This year, Mack had the honor of presenting Evolve or Die: How Purpose and Authenticity are the Future of Brands all over the world— from Boston, Massachusetts to Vancouver, Canada; from Dublin, Ireland to Raleigh, North Carolina. What follows are the highlights of her talk that explores how companies need to evolve their marketing and what’s required to build a successful and durable brand in the digital age.
Imagine your company is competing in a fairly saturated and competitive industry like fast food. You’ve been around for a little while but you’re really just getting started. You have something new and different and you’re ready to take the world by storm.
Now imagine that you’re up against companies like McDonald’s who spent $800 million on their advertising in 2013. Or Panera Bread who spent $55 million on their marketing efforts in that same year.
Imagine this is your competition and these are their marketing budgets. What would your marketing strategy be? How would your company contend?
Chipotle did. In 2013 they spent a fraction of what their competitors did — less than $10 million — on their advertising and marketing efforts and they had a much greater impact because they were doing things like this:
- Creating videos like the Scarecrow that takes a stand and challenges how the fast food industry typically operates and sources its food.
- Holding free festivals like Cultivate where people celebrate good food and music and connect with each other.
- Sponsoring a “Food for Thought” column on the Huffington Post that is dedicated to creating awareness about how food is grown and the effects this system has on our world.
- Investing in better ways of working that gives their employees more authority and empowers them to be better leaders.
All of these things that Chipotle has been doing aren’t just marketing campaigns. This is what they believe in as a company and this is authentically how they operate.
And that is what has contributed to their durability and growth over the last decade. From 2006 to 2015, Chipotle has grown revenue from $820 million to more than $4.5 billion.
So how did Chipotle’s approach bring this much growth? And how can you learn from it to grow your business in the digital age?
There’s no doubt that if you want to compete in the digital age, you must have a stellar product or service, and you have to provide a cross-channel experience that is unparalleled.
Ultimately, these things must be baked into your DNA; this is the new status quo.
But competing today—for time, attention, and market share— is not about how much money you spend on your marketing.
If you want to stand out from all the noise, you have to build from purpose and authenticity.
And here’s why:
In that same Cohn & Wolfe study, the #1 behavior that people expect of brands is the fact that they communicate openly and honestly about their products and services. They don’t let their customers down, and that they act with integrity at all times. Because people want to relate to you, they want trust you and know you’re going to do what you say.
Additionally, a BBMG study shows that when people are trying to figure out who to buy from, 73% of people care about the company, not just the product when they’re making purchasing decisions.
And when people care about your company, they tell their friends. And word of mouth is responsible for more than 50% of all purchasing decisions.
The fact of the matter is, in this face-paced, digital world, if you want to earn and keep your customers, build a community of advocates who will support you and tell their friends about you, your approach to marketing must shift. It’s not just about how your company is packaged, it’s about who your company is.
If your company wants to experience growth in the digital age, your company, and your marketing, needs 3 very important things:
- You need to clarify your purpose that so that you can effectively position around it and communicate it to your customers.
- You need to better understand your people so that you can remove their roadblocks.
- You need to use strategy and action to prove you’re worth your customers’ time and attention; showing them you are willing to keep your promise to them.
Chances are, your company or the company you work for is in business because you want to make some money. You want to grow. So how will building an authentic brand help you do that?
Because authentic brands are built from purpose, and purpose is the key to their growth.
Our world is changing so quickly, and that has changed how quickly businesses must react and it has also changed consumer behavior.
Consumers know they have the upper hand. They know they have a choice. So the bar has been set a lot higher for companies. Consumers expect businesses to play a larger role in changing society.
Not only that, but as far as employees go, people want meaning in their work and they want to work for better companies.
Purpose is something that can help companies hurdle each of these challenges. It also helps them stay relevant in their customer’s lives.
In a Harvard Business Review study they found that companies with purpose make more money and have more involved employees, all because they’re operating from purpose.
Purpose drives your products and services, the people you hire, your culture, and your marketing. Most importantly, it gives focus that drives the whole business. Once you have purpose and focus, you can develop a much more effective and powerful marketing strategy that will connect with the right customers. When you’re talking to the right people and removing their roadblocks, those customers want to become part of your community, tell their friends, and drive your growth.
The first step in building an authentic brand is positioning your company around that purpose. One of the ways we do this is by using an exercise from Ogilvy & Mather’s called the Big Ideal.
It can take some time to figure out your big ideal (we’ll use Dove as an example from Arielle Jackson’s work on First Round), but essentially it works like this: combine two things: your cultural tension—which is the problem in the world that you’re looking to address:
with your brand’s best self—what your company actually does when you are at your best:
Dove’s big ideal is that the world would be a better place if women were allowed to feel good about their bodies. This purpose drives the focus for everything they do. Their job is not just to sell soap; it’s to create products that help women feel good about their bodies.
This purpose and focus then comes out loud and proud in everything they do in their marketing strategy. Dove has been running the real beauty campaign for over a decade now and it’s still resonating and relevant because it’s coming from their purpose.
And from 2004 to 2014, Dove saw a $1.5 billion dollar jump in sales as a result of focusing on purpose to drive their business.
Because Dove’s purpose is so clear, it’s easy for them to resonate with the people who align with it. This isn’t a marketing ploy. They eat, live, and breathe this throughout their organization. Just like Chipotle does.
Often times companies will disregard an authentic, purpose-driven approach to building their company and brand because they think it is only applicable to environmentally or socially responsible companies like Patagonia or Tom’s Shoes.
A purpose-driven approach is not a social cause thing. It’s not a non-profit thing. It’s not a B2B or a B2C thing. It’s a people connecting with people thing. It’s focusing on the right things that will help you build a company that people care about, want to work for, and do business with. That’s what brings growth in the digital age.
When you’re building an authentic brand, how do people fit into the equation? Every day it seems that there’s some new marketing tactic to try; a new piece of technology that will magically help you earn customers faster. But technology will not earn customers. Having a great product, building a great company, being authentic, and doing the work to find and connect with your people will.
The biggest thing to remember about growth and building a community is that you’re not looking for everyone. You’re looking for the right people who connect with your purpose. And this takes time because you’re not just looking for numbers. You’re building a community of customers who will become loyal advocates who want to tell their friends.
If you want to build your community and make a connection with your customers, your job is not to focus solely on selling your product. Your job is to figure out how to bridge the gap between the purpose of your company and the people who want to be a part of it. Let’s look at an example.
We have worked for a company called Traveling Vineyard for the past three years. They’re a direct sales company. They have several thousand people, or Wine Guides as they call them, who are mostly women, who sell wine for them.
Before we met Traveling Vineyard, that’s exactly what they were doing. Selling wine. And they were struggling to connect with their people.
We worked with Traveling Vineyard to discover they actually don’t exist to sell wine. Their purpose is to change lives by providing fulfilling (and flexible) work. This purpose has been driving the growth of their business. One by one, we have been looking for the people and organizations who align with this purpose and who are a match for their community and customer base. Clarifying, operating, and marketing from their purpose has helped them build a deeper connection with their customers and has brought a tremendous amount of growth to their company.
In the very beginning of our work with Traveling Vineyard, we began by identifying an audience that appeared to be 3 different types of moms: a stay-at-home-mom who loves her family but could use a little extra income without a lot of commitment. An empty-nester who’s looking for something new to consume her life now that her kids are gone. And an achiever; someone who is tired of just being a mom and wants something that’s just for her.
But when we were building their persona, we didn’t just stop here by identifying these stereotypes.
We wanted to make sure we were talking to the right people, so we took the step of matching these persona to real, actual people.
Once we mapped the characteristics of the stereotypes to REAL people in their community, we honored them as ambassadors. This allowed us to build better relationships with their existing community and leverage that community to find more people outside of their community who are like them.
One of the first steps we take when we’re building these relationships is to create a Customer Journey Map (adapted from an exercise from Adaptive Path) that helps us understand these women’s desires, roadblocks, and fears that keep them from converting to wine guides.
We then deconstruct this journey by starting with one persona or audience segment. Like Kirby, who represents nearly 60% of their customer base.
Once we knew Kirby’s greatest challenge and most important goals, we could break down what she is thinking, feeling, and doing at each stage in her journey in the lifecycle of becoming a Wine Guide for Traveling Vineyard.
When we analyze what customers like Kirby are thinking, we look at the common questions that are holding them back. Stuff like: Is the company legit? Will I make money doing this? Do I have to be a wine expert?
Then we move onto how they may be feeling in each stage of their journey. These are the emotions that they are having that could also pose potential roadblocks like if they’re nervous about trusting the company, anxious to tell their friends they may do this, or even just excited to get started.
And then lastly, in the doing stage, we analyze their actions; the actions that the potential wine guides may take before they convert. Things like investigating other companies, talking to their friends and family, and watching videos or reading content on the website.
And even though Kirby won’t be thinking/feeling/and doing these things in a linear fashion, deconstructing her customer journey this way helps us understand what her overall experience must be like.
Now once we understood all of these things about Kirby, we can address all of her thoughts/concerns/fears/challenges through a content strategy that helps reach goals for the company.
Let’s say we’re breaking down the CONSIDER phase in the funnel and identify roadblocks for potential Wine Guides who have been comparing Traveling Vineyard with other direct selling job opportunities.
So for example, let’s say we wanted to address Kirby’s fear of whether Traveling Vineyard is a legitimate company:
We created some content around the concern of pyramid schemes and how Traveling Vineyard isn’t one.
We asked their existing Wine Guides (who Kirby can relate to) in order to help us create content so that they could tell potential Wine Guides about how Traveling Vineyard’s business model actually works and isn’t a scam.
We even asked direct selling experts to provide an unbiased view on direct selling to address this roadblock.
Then we built content to address Kirby’s ‘feeling’ behaviors; being unsure that this job will add stress to her family:
We interviewed Jonelle, an existing Wine Guide who someone like Kirby would resonate with, to talk about what a day in the life is like with Traveling Vineyard and how she balances it all.
In this video, Jonelle shows talks about her schedule and how she fits Traveling Vineyard into her family routine. Again, more real people (and user generated content) from the Traveling Vineyard community addressing these common roadblocks.
Finally, we addressed Kirby’s ‘doing’ behaviors — the actions that someone like Kirby might want to take in order to become a Wine Guide.
Each week, Traveling Vineyard provides a webinar which is an opportunity for potential Wine Guides like Kirby to better understand the business. It’s also a chance to ask questions about what it’s really like to work for Traveling Vineyard and learn that it is in fact possible to be a Wine Guide and keep your family in tact.
Doing this work to understand Kirby (and the other persona segments) and give her what she needs throughout her customer journey with Traveling Vineyard has helped to increase lead form submissions (one of Traveling Vineyard’s key performance indicators) by more than 298%. This growth has contributed to a more than 40% revenue growth in the company (year-over-year).
Clarifying your purpose, understanding your people, and removing roadblocks brings sustainable growth. This is an iterative cycle of getting to know your people, understanding them, figuring out what they need, and helping them solve their challenges.
This doesn’t require any of your content to “go viral.” This is simply a slow build of trust that has brought tremendous growth to the company.
Over the last year, Chipotle has been having a rough go of it. And for a brand that is supposed to be synonymous with “FOOD WITH INTEGRITY” being associated with words like Norovirus, E.coli, and Salmonella is pretty bad news. Even worse, when people are talking on social media about puking and pooping and going to the hospital because they’ve eaten your food, it is not so good for business.
But in true authentic style, Chipotle has spent the last year reacting to this stuff from authenticity and purpose. So they’ve not only been telling their customers that they’ve blown it, but they’re doing what it takes to make it right.
Chipotle has been transparent about how the outbreaks most likely happened. They’ve taken apart their current food safety systems and put them back together. They’ve provided their customers with a plan for action to pioneer and become a leader in food safety. Chipotle wants to make sure that this not only doesn’t happen again in their restaurants, but also inspire other fast food restaurants to operate the same.
But had Chipotle not built such trust with their customers over the last 10 years, their runway for error would have been quite short and this whole fiasco could have ruined them. But because Chipotle had built such trust, their customers were willing to have faith that they will make it right because that’s who they are as a company.
And that’s what’s kind of remarkable about Chipotle’s community is that their customers were willing to give them a second chance. Even as their stock prices fell and the media chewed them up, their customers were still with them.
And even though Chipotle is projected to have a 65% earnings loss this year due to the outbreaks, next year in 2017, their earnings are projected to jump 125%. And even over the next many years, Chipotle is still projected to have a higher growth in earnings than McDonald’s and their big ol’ marketing budgets.
But Chipotle did not build a durable brand from the money they spent on their marketing. They built it through continued, strategic action every day as a company.
For Traveling Vineyard, we used a framework like this to build their durable brand.
It’s a 90-day framework for driving growth. It includes three, 30-day cycles that will help you focus on building from purpose and do the right things to reach your goals as a company.
In the first phase, you’re working on either identifying or clarifying your company’s purpose. Just like we looked at with Dove and also with Traveling Vineyard. This purpose will provide your business with focus.
Once you’re clear on your purpose, then you can move into the second phase which is continually clarifying and evolving your brand’s foundation. This is not a set it and forget it. This is a constant iteration of testing and learning and refining your brand over time.
When setting your brand foundation in this second phase, you need to be very clear about the goals you have for your company—both for your business —your financial benchmarks—and for your brand—the company you want to become.
You also want to make sure that your company is relevant in the world, so understanding your cultural tension along with the value you offer that is unique to your company is imperative. Even more imperative is that it is effectively communicated at every touchpoint with your customers.
Then, you need to do the work of deconstructing the customer journey for each of your persona so that you fully understand their behaviors and what they are thinking/feeling/doing at every stage throughout their customer journey.
The final part of Phase 2 of this framework is developing an agile marketing strategy. In this strategy you’re identifying the things that your team will focus on accomplishing over the next 90-days in order to reach your goals. Strategy needs to be complete with action, so we break pieces of the strategy down in Google Docs all the way down to tactics and then we assign accountability to the appropriate people on the team in Basecamp.
Then you’re ready to execute your strategy in Phase 3 of this framework. Maybe your focus is on increasing conversion from paid ads so you’re building custom landing pages. Or, maybe you want to increase brand awareness so you’re working on training the Ambassadors in your community to create user generated content. The most important thing is that everyone on your team has clear direction on what they’re executing and there is no mistake in who is accountable. Hold weekly stand-ups to remove roadblocks and ensure you’re staying focused and building momentum.
And at the end of each 30 days, do a scrub before moving on to the next 30 days in the cycle. There’s a lot of things that are happening in the company that can cause a change in direction, so the scrub helps to be mindful of the things that have moved in the business over the last month that may cause you to re-prioritize your efforts. You then adjust the next 30 days accordingly without wasting any planning and then again, break down and assign accountability for all of the tasks inside of that cycle, and assign them to your team.
And that process repeats itself over each 30-day part of the cycle. And then during the final 30 days of the entire 90-day cycle, since you’ve had nearly a quarter worth of work go by, it’s time to look at the 30,000 foot level at realigning the bigger priorities in your strategy as a whole. Is one channel performing better than another? Is there something that has happened in the business that changes your direction overall? Typically during the last 2 weeks of this final 30-days you’re looking ahead to identify strategic priorities for the next 90-day cycle; locking in and delegating tasks, actions, and accountability to your team for the 30 days in front of you.
And that’s the framework for building a durable, authentic, purpose-driven brand. All you have to do is do the work, be consistent, and you will find momentum.
If you’re considering building an authentic, purpose-drive
brand, remember these things:
Building your company from purpose gives people something to connect to and believe in. Even more, building from purpose gives your business focus. Focus that will bring growth.
If you want to earn the right customers who will support you and stand by you through the good and the bad, you’ve got to bust your ass, hustle and do the work to connect with people. The people who align with your purpose.
And lastly, as a company, you need to have a killer product. You need to provide a stellar experience across all channels. But remember that growth comes from a deeper place than that. It’s not about how your company is packaged, it’s about who your company is. And your job is to continually prove —through your actions — that you’re worth your customers’ investment.
When it comes down to it, building and marketing a company and brand in today’s world requires a different path than traditional marketing, advertising, and quick-fix tactical approaches. It’s not about how much money you spend on your marketing.
Technology is going to continue to change. Google is going to continue to change. We need to use technology effectively and also build brands that transcend this technology.
These are all very simple things. They just take time and iteration and focus. Many companies aren’t committed to doing the diligence of this work. They are doing the same things that every other company is doing. They are creating content for the sake of content. They are adding to the noise.
If your company is ready to triumph over the next many years, it’s time to evaluate and evolve your approach to marketing.