The Right Way to Build Your Brand

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Strategy & Business Model Section | 1

The Right Way to Build Your Brand

By Roger L. Martin et al., | Harvard Business Review Magazine | January–February 2024

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More than a century ago the merchant John Wanamaker wryly complained, “Half the money I spend on advertising is wasted. The trouble is, I don’t know which half.” According to the author they finally have an answer for Wanamaker—and a coherent rationale for investment in brand building. They drew on a large database supplied by the World Advertising Research Centre (WARC) to empirically identify what types of brand advertising are most effective both for attracting new customers and for converting them into loyal repeaters.  As the authors explained, the key to successful brand building is a clear and specific promise to the customer that can be demonstrably fulfilled. 

What we mean by a “promise to the customer.”  When one person makes a promise to another, it creates a relationship between the two. If the pledge is fulfilled, it builds trust, resulting in a valuable connection. Research shows conclusively that making a promise and then delivering on it has a greater positive impact on the recipient than simply doing a favor or a service for that person.

The majority of promises fell into three types, and 89% of campaigns made at least one type. Some made more than one.  These promises are: emotional, functional and enjoyable to buy.   Having determined what kinds of promises companies make, the authors turned to look at what makes the promises attractive to customers.  They found that successful campaigns share three features. They are: memorable ( i..e, should run counter to expectations), valuable (Customers must want what the promise offers. That’s more likely if it diverges from a status quo they don’t like.), and deliverable (part of the value of any customer promise is precisely that it is a guarantee).

A well-conceived customer promise can provide a common objective. That’s because creating and executing on a Customers Promise is, in essence, an act of strategy making—defining where the company will play (for SIXT, among affluent people who care about cars) and how it will win (by guaranteeing they get the car they chose). This provides information for investors (how the company will beat its competitors), customers (the value the company will bring them), employees (the value they are striving to create), the marketing and sales function (how the company positions itself), the production function (what the operational objective is), and finance (what it should be measuring).

Take a CP to the market as a cycle with five steps. The first step is to understand customers well enough to know what constitutes memorability and value for them. Used that understanding to design a CP.  Once a company has designed its CP, it can issue it publicly and in doing so, commit to it. Then it must project that promise to the target audience: If it isn’t received, it can’t be effective. Finally, it needs to fulfill the CP, or the promise will be largely worthless. 

The ultimate goal of a marketing campaign should be to go through the CP cycle often enough that your customers stop wondering whether you’ll make good on your promises. Once they assume that you will, they purchase out of habit rather than choice. 

3 key takeaways from the article

1. More than a century ago the merchant John Wanamaker wryly complained, “Half the money I spend on advertising is wasted. The trouble is, I don’t know which half.” 
2. Finally we have an answer for Wanamaker—and a coherent rationale for investment in brand building.  According to the research the key to successful brand building is a clear and specific promise to the customer that can be demonstrably fulfilled. These promises should be memorable, valuable and deliverable.
3. Take a CP to the market as a cycle with five steps. The first step is to understand customers well enough to know what constitutes memorability and value for them. Used that understanding to design a CP.  Once a company has designed its CP, it can issue it publicly and in doing so, commit to it. Then it must project that promise to the target audience: If it isn’t received, it can’t be effective. Finally, it needs to fulfill the CP, or the promise will be largely worthless. 

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Topics:  Strategy, Business Model, Marketing, Advertising