Based on a recent global study of more than 400 brands, Lippincott has uncovered how winning brands leverage meaning to outperform the competition. Meaning is defined as coming from two sources: 1. Connection - the kind that drives personal value and 2. Progress - the kind that drives action. The global creative consultancy has defined [see full report here] what it takes to become a Go-to brand.

Building Brands in a Harsh New World

Creating brands these days is cheap and easy. There are few barriers to entry and reaching your target audience is no longer a daunting challenge. Good customer reviews can catapult a little-known brand to the top of your browser. But creating a winning brand is a different story in a world where 80% of product searches start on Amazon or Google. Past performance is no guarantee of future results. Even successful brands today with satisfied customers are being intermediated, says Simon Glynn, Chief Strategy Officer of Lippincott.

The Juice is Worth the Squeeze

Shifts in markets, technology and society are making it tougher than ever to build a winning brand. But it also makes the prize more worthwhile. Becoming a Go-to Brand means you are sought after, cared about, consulted with, and are happy to be seen with by your customers. The juice is worth the squeeze. For example, Southwest Airlines, a Go-to Brand for many of its customers, receives 6x fewer customer complaints according to USDOT for the same operational performance (lost bags or delayed flights) than some of its biggest competitors.

Defining Connection and Progress

Meaning is made up of connection and progress. Each element is defined by two factors:

Connection

1. Be true to me this means you understand the customer as an individual and share their values and aspirations.

2. Show you care this means you instinctively on creating value for the customer and have their interests at heart.

Progress

1. Works like magic this means you manage expectations of how things should work and put the customer in control. Its about designing elegant solutions to achieve the most effective outcome with minimal effort.

2. Advance my world this means you are committed to solve the big problems that your customers face. It allows you to connect meaningfully with others who have the same quest.

Breaking Down the Quadrants

Lippincott has created a matrix based on brand performance using the metrics of connection and progress.

Brand Classification by Quadrant

Go-to Brands are located in the top right of the matrix. They outperform their competition in both connection and progress. The average revenue growth for Go-to Brands in the United States is 11%, compared to just 2% for Transactional Brands. Thats over a 5.5x increase. Go-to Brands in the U.S. include Amazon, Harley Davidson, Samsung, Spotify and Southwest Airlines. One of the younger Go-to Brands is Marcus by Goldman Sachs. The financial brand has quickly established itself as a Go-to Brand for its customers. In just its first three years, theyve accumulated $50 billion in deposits by helping its customers achieve progress in their savings and their debts. Marcus has thoughtfully designed its service model. Using fee free pricing and transparent conditions that support rather than undermine the customers financial objectives.

Comfort Brands occupy the top left of the matrix. These are brands that connect with customers, but they fall short on driving progress. They win the affection of the customer, but they are exposed to disruption. Customers value them and feel attached to them, but they fall short on helping them do things they otherwise couldnt. The research identified U.S. examples such as Chick-fil-A, Coca-Cola, Netflix and Patagonia.

Enabling Brands occupy the bottom right of the matrix. They help customers progress, but that dont connect and, as a result, fail to earn our loyalty. We appreciate that they help us do new things, but we often dont love them. This creates a vulnerable position for many tech brands. The research identified U.S. examples such as Facebook, Uber and YouTube.

Transactional Brands occupy the bottom left of the matrix. They underperform on both connection and progress. Because they lack distinction on both fronts, they are in danger of becoming a commodity due to their lack of meaning.

Three Takeaways from the Research

1. More than Marketing - the authority of a Go-to Brand comes less from what it does and more from how it does it. This requires the brand to be managed pervasively within the organization, not just from a marketing perspective. How can you help your customers with what they are struggling to achieve? And, how can you respond in a way thats purposeful and distinctive to drive a deeper connection?

2. Pursue Relentless Innovation evolve from product features to focusing on the lives of your customer. Finding ways to help your customers do things they couldnt do before. Observe how consumers are managing with the products and services they have today, and to look for the non-consumption and the hacks that provide clues to needs that are badly met.

3. Level-Up depending where are you in the Matrix, you have different challenges.

Connection and Progress Chart

Comfort brands need to find ways to aid in the progress of customers. Enabling brands need to connect and show that they care. Transactional brands need to level up by improving both connection and progress. The good news is that if youre currently a Go-to Brand for your target customers, the opportunities are richer than ever before. You have their permission to create and capture more and more value. If you arent a Go-to-Brand, then competition is tougher than ever not just from traditional competitors, but also from digital disruptors and others in your emerging ecosystems. In the words of the research report, Winning customers appreciation has never mattered so much.

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Are You Leveraging Connection And Progress To Become A Go-To Brand Like Amazon, Harley-Davidson And Southwest? - Forbes