Brands Create Customers

Brands are interfaces to new ways of being and doing, and brand builders always keep an eye out for new advances in interface technology.

Here are 10 futuristic user interfaces for your consideration. These are for the emerging age of brands where brands will be personal, portable and persistent. Of course, they’re not specifically intended for brands. It’s up to brand builders to seize their potential.

Brand interfaces that intensify user participation

For my money, I always look for interfaces that deepen and intensify user participation, where a (creative) brand can be an enabler of new forms of experience, expression and insight.

The above image is from the future of internet search series at petitinvention, a good source of visionary interfaces.

Martijn van Welie has written useful guidelines to help interaction designers deal with brands in “Brand behavior in interaction.” This is part of a longer series he’s doing called “Thoughts on interaction design.”

I’ve addressed the same subject from a slightly different perspective in Interaction design: the new key to brands.

Brands as interactions

If brands are interactions, then interaction designers will play an increasingly important role in brands themselves, especially as brands migrate to digital platforms like the iPhone. Their talents will be needed to make brand interactions amazingly productive for companies and customers, with solutions that address:

1. How to maximize customer autonomy and freedom, through the brand
2. How to make the brand a “second skin” to customers, one that is also personal, portable and persistent.
3. How to foster customer participation and collaboration in building the brand, on an equal level with the company
4. How to create strategic brand communities, value nets and “creation nets.”
5. How to source brand innovation at the edge
6. How to ensure that the brand delivers value the customer can use
7. How to intensify and enrich the brand engagement

Interaction designers as the rock stars of brands

I’ll still keep my original prediction that interaction designers stand a great chance of being the new rock stars of brands. Their skills can unleash myriad new ways for brands to create customers, widening the gap between brand winners and losers.

NOTE: I originally dashed off this post while getting ready for a flight, and have now had the time to add to it since it first appeared.

Don’t be too surprised if in five or ten years the US educational establishment runs on Google, from the neighborhood school to the college campus. Google teams are hard at work making Google the digital platform of learning. Through these efforts, Google is positioning itself to be a preeminent brand of education. You may physically attend Harvard or Yale or PS 27, but you’ll spend most of your time there inside Google applications. In practice, you’ll be going to school in Google.

A Google brand play

The elements of Google’s emerging education brand are set forth in Google for Educators. This initiative is a Google brand play, taking shape before our very eyes. (A brand, let’s not forget, is a collaboration in context that creates new customers and new customer value.) Google is building programs to create customers in teachers, and in students. To build its brand it doesn’t need glitzy campaigns, high-octane messaging, costly Super Bowl ads, celebrity endorsers, iconic symbols, or throbbing slogans. This is a Google brand built from the bottom-up, through customers themselves and their communities.

A brand of deliverables, not promises

Significantly, Google is building its education brand through what it delivers, and by what it does, rather than by what it says or promises. Bands are deeds, not words, and brands rich in deliverables have the inside track to be recognized as brands of integrity and trust.

In education, integrity and trust are fundamental.

Google in the classroom

To see what Google is up to in the education market, look at the links in the above-noted Google for Educators site:

• Tools for your classroom
• Classroom activities
• Classroom posters
• Google Teacher Academy
• Teacher Community

Building the integrated brand

One way to describe a brand is to call it “vertically integrated value.” Google already offers a broad scope of integrated tools for learning, incorporating Google search, Google Docs, and many other applications. These are the building blocks of an integrated brand. Basically, Google is covering everything a student or teacher would want to do in the collaborative learning process, made available from single drop-in cloud.

Students can take notes in Google, write essays, share and collaborate, create special projects, and communicate with blogs, podcasts and videos. Eventually, they will take their tests in Google, too, with stealthy algorithms to keep things honest.

And yes, there will soon be “Google Certified Teachers” who successfully complete the Google Teacher Academy.

A Google brand platform for education

What Google is building with its education initiative is a brand platform. Here is how I define that term:

The brand platform is a structure of integrated brand components architected to create focused customer growth. As a platform, it: 1) serves as a common foundation for brand program applications; 2) allows for greater efficiency in brand program development via shared elements; 3) leverages context and content across the brand; and 4) enables customers to extend the brand through bottom-up brand innovation avenues.

You can see how all these pieces are being fitted together. And you can foresee the pieces to come.

Photo: jisc_infonet — Flickr

“No one wants a relationship with their mustard.”

Kara Swisher uses this quote (from an ad agency exec) to begin her post, Social ads not cutting the mustard? She examines why widgets and other forms of “social advertising” haven’t (yet) lived up to their billing.

She continues:

This odd but spot-on observation was about why big packaged-goods advertisers–who are the really big spenders of the ad business–might be less than interested in leveraging social-media advertising and its promise of deep engagement with consumers.

No one wants to interact over mustard or mayo or ketchup or most products that pay the rent up and down Madison Avenue.

Brands and the big picture

In a narrow sense Kara is quite correct: we don’t need to chat with our jar of Grey Poupon, or have it update our Google calendar, or follow us around on Twitter. But no one really expects that, either. Such a focus on the jar or the tin is myopic. In the big picture of things—where brands play—relationships with products like mustard are very important indeed. They’re the essence of brands. What counts is the context of the relationship, and the ability of the brand itself to make that context sustainably engaging.

In brands, context is king

From a brand perspective, the blanket statement that, “No one wants a relationship with their mustard” is self-limiting. It precludes brand opportunities. Consumers can be open to such relationships—if they’re meaningful. Using mustard as an example, mustard brands have been designed to be very rich in relationships for decades. They certainly want relationships with their customers, beginning with brand trust and brand loyalty. And they certainly want their customers to have relationships with them—beginning with the brand experience of a consistently tasty product. These relationships are money in the bank.

Building the brand enthusiast

Customers who use a particular mustard will often swear by it, testifying to their relationship. If they also use it for marinades, sauces and dressings, the mustard will play a significant role in their recipe repertoire and cooking lifestyle. This places the mustard in the brand Nirvana of the enthusiast, and believe me, in that space will be a relationship. Weber understands this quite well, for example. And would Weber ever think, even for a second, that people don’t want a relationship with their grill?

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Brand builders are generally very familiar with the concept of “whitespace” used by designers. In design, whitespace is usually defined as the space between elements in a composition. This is not “empty” space but an organizing force in its own right, one that can add considerable power and emotion to a design or layout.

A related kind of whitespace plays an important role in brands. What I call “brand whitespace” is conceptually akin to the whitespace of designers, but in brands it’s a behavioral space for customers rather than a graphic one for layouts. Brand whitespace is the new maneuvering room that a brand creates for its customers. It can make a dramatic difference in how customers perceive a brand, and interact with it.

Brand whitespace is engagement space

Brand whitespace flows from the brand context that we create for, and around, customers. It forms the “engagement space” of the brand, where customer potential meets brand potential. The larger the brand whitespace, the more freedom the customer has to interact with the brand, to do something proactive with it, and to extend it. With this customer freedom, brand whitespace helps us create customers who can add value back to the brand.

Breathing room

You can think of brand whitespace as the breathing room of a brand. Creative brands offer lots of whitespace because they want the customer to be creative, too. Brand whitespace is that blast of fresh, bracing air that customers inhale in the presence of your brand programs. The more nourishing that atmosphere the more sustaining the brand engagement, and the more new life customers can breathe back into the brand.

Why brand whitespace matters

Brands suffer when they fail to create sufficient whitespace for customers. This can occur when a brand tries to impose a belief system from above, using campaigns of messaging, theatrics and special effects. Such an approach can choke the customer out of the brand. Without whitespace the brand becomes a series of pronouncements about itself: one-dimensional, top-heavy, closed, cloistered and stale. With no space of their own, customers can’t freely interact with the brand or with each other. With a diminished air supply they become passive and dull. The brand itself eventually withers to doctrine and drill, kept alive only by inertia.

Brand whitespace is interaction space

Brand whitespace is brand interaction space. It is where the brand and the customer join to advance their mutual agenda. Brands, of course, are a two-way street. An airy brand whitespace can transform that street from a cramped, one-way alley into a bustling two-way thoroughfare, opening the gates to ideas, insights, innovations and emotions. The more freedom that the whitespace affords the customer, the more the customer can interact with the company, the brand, and other customers to generate new forms of brand value.

Brand whitespace is collaboration space

We design brand whitespace as a context of collaboration and joint discovery. It’s an open work space where the customer and the brand join forces. This is a space of partners, and of equals. The more stimulating the brand whitespace that you provide, the more your customers are free to grow in new directions, taking your brands with them into potential new markets.

Brand whitespace is innovation space

We need brand whitespace so our brands can fully benefit from the initiative and innovation of the customers we create. In this context, brand whitespace is the customer’s opportunity space, mediated by the brand. I like to think of it as a virtual sandbox, where the brand and the customer are free to experiment, explore, prototype and iterate.

Brand whitespace helps advance the customer

Brand whitespace is customer growth space. It helps advance your customers beyond the reach of competitors. In the process it helps transform customers from lowly marketing “targets” to a living brand resources with value-adding potential. By giving customers the freedom to maneuver in the context of the brand, the brand can elevate customers from passive “consumers” to active brand participants and partners.

The brand goal here is twofold: 1) leverage customer insight and initiative to create new forms of value that competitors can’t match; 2) let customers take the brand into new markets where competitors can’t follow.

From a brand perspective, your customers are your greatest competitive weapon. Creating a stimulating whitespace is one way to build out your competitive arsenal.

The measure of brand whitespace

The measure of brand whitespace lies in the degrees of freedom that the brand makes available to customers, within the brand context. These can stem from the company, the product, the brand and the customer. On an axis, the low end of whitespace would be propaganda, and the high end would be partnership.

How to create brand whitespace

How do we create the brand whitespace that both brands and customers need? The answer will differ with every brand, but here are some general guidelines:

1. Understand that your brand is a method for creating customer value. Brand whitespace is one of your premier tools. It’s a new context of freedom that you deliver.
2. Your brand whitespace will determine how freely your customers interact and interoperate with your brand. The greater the freedom your brand confers, the greater your potential brand drive from below.
3. Conceive your brand as a shared innovation platform with customers. Brand whitespace forms an innovation sandbox where you and customers can tinker.
4. Build your brand as a means, rather than an essence. A brand that enables customers to shape new forms of self and to do new things will have plenty of whitespace where customers can re-create themselves through the brand.
5. Design your brand to deliver freedoms that competitors can’t match. Use your whitespace as a competitive weapon to win customers to your side.
6. Brands designed as messaging campaigns usually offer very little whitespace for customers. They clutter the customer’s world, and are vulnerable to brands that take a whitespace approach.
7. Brand whitespace is customer headroom. It’s a sign that you respect your customers.
8. Create a brand context larger than the company. Share this context with customers. Ask them to help shape it, and to move it forward.
9. Use your brand whitespace to open avenues of collaboration, initiative and innovation between customers and the brand, and between customers themselves.
10. How you present your brand can prefigure the brand whitespace you make available to customers.

In future posts I’ll identity specific cases of brand whitespace and how they help build strategic advantage for the brands involved.

The monumental baggage problems at Heathrow airport’s new Terminal 5 highlight the importance of what I call brand failure points. Brand failure points are critical company operations that can potentially break the brand if they fail to perform. If they do fail, it’s the brand that pays the price, and the price can be heavy. Full recovery may take years.

Brand failure points often hide behind the scenes, far from the brand limelight. A classic brand failure point for a high-flying airline is, of course, lowly baggage. To an airline, it’s a back room job. To passengers, however, it’s front and center.

Brand failure points: off the brand grid

Brand failure points are especially dangerous because they’re typically off the brand grid. They often inhabit the least glamorous parts of a business, far from the glitz and the glamor. They’re usually not addressed in a typical brand program, especially one that lives large on symbols and fanfare. They’re often outside the direct control of the brand team, tucked away in black boxes and back rooms. Potentially, they are silent brand killers, churning and chugging away in the bowels of the business until they suddenly snap—and take the brand with them.

Failure points and points therein

In this post I’ll first discuss the nature of brand failure points, using Heathrow Terminal 5 as an example. Then I’ll suggest basic steps the brand team can take in identifying potential brand failure points, and in failure point management. The latter requires that the brand team assume a much higher profile in company operations.

Let’s begin with a review of what happened at Heathrow Terminal 5.

The potential for lasting damage

Terminal 5 is a gleaming new wing of Heathrow built at a cost of $8.6 billion on the promise to eliminate airport delays and congestion. It is run by airport company BAA and British Airways (BA) as a prime gateway to BA flights. Terminal 5 puts BA’s brand squarely on the line. Unfortunately, the seriously flawed opening is widely viewed as a brand meltdown for BA, with hundreds of canceled flights and thousands of irate fliers. As a grand opening, it was something of a faceplant.

One report called the inauspicious beginning “an absolute national embarrassment.”

From Bloomberg:

British Airways Plc canceled 54 flights today as the chaos at London Heathrow airport’s new Terminal 5 stretched into a third day.

. . .

“This will clearly go on for days,'’ said Howard Wheeldon, an analyst at BGC Partners LP in London. “The potential for lasting damage to British Airways is far greater than anything that has gone before.”

“A calamitous debut” according to the Los Angeles Times.

A passenger quoted in the Financial Times:

“What a disaster. I was always told that with the arrival of T5 everything would be better. RUBBISH! I was delayed for 1½ hours on a flight that only takes 90 minutes. I still don’t have my bag.”

Perhaps the Financial Times said it best: it will be a “long haul to restore BA’s reputation.”

What went wrong at Heathrow Terminal 5

These are some of the things that went terribly wrong at Terminal 5 as part of its grand opening:

1. Inadequate employee parking caused employees to be late to work as they searched for spaces in employee lots; slow shuttles from alternate lots caused more delays.
2. Once at the Terminal, employees could not get to their stations because not enough security personnel were deployed to screen employees before entry.
3. Baggage handlers underestimated the time it took to get bags from one part of the (huge) Terminal to another.
4. Baggage conveyor belts (10 miles of them) backed up; one belt broke down.
5. At one point, 15,000 bags were stuck in the Terminal baggage system.
6. The first seven flights of day one left Heathrow without checked baggage.
7. In all, 430 flights were canceled.

In addition, as reported by the Independent, BA misinformed affected customers on compensation for delays, and refused to provide hotel rooms for delayed passengers per ticketing agreements.

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There’s an interesting brand story unfolding in the airline industry: the customers are driving the brand. Airline passengers are pushing to raise service standards and improve airline/passenger relationships, while the airlines trade group is resisting them at every turn.

The real issue: depth of brand commitments

The surface issue is a highly publicized charter of “passenger rights” for passengers stuck on airplanes delayed for long periods on the tarmac. The real issue is the depth of brand commitments that airlines are prepared to make to passengers. While the airline industry has played hardball on the issue, at least one airline (JetBlue) is creating new brand avenues to position itself much closer to customers.

Airlines vs. passengers

The recent news is that the Airline Transport Association (ATA), the airline trade group, successfully challenged a New York law that required airlines to provide food, water, clean toilets and fresh air to passengers trapped in a plane delayed on the ground longer than three hours. (Currently, airlines have no such obligation.) The ATA challenged the state law on the grounds that only the federal government can regulate air travel. A federal appeals court agreed, and rejected the law. Other states are considering similar legislation—or at least they were until the appellate court ruling.

Who is holding passengers back?

The airlines make a good point in that it makes sense to govern them with a single set of laws, not a state-by-state patchwork. Fair enough; let federal laws prevail. But are the airlines ready to propose a passenger rights alternative at the federal level? Something to protect the industry brand and prevent negative brand experiences. An airline proposal might even specify general standards for passenger treatment, to weed out the low performers who give the industry a bad name.

No ATA proposals

The answer is unfortunately, “no.” No ATA proposal seems forthcoming. In fact, the the ATA has opposed such legislation at the federal level, too, with considerable success. As USA Today has noted:

. . . Measures moving through Congress to mandate better airline behavior have been so weakened that they are almost meaningless.

The airline industry, which opposes new mandates, has lobbied with great success. While it can’t seem to scare up a bag of peanuts to feed stranded fliers, it coughed up millions to fuel lawmakers’ campaigns and to finance its lobbying activities. . . .

. . . If airlines put as much effort into meeting customers’ needs as they do into lobbying against consumer laws, then perhaps there might be fewer horror stories.

Horror stories and the brand

We’ve all heard the horror stories. Hundreds of airline passengers are stuck for hours on an aircraft delayed on the tarmac. Passengers can’t leave. Food runs out. Water is scarce. Toilets overflow, and fresh air dwindles. In such abhorrent conditions, passengers suffer, airline brands take a serious hit, and brand trust evaporates.

It’s these horror stories that helped spark the “passenger rights” movement, and continue to fuel it. Since the airline industry doesn’t forthrightly address them, more horror stories are inevitable. They’re brand disasters waiting to happen.

The brand implications of “passenger rights”

The issue of “passenger rights” never would have emerged had airlines (and the industry) done a better job of managing their brand relations with passengers. The rise of “passenger rights” as a public and political issue is really a sign of a general brand breakdown at the airline level. It signifies that passengers can’t trust airlines to do what’s right. (Think about that for a moment.) It steals brand initiative from the airlines themselves, and it puts airline brands on the defensive, where they’re in no position to create new value.

The airline industry pays a high price for not addressing the “passenger rights” movement head-on with creative brand programs. The movement magnifies every airline misstep through the media, requiring ever larger cadres of PR and lawyers to contain the media fallout.

A strategy of low brand innovation

The airline industry backed itself into this corner by following a strategy of low brand innovation. This is a strategy sometimes found in declining industries that devote their resources to lobbying politicians for concessions, rather than creating new customer value. For the airlines, this is a strategy designed to protect less agile airlines from market challenges. As a strategy it can be “made to work,” only because passengers are captive customers: they have no choice but to fly to their destinations.

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Techdirt points out that Google Maps is increasingly behaving like a wiki, allowing users to edit and annotate map information to provide more local relevance. This strategy may allow Google to play a greater role in users’ lives, creating platforms of brand innovation and brand trust that can carry over to other Google applications and services.

A series of Google videos explains how this works.

The wiki context is brand context

A wiki is no substitute for a complete brand structure and strategy, but it may be the dominant brand context going forward. Framing the brand as a wiki makes sense, because a brand is a collaboration in context and in value between a company and its customers. It’s a shared work in progress rather than an icon imposed from above. In a wiki, customer’s don’t just “buy in.” They pitch in to co-create value that the brand alone could not produce.

A wiki context also helps ground the brand in the real world of customers. A wiki keeps brands honest, sparing them the death spiral that can occur when a brand falls prey to its own limitations—or fantasies.

Brand principles behind “wiki-like” Google Maps

A map is a context. It can rise to the level of a brand context when it becomes vitally relevant to its users, like a second skin. With its new wiki-like features in Google Maps, perhaps Google understands a few brand principles that traditional brands still struggle to comprehend:

1. Your customers are your greatest competitive weapon. Enabling customers to add relevance to Google Maps makes the maps more valuable to users, and potentially makes the information on the maps more valuable to Google advertisers.
2. Brands are enablers, not controllers. The more you enable customers to embrace new freedoms and to create new relevance via your brands, the faster your brand can innovate, leaving competitors in the dust. Brands that aim to control or contain customers eventually wall themselves in.
3. A great brand aims to put more customer in the product. Opening doors to customers opens customers to new dimensions of you. Some of these may be quite valuable, and quite possibly, new markets.

Some related posts: Techdirt and TechCrunch.

Photo: Kramchang — Flickr

A few days ago I came across an animated GIF that, to my mind at least, provides a moving metaphor of how brands interact with customers to create value. This particular animation wasn’t designed to explain brands—it shows how a sewing machine creates a lockstitch—but the process of stitching together two elements, in a lasting fashion, is a large part of what brands do.

Check out the animation for yourself:

Animated GIF of brand interaction and value creation—aka how a lockstitch works.

The animated brand

As I view this animation metaphorically, this is what I see happening in terms of brand.

1. Imagine that the green thread represents the customer.
2. The down stroke of the needle is the purchase.
3. The blue thread from below represents brand value from the company.
4. The rotating red arm (the hook) represents the value delivery of a brand program.

These four elements work together to bring about a fabric of co-created value. You can see the fabric being stitched together in the animation. To the right side, before the brand interaction, we see two separate layers of cloth. After the brand interaction, those two layers have been bound into a new relationship, of infinitely greater value. A strong, well-stitched fabric means brands that can be fit to the customer, and endure the test of time. Of such strong threads, enduring brand relationships are made.

What this animation reveals about brands

In this animation you can see how the resulting lockstitch is a co-creation of the customer and the brand. It shows the resulting brand fabric as a collaboration in value. Without that co-creation, the resulting stitch would be a much weaker chain stitch, a kind that can unravel easily. Cheap, flimsy brands are like a chain stitch. They’re not made to last.

Image source: Craftzine blog

Business Week reports on what makes Trader Joe’s so attractive to customers. It includes a number of examples comparing the shopping experience at Trader Joe’s vs. shopping at conventional supermarkets. Well worth reading.

Brand first, store second

As I see it, the key to Trader Joe’s success is that it’s a brand first, and a store second. The brand imparts a unique customer logic (or customer predicate) to the store, and customers interact with—and evolve—this logic, giving the store a very intimate feel, even without the usual jam-packed aisles. It’s a brand approach in which Trader Joe’s presents itself as a buying agent for customers rather than as a grocery chain trying to unload stuff from its shelves.

Private labels are the stars of the show

Trader Joe’s carries about 2000 products, and about 80% of these are Trader Joe’s own brands. At most grocery stores, such private labels maintain a secondary presence. They exist as a means to under-price selected “name” brands in certain categories. At Trader Joe’s, however, the store brands are the stars of the show. They evoke the brand logic; they forge customer connections; and they produce a much more integrated shopping experience than the brand cacophony of conventional grocery stores.

Trader Joe’s scales its brands to customers

What’s also unique is that Trader Joe’s scales its own brands to customers. There’s no marketing megaphone hyping products from on high. That helps make the brands eminently social, and sociable. They are brands in the context of the customer, not brands in the context of a far-off producer, or a third-party media campaign. At Trader Joe’s, store, products and customers move largely as one.

I wrote about Trader Joe’s previously, here and here.

In its usual level-headed style The Economist analyzes the basic issues involved in managing risk and brand reputation, especially for global corporations. They address the subject as part of a special report on Corporate Social Responsibility (CSR).

This special report will look in detail at how companies are implementing CSR. It will conclude that, done badly, it is often just a figleaf and can be positively harmful. Done well, though, it is not some separate activity that companies do on the side, a corner of corporate life reserved for virtue: it is just good business.

Three layers of CSR

The Economist identifies three layers of CSR as it’s currently practiced in large corporations:

1. Philanthropy — beginning with “checks for charities”
2. Risk management — to ensure that screwups (or disasters) don’t occur
3. Strategic opportunities — to use CSR for competitive advantage

Where do brands come in? In level three, of course. Brands and CSR are a perfect strategic fit.

Beyond an antiquated notion of brands

I totally agree with the Economist’s integrated approach to CSR, where it shrugs off superficial feelgood communications and focuses on CSR operations embedded in the business. However, The Economist seems to have an antiquated notion of brands, as if we’re still living in the 1950’s, when brands were static “assets” to be kept polished and squeaky clean lest any “bad press” diminish their value. This defensive and reactive concept of brands prevents the special report from addressing proactive brand strategies that may dramatically raise the bar for both social responsibility and profits.

Brands and social responsibility

“Brands and social responsibility” is an important subject that deserves its own in-depth report. CSR requires new attention to the supply chain, and to the brand chain. It also requires new brand models, and new brand approaches. That’s more than I can manage in this post, so I’ll end with some general comments.

1. A brand is company potential X customer potential. When brands are understood in this context, the arena of “social responsibility” becomes a strategic brand opportunity, rather than a nagging and/or awkward problem.
2. Brands managed as “assets” are dead ends. The purpose of brands is to create customers. This is in itself a socially responsible act.
3. When brands are reduced to perceptions (”how the company is perceived”) they become little more than PR exercises, with a dash of design. This completely ignores a brand’s game-changing potential to create customer value.
4. The brand mission is to grow the customers that will grow the business. In general, the more socially responsible the brand, the more opportunities it creates for customer growth.
5. A brand platform is a social platform. The more socially responsible the brand, the more power it can generate through (and from) its customers.
6. “Asset brands” sit on the shelf, or hide in the vault. They’re eventually bypassed by proactive, socially responsible brands that can run (and grow) with customers.
7. The best way to be “socially responsible” is to embrace those strategies that advance customers, rather than merely aim to empty their wallets.
8. In general, a brand cannot do any more for its customers than it does for its employees. Social responsibility begins at home.
9. Brands stripped of social responsibility are low-performing brands. At the very least, they will be leaving money on the table.
10. The best way for a brand to manage its reputation is to lead customers to higher levels of value. Brands that don’t lead get stuck in the muck.

Photo: Jamison — Flickr