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By Larry
Chiagouris and Brant Wansley - Larry Chiagouris, PhD, is vice
president of marketing at eCode.com, a company that uses proprietary software
to extend the brand exposure of companies over the Internet. Brant Wansley is
the director of client services for Brand Marketing Services Ltd., a marketing
consulting firm that specializes in helping organizations develop effective
brand strategies.Branding on the
Internet
1. Introduction
Bonding brands with customers has
always been about building relationships. It has always been about taking
someone who knows little or nothing about a company or its products and
transitioning them to become a loyal user. Although the tactics might sometimes
be different on the Internet, many classic marketing principles still apply.
It's almost impossible to pick up a business publication without seeing some
reference to the world of new media, especially the Internet and its role in
marketing a product or service.
A substantial amount of this rhetoric, however, ignores one of the most
important components of a marketing professional’s responsibility —
building a brand or corporate reputation to create relationships with
customers. When it comes to building a brand on the Internet, never have so
many talked so little of what may be the Internet’s most stunning capability
— strengthening the bond with customers and prospects.
“Branding is redefined online,” says Caroline Riby, vice president-media
director at Saatchi & Saatchi Rowland of Rochester, NY. “We are moving
beyond representing a brand to experiencing it.”
In this new world of e-branding, the Internet has become more than a gimmick
or a mere line item on the communications budget. It can now play a pivotal
role in enhancing brand relationships and corporate reputations.
It offers a huge advantage over traditional mass media. The speed people can
move from awareness to action on the Internet is a true differentiator and
challenge for e-marketers. This requires a new way of thinking about how to
design Web sites and related marketing communications.
However as the author of The End of Marketing As We Know It, Sergio Zyman
says, there is no difference between building an Internet brand and a
traditional brand. In effect, the steps to bond prospects to brands are
essentially the same. The difference, however, will be the speed a brand can
transition prospects to customers.
2. Relationship Building
Prospects pass through several
stages before embracing a relationship with a company:
Awareness
- Familiarity - Trust - Commitment
These stages are driven primarily by reputation elements.
Awareness - The first is the consumer becoming aware of the company or
its brands. At this stage the prospective buyer can recall or recognize the
name of the company. That does not mean trust in the brand, but simply a sense
of the company as a player in some product or category.
Familiarity - During the second stage, the prospect becomes familiar
with the company through acquiring an appreciation of the products or services
offered, and various related features.
Trust - The next stage takes the relationship to a deeper level. The
potential customer becomes motivated to purchase a product or service because
of the perceived benefits derived from particular features. During this phase,
positive imagery about the brand or company encourages a feeling of trust,
which in turn, enhances the relationship-building process.
Commitment - The final stage is the most important. At this stage, a
transaction occurs that consummates the relationship. The prospect and the
company each get something from the other. They are no longer strangers. Both
comprehend something about each other, hopefully encouraging many repeated
exchanges.
In looking at media choices for creating this desired relationship, the
advantage of the Internet over mass media is obvious. Mass media cannot
communicate with individual prospects in a customized way. The Internet enables
communication based on where each prospect is in the four stages of the
relationship-building process.
With traditional media, the messages are sent out to the world no matter
what level of trust and interest the company has previously generated.
Accordingly, some prospects are told what they already know. Others are not
able to learn what they need to know to engage further.
By contrast, a well-executed e-branding strategy, expressed in a
well-designed Web site and integrated e-marketing program, can adapt
communications to match the aspiring buyer’s needs and wants at any stage in
the relationship-building process.
The Internet and Relationships
Don Peppers, co-author of The One-to-One Future, has noted the future of
marketing is about persuading consumers to participate in a dialogue. Not just
any dialogue, but one that helps to bond the consumer to the brand.
Rather than simply interrupting a television show with a commercial message
or barging into prospect's lives with unannounced phone calls or letters,
innovative marketers will first try to get individuals to voluntarily enroll in
the selling process. A volunteer’s experience will almost always be more
likely to result in the embrace of a brand than any forced viewing or
consumption experience can ever accomplish.
Interactive technology enables marketers to inexpensively attract consumers
into one-to-one relationships fueled by two-way “conversations” — played
out via mouse clicks on a computer. Through this process, prospective buyers
collaborate with marketers to fashion the product or service being sold. By
inviting each prospect to join in a uniquely responsive and tailored dialogue,
marketers are more likely to earn loyalty.
To nurture such a highly targeted and relevant engagement, the
communications professional needs to create marketing tactics customized to
whatever stage the prospect has reached in the relationship-building process.
Creative material on the Web site needs to do several things.
It must capture the attention of those prospects who know nothing or very
little about the company, but are interested in its category. It also must
build awareness of what the company does within the context of the industry in
which it’s competing.
For those who already know something of the company, but not the advantages
of doing business with it, site content should identify and link benefits
sought by the consumer to the company’s products and services. This material
needs to deepen to a level that triggers a desire to do business with the
company.
Clearly, those individuals wishing to become customers need easy site access
to satisfy their needs and assure the relationship develops even further. And
most importantly, existing customers of the company need to feel their
interaction with the site, identifying them as more than just an anonymous
browser.
These customers need to be given some sense they have access not available
to just anyone. They need to be rewarded for continuing to engage with the
company.
There are many design elements that can accomplish the objectives of moving
a prospect along the relationship-building continuum. These techniques can
start with a simple interaction such as a brief registration forms to begin the
relationship-building process. More sophisticated techniques are available such
as games that intrigue the user on a category relevant subject, use of an
intelligent component, such as cookies, that knows if the user has visited the
site before and greets andtreats the user personally.
3. e-Branding Tactics
Linking Bricks and Clicks
One of the most interesting relationship-building uses of branding on the
Internet are those companies like Barnes and Noble, Toys-R-Us, and The Gap, who
are seeking to link the traditional brick and mortar brand experiences they
provide with their e-brand experience.
Barnes and Noble announced it’s going to use store locations to provide
same-day delivery. Toys-R-Us has already begun to use its stores for returns
and exchanges. Both of these brick and mortar leaders are leveraging their
facilities to fast-forward the distribution process.
Perhaps more critical than delivery is the actual order generating process.
Here we find The Gap is leading the way. It is putting computers, for customer
use, in many of its locations so consumers have the ability to order clothing
styles they find attractive, but might not be in stock at the moment of their
store visit.
Consumers can sample the goods in the stores and, based on the in-store
experience, place an immediate order. They do not even need a computer at home
to cybershop with The Gap. In this way these companies are building integrated
“clicks-and-mortar” brands that work together to create a single brand
relationship.
4. Measurement Issues
To maximize the opportunities of Internet branding, it is critical to measure
the degree the site is actually migrating visitors to a deeper acceptance of
the company and a greater attachment to its products and brands. Measurement of
the effectiveness of a company’s Internet marketing activities yields
significant insight for cultivating more business.
Traditional communications testing methods treat respondents alike. They
must meet a pre-specified level of awareness or knowledge about the company or
its brands.
Measuring a Web site’s impact, however, does not and should not base
evaluative considerations on a “one size fits all” category. The dialogue
with each prospective customer must reflect his or her unique transition along
the relationship-building continuum.
Although there are standard metrics for measuring how well a Web site is
achieving its purpose, Web site measurement and evaluation has an additional
goal — seeking to calibrate the incremental movement of each individual
toward a full relationship with the sponsoring company.
A strategic measurement system will need to segment prospects and customers
into their respective place on the relationship-brand building continuum
according to the depth of their relationship with the brand. An effective
system will seek to calibrate how each type of customer feels toward the brand
and how likely each is to be moved along the continuum toward a deeper
relationship.
This need for measurement acknowledges the traditional model of marketing,
which assumes people move through stages of interest in a brand (sometimes
referred to as the AIDA approach, transitioning a prospect from Awareness, to
Interest, to Desire, to Action), is still relevant.
The only difference on the Internet will be that the movement between stages
can take place much more quickly. The need to accommodate the enhanced speed of
relationship building on the Internet means that the speed that data about
prospects and customers must be developed. A customer can move from neutral to
satisfied to dissatisfied much more quickly via an Internet experience and,
therefore, systems for measuring satisfaction must match the speed customers
are changing their views toward brands.
The relevance of the traditional model should not be overlooked.
People will still need to develop a sense of trust about a brand and its Web
presence before they will reveal data about themselves or share their credit
card number. The branding power of a site relies on the ability to bring a
customer back for repeated interactions, the degree of permission granted by
the customer for ongoing dialogue, and the extent this access is being
leveraged.
Once permission is granted, the marketer’s chief goal is to expand the
engagement. If done well, this elicits more trust, satisfaction, and loyalty
from each customer.
At the turn of the last century, the owner of a general store knew his
customers so intimately he could suggest specific products to meet their unique
needs. Now, 100 years later, marketers have the opportunity to make that same
personalized connection.
Companies that grasp the power of the Internet and its relationship building
capability will discover an accelerated path to prosperity.
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