Improving brand equity
In addition to understanding the physical attributes of the consumer audience, such as increasing pressures on time, the ageing consumer, etc, today’s communications professional should be mindful of key trends regarding consumer ‘mindset’ such as the following issues identified by The Henley Centre.
New definitions of ‘discretion’ – the perceived move from a welfare state to that of private provision is leading to increased consumer anxieties over security and remuneration, causing consumers to engage in increased ‘defensive’ expenditure, e.g. healthcare insurance, pensions, etc.
Unprecedented high levels of consumer confidence – the literacy of today’s consumer is underpinning growing confidence; the consumer increasingly expecting ‘deals’.
The end of trade-offs – consumers are expecting the impossible.
Relationships in the dynamic context of the ‘network society’ – work and domestic spheres are increasingly blurring.
Competition between brands is fiercer ever in today’s increasingly sophisticated and crowded marketplace. Organizations should be striving to recruit as many consumers as possible into a brand, and then increase that share of consumer. For example, American Express (Amex) recognized that some of its cardmembers required a revolving credit product in addition to its traditional charge card so the company launched the American Express Credit Card in April 1995. This product enhances the company’s portfolio of products, which include other personal finance and travel services, so that Amex is able to increase its share of each of its customers’ spending.
The American Express Credit Card launch in the UK generated phenomenal media coverage, eclipsing the launch of two new products by Barclaycard on the same day. Had the launch taken place three years earlier, the outcome may well have been quite different. By using an independent tracking study undertaken by CARMA (Computer Aided Research and Media Analysis) Ltd since 1991, Amex is able to determine that the favourability of media coverage has shifted substantially over a three-year period as shown in Figure 1.
Figure 1.1 Amex favourability ratios 1991-1994
10 7:1
6:1
4:1
5 3:1
0
1991 1992 1993 1994
Furthermore, Amex is able to show cause and effect, tracking proactive public relations efforts and initiatives against resulting editorial coverage. Shifting image can take considerable time, but the way in which the American Express Credit Card has been received and reported on by the media demonstrates a marked improvement in Amex brand equity.