Generous Brands 2.0
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Transcript of Generous Brands 2.0
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GenerousBrands2.0
TIMGREENHALGH,ChairmanandChiefCrea>veOfficer,FITCH
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1. History 2. A Generous Spectrum 3. Stirring Emotions 4. The Value of Experience
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A new spirit
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Generosity of Things
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BehaviourThings
Generosity of
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BehaviourExperience
Things
Generosity of
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In the beginningGenerosity
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Genus - Lineage (Nobility)
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17th Century
(Nobility) of Spirit
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Gallantry Courage
Strength
Gentleness Fairness
17th Century
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Fertile Land Strong Animals Abundant Food
17th Century
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Strong Liquor Powerful Medicine
17th Century
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‘Largess’
The virtue of giving good things to others freely and abundantly
17th Century
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Rejection of…
Selfishness Greed Fear
17th Century
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Rejection of…
Selfishness Greed Fear Meanness
17th Century
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William Morris 1834 -1896 Textile designer, poet, novelist and socialist
19th Century
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Sir… What is the purpose of art and design…?
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…to give hope
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Every age has had its hope… hopes that look to something beyond the life of the age itself… hopes that try to pierce into the futureWilliam Morris - Signs of Change - Chapter 4 The Hopes of Civilisation 1888
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Are we wired to be generous?
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What generous people’s brains do differently
Nicole Torres 2015 Harvard Business Review
NEUROECONOMICS
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NEUROECONOMICS
How much this benefits
me
‘Survival of the Fittest’
Ventral Striatum
How much this benefits
you
‘Community Minded’
Temporoparietal Junction
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TEMPOROPARIETAL JUNCTION
Community Minded
Associated with empathy and thinking of others
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Alan Watts - 1915-1973 British philosopher and writer
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What do you desire?
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“Doing things you don’t like doing…to go on to do things you don’t like doing”
All wretch and no vomit!
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What would you like to do if money were no object ?
Dispatch Work Jan Vormann
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We had to understand that everyone must be personally accountable and responsible for the outcome of every single customer interaction.
We started the conference with community service
21st Century
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MEAN
BRIBERY
survival
How much this benefits me
progress
CYNICAL
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In the rush for the new… we’re forgetting how to communicate
things that genuinely move people Sir John Hegarty BBH
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MEAN
BRIBERYGIVE & TAKE
GIVING FREELY
progress
CYNICAL
survival
How much this benefits me
How much this benefits you
A new spirit of value exchange
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GIVE & TAKE
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0
10
20
30
40
50
60
70
Number of Amazon Prime members in the United States as of June 2016 (in millions)
DEC 13 JUN 14 DEC 14 JUN 15 DEC 15 JUN 16
© Statista 2017
63m
54m
44m
40m
28m
25m
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GIVING FREELY
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Lockheed Martin Group VR - Mars Experience Bus
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Giving freely that which
stirs emotion
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Stirring Emotions Generosity of Experience
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P E R S O N A LE X P E R I E N C E S
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S H A R E DE X P E R I E N C E S
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B O U G H TE X P E R I E N C E S
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7 8 % O F M I L L E N I A L S P R E F E R T O S P E N D
M O N E Y O N E X P E R I E N C E S
O V E R P R O D U C T S Harris Research International 2015
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EXPERIENCES = CURRENCY
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ADMAP - Design a luxury experience 2015
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It took Uber 5 years to book its billionth trip then…
6 months to book its 2nd billionth journey
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WHY DID HEGO THAT WAY??
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GENERATION ‘PICKY’
BB, X, Y & Z
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but does a Generous Experience
make money ?
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QUANTIFYING SUCCESS The financial impact of creating generous brand experiences
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Brands that create extraordinary experiences achieve financial returns more than double the market
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Our Methodology
EXPERIENCE INDEX
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Group XP Experience Index ANALYSIS
46 COUNTRIES 43,000 BRANDS 1/2 MILLION BITS OF DATA 3 YEARS PERFORMANCE DATA
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EXPERIENCE INDEX
INTERACTIONIMPRESSION
RESPONSIVENESS RESILIENCE
Group XP Experience Index THE 4 COMPONENTS TO UNLOCK VALUE
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IMPRESSION Stands for something unique
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1943 Ingvar Kamprad launched IKEA - 17 yrs old
“to create the better everyday life for the many people”
Impression Stands for something unique
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1956 the birth of flatpack
Lövet table
“to make it easier to get this home remove the legs and then screw them back on when you get home”
Impression Stands for something unique
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Impression Stands for something unique
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INTERACTION Delivers on your most important needs
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INTERACTION Deliver on your most important needs
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RESPONSIVENESS Have better digital services and engaging content
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RESPONSIVENESS Have better digital services and engaging content
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RESPONSIVENESS Have better digital services and engaging content
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RESPONSIVENESS Have better digital services and engaging content
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RESILIENCE Strive to make people’s lives better
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RESILIENCE Strive to make people’s lives better
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RESILIENCE Strive to make people’s lives better
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RESILIENCE Strive to make people’s lives better
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RESILIENCEStrive to make people’s lives better
RESPONSIVENESSHave better digital services and engaging content
INTERACTIONDelivers on your most important needs
IMPRESSIONStands for something unique
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S&P 500
Stock Performance - Jul 13 - Sept 16 MSCI vs S&P vs EI
Source: Bloomberg Millward Brown Analysis
MSCI WORLD INDEX
28.3%
14.3%
EXPERIENCE INDEX
73.3%80%
-10%
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GLOBAL TOP 30
EXPERIENCE INDEX
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TOP 50 GLOBAL EXPERIENCE BRANDS
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TOP 50 GLOBAL EXPERIENCE BRANDS
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DEUTSCHE POST
FEDEXDHL
PAMPERS
APPLE
PAYPAL
VISA
GOOGLEIKEAUPS
DISNEY
SOUTHWEST
NIKE
AMAZON
TESLA
SAMSUNGSKYECOVER
HUGGIES
IBM
BMWBOSE
COLGATE
ADIDAS
FERRARI
VERIZONMERCEDESUNDER ARMOUR
OMO
TOP 50 GLOBAL EXPERIENCE BRANDS
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IMPRESSION
INTERACTION
RESPONSIVENESS
RESILIENCE
IMPRESSION
INTERACTION
RESPONSIVENESS
RESILIENCE
IMPRESSION
INTERACTION
RESPONSIVENESS
RESILIENCE
UNPACKING THE TOP 3 SCORES
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IMPRESSION
INTERACTION
RESPONSIVENESS
RESILIENCE
IMPRESSION
INTERACTION
RESPONSIVENESS
RESILIENCE
IMPRESSION
INTERACTION
RESPONSIVENESS
RESILIENCE
149.9
134.2
129.9
143
144
155
159
148
118
144
127
129
130
131
126
UNPACKING THE TOP 3 SCORES
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DEUTSCHE POST
FEDEXDHL
PAMPERS
APPLE
PAYPAL
VISA
GOOGLEIKEAUPS
DISNEY
SOUTHWEST
NIKE
AMAZON
TESLA
SAMSUNGSKYECOVER
HUGGIES
IBM
BMWBOSE
COLGATE
ADIDAS
FERRARI
VERIZONMERCEDESUNDER ARMOUR
OMO
HOW GLOBAL BRANDS IMPACT MARKET SECTORS
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VERIZON
GLOBAL TOP 10 TECHNOLOGY BRANDS
APPLE
PAYPALFACEBOOK
GOOGLEAMAZONSAMSUNGSKY
IBMBOSE
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GLOBAL TOP 10 LIFESTYLE BRANDS
DISNEY APPLE IKEA NIKE AMAZON SAMSUNG TESLA BOSE ADIDAS UNDER ARMOUR
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DEUTSCHE POST
FEDEXDHL
HOW GLOBAL BRANDS IMPACT LOCAL MARKETS
PAMPERS
APPLE
PAYPAL
VISA
GOOGLEIKEAUPS
DISNEY
SOUTHWEST
NIKE
AMAZON
TESLA
SAMSUNGSKYECOVER
HUGGIES
IBM
BMWBOSE
COLGATE
ADIDAS
FERRARI
VERIZONMERCEDESUNDER ARMOUR
OMO
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SINOPEC
NONGFU SPRING
PHILIPSKANGSHIFU
TOP 15 CHINESE BRANDS
PAMPERSAPPLE
KFCMIDEA
BMW
ZHANG YU
CTRIP
TMALLBLUE MOONJD.COMPETROCHINA
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TOP 15 UK BRANDS
PAMPERS
APPLEPAYPAL
VISAIKEA
NIKEAMAZONSKY
HUGGIES
BMW JOHN LEWISBUPA
MERCEDES
AUDI
BA
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PAMPERSAPPLE PAYPAL
ENTERPRISE
DISNEY SOUTHWEST
LOWES
AMAZON
HUGGIES
BOSE
BLUE CROSS
HOME DEPOT
VISA
TOP 15 US BRANDS
STARBUCKS
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2016 Report
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IN SUMMARYthe beauty of this analysis is that it is based on peoples emotional response to experiences
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Define you brand’s attitude toward generosity
What would you do if money was not the object?
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Explore Impression, Interaction, Responsiveness and Resilience as defining actions
Generation ‘Picky’ believes in actions versus words
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Search for hope and acknowledge that people increasingly care more about
What I can achieve with you versus
What I can buy from you
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@timghalgh @FITCHdesign #stirringemotionsNRF
Thanks