[MUSIC] So we talked about this issue of alignment. We had the three module and one of the questions that remain is well how do we know we're on track? How do we know if the organization is aligned? What are kind of measures we might employ to do that? Now I can't review the entire field of marketing metrics, there's books, at last count there's about 250 important metrics marketers should pay attention to. So what I'm going to do is talk about three aspects that I think are critically important as they relate to some of the more non-traditional ways, the complimentary ways I talked about building brands in this MOOC. So if you think about metrics, let's think about this module, the last of the five modules. We talked about external brand health. We talked about internal brand health. We talked about brand value and brand valuation. And all but one of these elements really plays into this issue of metrics. So brand valuation is something when we talk about for example the brand sitting on a balance sheet. We'll keep that as a separate sort of a special topic on the side. It's really about brand value. To what degree does brand, if you remember the organization, the branded business what it's worth and what value the brand creates within that space. That's really what we're talking about. So we're talking about, if you think about the value of the brand at business, is all the future cash flows you have discounted into the present. So we're talking about the profit function here which we've discussed before, which is our profits are basically our revenues, minus our costs. And so what we're really thinking about here is how does brand build the income statement, and how can I use a brand dashboard to help drive profits into the future, and that's the focus of this, and those three aspects I'd like to highlight. One, is that actually to do that you need to focus on different stakeholders, not just the customer. We mentioned employees, but there's other stakeholders as well. The second aspect is, how do I orchestrate the customer experience across all these different business processes. And I'll borrow the concept of a balanced score card and give it a branded flavor to think about how do all these things fit together. How do they reinforce each other? Where one plus one is not two, but something greater than two. And the final piece as well, how do I actually align the organization in doing so. So let me just give you a few examples to highlight those different concepts. So, let's go back to the 3B model, business, brand, and behavior. Actually, there's a different brand image in the minds of people at each of those different points. So we know for customers, we're really talking about the customer brand image. We're talking about the resulting customer-based brand equity, maybe a higher price and greater volume you get out of it. We also talked about the employees, have they internalized the brand definition, do they know what the brand is about? We talked about the 6 A's here, all the way from attention to the brand awareness to acceptance, advocacy, action and adherence. We can also on the employee side think about future employees which is really the image of the organization as an employer, and we can talk about resulting employee based brand equity. Because we might, if we have a strong brand, as we've talked about, we attract better people and pay them less. That's also going to feed into our profits. Then when we think about the brand itself, is their clarity about the brand image and the way it's defined? And do all these drivers of brand equity feed in it the brand level which is core supported by the business itself. And when we think about, we don't call it brand image we often call it corporate reputation. So reputation if you will is actually the cumulative way to think about the brand image in various stakeholders. Which includes analysts, it includes regulators, it includes the community at large. I didn't talk much about it in this mook but it is important. So, I just wanted to bring it, at least to mention that it is part of a mook. And we can think about kind of the equity we have in the value chain as it generates value for our customers, okay. So all of these things somehow hang. They have to hang together to get that kind of alignment but they also add up to create profits going into the future. So the first topic to keep in mind here is this metric of customer satisfaction if you will What makes our customers happy? So, if we think about, traditionally we think about brands and products, we measure the products, and to what degree do we think it was a great value, do we think they performed well. Well, that's a more static point, I think, in some sense of the brand. We talked about how, actually the customer and the consumer, the difference between customer, they buy the products, and the consumer, it's a journey. And that journey goes across all these moments that matter from when I learn the products to when I try them to when I adopt them. I dispose of them, I might re-buy them. And what to keep in mind here is, these are different separate business processes. And the overall customer satisfaction is not simply adding up how happy you are at each of these touchpoints. Let's go back to that coat hanger we keep on bringing up, I won't bring it out again, but think about it. Imagine you checked in to hotel, everything's great but then you see this coat hanger It's very very visible. Every time you want to hang something it irritates you, and it's probably something you remember quite distinctly. So, what that does it kind of clouds everything else, or think about you had this great trip on an airline. Fantastic, this flight assistants were lovely. The food was good and they lose your luggage. Right, that's at the end of the journey and it just ruins the whole experience. Or you're at a retail store, you've done everything right in the store and then there's a huge line line at checkout. These are elements that are not separate. They don't add up. They're almost multiplicative. And there's some research by McKinsey that shows that overall customer satisfaction is much more related to help people perceive the whole journey than each of these individual touch points. So we have to think about that correlation between how satisfied I am, or am I willing to recommend it as in the net promoter score. Over and over again we see across different industries that it's not adding up all these touch points. So even if all these touch points have tried to drive the brand. Right, I have to allocate my effort and resources to those places where I have a low point. Right, so I can't just simply improved everywhere and not improving one part. I have to improve on the weak parts because that's kind of the weakest link. If you will and if you think about as the demand chain in that sense. So that's a different way of thinking about metrics. We have to think of them as an interlink. Sort of inter-linked moments that matter and that's a step change for many organizations who don't currently have that overview of these moments that matter. Of course, some moments matter more than others. So, we have to build that intra metrics as well. The second aspect is, or the third aspect I should say, we talked about how different stake holders matter. How we have to think of the customer journey. And the third and we'll finish with this one is really to think about how do these elements in a business hang together strategically? So if we think about the customer journey, the moments that matter. If we actually turn that around, if you think about a normal organizational chart you have the CEO at the top. Then you have the the HR Director, the Finance Directors, Chief Operation Officer. Supporting functions and maybe front line, and then come the customers. The customers at the bottom and it's almost this command control way of viewing the world, but actually if you think about it where is value created? It would believe that values created with a consumer. Let's put that value creation zone at the top, and let's think about how these moments that matter, who's at that front line. Who's at that top line, I should say, driving the top line if you will. And what are we doing in different parts of the organization to support that? To think of you know the chief operating officer, the head of IT is actually a support function to the creation of customer value, and then maybe the brand team in terms of brand governance or even the CEO is actually not so top down command and control, but bottom up orchestration. And for that I'd like to borrow this concept of the balanced score card by Kaplan and Norton. And to think about it in strategic terms and to think about, well, what does that mean? Let's think about the brand I'm trying to build. What if you're trying to build a brand in the financial sector, which is all about confidence that you have the expertise, and that I can trust you with my money, maybe your wealth manager or financial advisor. And in this kind of an area, the key importance is cross-selling, that's really a driver of profitability. So there's a strong business case for this here, because you're driving revenues, not by selling to more people, but you're selling more things to the same person. So, you can even think of board level, the key metric I might look at is in terms of maybe earnings volatility. Maybe these are counter-cyclical products, right, and sometimes when one product line is going well, the others aren't doing so well. They counter-balance each other out, so my earnings volatility's lower. So maybe the key financial metric is earnings volatility that I might focus on. At the customer level who's driving the earnings, I might think of the cross sell ratio or the percent of new products they adopt if I had to actually develop that. But now think about what sits behind it at the organizations. What do I have to do when I'm in sales? Well, maybe I have to think about, well, in order to cross-sell, I need to build relationships. It's not just transactional focus, it's a relational focus. So maybe one of the key metrics I have is now how much time do I spend With a customer. And in order to be trusted this salesperson might have the right kind of expertise. So you might think about, well from HR in terms of training and development what about the job coverage ratio? Do they have the right skills the right training. You might think from IT, if I want to serve my customers right and cross sell them, and I want to be the trusted brand in this space, I need to have maybe it's my information availability ratio. So the fact that I know about my customers, what else they have. I might know about their potential and so forth. That's how IT supports that brand promise. And on the operational side, you might think well, if it's about cross selling, do I have the right kind of assortment. Do I have the right product and service mix? Maybe it's about developing new products and services at speed. So you might think of the product development cycle. And we know well that you're better at cross selling if my employees have the right attitudes. So for HR you might think of something like employee engagement, employee satisfaction in terms of that strategic engagement in the brand itself. So do the employees believe in the brand? Are they confident in delivering it? And that adds up. So you can think of all these separate elements, that all these different business units within the different parts of the organization they all working towards a common goal. And that's when you get this alignment in your organization. And so if you think about a dashboard for your organization over all, then you could think about these adding up to a common goal. And going back to the dashboard here, right. Things add up. They all have the same shape. They're all working towards the same way. They are linked to each other. And there by if you have energy at one point It goes all the way through to the customer. [MUSIC]
