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Special Libraries AssociationSpecial Libraries Association

Branding: It’s Importance and ImpactBranding: It’s Importance and Impact

M.A. FrancisM.A. FrancisNational CityNational City

28 February 200328 February 2003

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Brand is . .Brand is . . .

. . . . . . a promise by a company a promise by a company to its customers that to its customers that differentiates its products differentiates its products and services over time.and services over time.

The objective is customer loyalty.The objective is customer loyalty.

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Understanding the Brand Understanding the Brand PromisePromise

We want to dobusiness with youon your terms--when you want,where you want.

Low prices are just the beginning.

With our singular focus oncustomer service, we provide themost useful and ethical financialservices in the world.

With all of us working togetherto provide our customers withthe best service and products,we are forming a model for theindustry’s future.

We are Citigroup.Being the most successfulcomputer company in theworld at delivering the bestcustomer experience inmarkets we serve.

THE RITZ-CARLTONWe are ladies and gentlemenserving ladies and gentlemen.

The brand promise defines the customer’s expectations for the experience.

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Assessing Moments of TruthAssessing Moments of Truth

… and assessing their impact on customer's perceptions of the organization and their dependence on employees.

Ability toimprove customer perception oforganization

Ability toWeaken customerperception oforganization

Involves Direct Human Contact

Problem Resolution

Receive Statement(s) or Bill(s)

PlaceAutomatedTransaction

Routine “Customer”

Service

Branch Visit

VisitWeb SiteView

Advertisement

Open Account

Source: Mercer

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Changing Customer Changing Customer SatisfactionSatisfaction

Impacts “Business”Impacts “Business”

Highly Satisfiedto

Highly Satisfied

Highly SatisfiedTo

Satisfied

Highly Satisfied

ToSatisfied

SatisfiedTo

Less Than Satisfied

Satisfaction OverTime

What Happens to “business”When Satisfaction Changes?

($1,400)

($1,000)

$4,500

$4,800$5,000

$4,000

$3,000

$2,000

$1,000

$0

($1,000)

($2,000)

Source:HBR, March-April 1999

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Challenges: The Employee Challenges: The Employee PerspectivePerspective

Employees often experience severe disconnects between what customers expect and what they are able to expected to do.

CustomerExpectations

Fast Service

Personalized service

Convenience

One-stopping shopping

Answers

Problems resolved

Appropriate cross-sell

Employee Perspective

“I’m rewarded for servicing as many

customers as possible.”

“I don’t have the customer information I

need.”

“We’re understaffed.”

“Other departments are not responsive.”

BrandPromise

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Misaligned InvestmentsMisaligned InvestmentsMany companies under-invest in employees, which can dilute the impact of investments in brand, product development, and technology.100%

Importance100% Spend

Image Perceptions

Customer Service Perceptions

Product Perceptions

Other

Community Activities

PR

Customer Advertising

Customer Service Training

Product Advertising

Investments Relative to Brand Impact

Source: Mercer Consulting Group

Disguised Client Example

Importance to Building Brand

Current Investments

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Brand at “Special Libraries Brand at “Special Libraries Association”Association”

Decade of Name ChangeDecade of Name ChangeLike many companies, you have invested in image advertising:

•1992

•1997

•1998

•2000

•2001

•2002

•2003

What is “your” history?

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Current PositioningCurrent Positioning

The National City example:

The gateway to a broad range of financial services, National City is in business to bring together resources for our customers

Working with them, we identify and offer the best solutions that meet their financial needs at every stage of their business and personal lives

And by providing the assurance of continuity and excellence, our friendly, knowledgeable and experienced employees make it easy to do business with us.

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The Data Implies ChangeThe Data Implies Change

• The current positing statement is sound but we’d like to update it to reflect current customer demands

• The positioning statement should be crafted as a Brand Promise

• NCC has opportunity to differentiate itself with customers by delivering consistently and intentionally on its promise

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Building the Customer Building the Customer Champion CultureChampion Culture

How do you get there?

•Agreement on need for new Brand Promise

•Consensus around Customer Champion Brand Promise

•Motivated management team

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Building the CustomerBuilding the CustomerChampion CultureChampion Culture

The Key Implementation success factors

•Define the roadmap and the destination

•Commit to implementation

•Be prepared to stay the course

•Communicate and Reinforce

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The Brand PromiseThe Brand Promise

BrandedCustomer

Experience

Micro-MarketSegmentatio

n

Revenue

Initiatives

Service

Quality

BusinessProcess

Improvement

LeadershipInitiative

Compensation

(Incentives)

Sale and ServiceCulture

Employee Hiring/

Retention

Internet

Technology, Operations

Investments

Marketing/Advertising

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Brand Strategy DevelopmentBrand Strategy Development

A team should utilize multiple sources to develop the brand positioning.

•Executive interviews

•Review of existing customer / employee research

•Competition review

•Assessment of key value drivers and performance gaps

•Strategic alternatives

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Brand Strategy DevelopmentBrand Strategy Development

•Feedback from customers, employees and management

•Preliminary discussions with other Lines of Business- What is their strategy?

•Preliminary discussions with the Leadership Development Group to select the implementation teams

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Brand Positioning

TargetAudience

For Customers who expect to be regarded as valued individuals

Frame ofReference

- Markets served- Demographics

- Footprint- Competition

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Brand PositioningBrand Positioning

State the Brand Promise

“National City” cares about what’s right for customers

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The “Customer Champion” The “Customer Champion” Position at Position at National CityNational City

KeyElements

•Provide high level of overall service quality (convenience, speed and accuracy)

•Conveys sense of recognition and appreciation for the customer’s business

•Resolves problems in an efficient and personalized manner

•Proactive as well as responsive

•Provides unbiased financial advice

•Always offers the customer fair value

•Establishes and nurtures long-term relationships 18

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National City cares aboutDoing what’s right for

customers

Peace ofMind

Recognition/Self Esteem

ServiceQuality

Customercare

ProactivelyTrustedAdvice

Ease ofDoing

Business

ProgramBreadth

+Emotional Rational

National CityNational City Brand Promise Brand Promise

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EmotionalEmotional

Peace of Mind

Recognition /Self Esteem

•Offers fair value

•Bank takes ownership of customer

problems

•No surprises, no hidden charges

•Provides personalized service at each point of contact

•Shows appreciation for each customer’s business

•Values each customer’s business

•Recognizes customers by name

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RationalRational

Service Quality / Customer

care

Trusted Advice

Ease of Doing

Business

Product Breadth

Proactively

•High levels of accuracy, speed, and convenience, exceeding customer expectations

•Demonstrates appreciation

•Rewards loyalty

•Friendly environment

•Staff anticipates problems or needs

•Staff looks for ways to help customer achieve financial goals

•Customers are informed about better options to manage their money

•Staff provides trusted, unbiased and sound advice

•Customers are referred appropriately throughout the organization

•Each channel provides a convenient and efficient way of doing business with NCC

•Simplified products and pricing, allowing customers to understand what is best for them

•Efficient problem resolution and error correction

•Offers full range of products for life stages / financial situations

•Products are focused on wealth creation

•Products offered are high performance whether proprietary or not

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Implementation and Implementation and CommunicationCommunication

• Accountability

- Employees ARE the brand

- Take responsibility for customer satisfaction EVERY TIME and “delight” them occasionally

- Resolve problems without blaming others

Employee Behaviors

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Employee BehaviorsEmployee Behaviors

•Respect

-Treat one another with respect; value differences across LOB’s and units

WE ARE ONE

- Treat each customer interaction with respect, empathy, in an atmosphere of caring

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Employee BehaviorsEmployee Behaviors

• Friendliness

-Greet customers politely; recognize them and their relationships

- Listen

-Thank them for their business; make it easy for them

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Next StepsNext Steps

• Step #1 Invest in the people delivery of brand

•Step #2 Introduce promise elements in specific customer interactions with greatest customer value

•Step #3 Communicate the promise to customers Driven by success with #1 and #2, not by time

Examples: Problem Resolution

Customer Care

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Invest in the People Delivery Invest in the People Delivery of Brandof Brand

Training

Communication

HIRING

Recognition &

Reward

Measurement

“The Brand”

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