Digital Brand Transformation
A recent study shows that digital brands not only do things differently, they also think completely differently.
While traditional brands focus on positioning their brands in the minds of their customers, digital brands focus on positioning their brands in the lives and everyday lives of their customers.
In addition, they retain customers as "users" and not just as pure "buyers" and invest a large part of their advertising expenditure in after-sales support. The study conducted an online survey of more than 5,000 consumers and surveyed them on 50 different brands, both digital and traditional.
Significant differences were found between older/traditional brands and newcomers/digital brands, represented by different brand twins. (Airbnb vs. Hilton/Marriott | Dollar Club vs. Gillette | Red Bull vs. Coca-Cola | Tesla vs. BMW | etc.)
Digitale Markenfuehrung und Brand transformation
For classic brands, the statement "Is a brand that people look up to" was rated higher. In the case of newcomer brands, everyone rated the statement "Makes life easier for me" higher.
The diversity of the brand perception shows the focus of the digital brands on the positioning in the everyday life of the customer, as well as the actual benefit the customer experiences when using the product.
There were similar differences in the way in which people's brand perception is formed and strengthened. Respondents heard about traditional brands mostly through advertising and traditional media and about digital brands more often through social media and direct Word of Mouth recommendations.
Based on these findings, the brands were divided into two different clusters: Purchase brands and usage brands.
1. purchase brands vs. usage brands
Buy brands focus on creating demand for the pure purchase of the product, while use brands focus on creating demand for the use of the product.
The example of a classic make-up department of a department store makes it clearer. The whole focus is on buying the product with the help of patterns and professional styling. In contrast, Sephora offers tutorials, application tips and a community to help people feel good and safe when using make-up at home.
Buying brands value advertising; using brands tend to be "lobbying".
Vail Resorts, for example, has redesigned its entire marketing strategy. It is a social network for skiers that uses performance data and photos as social currencies that skiers want to share with their friends. While most other ski resorts focus on promoting their snowmaking skills and giving discounts on lift tickets.
Buy brands care about what they say to their customers; use brands care about what customers say to each other.
For example, where traditional hotels place more emphasis on the content in their advertising, Airbnb places more emphasis on the content that hosts and guests generate and share through their experiences.
Buy brands try to influence people's opinions about the brand on the way to the purchase; use brands influence how people experience the brand at each brand contact point.
Apple stores are an example of this shift. Where other stores focus on one purchase, Apple Stores are about having a special brand experience.
The simplest conclusion now would be that traditional brands are buying brands and digital brands are using brands.
For the most part, this is true, although there are exceptions, such as Visa, FedEx, Lego, and Costco, which have many of the features of consumer brands.
They are directly influenced by the nature of the products and services, the corporate culture and the nature of the business model. The usage-oriented mentality of these companies results from the mindset of seeing customers less as one-time buyers and more as users or members with an ongoing brand-to-customer relationship.
The actual difference between buying and using brands is demonstrated by the help of the "moments of truth" method, which has become a cornerstone of customer experience design.
2. the brand contact points "moments of truth"
Buy brands focus on the moments of truth that occur before the transaction, such as researching, buying and buying the product.
In contrast, usage marks focus on the moments that happen after the transaction, whether it is delivery, service, training or exchange with the customer or among each other.
The advantage of using brands lies in a significantly higher loyalty to the brand and the company.
Companies that want to use the brand potential of the digital core technologies must make the change in customer loyalty - from purchase to use. These changes require a fundamental rethink of strategy, organization, investment and measurement.
In many companies, marketing comes after product development. But a usage attitude requires a closer relationship between marketing and product development, because brand and experience are always one and the same. Typically, customer service and loyalty are not the main focus of buying brands, but are support functions in marketing campaigns and lead generation.
Digital brand transformation
Usage brands define and use customer service and loyalty as key factors for growth and profitability.
3. brand perception und Digitale Markentransformation
The role and investment in advertising must also change in order to move to a usage model.
Purchasing brands try to create a differentiation in brand perception in the hope that they will influence viewing and buying. But usage brands focus on how their products improve a customer's life.
The role of advertising for a consumer brand will be to provide useful information to customers regardless of time or place.
The new brand and advertising message is: "Look how we can make your life better now, before you have even spent money with us. Just think how much more we can do if you become a customer and use our product or service."
The shift from buying to using also has an impact on the rating. Ad impressions are valuable, but most important is commitment. Usage brands look at engagement through a much greater opening. They recognize that some of the most meaningful activities take place outside the sales funnel.
◼️ Do people find the content created by the brand relevant and useful?
◼️ Do people actually use the product?
◼️ Do people spontaneously talk about the brand or the product?
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