Brand management seems to be somewhat out of fashion due to the hype on the topic of customer experience. However, it is still important to determine a brand positioning that is as differentiating as possible. One service provider had inconsistent brand architecture and no defined brand positioning. As a result, the brand image was diffuse and weak. We were asked to optimize the brand management service provider.
In the process, we unified the brand architecture on the basis of an endorsed branding and defined an active brand positioning. Because of the potential, CustomersX® recommended establishing brand management within the company.
At a glance
20%
Customer Value-based Decision Making
10%
Customer-centric transformation
20%
Co-creation
50%
Customer Management
The whole story
The service provider looks back on a long company history. In the process, different product brands were established over time. Digitization has also led to new online offerings being given additional brands. As a result, the company carried over 10 different brands.
The measurement of brand strength among customers concluded that there was no consistent picture with regard to the different brands. In addition, differentiation from the competition was low. As a result, the weak brand images had an impact on the company’s operating performance. Based on our brand consulting offer, we created a 6-step project approach to optimize the brand management service provider.
In the first stage , the existing brand architecture was analyzed. It was noticeable that the company used numerous individual brands. While individual brands allow for more flexible management, they require significantly more investment and resources in management to establish a certain brand strength. Due to the size of the company, it was decided to use a family brand architecture – this in the form of endorsed branding. This gave the individual brands a certain degree of independence, but all offerings were managed under one brand. The chosen brand architecture thus combines the possibility of a certain flexibility with more manageable investments and resources for brand management.
In the second stage, the existing brand identity was analyzed. Building on the identity-based brand management approach, the first step was to create an overview of the six brand identity dimensions. In a second step, the more than 30 elements were reduced to five elements. These five elements were analyzed as possible core positioning options in the coming stage. This was an important foundation for the brand management service provider.
In the third stage, a quantitative customer survey was conducted. In the process, the selected brand architecture was tested in terms of comprehensibility. In addition, the five positioning options were reviewed in terms of customer needs and value. We often see that customer value is forgotten when determining brand positioning. Brand positioning must be aligned with customer needs, but also with the value for the company. Often this important aspect is forgotten in practice. For example, we see many customer surveys on brand positioning without measuring customer value for later analysis.
In the fourth stage, the five positioning options were evaluated based on the customer survey. However, not only reactive positioning options but also active positioning options were analyzed. As a result, active positioning was selected, as it can be assumed that, due to digitization, the brand will have to include additional offerings in the near future. The selected positioning was based on relevant customer needs and was also relevant to high value customers. Finally, the positioning was backed up with several reasons-to-believe. This step is important so that the chosen brand promise in the form of positioning can also be delivered to customers.
In the fifth stage, an implementation plan for the selected brand positioning was developed. For each department and touchpoint, a plan was developed on how to bring the positioning to life for customers. As a result, the goal is to significantly increase brand strength in the coming years. This step is a major challenge, especially for departments that do not have direct customer contact, such as HR and Finance. This is why it is so important to understand brand as part of the corporate strategy and to clearly show the dependencies of the decisions of the individual departments on the brand experience of the customers.
Based on our DTC approach, the employees in the company were trained in the 6th stage to dynamically manage the brand in the future. In addition to an annual customer survey to measure brand strength, the process for integrating new brand identity dimensions and managing implementation planning over time was implemented in the company. A brand is not created by designing a logo once and using it at every touchpoint. A strong brand can only emerge when it is measured at least annually and brand strength is systematically increased.
* We take confidentiality with our customers seriously. The name has been changed, the results are real.