Forget about awareness, interruption, or time-spent. Forget about tonality or entertainment. Forget about click-through rates, sponsorships, promotions, or ubiquitous distribution. The new brand relationship is nearly 100% emotionally-based. And without real emotional engagement metrics that correlate with consumer behavior and profits, if you rely on anything else you have a target painted on your back.

1. Insight Innovation Exchange
June 18, 2013
The New Brand Relationship

2. 2

3. 1,847 Products and Services
North America & Western Europe
© 2013 Brand Keys, Inc. 3
In 2000…

4. Only 21% had any meaningful differentiation
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5. 10%
2003 Benchmark
© 2013 Brand Keys, Inc. 5

6. Forget creeping commoditization.
This is galloping commoditization!
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7. © 2013 Brand Keys, Inc. 7

8. © 2013 Brand Keys, Inc. 8

9. Today…
consumers are more “marketer” than “target”
© 2013 Brand Keys, Inc. 9
P.S. They have been for nearly TWO decades

10. © 2013 Brand Keys, Inc. 10

11. EMOTIONAL ENGAGEMENT
© 2013 Brand Keys, Inc. 11

12. 2007 Consumer Decision Process
© 2013 Brand Keys, Inc. 12

13. 2013
© 2013 Brand Keys, Inc. 13

14. © 2013 Brand Keys, Inc. 14
Global consulting firm that specializes in predictive brand engagement
and loyalty metrics

15. Category Ideal
4 Drivers
Drivers composed of category/customer ABVs
Location of ABVs 100% consumer-driven
Category Ideal = View/Compare/Buy
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Brand Keys Model

16. Independent Validation: Brand Keys Metrics
Correlate with Sales/Profitability
24/7 Wall St., a global equity analysis firm, ran a financial equity analysis against the 598 brands
included in the Brand Keys Customer Loyalty Engagement Index (CLEI). They identified 11 brands
Brand Keys assessed as best meeting consumer expectations and found that 10 of those 11 brands
were the market leader in their category.
Aquetong Capital Advisors, an independent equity valuation firm, examined the correlation between
Brand Keys brand equity metrics and brand value. Aquetong selected 10 categories from the Brand
Keys CLEI, and found correlations ranging from a low of .830 to a high of .901, confirming the ability
of Brand Keys assessments to predict impact on future purchase behavior, and work cross-category.
The ARF “First Opinion Research Review” validation of the model and methodology can be found at
http://brandkeys.com/wp-content/uploads/2011/12/013007.ARFReview.BK_.pdf .
© 2013 Brand Keys, Inc. 16

17. © 2013 Brand Keys, Inc. 17
2013: 17th Annual Customer Loyalty Engagement Index
Mass Merchandiser Cosmetics

18. Reminder!
Driver names are representative of the ABVs the consumers put
there via a 3-step higher-order statistical analysis.
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19. © 2013 Brand Keys, Inc. 19
100
120
140
160
Makes me Look Better Confidence in Product Brand Value Ingredients
155
140
150
135
2013
ExpectationLevels

20. © 2013 Brand Keys, Inc. 20
100
120
140
160
Feel Good and Look
Good
Trusted Brand That
Knows Me
Innovative &
Nurturing Brand For
Value
Effortless
Transformation
160
146
160
142
2012
ExpectationLevels

21. 2013 2012
© 2013 Brand Keys, Inc. 21
100
120
140
160
Feel Good and
Look Good
Trusted Brand
That Knows Me
Innovative &
Nurturing
Brand For
Value
Effortless
Transformation
160
146
160
142
100
120
140
160
Makes me
Look Better
Confidence
in Product
Brand Value Ingredients
155
140
150
135
VS.

22. 2013: Aspects related to brand and emotion disappeared
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23. But NOT in the Luxury Cosmetics Category
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24. © 2013 Brand Keys, Inc. 24
“Anomaly” “Not Me” “Not my brand”

25. This year we identified:
11
categories where aspects of emotional engagement
disappeared, and products - evaluated by their own
customers - were statistically identical to each other
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26. Indistinguishable =
Interchangeable =
Commodity
© 2013 Brand Keys, Inc. 26

27. © 2013 Brand Keys, Inc. 27

28. The Bottom Line
The new brand relationship is nearly 100% emotionally based.
© 2013 Brand Keys, Inc. 28

29. Emotional Engagement
NOT Awareness,
Interruption,
Time-spent,
Tonality,
Attention,
Entertainment,
Click-through rates,
Sponsorships,
Promotions,
Ubiquitous distribution
© 2013 Brand Keys, Inc. 29

30. Engagement Metrics:
A predictive solution that is both innovative and comprehensive.
Anticipate the needs, wants, and expectations of audience segments.
Identify true emotional value propositions that will drive behavior.
How well your brand is meeting/exceeding expectations.
A truly consumer-centric emotional benchmark for the evaluation of the strategic
success of a brand’s communications and marketing efforts.
Because…
© 2013 Brand Keys, Inc. 30

31. If you can’t emotionally engage customers, you’ll
have a target on your back and the competition
won’t hesitate to take shots!
© 2013 Brand Keys, Inc. 31

32. Thank you.
Robert Passikoff
President, Brand Keys, Inc.
212-532-6028 x12
robertp@brandkeys.com
brandkeys.com