, we have an inborn desire to compete. When these forces come together, innovation is accelerated. The social structures that we relied on for survival and connectivity evolved into enterprises of commercial means that have become the fixtures of our global society.

These new enterprises and organizations became the vehicles that took us on the journeys of the scientific, industrial, and more recently information revolutions. All along the way, we continuously increased our level of innovation and ramped up the pace of change in our world.

Today we find ourselves at a place in history in which our capability for innovating and creating change has provided us with incredible levels of technology and know-how.

Every day we find ourselves exposed to new ideas

Moment by moment we are introduced to an array of new products and services, some of which are delivered to us by purpose-driven, design thinking organizations and enterprises whose main concern is to figure out how to create more meaningful innovation and customer experiences. We are now operating in a new global era in which a new digital economy is emerging—a new economy driven by pioneering technology that allows for virtually everyone and everything in our world to be connected, with new pathways for information and knowledge abounding: the Internet of Things, the interconnection via the Internet of computing and smart devices—electronics, software, sensors, actuators, and network connectivity—that enable objects to collect and exchange data.

All this adds to a world that presents us with the means to faster and faster, innovate more and more.

With all the knowledge and technology available to us, and the means of immediate communication and instant access to information at our fingertips, why does our focus constantly return to how we can become even more innovative, to solve bigger and more complex problems?

Throughout the history of business, we have found ourselves trying to figure out how to maximize our human potential. Even today, and more than ever, companies and institutions of all types and sizes are concentrating on creating more innovative cultures.

This is not a new breakthrough in thinking. Being successful has always relied on the ability to work together and be creative. More than science or the collection and use of data, the quest to understand how to create higher levels of innovation and empower our creative intelligence seems to be a more elusive aspect of how we innovate.

The better we become at innovation and creative collaboration, the more we want to figure out to get better at it—alas, human nature.

In pursuit of innovation, we have created complex organizations, with many moving parts, all adding to the complexity of our solutions, of our lives—until we come to the place of recognizing what the great designer Dieter Rams pointed out many years ago: “less, but better.”

Less, but better

As complex as the world is today, we look for finding solutions to the resulting challenges and emotional stress that all the moving parts and advanced technology creates. The more complicated means of communication and interaction move us to a place from which we seek greater simplification.

We have arrived at a place in our history that causes us to pause and reflect on the complexity of the organizational systems that humankind has created, looking for ways to overcome the needless barriers to communication and working together they represent.

Why? So we can find better, faster, and, yes, simpler ways to work together to solve problems more efficiently and effectively.

 

Edgar Papke and Thomas Lockwood are the authors of  Innovation By Design and founders of InnoAlignment, a consultancy dedicated to assisting leaders in designing and building cultures of innovation.