Relationship driven.

Conventional wisdom says that the right product at the right time in the right market will succeed; that product is the path to realizing market opportunity. No doubt this is true, but the inroad of a compelling product doesn’t necessarily dictate a long-term win. Product alone does not dictate sustainable sales growth because the eventuality is that all products become commoditized over time with the onslaught of competition. Unless there is further context surrounding the product to add value beyond features, benefits, and price, there is inherent risk. The observation of this notion is subtle. It’s the subtlety that brand managers miss and often times stand dumbfounded when their product falters.

The value that distinguishes one product from the next, one brand from the next, is born in the character of the organization and the people behind the scene. When the end product and brand experiences manifest the values of the organization then there is a basis for connection, a basis for relationship. The realization of shared values happens through tangible experiences and authentic storytelling. When there is no direct to consumer connection, there is less relationship. When there is limited storytelling ability, there is less relationship. When there is no purpose, there is no reason for loyalty: Less connection, less relationship, less loyalty, less growth—A painful daisy chain of affect. 

Building a meaningful direct connection with your customer is the most fruitful path to growth. It’s about transparency and authenticity… doing the right thing according to your values and making doing the right thing the basis for success rather than duping customers with superficial imagery or selling hyperbole.

There is profit to be had by engaging audiences in purpose, i.e. a relationship based on shared values. Don’t believe me? Deloitte's research finds “such companies report 40% higher levels of workforce retention than their competitors.” Millward Brown notes in multiple studies “purpose driven brands outperform the S&P 500 by 400% on average.” And, in our own studies using the Brand Equity Index, we witness brands that are focused on their value proposition (purpose), and optimize relationship development with their consumers, and the internal teams understand both, score at the top of the index.