Some equations involved in creating sustainable and valued relationships between brands and consumers.
1. Brand Value:
Value = Benefit / Cost
Let's not forget that value is how the consumer defines it. However, by understanding the equation of how you create value, you will give consumers a reason to consider purchasing your product.
Consider how the equation is applied in the medical insurance industry. This is an industry where customers are anxious about the cost of cover and frustrated with the complexity of policies. In order to derive value customers want to feel they're in control; they need to understand what they're buying and at what cost. Therefore value = benefit of (control +simplicity) / cost of (premium + efforts). You can increase value by either increasing the benefit to consumers, or decreasing the cost.
2. Trusted brand status:
Trust = fn(Consistency + honesty + value + awareness)
Before the recession, consumers were willing to gamble on new products and services. Post-recession, consumers are going back to tried-and-tested brands. Coca-Cola time and again tops the surveys as most trusted and preferred brand. How do they do it? They consistently deliver a good quality product; you know what you're getting and it's available everywhere. Their efforts in uplifting the community and promoting awareness about green issues are adding to their credibility as an honest brand with real heart. Their marketing campaigns are memorable and engage consumers on an emotional level. All of this has helped them to become one of the most recognized and liked brands in the world. It doesn't always take mega-brand status to become a trusted brand - by applying the equation, Nioxin hair products is carving out their spot as a trustworthy brand, one hair at a time. They have a compelling and credible value proposition that they consistently communicate through expert channels and the product is priced fairly for the value you get.
3. Consumer connections:
Connections = (platform + experience + relevance) x (advocates + time)
Brands of all shapes and sizes, from all industries are facing one big challenge; to build a strong emotional connection with their consumers. Without that personal relationship their names mean very little and business will suffer. Red Bull energy drink has identified passion points in their consumers' lives and built platforms around them that have opened the door for emotional connections to be formed. They offer experiences that strengthen the Red Bull philosophy of "Giving wings to people and ideas", and are converting many consumer voices into action. Remember, every interaction with a consumer could impact your brand's relationship with several people in their social network over time.