Interestingly, we can take some important lessons from the analytical, numbers-driven world. More specifically, there are some clear equations involved in creating sustainable and valued relationships between brands and consumers. These could be very informative for savvy marketers.
Let’s not forget that value is how the consumer defines it. However, by understanding the equation of how value is created, you give consumers a reason for consideration. Consider how the equation is applied in the medical insurance industry, where customers are anxious about the cost of cover and frustrated with the complexity of policies. In order to derive value, customers want to feel they’re in control; they need to understand what they’re buying and at what cost. Therefore value = benefit of (control +simplicity) / cost of (premium + efforts).
Before the economic downturn, consumers were willing to gamble on new products and services. However, within the current economic climate, things have changed. According to the 2016 South African Customer Satisfaction Index (SAcsi) results, the top five positions are dominated by restaurant industry players. Customer Satisfaction is a measure of the brands that display the best overall quality, meet customer expectations and have the highest perceived value. Wimpy took the top spot and achieved a satisfaction score of 83,6 out of 100. How do they do it? They consistently deliver a quality product; you know what you’re getting as a consumer and the Wimpy experience is the same wherever you go.
Today, brands from all industries are facing one primary challenge: how to build a strong emotional connection with their consumers. Without that personal relationship, their names mean very little and business could suffer. A brand that is connecting strongly with consumers is Nike. They are masters at creating meaningful experiences by building platforms that open the door to relevant emotional connections and essentially help create brand advocates.
Ultimately, you don’t need to have a maths brain to know that consumer needs are constantly changing, and that expectations of value are changing with them. If you have an understanding of the marketing equations involved in delivering on your brand objectives, you have the means by which to evaluate how you’re doing. The key to successful evaluation is to tailor the variables in your equations to your category, your consumers’ needs and to your brand objectives, which hopefully reflect the business strategic intent.