There’s a fascinating article titled “The Dawn of the Relationship Era in Marketing” that recently appeared in AdAge magazine. It’s written by David Rogers and Bob Garfield, the latter the same guy who caused a stir a few years ago with the essay “The Chaos Scenario” which (semi-correctly) predicted “the end of advertising as we know it”.

This piece isn’t quite so controversial, but it does point out that the role of marketing in the selling equation is changing. The authors posit that we’re witnessing the end of  “the Consumer Era” and are now moving into “the Relationship Era”.

The Relationship Era is based around the idea that companies that succeed in the future will do so because they’ve made some sort of human connection with their customer base. The belief is that in the Relationship Era, the big winners will be companies that people trust because they have “solid core values” and “transparent and honest practices“.

These companies will spend little on advertising—because they won’t need it. They’ve made a personal connection with a core group of customers who trust them implicitly, because they’ve backed up their core values with actions. They can then rely on these loyal customers to spread the word about their products and services and attract new customers. It almost seems the logical result that comes from a well executed corporate social responsibility policy.

The authors believe these brand-fan customers will: “…share your links and retweet you on Twitter and post a photo of themselves with your product on Facebook and like you on Facebook and generate all these network conversations, which go back to the top of the funnel and influence other customers in your network at their own stage of awareness, consideration, preference or action.”

So how do you get to be one of these beloved companies who people are tweeting and posting about? It starts with a purpose according to Rogers and Garfield. “You have to explain to all comers why you’re in business.” Among the companies identified as successfully “explaining” themselves and their values are Apple, Whole Foods and Trader Joe’s.

One prime example that’s cited is outdoors outfitter Patagonia who for years has had a purpose that resonates with its customers: Build the best product, cause no unnecessary harm, use business to inspire and implement solutions to the environmental crisis. The company then backs up this mantra with real-world actions, donating 1% of its gross sales to environmental causes, promoting environmental sustainability in every aspect of its operations and providing progressive workplace policies like paternity leave and paid sabbaticals.

Another company identified as a having authentic purpose: Krispy Kreme. After a rough start to the decade, in 2009 a new management team went searching for the company’s raison d’etre and came up with: “Touching and enhancing people’s lives through the joy that is Krispy Kreme. Management then “decreed that the joy ethic inform every interaction at every level of the business.”

My take: I can buy into the Relationship Era—but only to a point.

It’s hard to argue with companies like Trader Joe’s and Patagonia, that have carved out their own unique niche in the marketplace with little to no advertising, but lots of positive word-of-mouth and social networking buzz. After all, what’s not to like about free advertising? But the fact is, these kind of companies are few and far between.

Put under a microscope, I’d say the majority of US companies would be unable to pass the “authenticity” sniff test. Even successful companies often aren’t nimble or visionary enough to coalesce around a single purpose and execute it in the marketplace. It’s just not in their DNA. For instance, I wonder if every Krispy Kreme franchise has really been able to add “the joy ethic” to every business transaction.

The good news: companies that lack a specific purpose their customers can rally around, have other ways to grow their business and increase brand loyalty. This includes doing all they can to improve the customer experience from pre-sale to post-sale. It also means enhancing customer engagement, so that customers are communicated with in personal, relevant ways across a variety of touch points.

What do you think—is the Relationship Era upon us?

A few questions about Brands

Why do some brands dominate and others just compete?

Can brand value be created solely on perceived value and word of mouth hype, or is there a prerequisite that the brand promise be walked-out through customer experience?

Does our always-on world that glorifies multi-tasking and accepts information waterboarding as the norm make it easier or more difficult to establish a brand that dominates?

Is there tangible value associated with brands that are established as wholly above and apart from its competitors?

World Triathlon Corporation, Apple, and Nike give us some answers

Racing the Florida Challenge a few weeks ago had me pondering each of these questions. The mere fact that I was standing on the starting line of a long distance triathlon having registered only 2 weeks prior was an answer in itself. There are  four commonly raced distances in the sport and two of them have been branded by World Triathlon Corporation. WTC owns the Ironman brand and created the “70.3″ series renaming races generically referred to as Half-Ironman.

Ironman has become the ultimate aspirational brand for people marking off items on their bucket list. North American IM events typically sell out one year ahead of time in a period of 6 hours. I’ve been shut out trying to register online as events sell out on-site. The demand for entry into a tortuous race that offers the privilege of jumping into the ocean or lake with up to 1,400 others to start the race is so high that people now attend events as volunteers to ensure their entry and some are willing to pay well beyond the $550 entry fee by purchasing community entries at prices exceeding $1,000.

The Ironman brand exacts a price premium at all points of contact;  entry, merchandise, venue hotels and restaurants but participants don’t mind because WTC delivers a consistent and fabulous experience during each race weekend.  During my race in Clermont Florida, I had to search for a porta potty before and during the race, the drinks at the aid stations were all at room temp (on a 90 degree day) except for the last stand, and overall execution of sponsor tents, awards, and post game grub were pedestrian at best. Not so at an IM event. Everything is executed with the athlete in mind and all is delivered on a first class basis.

The shelves at Best Buy, Target, and Walmart are stocked with MP3 players, but most consumers walk through the doors looking for an “iPod”. Like Kleenex, Xerox, and FedEx, Apple has been able to establish its product name as the category designator. I’m not entirely sure if kids under the age of 15 understand that the MP3 category has products manufactured by companies other than Apple.

Apple’s brand was built on innovation, creating an irresistible appeal for people who had to have the next new thing. Apple backed up innovation with execution as the products worked and allowed people to interact with music in a way never before possible.  Apple has benefited from price premiums and the ability to maintain standardized pricing across an otherwise discount crazed retail distribution network.

That history represents powerful capital in consumer minds that serves to offset even the recent design challenges for the latest version of iPhone. There’s a limit to how many product snafu’s will be tolerated by consumers, and Apple would be testing limits should the next round of product fail on some wide ranging level.

Nike founded its shoe company on the vison of Bill Bowerman and the cinders of the University of Oregon track. Nike may be the best example of how a brand, once established, can extend beyond it roots to dominate an entire category of related products. I don’t think Bowerman and Phil Knight envisioned having the Nike swoosh emblazoned on golfs balls and swim suits, but it has happened. It wasn’t that long ago when I heard kids say they needed to go “shopping for some Nike’s”.

Nike is widely distributed in retail, heavily discounted at times, and has assumed a role of universal appeal rather than a quality product line that appeals to passionate users. Today the Nike brand may lean a little too often on perceived value, celebrity endorsement, and past achievements while product quality and good function is left wanting.  That’s my opinion as a guy who buys 2-3 pairs of running shoes per year as well as clothing and accessories for the running sport. You might have a different opinion if you patronize their golf or tennis lines.

My brand musings have a purpose. Nike, Apple, and WTC probably care little for my opinion of their well established brands. My purpose is to understand how we can create a dominant brand in our own business. What does it take to make your credit card, your loyalty currency, your marketing agency, or your new product become the name that creates demand and even defines a category?

As you engage in planning for next year, elevating your brand should take priority on the strategic planning map. Before you get distracted with mandatory elements of budgeting and forecasting, remember that the price premiums and customer loyalty that comes from a dominant brand pays lasting dividends.

You have to get to that starting line if you are to finish the race. Get started now.

Banks traditionally build brand on the pillars of strength, reliability, security, and service. Few have developed a “personality” brand and I cannot think of one that has created a brand that evokes a passionate response from its fans as do Starbucks, Apple, and Coca-Cola.

Though banks are uncomfortable with the concept, many are essentially in the retail business. In my area of the Southeastern US, Bank of America and Chase have a retail delivery network akin to quick-serve restaurants, pharmacies, and gas stations. There seems to be one on every corner.

Considering the current expansion of branch networks (mostly through merger & acquisition), it makes sense that a more engaging brand personality would be good for business.

That said, it was a refreshing surprise to read an article in US Banker’s May issue describing how North Shore Bank was experimenting with Foursquare and other social media channels to create brand awareness in the communities it serves.

The $1.8 Billion bank based in Brookfield, Wisconsin has a tech-savvy e-Business Coordinator, Tim Gluth who decided to contact the “mayors” of the bank’s 44 branches and offer them a $5 Subway gift card for their patronage. “Patronage” could be a stretch as the bank did not ask if the mayors were customers of the bank, they simply acknowledged their mentions of North Shore online to say “thank you”.

Mr. Gluth found the “Mayors” on Twitter and Facebook and made contact initially through those channels. The promotion was greeted with surprise and, from this perspective, was successful in establishing customer engagement. The bank has since carried on to sponsor local Tweet-Ups in support of the minor league baseball Timber Rattlers.

Tommy Clifford was cited in the article as a brand advocate and went beyond tweeting about the experience to documenting his experience in this You Tube video. Jason Sherrill, Owner of InetSolution, Inc., a Utica Michigan based firm, posted on his blog about the experience and is encouraging more banks to follow suit.

Emerging from the recent financial crisis in the US, banks have been working hard to re-establish credibility and trust. Advocating financial literacy among the customer base and offering products that are easy to understand and in the best interest of customers are current marketing themes.

Compatible with that messaging would be to “humanize” the bank brand.

There are still voices that tell me that Twitter, Foursquare and the rest are a waste of time. I would challenge those voices to suggest another way for banks to connect with their customer base on the local level at a cost that will not upset the marketing budget, particularly in community bank and credit union marketing.

I think they’ll find the North Shore experiment to be a big step in the right direction.

When it comes to brand recognition, the usual names that dominate the conversation are Apple, Starbucks, Coca-Cola, McDonalds, Visa and …. Chick-fil-A?

Ok, Chick-fil-A may not be a household name of the same caliber as Starbucks, but I guaranty that the “second largest chicken restaurant chain in the US” has the most passionate fan base in the quick-serve sector.

I was a first-hand witness to a Chick-fil-A grand opening in Pompano, Florida this week and I was amazed by what I saw. It was the tent city that caught my eye and made me pull over on the road. But it was the “renegade” fans that made me hang around and be late for dinner.

About 5 years ago, Chick-fil-A started its “First 100″ promotion in conjunction with new store openings. Beginning at 6am the day before official opening, folks can line up and enter a lottery to win one “Chicken Sandwich, Chick-fil-A Waffle Potato Fries and drink per week for a year”, a total of 52 meals.

In the midst of the crowd, I not only met the guy who was “No. 1″ in line, but also a rare pair of gents, one named John Veggieoilman, who told me they had participated in 34 openings over the past 4 years.

Chick-fil-A was founded by Truett Cathy in the early 1960’s and his faith based business philosophies have served him well. Mr. Cathy is credited with inventing the boneless breast of chicken sandwich and the chain has grown to more than 1,430 stores across 38 states – all without being open on Sundays.

More people might know Chick-fil-A for their renegade cows which urge people to “Eat Mor Chikin”. These iconic figures are on par with the Geico Gekko and the Aflac Duck, but it is truly the renegade fans who line up for 18 hours to be part of the First 100 that tell the story of a successful brand.

For all the viral and word-of-mouth marketing taking place online, here is an excellent example of how an offline brand can create a passionate following of customers all through an “underground” promotion like First 100.  The story has been often repeated around the country and  judging from the people I talked with at the Pompano store, the frenzy will continue.

Chick-fil-A surely benefits from the nearly-free media impressions from local coverage and I’ll bet those winners don’t eat alone during their year in the freebie line. First 100 is a winner all around just as is Chick-fil-A.

Mr. Cathy and his family have lots to proud of, and the rest of us can learn a bit about brand building from this humble southern gentleman.

Editor’s Note: I’ll be having lunch at Chick-fil-A tomorrow as part of my follow-up story!

When it comes to brand recognition, the usual names that dominate the conversation are Apple, Starbucks, Coca-Cola, McDonalds, Visa and …. Chick-fil-A?

Ok, Chick-fil-A may not be a household name of the same caliber as Starbucks, but I guaranty that the “second largest chicken restaurant chain in the US” has the most passionate fan base in the quick-serve sector.

I was a first-hand witness to a Chick-fil-A grand opening in Pompano, Florida this week and I was amazed by what I saw. It was the tent city that caught my eye and made me pull over on the road. But it was the “renegade” fans that made me hang around and be late for dinner.

About 5 years ago, Chick-fil-A started its “First 100″ promotion in conjunction with new store openings. Beginning at 6am the day before official opening, folks can line up and enter a lottery to win one “Chicken Sandwich, Chick-fil-A Waffle Potato Fries and drink per week for a year”, a total of 52 meals.

In the midst of the crowd, I not only met the guy who was “No. 1″ in line, but also a rare pair of gents, one named John Veggieoilman, who told me they had participated in 34 openings over the past 4 years.

Chick-fil-A was founded by Truett Cathy in the early 1960’s and his faith based business philosophies have served him well. Mr. Cathy is credited with inventing the boneless breast of chicken sandwich and the chain has grown to more than 1,430 stores across 38 states – all without being open on Sundays.

More people might know Chick-fil-A for their renegade cows which urge people to “Eat Mor Chikin”. These iconic figures are on par with the Geico Gekko and the Aflac Duck, but it is truly the renegade fans who line up for 18 hours to be part of the First 100 that tell the story of a successful brand.

For all the viral and word-of-mouth marketing taking place online, here is an excellent example of how an offline brand can create a passionate following of customers all through an “underground” promotion like First 100.  The story has been often repeated around the country and  judging from the people I talked with at the Pompano store, the frenzy will continue.

Chick-fil-A surely benefits from the nearly-free media impressions from local coverage and I’ll bet those winners don’t eat alone during their year in the freebie line. First 100 is a winner all around just as is Chick-fil-A.

Mr. Cathy and his family have lots to proud of, and the rest of us can learn a bit about brand building from this humble southern gentleman.

Editor’s Note: I’ll be having lunch at Chick-fil-A tomorrow as part of my follow-up story!

It’s probably no surprise that the great brands are able to combine excellent products with a superior level of customer service. After all, it’s this magic combination that makes them great brands in the first place.

Go to an Apple store to purchase their (in my opinion) superior products, and you get service from friendly, helpful sales reps who truly know and love their stuff. I’m also a big fan of Credo cell phone service. Not only does part of my bill go towards support of worthwhile social causes, every time I talk to customer service I find their reps are some of the nicest people in the world.

Then, there are certain products or services we use and like in spite of their customer service. Like the cool hotel on the beach, with the nice rooms and fantastic ocean views, but the less than accommodating staff. Or the pizza joint with the best pies in town and the never-on-time delivery.

But what about the opposite scenario? Can great customer service overcome a product or service that is deficient in some way to the competition?

Regular readers of Loyalty Truth already know where I’m going with this: right to my television set and Comcast. On these very Web pages, I recently wrote about my efforts to get my hands on a digital converter box from Comcast in order to receive a couple of channels that had dropped off my set.

You see, back in April, I was informed that I needed to pick up a digital converter to continue receiving MSNBC and AMC. But after going to my local office, I was told, “we’re out of them, come back in January”. A 9-month wait. After checking back in September, I received several conflicting responses, and after a lot of back-and-forth, I was led me to believe a converter would be sent to me in two weeks.

Fast forward to September 26th: two days after my last Comcast blog entry was posted, I received an online reply from ComcastMark of Comcast National Customer Operations. After answering a few questions, I was turned over to ComcastMike (or was it ComcastRich?) who e-mailed me with a few more questions. He, in turn, had a Comcast customer service rep named Cynthia call me.

I wish I could tell you the story had a happy ending, that Cynthia stopped by in a Comcast van to hand-deliver the converter box to me, and I was now writing this from my bedroom office, Countdown with Keith Olbermann playing in the background. But no such luck.

You see, instead of bringing me good news, ComcastCynthia reverted back to the original story. She told me there was in fact a 9-month wait for the digital converters, due to a delay by supplier Scientific Atlanta. She would call me as soon as they came in, probably in January.

To me, a 9-month wait to get the converter box means that someone in the offices of Comcast had really dropped the ball.  A 9-month wait means these devices must be in demand. Yikes, can’t Comcast put a little pressure on Scientific Atlanta to ramp up production? After all, in my town, a place where Comcast had a monopoly for many years, their share of market has dropped below 50%. Surely, there had to be a quicker way, Comcast. You’re bleeding customers!

It got me thinking about a recent post by Chris Brogan who pointed out that when a customer service rep tweets “some kind of comforting or informational note to someone who’s having a problem in real time, this information doesn’t exactly travel (easily) through the rest of the system to the people most likely to be directly in front of that person.” Or, in my case, to Cynthia, my designated Comcast rep.

Yet, I don’t really blame ComcastMark or ComcastMike or even ComcastCynthia. Sure, I was passed down the line once, twice, but that’s okay, as they all got back to me in a prompt and courteous manner. Cynthia also gave me the straight story, contrary to my previous encounter with a Comcast rep who said I’d have the converter mailed to me in a couple of weeks.

But despite their best efforts, I’m still in the same place I was back in April, before the Comcast National Customer Operations crew got involved—in essence, waiting 9 months for a part. (Which makes me glad I didn’t lease my car from Comcast.)

It just goes to show you that all the great customer service people in the world often don’t translate into happy, loyal customers—unless you have an organization behind them that gives them the tools, and great products and services, to back them up.

Tom Rapsas is an independent Creative Director/Writer/Strategist. He can be reached at tomrapsas@gmail.com and via Twitter @tomrapsas.

A Mosaic is defined as a decorative art involving small pieces of glass, stone, or other material. It is an art form that represents the product of human creativity and captures the eye. Mosaics date back to AD 64 when In Rome, Nero and his architects used them to cover the walls and ceilings of the Domus Aurea. The size and color of each individual tessera, or small tile of stone or glass used to make a mosaic, is determined by the artist and it is unlikely that any two mosaics are exactly the same.

This aspect of singular design is shared by the proprietary planning methodology employed by Hanifin Loyalty to arrive at a Customer Loyalty Mosaic™ , a desperately needed and innovative approach to Loyalty Program design.  Any business with the will to listen to its customers and adapt its product or service offer to serve their needs is, in theory, on the road to success. To build long term brand loyalty and improve lifetime customer value however, a business must go further by matching transactional and qualitative customer data as the basis of a value proposition that is defensible and set apart from the competition.

Every business is capable of creating its own Customer Loyalty Mosaic™, the components of which range from brand message to operational efficiency, quality, and price. If you visualize the Customer Loyalty Mosaic™ (CLM) of familiar companies as a mix of shapes and colors, the idea takes shape.

Walmart’s CLM would emphasize tessera (elements) related to price and distribution, while Apple would have larger stones representing Innovation and Service. Federal Express might have larger components of Operational Efficiency and Distribution, while American Express would showcase Brand Message and Service.

In today’s difficult economy, it seems that the mosaic pieces of Service and Customer Satisfaction are increasingly in the spotlight. There is a unique challenge to consumer facing companies – do more with a diminished marketing budget and somehow meet the needs of customers who not only understand their value to the business, but carry a sense of entitlement about being recognized for their patronage. In other words, business is challenged to provide stellar service and more individual attention to customers when resources have never been more scarce, and work forces more skeptical about pitching in for the good of the enterprise.

Business Week recently chronicled this service phenomenon and noted that business resources are quietly being shifted to retain and delight more valuable (“best”) customers while deemphasizing acquisition plans. The magazine noted a renewed emphasis on segmenting customers by tiers and designing service and benefit packages customized to these tiers to improve retention. Business Week formed its own methodology to rank the top “Customer Service Champs” in 2009. Tops on the list was Amazon.com, followed by USAA, Jaguar, Lexus, and The Ritz Carlton in the top 5.

The trend towards customer retention and a more sincere approach to customer service is heartening as both are core elements of the Customer Loyalty Mosaic™. Loyalty Marketing is desperately in need of innovation. Let’s hope that the leadership exhibited by the companies on display in Business Week strike a chord for a more holistic approach towards building customer loyalty. Both consumers and business will benefit as these ideas filter throughout industry and, more importantly, have staying power as the economy improves.