5 Keys: Effective Social Media Programs

Most brand communications are viewed as positive interactions; however, a significant error can be embarrassing, at minimum, and generate negative publicity, at maximum. To avoid critical errors, business owners that choose to engage on social media should be vigilant and implement measures that help them to effectively monitor and control their brand image. The following presentation discusses five key requirements for an effective social media program.

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Six Basic Rules of Branding

(updated 2021)

A dictionary will tell you that branding is the act of promoting a product or service by associating it with a particular brand, and “a brand” is a characteristic that identifies a particular product. Circular reference aside, it doesn’t really lend itself to translation from a definition on a page to the actual act of branding. Is it enough to simply choose a name, products, and services? Will customers then connect the dots between their need and a name, a product, and a logo? Absolutely not. Business owners must execute branding efforts to help customers connect those dots.

Definitions of branding do not belie the fact that branding is truly an action word. So, here are six rules that will help you overcome the shortcomings of lackluster dictionary explanations:

A Better Explanation
Branding can be thought of as the introduction to your organization as well as a reminder of the sales and marketing objectives. It conveys what the organization is about, and with each interaction it becomes the internalized billboard for what stakeholders can expect from you.

Branding includes the simplest business facets, such as a purpose statement, to more complex experiences, such as an experience at a sales center. A sales experience is typically referred to as a different area of marketing, such as customer service; however, we should be cognizant that these are “particular characteristics that will serve to identify a particular product” and thus they are also acts of branding. Branding is an action word, threaded throughout the strategic marketing process.

The Message
At minimum, branding will provide the consumer with answers to two questions:

• Who are you; and
• What can you do for me

Answers to these questions are essentially your mission statement – the reason why you exist. The next critical part of your message is the branding refinement:

• Why you (the consumer) should care

Which can be further refined to two questions:

• Why I can do it better than my competitors
• Why I am the best choice for you

These questions are closely related; but, they are succinctly different. The first addresses your competitive advantage in comparison to other organizations. Perhaps you have economies of scope or scale that enable you to offer a better quality or lower cost product than your competitor. The second question connects your competitive advantage directly to your consumer’s need – what does industry and market data tell you about preferences and current expectations, and how are you meeting these preferences? Your message conveys why your product is the best option available.

”What may initially feel like a “fail” could indeed be the beginning of the next big win.”

- Five Branding Mistakes to Avoid

The Connection
Now that you've been introduced, what keeps you at the forefront, with your customers? Yes, your product may be available on a shelf at local grocery stores waiting to be discovered, and perhaps customers report positive initial experiences; but, what will encourage a repeat performance? We are constantly bombarded with the claims of competing products and services, and we are easily influenced by the opinions of friends, family, and acquaintances. There’s not much that can be done to prohibit exposure to competitive influence; but, you can assert influence of your own.

If you make a connection to the consumer, as opposed to passively sitting on a store shelf, you’re more-likely to keep an engaged, and less easily led away customer. People listen to their friends, family and acquaintances because they care for the individual’s well-being. Distant corporate entities do not convey the same intimacy. But, there are big brands that connect with their consumers very successfully. How are you going to accomplish this and become the brand your customer recommends to their networks – annihilating the competition, instead of the other way around?


Can you show your customers that you’ve considered their changing needs? How is your product or service serving their needs better, or differently than your competitor? What’s your commitment to social values? Are you environmentally conscious in material sourcing? What’s your slant? What’s important to your customers, and how are you striving to meet their needs, desires, and values? Evidence of consideration provides consumers a basis for buy-in, because they can see themselves reflected in your brand. It also provides talking points for them to gain buy-in with their friends and family. Essentially becoming brand ambassadors.

Customization, real or perceived, helps to bridge the gap between the corporate entity and the consumer. A company cannot connect with consumers on the same level as a best friend; but, you can definitely “reach out to the consumer,” establish a connection, and influence them to provide positive word-of-mouth to their networks.

The Visual Cue
The logo, color schemes, packaging, and slogans are what we most often see and associate with branding efforts. They serve to maintain the connection that you've worked hard to establish.

It could be weeks, months, or even years before the next buy-decision is made by the customer. So the visual cues help to remind the consumer about their experience during their last encounter with your brand:

• Does the strong font and bold colors of the branding make consumers feel confident in your capabilities;
• Does the curly font and softer colors of the branding make consumers feel you’re sensitive to their needs;
• Do the crisp lines and simplicity of the branding remind consumers of the elegance of the service environment;
• Does the color green or brown elicit sentiments of sustainability;
• Does the color black or purple convey elegance and luxury; etc.

Colors, fonts, and slogans are not meant to be a purely subliminal exercise. Visual cues are meant to be an overt trigger to a memory - a reminder of your product or service.

The Online Component
The internet and social media is here to stay. We have our email, social networks, written content, video content, and multi-media explosion. We cross-connect social with our work purposes on LinkedIn, Facebook, Twitter, Pinterest, Instagram, and beyond. We’re defining parameters for measurement, we're bench-marking, we're correcting, and we're improving our online marketing efforts. This is a space that’s changing the manner in which we interact with one another, changing our perception, and changing our expectations.

This online component makes it’s easier to engage with customers; and businesses take their branding efforts to this space because it is the new expectation. Unless you are doing commercials, traditional marketing efforts are infrequent, static, and fairly devoid of personality, e.g. the occasional postcard. Online communications are more frequent and more fluid. They tend to reveal more of the brand’s personality, especially on social networks. Online, or digital, communications are an amazing opportunity to connect with current and new customers.

The Modus Operandi
Ultimately, we want consumers to think of our product or service as the best solution to their problem. Verbal and visual cues assist in establishing a brand, building consumer recognition, creating consumer expectation, and encouraging customer loyalty. The effort is ongoing, serving as a constant reminder of your brand and your desire to serve the changing needs of your target market.

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The Lifetime Value of a Customer

(updated 2021)

Many American women begin wearing makeup daily, once they enter the workforce. The amount of make-up worn varies from a simple lip gloss to full makeup (e.g., foundation, mascara, blush, lip liner, lipstick, eye shadow, nail polish, etc.). For women entering into a professional or corporate arena, the likelihood of wearing full makeup increases.

Thanks to Max Factor and Elizabeth Arden, makeup has been ingrained in the western social fabric as an essential part of a woman’s routine. This expectation is enforced by friends, family, female role models, and advertisements. Because grooming is an inextricable part of human socialization, there exists a very profitable market for these very essential cosmetics.

The Rise of M·A·C
MAC, an acronym for Makeup Artist Cosmetics, began in the entertainment industry and was made available to the public in 1995. It emerged as the third upscale makeup line that catered to women of color, after Fashion Fair and Iman; and the first to embrace the entire spectrum of skin colors. MAC offers its customers a portfolio of looks, gifts, and how-tos for weddings and special occasions. Their products can only be found in their own specialty shops or high-end departments stores such as Nordstrom and Macy’s where personnel provide one-on-one attention. Despite their industry clout, the products are competitively priced, making it unnecessary to compromise style for cost. All of these factors have made MAC especially attractive to women, and one of the top selling brands. 

MAC continues to honor its roots with a Pro Membership program that connects artists with a worldwide community that shares a passion for makeup artistry. This program is available to those who use makeup as a primary part of their work, as well as industry professionals who work directly with artists. It’s endorsed by professional makeup artists everywhere, as well as “fashionable” entertainers, such as Taraji P. Henson, Ariana Grande, and Lady Gaga.

Calculating One Customer’s Value
A woman will use makeup for approximately 40 years of her life. We can assume a brand loyalty of eight years for the industry. At one time I would have assumed 10 years, as historically, new brands were not introduced often; however, in recent history, new brands have been introduced more frequently. For the sake of making the calculations simple, we’ll assume the following:

• Continuous referrals from each new customer.
• Referral from any one individual limited to an eight year period.
• An average Return on Sales of 12.17%; based on parent company financials (Estee Lauder 12/2019 pre-crisis).¹
• One annual purchase; although some many customers will obviously purchase more frequently.
• Purchase price of ~$279.00, based on a study of the average expenditure at Sephora and Ulta.² The calculation considers that cosmetics is lumped into a general category of beauty products, which includes lotions, cleansers, masks, scrubs, etc., and that these venues are not likely the primary source of other beauty products: (((($33.17 Sephora + $28.78 Ulta)/2)*12 months)*0.75 makeup's share of beauty purchase =$279). 
  
  

  Year	# Cutomers Beginning	Referrals	# Customers End
  1	1	5	6
  2	6	30	36
  3	36	180	216
  4	216	1,080	1,296
  5	1,296	6,480	7,776
  6	7,776	38,880	46,656
  7	46,656	233,280	279,936
  8	279,936	1,399,680	1,679,616

  
  
  

  Metric	Equation	Result
  Annual Individual Value	(1year * $279 annual expenditure)	$279
  Lifetime Individual Value	(8 years * $279 annual expenditure)	$2,232
  Lifetime Network Value	(Lifetime Individual Value * Network of 1.7 million)	$3,748,902,912
  Profit Generated	(Lifetime Network Value * 12.17% Return on Sales)	$456,241,484

  
  

Calculating the lifetime value of a singular customer, illustrates how one singular customer is potentially worth hundreds of millions of dollars. 

Focusing on the lifetime value of a customer converts them from a transaction into a potential relationship; and quantifying the value can serve as a great rallying point for employees. Anyone who has ever visited a MAC store knows they do a fairly good job of creating a physical environment conducive for relationship building. To personalize your visit, they ensure that there is an exchange of names, and they assign a singular associate to you, for the duration of the visit. When customer service representatives are stable, consistent, and focused on meeting the customer’s needs it reduces the likelihood of customer-employee friction. MAC is a good example of successful execution. They make the effort to provide service beyond a simple purchase of cosmetics, ensuring satisfaction and building customer loyalty, maybe for a lifetime.

The Implicit Value
Acquiring new customers is important; but, maintaining current loyal customers is arguably even more important. Moreover, it costs less to market to and to maintain loyal customers, than it costs to acquire new customers. With current customers, you've already paid the acquisition costs; and happy customers are reluctant to change vendors not just because they're satisfied, but they also avoid switching costs.3 4 According to consultants Bain & Company, current customers are also more profitable.5 A 5% increase in retention increases profits by at least 25%. Additionally, over the relationship lifetime, loyal customers contribute up to ten times more to the bottom line than irregular customers.                             

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1 Mactrends: Estee Lauder Profit Margin

2 Coresight Research: Going Head to Head in Beauty Retailing

3 Investopedia: Acquisition Costs

4 Investopedia: Switching Costs

5 Bain & Company: Prescription for Cutting Costs

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Five Branding Mistakes to Avoid

(updated 2021) 

Branding can be one of the most fun and creative efforts you embark on. It can also be very challenging, especially as your brand matures and may need to diverge from its original path to remain relevant. Either way, here are five mistakes that all business should avoid:

Imagine there's an End to Branding Efforts  

Memories are short. Brands that have staying power work hard to maintain their brand at the forefront of our memories. The thing that everyone loves about sports, and brands that seem to stay on top, is their hustle and evident team spirit. The expertise and precision performance that shines through is evidence of that hard work.  And we admire those who are willing to go the extra mile, to ensure team success. The sports analogy is applicable to almost any other endeavor. Your customers will stick around if you continue to work hard for them.  

”Branding should be thought of as the introduction to your organization as well as a reminder of the sales and marketing objectives of your organization. It conveys what your organization is about, and with each interaction it becomes the internalized billboard for what the stakeholders should expect from your company.”

- Six Basic Rules of Branding

Fail to Embrace Feedback
If feedback indicates there is a perception contrary to your intent, and the source is reputable, accept, apologize, and change the behavior if necessary. There's no sense in arguing or deflecting. Your brand’s perception, communication, and buzz are your responsibility. In addition, you want to appeal to a broad array of individuals in your target market. It doesn't help your cause to diminish an opinion that others in your market may also think, but have not expressed.  

Implementing measures such as press releases, advertisements, and social network profiles that proactively perpetuate the desired brand image, and reactive measures, such as statement issuance, can help to control damage to your brand's image.  These measures cannot resolve all challenges you may face from dissenting opinions.  For the times when control measures are insufficient, taking ownership and listening will let your entire consumer base know that they are important, that their opinion matters, and that you are willing to serve them and their needs.

Fail to Connect with the Target Market
Just as beauty is in the eye of the beholder, truth can be subjective.  If your truth does not seem to connect to your market, the problem may be two fold. It could be your message that is tone deaf, trending towards obsolescence, or slightly ahead of the curve. It could also be that your target market is misaligned and needs to be adjusted. Either way, the issue should be addressed, as your brand will lose credibility pushing a message to a disinterested audience.

Fail to be Flexible

In real life nothing ever goes as planned. This is an inevitability that all successful companies will face; and those that survive economic and business cycle turmoil, remain flexible.  They can change, pivot, and adapt their strategic direction, or even their business model to maximize their likelihood of success. In branding, it's important to remember that not only does the business environment change, but people’s taste, desires, and needs also change. If you remain flexible enough to allow for the evolution of your brand through your markets' creative synergies, it may actually help your organization to flourish.

Fail to Quantify Branding Efforts
Numbers are not everything; but monitoring, analyzing, and synthesizing data can help you identify the most value added activities of your organization. It may seem like a daunting task, but it's actually fairly easy, and new tools are developed all of the time to help organizations readily assess the value of their branding efforts. Tools such as GoogleAnalytics and Salesforce Social Listening help to identify your consumer’s likes and dislikes.1,2 They also help you to set alerts and monitor trends, so that you can identify when a methodology or strategic tactic is no longer effective.

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1 Google Analytics

2 Salesforce Social Listening

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