Alan M. Siegel's Blog, page 15

New CEO or CMO looking to drive change

New leadership can be both a challenge and an opportunity for a company. For example, a new CEO may want to change the course of the company and need a brand story and refreshed identity to signal change to employees, customers, and the industry.

In this episode of Branding 101, our experts discuss how we can help new leaders leverage thoughtful branding solutions to catalyze a new vision, as well as activate organizational and industry change.

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Simply Smarter: A newsletter on brand experience

In this month’s newsletter, we feature our work for The Home Depot and H&R Block; our experts share how to brand a major new offering for the long-term. We also talk to Financial Services CMOs in our new In their Words study, and invite you to our Inclusive Storytelling x International Women’s Day virtual panel.

 

Save the date: International Women’s Day 2023

Join us on Thursday, March 30th, for our annual International Women’s Day virtual program. Our Global CMO, Margaret Molloy, will welcome leading CMOs from around the world and moderate a panel conversation on brand building and inclusive storytelling.

RSVP here

Branding 101

How can you ensure that your major new offering is branded for the long-term? In the latest episode of Branding 101, our experts examine how simple, smart branding sets up signature products and services—and the companies bringing them to the market—for success.

 

Watch now

X marks the spot

For decades, The Home Depot has powered renovation for millions of customers, but the time had come for the brand to make some renovations of their own, particularly to their Pro Xtra Loyalty Program. Go behind the scenes of our partnership in the latest SMPL Q+A.

 

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‘Tis the (tax) season

The global leader in tax prep services, H&R Block, has long been an iconic brand. But a brand facelift was needed to support its next stage of growth. Learn how we helped usher in a new era for an industry legend.

 

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In their words

In the latest edition of our CMO study series, we speak to global brand leaders to examine the learnings they took from the pandemic—and how that hard-won knowledge is inspiring new ways of meeting future challenges.

 

Read more

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Three ways brands can go from reactive to active on social justice issues

The murder of George Floyd was a critical moment in our nation’s history. Everyone saw the images, heard the story, and, in one way or another, had to react. Although this was not the first time police officers were filmed using unnecessary force against an unarmed Black man, the reaction to this instance was global. This murder was the beginning of a racial reckoning, where people everywhere had to come to terms with the part their country played in the slave trade and how their country had dealt with decedents of those slaves since.

Silence in that moment was not an option, especially for brands. Like everyone else, they could not ignore what they saw and were called to react. They put out press releases, made pledges, and even hired professionals to help them address diversity. DE&I initiatives became a key part of every corporate experience.

Fast forward three years and the murder of another unarmed Black man, Tyre Nichols, at the hands of police has caught the attention of national media. This time, however, brands have been conspicuously silent. The clear difference in reactions has led many to ask: how should brands react when these things happen?

They shouldn’t.

This is not to say that the murder of Tyre Nichols should not garner the same outrage as the murder of George Floyd. It is only to say that brands should not be reactive.

The murder of George Floyd came at a critical time in the world. We were many months into a global pandemic. People were home, they were tired, they were scared, and they were angry. It was a perfect storm of connected events. But the murder itself was not unprecedented; rather, the timing was. For this reason, every brand needed to take a stand—for the backlash if they hadn’t would have been very damaging to their reputation.

The murder of Tyre Nichols is not the same, nor was the murder of Keenan Anderson, Anthony Lowe Jr., and Donovan Lewis or any of the unarmed Black men and women that came after George Floyd or will/have come after Tyre Nichols.

So, how should a brand respond to this and other social issues?

Build it into your values

The big social issue of today may not be the big social issue of tomorrow. Without a culture of social consciousness, your brand can never truly and authentically address the social issues that might arise. However, an internal culture of social consciousness expressed through company values can ensure any future statements about social issues feel genuine. It will make your company a more desirable place to work for the next generation and will guarantee that people know where you stand at all times.

Put out a strong statement, and make it accessible

Your brand might have put out a press release in 2020. You might have articles on the internet talking about your commitments. But, if it’s not somewhere on your website and easily accessible, did it even happen? If you want people to know what your brand is about, you need that statement to be somewhere where everyone can see it. Make it a section in your “About Us,” or create a separate landing page specifically for your social commitments. Regardless of how you do it, make sure everyone who comes across your brand can see where you stand on social issues.

Hold yourself accountable

Host a yearly town hall, announce the status of your DE&I initiatives, allow yourself to be held accountable. Otherwise, your brand is just making statements and will eventually be called out. In a world where Millennials and Gen Z hold the purchasing power, brands that only speak and never act, brands that can’t be held accountable for their promises, will not succeed. Brands that are committed to change—through their values and in their actions—will thrive.

By doing these three things, your brand will be proactive, not reactive. Bonus points for brands that actually put their money where their mouth is. One such brand is M&M’s, which is actively aiming to create a more inclusive world by partnering with efforts and causes that aim to do the same.

The best brands are consistent across all touch points. How a brand reacts to the murder of Tyre Nichols should stand to affirm how that brand reacted to the murder of George Floyd. If the brand made promises to further equality, this is the time to reaffirm those efforts, or even check in to see how far they’ve come.

If you build social consciousness into your culture, you will never have to be reactive, because you are always active.

 

Remi Dixon is a Strategist

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The Home Depot

In SMPL Q+A, we interview our experts on all things relevant to branding, design and simplicity. Here, we speak with Christie Ryan, Carolyn Griffin and Lea Chu about our work with The Home Depot, the largest home improvement retailer in the United States. 

Account Management 

Why did The Home Depot engage Siegel+Gale? 

Christie Ryan: Since their founding in 1978, The Home Depot has powered renovation for millions of customers. But the time had come for the brand to make some renovations of their own, particularly to the Pro Xtra Loyalty Program. Although the program was successful, The Home Depot wanted to amp up its value and establish a deeper personal connection with Pros by introducing a tiering structure. The Home Depot partnered with us to create a new value proposition and key messages, as well as name the newly established program tiers and benefits. Given the busy nature of Pros and The Home Depot employees, our work needed to facilitate quick interactions, delivering the newly tiered Pro Xtra promise simply. So, our reputation as The Simplicity Company was vital to the engagement. 

Strategy 

How was the new value proposition developed? 

Carolyn Griffin: Pro Xtra’s existing proposition was geared towards savings, which we recognized were important to Pros. But, through an extensive research process, we saw that The Home Depot had over-emphasized savings—at the cost of under-emphasizing the reward and larger impact of the Pro Xtra program. Our goal was to craft a value proposition that highlighted savings, while honoring Pros and appealing to them emotionally. The effect of the new value proposition, “Rewards and Benefits That Keep Building,” is three-pronged: it clearly explains what Pros can expect from Pro Xtra; it speaks to the act of building up benefits, which advances one’s tier status; and it recognizes and celebrates Pros by nodding to the idea of “building,” an expertise of many Pros. 

What role did simplicity play in the engagement? 

CG: Our work with The Home Depot epitomized our “Simple is smart” ethos. Research revealed that Pros did not respond to more abstract concepts. They appreciate propositions that are straightforward and down-to-earth. With that in mind, we developed a value proposition and tier names that are at the intersection of clarity and surprise—enabling Pros to easily understand the program and see it in a new light. 

Naming 

Can you speak to the naming process for the tier benefits? 

Lea Chu: One of the big changes to the Pro Xtra Loyalty Program was the structure, moving from a single level of program membership to three distinct tiers. The new structure enables The Home Depot to tailor benefits and rewards to Pros with different needs. Unlike some other tiering programs popular with consumers, Pro Xtra is not about creating envy or desire between one tier and the next. Instead, the tiers are there to better serve Pros, and to celebrate them and their achievements.  

Our naming process was designed around Pros, to ensure we understood them and could “speak their language.” The Home Depot helped us tap into their Pro customer base via discovery interviews, and, later, validation research. We learned that our Pros encompass a range of occupations, from contractors to interior designers. We also learned that their businesses spanned sizes, from independent workers to larger companies. One reality that was true for all of the Pros we engaged with was that they work fast and hard, and operate with hyper-efficiency. The loyalty program offering—and the language used to communicate it—needed to be clear, straightforward, and appreciative. The names we landed on for each of the three tiers (Member, Elite, and VIP) achieve that, and set the loyalty program up for success in meeting the wants and needs of an important group of The Home Depot customers. 

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Building your house: where design and brand building intersect

Building a successful brand identity is no different than baking a delicious dessert, planning an adventurous trip, or even flipping a house. I know you’re thinking, “How can you possibly compare?” But stay with me for this HGTV-inspired analogy.

I’m an Account Director, having worked in branding the majority of my career, and design has been a passion of mine as long as I can remember. One does not have to be a creative or a designer to have an eye for it. When I’m not wearing my Siegel+Gale hat, my husband and I like to renovate and flip houses for fun. Yes, I said fun. It’s yet another story of millennials turning their hobby into a side gig. It only took me a project or two before I realized renovating a house was the same process as rethinking a brand identity.

Think of me, your Account Director, as the General Contractor. I’m here to help you build your brand or house from start to finish, bringing your vision to life. I bring in the necessary experts when needed, manage your budget and timeline, all while keeping you in the loop as your trusted point of contact.

Much like architects, strategists map out the blueprints for your brand. Establishing your brand’s purpose, promise, values, personality and voice helps set a strong foundation. You need a good foundation for the house to stand strong. Plus, like architects, strategists follow the project long after their job is done to make sure everything stays according to plan.

We then pull in our specialists. Building the brand, much like building a house, requires many different experts to come together. When building a house, we call in sub-contractors to frame out the house, wire electricity, float sheetrock, install flooring and tile, and so much more. You’d never want your tiler replacing the plumbing, would you? That’s why we have so many experts on our team—from naming and brand communication to experience and brand-led change working together to build the strongest brand for you.

While each part is equally as important, most people (including myself) find the design process especially fun. It’s not just about making things pretty, though. It’s about being beautiful and functional. In construction, many call on design consultants or interior designers to help with this component. At Siegel+Gale, we have the design team. Both use the same process—start with a kickoff to understand your vision, develop mood boards to begin refining the direction, then explore what the brand’s visual identity can really look like, down to specific colors, typographies, imagery and more. When I’m wearing my design-consultant hat, I use this process to help clients see the big picture and not get overwhelmed when deciding on the smaller details. The end result is a well-thought-out design that is both beautiful and functional.

What about research? I like to think of our analytics + insights team as the home inspectors. You can get a project inspected before, during, or after, based on your goals for the inspection. The purpose is to tell you the value of the property—making sure you’re investing wisely. Same goes for brand research. It can help lay the foundation for branding decisions, giving you the facts needed to make an informed decision when developing or refreshing your brand.

Once a house renovation is complete, it’s fun to live in that newly designed space. Same goes for your company—you get to live and breathe that new or refreshed brand. As I mentioned above, it only took me a project or two to realize the skills my day job as a brand manager have taught me can be easily transferred to overseeing a home design and renovation. Once I experienced that “ah-ha” moment, Nick and I tweaked our process to be even more valuable to our clients, helping them to see the big picture and not get overwhelmed by the process and details, just like we do here at Siegel+Gale.

I hope you enjoyed this small insight into how I organize projects. Design, no matter how it’s packaged up, inspires, motivates and energizes me. Seeing the small details play into the larger big picture, adding unique beauty and function to whatever I’m working on in that moment, is what makes this career (and hobby-turned-side gig) so fun for me. My hope is that I can make this Earth (or at least brands and homes) a more creative and functional place.

 

Samantha Starr-Shields is Account Director, Account Management 

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Simply Smarter: A newsletter on brand experience

In this month’s newsletter, our branding experts explore how, during increased economic volatility, strong brand building is paramount in reassuring stakeholders and helping them to prioritize where to invest their trust and resources.

 

Today’s preparation, tomorrow’s success

As inflation rises worldwide, Strategy Director, Patrick Kampff, outlines how strong brands can provide emotional reward and reassurance to consumers on every spend they make.

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Emotional intelligence

Major market shifts are intensifying the importance of smart branding for B2B. Our Global CMO, Margaret Molloy, posits that these new realities make it more critical than ever for B2B brands to focus on impactful experiences that appeal to emotions.

 

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Survival skills

In uncertain times, brand is the core asset that is key to not only survival, but, ultimately, long-term growth post-crisis. Our Global Director of Business Analytics + Insights, Brian Rafferty, reveals why in our Siegel+Gale Says podcast.

 

Listen here

How do you measure up?

Facts matter. In this Unlocking Brand, President for EMEA, Philip Davies, joins Ben Osborne, Head of Insights, EMEA, to examine the quantitative and qualitative measurement tools that we use to shape world-class brands.

 

Watch here

The science of brand contribution

How can brand owners make the intangible tangible? In this episode of Brand Matters, Ben Osborne, Head of Insights, EMEA, answers that and more. (Spoiler alert: focus on brand contribution.)

 

Watch here

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How to protect and enhance brand value after a merger, split or spin-off

This article originally appeared on The CMO Club.

Mergers, acquisitions and spin-offs challenge even the most reputable and profitable companies. The majority of such deals actually reduce shareholder worth or have no impact—even after companies have spent significant time and resources on finances, operations and logistics.

Meanwhile, in the pressure-cooker process of getting a deal done, the impact on the surviving brand is often put on the back burner—or neglected completely.

Unlocking the value of brand amid monumental change is hard. Yet successful deals show it can be done. Asking the right questions about brand:

Clarifies business intent behind a deal,Protects that intent throughout the process, andUnlocks brand potential after the fact.

Whether a company is facing its first or latest merger, acquisition or spin-off, it will benefit as a brand and a business from upfront thinking and planning.

Asking questions in these six areas will protect and enhance brand value.

Brand and the bottom line. How much does brand contribute to the bottom line? In the event of a deal, find data to back up decisions on brand elements to carry forward. Working with facts vs. long-held beliefs is always better. Knowing how much a brand contributes to the bottom line helps determine—and justify—many things, including whether logos are removed, names are changed or products are retired.Strategy and architecture. Times of change present opportunities to tell a fresh story and clean up portfolio overlaps that occur because of a deal. How bold can and should you be to capitalize on these opportunities? The answer will differ for each situation. A brand’s experience will guide how much change is optimal. Leaders who take defensive postures for fear of disrupting the status quo may miss opportunities.Naming. Names help companies tell a new story. Often, merging companies keep the name of the stronger brand, as was the case when NationsBank acquired BankAmerica to become Bank of America. Other times, a new name conveys transformation—such as when DXC Technology resulted from the merger of Computer Sciences Corporation and the enterprise services business of Hewlett Packard Enterprises. The “X” conveys the transformative role that DXC plays in helping its clients thrive.Visual identity. Does identity reflect new vision, purpose and promise? Will changes to identity send the right signals about the deal? In 2015, HP split in two in the largest corporate separation in history. The HP logo remained with HP Inc. while the other entity, Hewlett Packard Enterprises (HPE), defined its new place in the world. To visually express the massive change, HPE also adopted a new visual identity named “The Element”—a green rectangle, to symbolize the partnership between the company and its customers.Brand experience. Are experiences consistent and optimized across channels? How should brand experience evolve to support business goals? Deliver clear, simple and relevant messaging for each audience. Customers are not investors, and vice versa. Some companies deploy acquisitions to help drive growth—uniting subsidiary brands under an overarching brand experience. Ingersoll Rand is one such company. Over the course of a century, Ingersoll Rand ended up with more than 200 brands as it transformed from an old-line machine manufacturer. To unleash the energy of its subsidiary brands and link them as an integrated whole, Ingersoll Rand found a common theme among its business units: they didn’t just make products, they drove progress. The tagline “Inspiring Progress” brought the company together under one umbrella and enhanced its image as a force for innovation.Engagement and activation. Employees champion brands and can be the most important audience during a merger or other deal. However, an estimated 20% of employees voluntarily leave companies soon after merger announcements. Losing valuable talent at vulnerable times endangers your ability to deliver on new as well as old strategies. To reduce unwanted talent losses, help employees embrace new visions and keep them engaged post-deal. In 2011, Motorola separated into two entities, creating a new industrial broadband business, Motorola Solutions. To connect Motorola Solutions’ employees more directly with the people and organizations they served, the company produced “purpose posters” that showed moments in which the technology helped people be their best. Within three months, what started as eight posters ballooned to more than 250 translated into 20 languages. The posters became the device that allowed employees to share their moments that mattered. By seeing the consumer benefits, employees saw their role in a bigger picture. In the next two years, Motorola Solutions’ stock outperformed the market by 31%.

Never too late

Much is at stake when companies merge or split—for the companies, employees and shareholders. And while it is never too late to think about brand, it is best to start early—and way before the ink dries on a deal. Brand communicates the value of the enhanced company and serves as a filter to simplify, amplify and transform. Companies cannot move forward without knowing where they are going. Brand helps companies get there with focus.

 

David Srere is Co-CEO & Chief Strategy Officer

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What makes for strong brands during times of crisis?

This article originally appeared in The Drum.

To say that the UK economy is undergoing tough times lately is an understatement. Reasons aside, it’s well understood that inflation is here to stay – at least in the short term. While this phenomenon is commonplace in other parts of the world, our generation is experiencing it for the first time since the 80s; we don’t necessarily know how to cope with it as consumers.

The price of everything is becoming more expensive by the minute, and people are now more conscious of their diminishing purchasing power. And while we marketers have all the reasons to panic, this is still an exciting moment for brands.

First, let’s go back to the basics. You must remember why a brand is a brand in the first place. While the benefits of being a brand are many, I can think of three that are important for moments like this:

Brands assign attributes: Be it quality, safety, reliability – you name it. Successful brands can attach labels that describe what they’re about, and that becomes etched on consumers’ mindsBrands simplify decision-making: After a brand has secured a position of what they are about and how they are different, it’s easier to drive preference when consumers compare other products on the shelf. Brands simplify this process by providing a shortcut to decision-makingBrands provide emotional rewards: As eight out of 10 purchases at the supermarket are non-planned, strong brands trigger consumers’ emotions to bypass the rational decision-making process when selecting what to buy

All in all, marketers need to remember there are a plethora of benefits to being a brand. And the point is, if you’re not a brand, you’re a commodity – meaning the product with the cheapest price wins. We’ll talk about this in a minute.

But before taking any desperate measures, brand managers need to grasp the emotional state of consumers during these times. It’s a scary moment indeed – people are dealing with uncertainty and, to some extent, fear. Will I need to cut back on spending? Will I make it through this month? Will I lose my job? As people are navigating times of increased volatility, strong brands provide reassurance to consumers. Through the benefits they provide, strong brands minimize risks in a moment when consumers are making harder choices and prioritizing where to invest their weakening pounds. There’s much more planning involved, so the value of certainty that brands can provide is amplified.

Price is what you pay; value is what you get

Say what you will, but strong brands provide security – and that’s worth their price premium – so consumers are less willing to trade down. It’s in moments like this that we test the real power of brands – or sometimes we find out they’ve been substituted by a cheaper alternative (read private labels). As a brand manager, you can’t know that until your consumers are pushed against a wall. Exciting, huh? But if the latter is true, it can also be terrifying. Whatever the situation, remember the three As to help your brand weather the inflation storm:

1. Avoid

It’s tempting to lower prices in hopes of stimulating consumer spending and keeping your sales volumes stable. This is a major no-no. Avoid the price war at all costs. Lowering your price and engaging in a price war is often a zero-sum game that the one with the lower cost or higher economies of scale wins. That’s hardly a strong brand. Price wars are a race to the bottom that erodes equity, and all brand-building efforts go down the drain.

Quite the opposite, strong brands are not afraid of raising prices during crises to protect the quality of their products. If your category demands a price increase, be transparent with consumers on why you’re doing it so you don’t betray their trust.

2. Adjust

When brand managers panic, one of the first reactions is to cut marketing spend or disappear from consumers’ minds. After all, the situation is already bad for everyone, so why should they roll out that new campaign? Wrong. Strong brands don’t go dark; they take the opportunity to adjust the messaging to one that shows empathy and concern for the situation.

It’s also worth mentioning that during crises, the cost of media placement usually decreases, and consumers are more receptive to messages since they are trying to make sense of what’s happening. Remember their emotional state – consumers are looking for reassurance, so there’s a clear angle to provide a powerful emotional effect.

Crises also provide a chance to assess your product portfolio. Strong brands compete on value provided, not price, so this is the moment to reduce SKUs that are less profitable. Products with features that add more cost than value to consumers should be reduced or removed.

As a brand manager, revisit your usage and attitude findings and double down on products that get the job done for consumers. Focus is key.

3. Amplify

After understanding which areas or product lines are winners from a consumer behavior standpoint, seize the opportunity to amplify them through meaningful innovation that delivers and captures value.

Like cutting marketing budget, brand managers are also tempted to cut R&D spending during tough times. However, strong brands know this is the perfect moment to go back to the drawing board more focused. Consumers expect leading brands to lead, so lean on your equity and be bold.

While economic forecasts say inflation will continue to be part of our lives, there’s no reason for despair. Consumers might have less willingness to spend money, yet strong brands have the capacity to provide emotional reward and reassurance to consumers on every spend they make. Don’t underestimate the power of that.

 

Patrick Kampff is Strategy Director, EMEA

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What is Web3—and why should you care?

This article originally appeared in MediaPost.

Web3 is a new generation of Internet technologies that encompasses blockchain, cryptocurrencies, and NFTs, all of which aim to develop a decentralized future of the Internet. It includes next-gen immersive social experiences — namely, the much-maligned “metaverse.”  While the relevance of these technologies may seem remote to those of us who haven’t eagerly jumped onto the Web3 bandwagon, its influence is far nearer and more significant than it may seem at first glance.

Web3 isn’t just a technological evolution. Its core tenet of decentralization represents a fundamental shift in the expectations and role of individuals, financial institutions, tech companies, and brands, both online and offline.

Brands need to recognize Web3 for what it is — a cultural shift. Web3 will not only change how businesses structure their operations to enable greater transparency and accountability, but it will also impact brands’ core value proposition and strategy at the highest level, due to changes in audience demand drivers. The basis of Web3 is the blockchain, but its conceptual origin lies in a philosophical dialogue on breaking up the monopolies and gatekeepers of the Internet, a conversation echoed by the cultural sensibilities of the up-and-coming Gen Z audience of consumers and creators.

Web3 may take several decades to fully realize. Still, the habits and expectations that inform it have been defined and accepted as de facto in Web2 and are unlikely to recede in relevance.

With all the controversy surrounding Web3, what’s relevant to me?

This year’s shifting tech landscape and its scandals have thrown conversations about the future of Web3 technologies into disarray.

We’ve witnessed the real-world manifestation of Web3 ideals fail in the collapse of stablecoins TerraUSD and LUNA early in 2022, followed by a market crash that even the likes of such household names as Bitcoin and Ethereum have yet to recover. And with this “crypto winter,” digital assets like the “Board Ape Yacht Club” NFTs have fallen from valuations of over a million to less than a tenth of that value.

We’ve seen scandal rock the upper echelons of crypto royalty. There’s the Enron-esque downfall of crypto exchange platform FTX and its CEO Sam Bankman-Fried, who had only months prior graced the halls of the White House, shaking hands with celebrities and world leaders.

And finally, we’ve seen the increasingly apparent shortcomings of Meta’s Web2-posing-as-Web3 venture as screengrabs have been shared of the depressingly low-fi experience Horizon Worlds offers, a $15+ billion-dollar investment into the metaverse that seems to be floundering for a footing in a post-pandemic world.

For all these potholes, the onward march of Web3 technologies is not just likely, but inevitable. The cornerstone of Web3, the blockchain, has already found myriad uses in enabling companies to track and manage their supply chains more accurately than ever before. It promises to foster a more secure future for consumer data, safe from privacy breaches that can occur when personally identifiable information (PII) is saved to a server protected only by the resilience of a private enterprise’s security precautions.

But the face of Web3 doesn’t stop at a brand’s supply chain and infrastructure. Changing expectations means the transactional relationship between the consumer and producers or sellers will also change. With it, new user patterns, interfaces, and applications must spring up or evolve to accommodate these new behaviors.

What should brands anticipate from Web3?

With this paradigm shift on the horizon, brands must understand not only what Web3 is but also what its implications are for their industry and business model. Rather than attempting to shoehorn these technologies in the name of keeping up, it’s critical to identify the parts of the business that would reap benefits from Web3 thinking.

Success stories have emerged from Web2 businesses that have evolved their business model by adopting a Web3-adjacent mentality of decentralization. One of these is HaiDiLao, a Chinese-based restaurant chain that did away with a traditional organizational model in favor of an autonomous network of restaurants with built-in profit sharing based on successful mentorship of leaders of new locations. HaiDiLao’s adoption of this co-op model in which employees have stakes in the larger business has catalyzed its outsized growth and consistent quality standards, is an example of how brands might innovate for resilience in a Web3 world, without needing to employ any actual Web3 technologies.

On the other hand, there are digital-first startups that have only just sprung up in the advent of murmurings about Web3. Royal.io has flipped the music business on its head by transforming fans into investors and enabling artists to manage the distribution rights of their own music. When an artist lists a track on Royal.io, fans may purchase a token representing a percentage of the track’s streaming rights, garnering them royalties every time the track is played. Fans are no longer at the receiving end of an artist’s work but are active participants in the industry.

How will Web 3.0 transform the operating rules of the Internet for brands?

Product offerings based on Web3 technology are emerging, often in the form of apps or software integrations.

Keybase.io is a secure messaging and file-sharing software product that enables individuals to use blockchain to demonstrate that they are the rightful owners of their social media accounts. In the wake of Twitter delegitimizing the “blue check,” a product like this could provide cross-platform trust in a trustless digital ecosystem. For brands, this will make the impact of marketing easier to track and marketing expenditures easier to justify — both are big wins for the profession.

With regard to off-platform marketing, Web3 has additional implications for both consumers and marketers. Brave, a Web3 browser that empowers its users with greater privacy and anonymity controls, has rolled out an opt-in advertising platform that rewards users for their attention. Users can opt into viewing ads to earn revenue or opt out of ads entirely.

Web3 gives content creators more control and ownership of their creations. Today, influencers on such platforms as Twitch and YouTube Gaming have been able to monetize themselves agnostic of platform, commanding hundreds of thousands of dollars as signing bonuses to create content. However, only attributed posts on content platforms are monetized. In the future, blockchain attribution could enable them to monetize their work, even if it is reposted to channels other than the content platform on which they initially published by acting as a watermark. Those who create viral content could receive compensation for every click, regardless of where the click happens.

Looking forward

Developing an understanding of Web 3.0 is critical for brands and business leaders. The development of Web3 is not a matter of “if” but “when.” We may not know what the fully mature Web3 may look like, but its impact on businesses at the forefront of technological innovation is already apparent.

That said, we’re in the infancy of Web3’s development. Because of that, brands are operating at the intersection of opportunity and risk. In many cases, business leaders are working with theories, hypotheses, and early pilots unfolding alongside ongoing technological development.

As businesses embark on ventures in new channels and mediums, it’s important to maintain true to their core brand, even as their ecosystem expands. Success in innovation will quickly require design and user-experience thinking, scalable development, and effective governance of the brand. Not only will brands require their standard brand and digital guidelines, but also guidelines for AR/VR and metaverse experiences, cooperation guidelines for cross-platform interoperability, and participation guidelines for consumer-stakeholders.

The final word is this: Remain responsive and adaptable. Be willing to rethink the way your business works. Consider your customers and employees as stakeholders, not recipients… and you’ll be well-suited to succeed, even as technological innovation continues to accelerate.

Amy Chen is Director, Experience

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Why B2B branding is more important than ever

This article originally appeared on MarketingProfs.

For years, many B2B brands invested more in sales and product than in brand marketing, the conventional wisdom being that superior specs and personal relationships would win the day. Today, however, it’s clear that strong brands are just as crucial in B2B, where they enhance effectiveness of demand-generation activities, lower the cost of sales, and command a price premium.

Some of B2B branding’s salience stems from evergreen truths: emotion has always been a larger driver in B2B purchases than some imagine. At the end of the day, a business buyer is still a human buyer. Consider the detrimental career implications of selecting the wrong supplier for a critical business process.

What’s more, savvy B2B brands recognize that potential buyers can be classified into two groups: in-market and out-of-market. Only a minority of buyers are currently in-market, or actively seeking your product or service, and thus likely to respond to rational product features and benefits marketing. Most aren’t actively shopping: the goal with this out-of-market majority is to be memorable enough that when these buyers have a need, they seek out your brand. Emotional messages are more likely to create these memorable bonds.

The power of emotion aside, we’re also experiencing major market shifts that are intensifying the importance of smart branding for B2B. Both technical and societal, these new realities make it more critical than ever for B2B marketers to focus on brand—specifically how purpose, values, and user experience shape their messages and behaviors.

1. Digital transformation

Today, almost every company is a digital company, particularly in B2B, where many legacy providers of technology and professional services have to incorporate software offerings, often with subscription plans.

This new business model has upended the B2B sales cycle. To renew and grow subscriptions, companies must keep customers engaged and satisfied throughout their experience journey; conversion to sale is just the beginning. In short, marketers must think about customers as users, rather than as buyers.

With this in mind, great B2B companies become true resources committed to their clients’ success. Take HubSpot, the pioneer of the digital inbound marketing space. Its brand voice—empowering yet simple—is channeled through every touchpoint, including its AI chatbots. What’s more, it’s come to serve as a hub for professionalization resources, offering freemium content for marketers at every step of customer relationship management (CRM) implementation. By being approachable, easy to “talk” to, and a rich source for marketing thought leadership, HubSpot’s brand experience lives up to its promise to help clients Grow better.

2. Increased competition

With digital transformation comes competitive proliferation, as traditional barriers to entry come tumbling down thanks to scalable technology platforms, remote work, and copious VC funding. It is challenging for any B2B company to maintain differentiation at the product or feature level. This is where B2B branding comes in.

Brands must show that while their heritage gives them scale and resources, they possess the ability to flex to meet modern demands and opportunities.

American Express had long found differentiation in its exclusivity; paying with a Gold (or Platinum or Black) AmEx card was a sign of prestige. Further, by providing shoppers financial incentives for buying local on Small Business Saturdays, American Express became the credit card provider of American small businesses. The program proved enormously successful, driving revenue to small businesses and also evolving American Express’s brand positioning to be highly purpose-driven and differentiated.

3. Sustainability as business imperative

Every year it gets clearer that environmental sustainability is not a “nice to have,” but rather an imperative for continued business success. B2B companies have some of the largest changes to make to lower their carbon footprints; industrial and utility firms create about 50 percent of the nation’s greenhouse gases.

In times of transition, brand provides not only a guiding light, but also goodwill from stakeholders. Marketing will play a pivotal role, translating complex boardroom decisions about sustainability into reasons to believe for clients, employees, and investors alike.

Additionally, a well-loved brand can provide some insulation from stakeholder doubt; the goodwill earned from years of brand marketing can ease B2B companies’ sometimes bumpy transitions from brown to green energy.

For a case in point, look at Maersk, the shipping giant whose very Scandinavian brand is based in humility, accountability, and “constant care.” Maersk’s brand-building activities have proven extremely valuable to the firm, especially in times of crisis. For example, after one of its cargo ships struck and killed a whale, the brand’s transparency and contrition on social media won the respect of many followers, easing the potentially negative PR effects of the incident.

4. Millennials as decision-makers

Millennials are now well into adulthood and occupy prominent decision-making roles, responsible for making myriad B2B purchases on behalf of their companies, from services to products. Having come of age with mobile banking and Amazon Prime, they expect the B2B brands they procure to deliver similarly personalized and frictionless experiences.

This includes employer brands. According to a study by American Express, 78% of millennials say they want to work with a company with whom their values align.

Brand marketing is central to articulating and evangelizing a corporate ethos. However, this must be done in tandem with employee engagement initiatives that model desired behaviors and reward those who live the brand. An engaged workforce is often a B2B brand’s greatest marketing asset, more effective at disseminating brand messages and creating a consistent experience than any paid channel. Keep in mind, the talent you attract will define the brand that you become.

Salesforce has invested seriously in cascading corporate values throughout the organization. It’s become well-known for its promotion of “stakeholder capitalism,” or the idea that business can benefit not only investors, but also employees, customers, and community members. Salesforce walks the walk. Its “trailblazers,” as it calls its employees, are empowered to contribute to positive social change as part of their job duties. The company’s 1-1-1 program devotes 1 percent of Salesforce’s equity, technology, and its people’s time to bettering education, equality, and the environment. For its efforts, Salesforce has been consistently named one of the best places to work in America.

United in purpose: Great B2B branding

The B2B companies that have risen to the new brand imperative have all located their North Star in something more emotionally impactful than products, services, or shareholder value. From HubSpot’s commitment to helping other brands grow better, to Maersk’s stalwart uprightness, mission-centric brands allow enterprises to create human connections with employees, customers, and the community, while simultaneously guiding the sometimes dramatic changes necessary for growth in today’s fast-paced, highly saturated markets.

 

Margaret Molloy is Global CMO 

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