While a large part of marketing & communication professionals in the Netherlands has become enthusiastic about golden circles (why, how, what) and with that finding missions, visions and 'whys' (why), it might be time to look at the effect of this renewed call for a higher purpose. I have to admit, I too got a huge inspiration boost after seeing Simon Sinek's explanation of his 'golden circle' .
Now that the proverbial dust has settled after the 'why bomb' has fallen, it is good to take a look at whether and how this theory works in practice. Because finding your 'why' is fun, but how do you convert that into results and growth for your brand or organization?
Is there evidence that it works?
Steps are being taken to make the effect of the golden circle measurable and tangible. Jim Stengel, former CEO of P&G, has conducted research together with the research institute Millward Brown to show that having a brand ideal , as Stengel calls it, certainly produces results. Not completely watertight yet, but already a step in the right direction.
ROI golden circle 2
Jim Stengel calls the 'why' a brand ideal . But what exactly is that? A brand ideal in which your 'why' is so anchored in your brand and formulated in such a way that people from your target group connect to your brand. That happens when your brand contributes to enriching the daily lives of your target group on a number of essential points that people find important:
Evokes joy: activates experiences of happiness, wonder and endless possibilities.
Creates Connection: Facilitates and improves the way people connect.
Inspires discovery: helps people gain new experiences and broaden their horizons.
Inspires pride: strengthens self-confidence and thus provides a safe and vital feeling.
Makes a difference: changes the way people see ordinary things and the world.
According to research, brands that approach one or more of these categories with their brand ideal perform significantly better than brands without a brand ideal.
Can you give an example then?
A good example is the brand Chipotle . Not well-known in the Netherlands, but a huge chain of Mexican restaurants in the US. What makes them different is that they go for food with integrity. Honest food, locally produced with respect for people, animals and the environment. Of course, it is all presented in a very American way, but it is convincing and more importantly: it gives them enormously positive results.
roi golden circle 3
However, the research mentioned is also somewhat misleading. Because it suggests that having a brand is ideal enough to launch your brand into the hall of fame of brand loyalty. And there is more to it than that.
We have a why and now?
Defining a brand ideal can be quite a task, but it is never a goal in itself. Because the term 'goal' suggests an end point. It is just the start. Your brand ideal is the basis, the starting point from which everything is aligned. Your communication, your website, your service, your workforce, perhaps even your brand. Successfully launching and implementing such an ideal takes time, a lot of attention and just as much money. Formulating it is therefore not a quick fix to make your brand contemporary, on the contrary.
By the time the new craze is in full swing, you are still busy rolling out your new strategy qatar mobile phone number list And that is only a good thing. Because ultimately, the basis of all 'whys', brand ideals and other great strategies is the same: building a strong and authentic brand. And that this is important, we already knew that 100 years ago. Listening to your customers, paying real attention and giving them the feeling that they have influence. That is rewarded with the trust in your brand and the associated financial results. Because let's face it, we all want to make money.
The concrete results
So think long term, but also go for short term results. The motivation to conform to a long term strategy stands or falls with your ability as a brand to achieve results in the short term. Measuring results should be priority number 1 for all communication. Measuring and adjusting accordingly leads to a higher conversion, it's that simple. So measure to see what works and what doesn't.
Measuring is knowing. Everyone has heard of Google Analytics or Facebook Statistics, but how do you calculate what you get back for all the money you invest in your online channels?
There are several good methods to map ROI. Bart van der Kooi recently posted a good article about making ROI measurable with a focus on Exposure, Engagement, Influence and Action . This includes calculating the IPM score. There are many things you can pay attention to as you can read in the article above, but looking at the 'why' so to speak, interaction is the x-factor.
The RMI method: interaction is the x-factor
A tool to map interaction is the RMI method, which I always use myself. With this method, I look at what a brand performs online and what the areas for improvement are. Before I go into this method and how it works, I would like to explain why I think interaction is the x-factor of social media.