Retail Observer

RETAILOBSERVER.COM JULY 2024 28 M arketing pioneer John Wanamaker (1838-1922) lamented, "Half the money I spend on advertising is wasted. The trouble is, I don't know which half." Today, it's even harder to understand the value of our marketing dollars. What with online advertising and "performance marketing," brand-builders are more confused than ever about the link between brand and performance. But there's now hard evidence that brand-building really works. The World Advertising Research Council (WARC) has identified the most effective types of brand advertising. The secret is to make a clear, specific promise that can be demonstrably fulfilled. THE POWER OF PROMISES Consider three promises from insurance companies: Allstate's "You're in good hands," "Nationwide is on your side," and Geico's "15 minutes could save you 15%." Only Geico's promise is direct and verifiable. It creates a connection, and if the company delivers, it builds trust. Allstate and Nationwide's promises are about themselves, not the customer, and they aren't verifiable. This raises two questions: Is the success of a brand-building campaign related to the kind of promise it makes? And will customers respond better to a brand that makes and clearly delivers on a specific promise? THE PROMISE OF DATA Analysis by WARC revealed that campaigns with a customer promise outperformed others across most measures. Customer-promise campaigns significantly improved on brand perception, brand preference, and purchase intent. ANATOMY OF A GREAT BRAND PROMISE A great brand promise makes three types of promises: emotional, functional, and "enjoyable to buy." • Emotional promises focus on the emotional benefits a customer will get from using a product or service. • Functional promises emphasize the practical benefits and features of a product or service. • "Enjoyable to buy" promises revolve around making the purchase enjoyable for the customers. Now that we know what makes a great brand promise, let's explore what makes a great promise campaign: • Memorable: Successful promises are memorable and often run counter to expectations. For example, car rental company SIXT's promise of not forcing the only available vehicle on customers, but giving them the car they initially chose. This clear promise has contributed to SIXT's success. • Valuable: Customers must desire what the promise offers, especially if it diverges from a status quo they don't like. SIXT understands that customers are willing to hire an expensive car, and that they care about the make and model. • Deliverable: A successful promise allows the customer to determine if the brand fulfilled the promise. For example, SIXT must deliver the requested car. THE TAKEAWAY The research is conclusive – when one person makes a promise to another, a relationship is created. If the promise is fulfilled, trust and loyalty increase over time, resulting in a valuable connection. Brand building done right makes a promise and delivers on it. This has a greater positive impact on the customer than simply providing goods or services. The findings underscore the power of a well-crafted customer promise. Not only does it lead to sales, it provides an effective framework for organizing a company's activities. The best brands are built on promises made and kept. WHO CREATES THE PROMISE? The internal team and culture must create these promises. (I've been honored to help 200+ organizations navigate this promise-making framework.) A company's brand and culture must also be united to deliver on its promises sustainably and predictably. (I can help, here, too.) The key to successful brand building is ultimately a clear, specific promise that can be demonstrably fulfilled. It will work for your company's brand and your personal brand, too. BRAND BUILDING RIGHT The potency of promises made and kept Steven Morris On Brand Steven Morris is a brand, culture and leadership advisor, author, and speaker. Over his 25+ years in business he's worked with 3,000+ business leaders at 250+ global and regional companies. Discover: https://matterco.co RO

• Cover