Winning customer loyalty is all about the power of the brand, what it stands for, and the relevant stories that can be told around it.
Differentiation sure is difficult these days. Especially challenging is differentiation that's so strikingly relevant, unique, and compelling that consumers will pay more for it.
I was at the IIT Institute of Design Strategy Conference in Chicago last month, at which Kun-Pyo Lee, head of LG Electronics' Corporate Design Center, showed an image, similar to the one below, in the midst of a talk on the industrial design challenges that his firm faces:
The illustration clearly highlights this issue. In a world where form factors have converged so dramatically, the opportunities for a global consumer electronics giant (or virtually any other product company) to define itself through its product design have become more elusive and challenging.
The challenge is not just with smartphones. Consider the hottest-selling televisions. The screens are black, featureless, and flat. The console that houses the screen extends perhaps an eighth of an inch beyond the flat screen and maybe has a depth of an inch and a half. And the optimal display of the monitor is wall-mounted, so there isn't even a stand for industrial designers to play with. There simply isn't much there.
In this environment, many try to become lifestyle brands and enter into a fashion-oriented rat race. But competing on a what-have-you-done-for-me-lately basis requires running ever faster and too often results in devalued products and costly falls. More futile yet is the fast follower route. Greatness doesn't come from copying front-runners. Greatness begins with knowing who you are, what you stand for, and why people should care.
Conventional differentiators for electronics are disappearing or becoming table stakes. Relying on form factors is not impossible (see the Apple suite of products), but it's not easy. User interfaces are becoming almost indistinguishable. Utility is uniform; access is ubiquitous. Increasingly, many leading smartphone companies seem to be outsourcing their principal innovation generation to an app ecosystem, populated by small, independent teams of outside engineers who effectively are doing the heavy lifting in creating the smartphone value proposition.
Perhaps the answer is simple. My company's recent Global Brand Simplicity Index uncovered a host of insights about the dollar value people around the world place on simplicity. Among many other findings, the study showed that U.S. consumers say they are willing to pay a total of $3.4 billion more for electronics and technology products that are simpler to use. It also uncovered that, around the world, people between the ages of 18 and 24 agree that technology is the most effective way to bring simplicity to their hectic lives. Conversely, people older than 60 most often blame technology for making their lives more complex.
These conflicting attitudes suggest to me that the brand differentiation that people will willingly pay for should be rooted in simplicity. And, in the numbingly complex electronics space, connectivity between devices and integration of user experience represents the ultimate simplicity (Apple's coming introduction of iCloud services indicates that it certainly understands the pain consumers feel from a lack of integration between devices and content). Form factors, interfaces, features, and functionality all should be thought of as dramatic and meaningful ways to keep a brand promise, not as ends in and of themselves. Product design focused on easing the pain of complexity will lead to experiences that consumers of all ages and countries will value.
In an era where meaningful differentiation is hard to come by, it's all about the power of the brand, what it stands for, and the relevant stories that can be told around it. The organizations that recognize this will be able to deliver innovative, simple products and experiences that win the loyalty of their customers and the envy of competitors.
On the heels of a fantastic event in New York City, ClickZ Live is taking the fun and learning to Toronto, June 23-25. With over 15 years' experience delivering industry-leading events, ClickZ Live offers an action-packed, educationally-focused agenda covering all aspects of digital marketing. Register today!
As Siegel+Gale's chief creative officer, Howard challenges our design teams across the globe to breathe life into brand strategies. He believes that powerful identities bring humanity to brands and generate belief in their essential promise. "Doing this successfully for organizations that operate globally," he notes, "requires supreme simplicity."
A prominent figure in the industry, Howard has led global branding programs that span virtually every business sector, receiving international recognition and numerous awards. He sees an extraordinary future for organizations operating at the nexus of social changes in health, energy, education, technology, and communications. His work includes programs for Pfizer, ConocoPhillips, Aramco, AARP, the Free Library of Philadelphia, the King Abdullah University of Science and Technology, SAP, Tata Consultancy Services, Qatar Telecom, Allstate, and Bank of America.
You'll see Howard frequently quoted by the business press regarding branding and design issues, or speaking at professional conferences on topics that range from brand building's foray into areas like product development, human resources, community service, and customer experience, to how smartphones and touchscreens are opening new ways for people to interact with brands.
Earlier in his career, Howard founded a marketing services agency that was acquired by Omnicom in 2001. He also spent time at Interbrand, where he was a group director in their headquarters office.
Howard earned a bachelor of fine arts at Philadelphia's University of the Arts, where he later served as a guest professor. He completed Omnicom's Senior Management and Graduate Management Programs at Babson College in 2007. He sits on the Board of Directors of apparel manufacturer Kahn Lucas Lancaster.
Hong Kong, May 5-6, 2015
This Magic Quadrant examines leading digital commerce platforms that enable organizations to build digital commerce sites. These commerce platforms facilitate purchasing transactions over the Web, and support the creation and continuing development of an online relationship with a consumer.
Google reports that paid search ads are currently driving 40+ million calls per month. Cost per click is increasing, paid search budgets are growing, and mobile continues to dominate. It's time to revamp old search strategies, reimagine stale best practices, and add new layers data to your analytics.
May 6, 2015
12:00pm ET/9:00am PT