Becoming a cHamPion BRanD: - APCO Worldwide

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Becoming a cHamPion BRanD: Differentiating Yourself in the Marketplace Pushing those disciplines together would be a good start—but still not enough. 3. In the world we live in—of increasing transparency—there is a third A— Authenticity. Companies must say what they mean, mean what they say and do what they say. The degree to which their actions and words are truly reflective of their corporate character is critical. There has been a fair amount of good thinking and writing done about this from groups like the Page Society and others. They claim that the best companies find the sweet spot for their brand in the places where they are truly most able to make a difference in the lives of all of their stakeholders, and to do so sustainably within their business model. Building a positioning on a false premise is doomed to fail. I don’t think we need to name names, but we’ve all seen companies that have attempted to be something they are not. The results are a huge waste of resource and a cynicism about the brand that is hard to erase. When companies are aligned, create attachment and are authentic, they have a very, very strong brand. But there’s a fourth step to become a Champion Brand. The ChAmPiON brANd iS AN AdVOCATe FOr iTS STAkehOlderS There is an old saying in politics that “great campaigns are about the voter, and bad campaigns are about the candidate.” This is particularly apt as we think about the meaning of corporate brands in the current environment. In addition to Alignment, emotional Attachment, and Authenticity stands the fourth differentiating factor: Advocacy—standing for something bigger than yourself. Instead of thinking about how to turn our various stakeholders into “brand champions” for us, we should be asking how we can become champions for our mutual interests. To paraphrase John F. Kennedy, ask not what your stakeholders can do for you, ask what you can do for your stakeholders. Companies are now being asked to show how they add value to society. Don’t mistake advocacy for cause marketing, or corporate responsibility, or philanthropy— they are all potential subsets of the idea, but not the idea itself. Advocacy is about what you stand for—explaining why you’re in business in a way that works in common cause with your stakeholders. It means acting on your mutual values. It means building your business while improving society. The very best and most powerful brands in the world already do this. They stand for something bigger than themselves, and in the conduct of their business they are also advocates for their stakeholders. Their customers and their stakeholders believe that the company is actively working for their interests, and because of that, they are willing to give the company the benefit of the doubt when and if it slips. 6
Becoming a cHamPion BRanD: Differentiating Yourself in the Marketplace We also found that this insight has tangible meaning in the execution of traditional programs. We were able to show quantitatively that the impact of communications was greatly enhanced when the nature of the communication was oriented toward engagement and advocating common cause rather than toward conveying information. Most importantly, Champion Brands generate outcomes that strengthen their business—they are better able to avoid the cyclical effects of a reputation based solely on dry and changing facts. Champion Brands talk differently, act differently and build more enduring relationships with their stakeholders than other brands that simply have good reputations. ChAmPiON brANdS PerFOrm beTTer We’ve seen in our research a clear correlation between perceptions of the corporate brand and business outcomes such as sales, employee loyalty, policy outcomes and shareholder value. Let me give you a few examples from two different industries: First, we recently conducted a study of the retail industry. Our research found that companies that create two-way dialogue—that truly engage—with the communities in which they operate are more likely to have favorable business outcomes. Our analysis revealed that improving perceptions of companies in the retail sector by only one point on our Index (from 0-100) leads to: • Greater spending by consumers—$133 more per year for the average consumer. If every retail company in the United States moved up the ladder one point toward being a Champion Brand, we could inject nearly $35 billion into the economy and the retail sector. • Enhanced employee engagement and retention—503,000 more retail employees would stay with their companies. • Stronger shareholder value to the tune of half a percentage point increase in market capitalization (that’s many billions of dollars for some of the largest retail companies). These tangible business results apply to not only those companies with prominent consumer-facing brands. We have also found that in industries like the pharmaceutical sector, where the corporate brand is several steps removed from the consumer, those companies that are seen as advocates for society and their stakeholders perform better. The research shows that standing for something bigger than producing safe and innovative products leads to stronger brands. Specifically, we discovered that being seen as a leader in addressing public health challenges, such as chronic disease, is a key opportunity to improving perceptions and business 7
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Becoming a cHamPion BRanD: - APCO Worldwide

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