Take cars, for example. We all know that dozens of options exists that can deliver all the rational benefits: engine size, price range, fuel efficiency, horsepower, and amenities like navigation or premium sound. While I may have many rational reasons for buying a car, the emotional benefits play a huge role in helping me choose one model over another: the look, the way it handles, how safe I feel, etc. Which benefits, though, should be touted in marketing to convince the target audience to buy? Rational benefits might actually have a stronger play in helping sell a premium or luxury car, after realizing that the emotional benefits are obvious. Here’s where consumer context too often gets left out of the mix.

The question marketers ought to ask is this: How does the consumer want to feel about purchasing this product? Our research suggests that certain verticals make big mistakes by telling consumers how they should feel about their brand. A low-interest category like residential electricity, for example, might misfire by trying to differentiate its brand based on emotional benefits, because consumers don’t want to feel loyal to a utility company. Understanding the way your target wants to feel about your brand will help in deciphering which RTBs make their way into your marketing message. Another low-interest category like insurance, however, must lead with emotional benefits if it’s not differentiating on price; the consumers who will pay more for insurance are doing so because of the way they want to feel about their choice: like they’re “in good hands.” While the rational benefits are relevant for insurance, they’re secondary for premium brands of insurance, but primary for low-cost competitors, simply because the consumer context drives different RTBs within this particular category. Marketers of premium brands need to understand that, in order to convince consumers that you’re worth more, having a real understanding of want your target wants to be told is critical to influence purchase.

I know this: My wife doesn’t like it if I tell her, “Don’t be upset,” or “You should be happy about this.” My experience is that consumers don’t like it, either. And I think I’m premium, by the way.

Since we have clients that are consumer-focused, I love his example of Walmart.  In this instance when the “Big Box” store made its shopping carts bigger, sales of microwave ovens jumped 50%! A small thing, but they were making an investment in letting the customer think “BIG”! For the consumer today with dollars to stretch, mouths to feed, and time an extravagance, it only makes sense that retailers should look for the small things that show care for the customers and that retailers are intuitively thinking of them.

Tom Peters has over 163 ways to pursue excellence in this book—from having candy in a dish at the reception desk to making sure the restrooms are clean and tidy. Sometimes it takes a step backward out of the office comfort zone to see the office as the client does. I also believe the “gatekeeper” at the reception desk is a very important part of a company’s success. She/he can set the tone and temperature of the atmosphere and also make the caller or visitor believe they are important and affirmed. When you’re premium, you’ve got to meet or surpass expectactions at every brand interaction. Look for those moments when your customer could interact with your brand, and seize that opportunity to make each of those interactions a premium experience.

Last Saturday, Pepsi sponsored a concert in Uganda featuring controversial murder performer Beenie Man. An account of just some of the contention was detailed by Daily Monitor reporter Rafsanjan Abbey Tatya:

“The King of Dancehall stuck a sword of words into gay people through singing and talking.

‘In my family, we don’t have any gay person but if you’re gay, my brother that’s not my fault,’ he said as he performed his song Mi Nah Wallah, in which he says he would like to cut the throats of all gay men.

George Bush and Bin Laden were also at the receiving end of the Jamaican’s wrath calling on the audience to say ‘murderer’ as he sang about the pair’s warfare.”

Pepsi has responded with this statement:

“We are appalled by the performer’s lyrics and find them repugnant. Our bottling partner in Uganda was not aware of the performer’s views and never would have sponsored the concert with this knowledge.  Moving forward, we will work closely with our bottling partners to be more vigilant about the events associated with our brands.”

Pepsi’s statements seem to be rather void, considering Uganda is currently debating a bill in parliament, the Anti-Homosexuality Bill, which would institute the death penalty for many members of Uganda’s LGBT population, and that Beenie Man has had runs-ins for years regarding his public beliefs. So, consumers are left with only two conclusions: either Pepsi is run by women-hating, murder-supporting lunatics, or by people too busy and uninformed to make sound choices about their brand. Neither option is really appealing to any consumer … or spectator.

Truth is, Pepsi is a world-wide brand, so these blunders may cause them a slight dip in sales, but probably not kill them. Lucky for them. But what about your brand?

Let this be a lesson to us all about what it means to be engaged and aware not only of what’s going on within our organization, but also within the best interests of our consumer base as a whole. While it seems that the Ugandan Pepsi representatives were well aware of what the Ugandan people wanted to hear, they were willing to risk the loyalty of hundreds of thousands, if not millions, of other consumers to reach this group. So, while a tactic like an iPhone App or sponsored event sounds like an effective tool, don’t forget they all impact the overall goal—which in Pepsi’s case, it seems, may be to destroy themselves.

Last night, while watching my recording of Wednesday’s So You Think You Can Dance (yes, I’m one of those people), the show’s host introduced me to a group called “The Legion of Extraordinary Dancers.” While this seems like a fun name, I was hardly going to believe what a TV show produced by American Idol aficionado Nigel Lythgoe told me. Like any consumer, I had to consider the source.

But as the music began and I saw the opening moments of the performance, there was an immediate sense of pride in making the right decision to stick with the program. The time and effort put into each execution. The attention to detail! They were fantastic. Beyond excellent. They were extraordinary. And I proceeded to go online and watch the YouTube version of the performance below 5 more times that night. And then a few more today.

http://bubble-cast.com

There were other performers on the show who were great. It’s a dance competition, for heaven’s sake! But these performers stood out because they have created this product, this “brand,” with creativity, something distinguishable, something unique, and, hopefully not to be too trite, something premium. And not every brand can play at this level, but when articulated and executed well, the consumer is hooked. And living up to your claims defines consumer retention.

So, brand managers, before settling with any creative or strategic execution, ask yourself a few things—what is it about your brand that is truly extraordinary? What is it that your product does within its category that is beyond normal? And how can you tell that story in a like fashion? Articulate and demonstrate these assets, and your customers will develop a sense of pride and belief in your brand, as well. And though it may seem basic, it works. Trust us. We at WD create such extraordinary every day.

As I culled through my morning emails, I noticed that of the many emails in my Inbox, 45 were from retailers! And what surprises me the most is there were repeat offenders—3 from Gap, 2 from Overstock.com, 2 from Godiva, etc. How in the world does Gap have enough relevant material to contact me three times in one 24-hour period? And why would I care three different times? Needless to say, I didn’t even open them. And others feel the same way apparently. According to a new poll from the Chief Marketing Officer Council, 64% of consumers say promotional offers dominate both the email and traditional mail they receive, and only 41% view these as must-read communications.

Knowing your customers, especially those who have enough positive disposition towards your brand to give you permission to contact them directly, is essential in building a premium brand. If you can’t be relevant, then why bother? The numbers don’t lie.

Liz Miller, Vice President, Programs and Operations, CMO Council, said “Irrelevant, impersonal communications… (do) not engage a receptive recipient… customers will disconnect and stop doing business with brands who continue to send messages that demonstrate a lack of intimacy, customer insight and individual understanding.”

In the end, there has to be some sort of strategic plan and knowledge of the individual consumer in place. If the powerhouse of social marketing hasn’t proven this already, each consumer wants to have a unique voice, and needs to be marketed to independently.

So, the question a premium brand manager should ask themselves is this: do you manage your information to keep things personal for your consumers? Or, are you just creating opportunities for them to opt-out of engaging with your brand?

Macy’s brilliantly capitalized on its status as a pop-culture icon last year as it celebrated its 150th anniversary. The TV spot is a montage of classic U.S. films and TV shows that all mention shopping at Macy’s with obvious pride in their voices. Some shots are black and white, while others are in color, but they vividly show how deeply woven Macy’s is into the fabric of America.

Macy’s is now leveraging social media to carry the warm-hearted and personable brand even further. It has its own Facebook page and this week is really promoting it’s Thanksgiving sales. Becoming a Macy’s fan gives you exclusive access to preview all the great “Black Friday” specials—it’s for “Special VIPs Only.” Unlike many brands on Facebook who never participate in the discussion, Macy’s stays actively engaged, responding to fan posts several times a day.

Every time I go to Macy’s it’s clean and bright. The associates are always knowledgeable, polite and helpful. If being treated like a human being weren’t enough to keep me coming back—sadly, these days it usually is—Macy’s sends me great discount cards regularly because I’m a Macy’s card holder. I’m happy to spend money with Macy’s because they make me feel valuable. As I always suspected, it’s a special place.

And does Macy’s really bring the magic? Oh, yeah, it does—premium magic!

I’m definitely not getting a holiday season job at a Microsoft store …

http://bubble-cast.com

To read more about why brands should be themselves and not fail at pretending to be others, read this blog blast from the past.

Mr. Nese is the perfect example of the fact that just because an opportunity comes along that others have taken and seen success, that doesn’t mean it is the path for every brand out there. His greatest line is that each brand should “set yourself apart and provide your customer with something no one else has.” He did that by offering over 500 premium brands of soda pop rarely found any other place. And from the video, you can tell he’s had fun counting his success as he continues to stick to the ultimate goal of creating something with worth to his customer and not being enticed by every shiny opportunity that comes along.

http://bubble-cast.com

A brand’s heritage endears and evokes nostalgia in the hearts and minds of its consumers. Last night, the Yankees won their 27th World Series title—the first came in 1923 with Hall-of-Famer Babe Ruth, former Red Sox player. Their list of Hall-of-Famers is almost embarrassing where epic figures like Lou Gehrig, Yogi Berra, Joe DiMaggio and Mickey Mantle—just to name a few—are commonplace. Heritage, they’ve got.

Brand heritage means nothing without brand awareness and the Yanks have that in spades, too. Love ‘em or hate ‘em—it is just one extreme or the other no matter who you are—the Yankees ball club is immediately recognized all over the world thanks in major part to their iconic interlocking “NY” logo. Yankees players are expected to be clean-cut in order to wear the time-honored white uniform with blue pinstripes—a look that has changed very little over the club’s long history.  New York Yankees brand awareness is hard to match.

Yankees Logo

Finally, and perhaps most important to longevity, is brand loyalty. Yankees fans are brutal and would have it no other way. My friend Tom Biggins is a New York transplant to Texas and you’d better believe you’ll never see him cheering on the Rangers. “I would never switch my allegiance because I have been a fan my whole life,” he said. I imagine each Yankees fan feels the same way. It truly pains me to say it, but that’s a great premium brand right there.

I really hate the Yankees! Go Sox!