THE USEFUL BRAND REPORT TABLE OF CONTENTS

For more insights and information, visit t-3.com/useful-brands or drop us a line.

Ben GaddisChief Innovation Officerben.gaddis@t-3.com512.721.1380

02

EXECUTIVE SUMMARYWHY WE DID THE USEFUL BRAND STUDY, HOW WE DID IT AND WHAT WE FOUND OUT

THE CHANGING MARKETING LANDSCAPE AND OUR HYPOTHESIS ABOUT THE SOLUTION

METHODOLOGY, THE COMPONENTS OF A USEFUL BRAND AND THE USEFUL BRAND SCORE + ID

PROFILES OF THE TOP 10 USEFUL BRANDS AND A FULL LIST OF THE TOP 100

INSIGHTS AND OPPORTUNITIES BY ELEMENT, SECTOR AND DEMOGRAPHICS

THE PROCESS FOR HELPING BRANDS BECOME MORE USEFUL TO CONSUMERS

FINAL THOUGHTS AND WAYS TO GET IN TOUCH

03INTRODUCTION05THE USEFUL BRAND STUDY08THE USEFUL BRAND 10014MINING THE DATA21BUILDING USEFUL BRANDS27CONCLUSION30

EXECUTIVE SUMMARY:CUSTOMERS LOVE USEFUL BRANDS

BRANDS MUST DO, THEN SAY

EXECUTIVE SUMMARY

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REL

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BRAND RELATIONSHIP+ PERFORMANCE

Consumers are in control now more than ever before—and they demand more than ever before. We’ve felt this shift during our 27 years of experience and have adapted our approach instinctively. It’s no longer enough to focus on brand positioning. Our core belief has been that, first and foremost, brands must offer something of value to consumers. Something useful. Then they can communicate this usefulness through messaging.

The word “useful” eludes many brands. Most think it’s only about function. T3 believes—and consumers do, too—that usefulness is much more than one thing. Brands fail to be useful because they don’t understand what that word means to consumers. We put this hypothesis to the test through the Useful Brand Study.

The Useful Brand™ Study With data from a diverse panel of consumers, we identified 14 elements of a Useful Brand. From Friendliness to Innovation, these elements are the ways consumers judge a brand’s usefulness. The elements can be divided equally between two sectors: Relationship (emotional) and Performance (functional).

The Useful Brand Score + IDBy assigning these 14 elements and two sectors appropriate weights, we created an accurate, holistic view of a brand’s usefulness. The Useful Brand Score shows a brand’s overall score, along with scores for the seven Performance and seven Relationship elements. The Useful Brand ID visualizes strengths and weaknesses when compared to a baseline average.

Top PerformersWe can analyze any brand on a multitude of levels—through the lenses of consumers, categories and competition. We ranked 300 brands and found that Amazon came out on top, partially due to its investment in R&D and continual innovation. Building the Useful BrandWith an accurate view of the landscape, we can rate brands as Laggards, Performers (those on par with competitors) or Leaders. The task then becomes how to help companies improve their standing or build on their advantages. We do so by our three-step process. We run a Useful Brand analysis to get a thorough understanding of a brand’s situation. Then we create a prioritized roadmap based on the opportunities we found. Finally, we help brands put their plans into action.

THE USEFUL BRAND REPORT EXECUTIVE SUMMARY

For more insights on Useful Brands, visitt-3.com/useful-brands.

INTRODUCTION: WHAT COMES AFTER POSITIONING?

06THE USEFUL BRAND REPORT INTRODUCTION

Customer expectations are rising. Many brands aren’t keeping up. A recent IBM report states that “four out of five consumers say brands don’t really understand them,” and that’s just one of multiple examples indicating a larger trend. Unfortunately, many brands don’t understand this disconnect.

No matter their size or category, companies are struggling to keep up with consumer demands. There’s a growing divide between what consumers expect and what brands deliver.

For more than 45 years, the breakthrough marketing book Positioning: The Battle for Your Mind by Jack Trout and Al Ries has served as the defining guide for how brands are built. It explained that marketers could improve the perception of their products by simply carving out a niche and owning a specific space in the consumer’s mind. Volvo equaled safety. Coca-Cola was happiness in the bottle.

Positioning was not what you did to a product but what you did to the mind of the prospect. It was about telling consumers what they should think, not changing the product or the brand experience.

Enter technology and a new world that moves faster every day. Media channels continue to explode. Audiences continue to fragment as they scatter across screens. Thanks to price comparisons and reviews, consumers are now more knowledgeable and instantly opinionated. They have control. They are ad blind.

CUSTOMERSWANT MORE

INTRODUCTION

PO·SI·TION·ING /pəˈziSH(ə)niŋ/NOUN. PRESENT PARTICIPLE

“Not what you do to a product, but what you do to the mind of the prospect”. – Trout & Ries

80%OF CONSUMERS IN THE U.S. SAY THE AVERAGE BRAND DOESN’T REALLY UNDERSTAND THEM AS AN INDIVIDUAL.1

88%OF CONSUMERS SAY ADVERTISING HAS LITTLE TO NO INFLUENCE ON THEM WHEN MAKING THEIR PURCHASING DECISIONS.2

THERE’S A GROWING DIVIDE BETWEEN WHAT CONSUMERS EXPECT AND WHAT BRANDS DELIVER.

07

Positioning Is Not EnoughIf a brand is standing on image alone, it’s on shaky ground. We see a new paradigm—in fact, we’ve seen it emerging for two decades. This new model may prove to be just as impactful as Trout and Ries’ revolutionary theory.

The issue holding back most brands is an imbalance in a simple equation. Most brands still focus too many resources on getting their message across when they should be focused on getting customers what they need.

Today’s consumers have moved past positioning and image to expect personalized brand experiences that extend beyond the product itself. In turn, marketers must move past their traditional positioning, campaign and CRM models to adapt products, experiences and marketing to deliver what consumers now demand. It’s a much bigger responsibility than marketers have had before, and it should change the way they operate.

Stronger Brands Do, Then SayBrands that first “do” and then “say” have the greatest chance for long-term success. The do-say philosophy is at the heart of what T3 calls Useful Brands™. Useful Brands will win hearts, market share and margin.

Others have talked about usefulness in terms of utility or function. Our hypothesis contends that usefulness is more. It is not just a word; it’s a mindset. Usefulness is a standard consumers use to judge brands. It determines the brands they prefer and the companies that earn their ongoing business.

Being useful means different things to different consumers, and the reason most marketers fail is because they don’t understand that.

We set out to define what being useful means and test our hypothesis. Our research proved we were onto something—and so did insights from a diverse panel of consumers.

THE USEFUL BRAND REPORT INTRODUCTION

WELCOME TO THE NEW PARADIGM

HOW WE USE THE TERM “USEFUL”The word “useful” may bring to mind the more objective and quantifiable aspects of the term. It could make people think of performance or speeds and feeds. In fact, many brands equate it with “functional.” We believe that’s their first mistake.

Through our study, we found that performance was only part of the equation. Consumers demand usefulness in more intangible, subjective ways. Usefulness is not just about how people use a brand, it’s also how it makes them feel when they use it. A brand must make itself useful emotionally, too.

We hypothesize that usefulness means many things, and it means different things to different people. The brands who take a multifaceted approach to usefulness will make better, lasting connections with existing customers—and gain new ones as well.

USEFULNESS IS NOT JUST ABOUT HOW PEOPLE USE A BRAND, IT’S ALSO HOW IT MAKES THEM FEEL WHEN THEY USE IT.

THE USEFUL BRAND STUDY: WHAT WE DID AND LEARNED

09THE USEFUL BRAND REPORT THE USEFUL BRAND STUDY

DEFINING WHAT USEFUL MEANS

METHODOLOGY

60+ Qualitative Consumer InterviewsIn Phase I, focus groups helped identify potential elements of a Useful Brand. Discussions with a wide range of participants helped determine 44 possible aspects of a brand’s usefulness.

500+ Quantitative Consumer InterviewsPhase II consisted of a wider survey with more concrete data to help validate, refine and rank those potential elements. Extensive analysis helped narrow down the 44 initial elements to 14.

5,500 Consumer Surveys In Phase III, a panel of consumers rated 300 top brands on the useful elements determined in the previous two phases. The panel ultimately helped rank the brands and develop a usefulness index.

Outcome: The Useful Brand ScoreThe Useful Brand Score is an analysis of a brand’s usefulness to consumers. Think of it like a FICO score. It’s a diagnostic tool to help brands build plans to become more useful and complete in the minds of consumers.

10THE USEFUL BRAND REPORT THE USEFUL BRAND STUDY

ValueGIVES ME SOMETHING WORTHWHILE

EasePROVIDES A USER-FRIENDLY EXPERIENCE

InnovationOFFERS NEW IDEAS AND SOLUTIONS

TrustPROVES I CAN DEPEND ON THE COMPANY

ConsistencyDELIVERS THE SAME RESULTS EACH TIME

EmpowermentENHANCES MY ABILITIES AT A NEW LEVEL

FriendlinessINTERACTS WITH ME EASILY

AvailabilityIS ALWAYS THERE WHEN I NEED IT

EfficiencyMAKES ME FASTER AND MORE EFFECTIVE

CustomizationCONFORMS TO ME AND MY NEEDS

ConfidenceDOES WHAT I EXPECT IT TO DO

SafetyBRINGS ME NO HARM, RISK OR INJURY

QualityOFFERS THE CALIBER I WANT

AssociationREFLECTS WHO I AM AS A PERSON

While many marketers may think about “useful” as one easily definable term, we found it’s actually much more.

We uncovered 14 elements consumers apply to define a Useful Brand. They prove our hypothesis that usefulness is not one thing—it’s a mindset. From the way a brand interacts with consumers (Friendliness) to the way they adapt for consumers (Customization), all elements make an impact on a brand’s overall usefulness.

Multi-phase statistical analysis allowed us not only to identify these 14 elements, but also to understand their relative importance. For example, consumers told us Association is the most important thing a brand can offer, but not the only thing. Value, Efficiency and Availability were all close behind. 

Added together and weighted correctly, these elements form the unique DNA of the Useful Brand.

USEFUL IS MANY THINGS

USEFUL BRAND COMPONENTS

14Elements

11THE USEFUL BRAND REPORT THE USEFUL BRAND STUDY

Once we identified the 14 elements, we discovered they clearly divide into two sectors.

The Relationship sector contains the more subjective and emotional elements of a Useful Brand.

The Performance sector contains the more rational, tangible and operational expectations consumers have for a Useful Brand.

Instinctively, marketers may think of usefulness as being directly related to concrete, quantifiable tasks. But by listening to consumers and analyzing the data we prove usefulness is about function and emotion.

Both are important. Consumers see them as two halves of a whole, and brands must do the same. Being a Useful Brand means mastering a balancing act—succeeding in two areas simultaneously.

USEFUL IS BALANCED

ValueGIVES ME SOMETHING WORTHWHILE

EasePROVIDES A USER-FRIENDLY EXPERIENCE

InnovationOFFERS NEW IDEAS AND SOLUTIONS

TrustPROVES I CAN DEPEND ON THE COMPANY

ConsistencyDELIVERS THE SAME RESULTS EACH TIME

EmpowermentENHANCES MY ABILITIES AT A NEW LEVEL

FriendlinessINTERACTS WITH ME EASILY

AvailabilityIS ALWAYS THERE WHEN I NEED IT

EfficiencyMAKES ME FASTER AND MORE EFFECTIVE

CustomizationCONFORMS TO ME AND MY NEEDS

ConfidenceDOES WHAT I EXPECT IT TO DO

SafetyBRINGS ME NO HARM, RISK OR INJURY

QualityOFFERS THE CALIBER I WANT

AssociationREFLECTS WHO I AM AS A PERSON

52%

48%

How does the brand make me feel?

How does the brand perform for me?

Relationship

Performance

12THE USEFUL BRAND REPORT THE USEFUL BRAND STUDY

USEFUL HAS A SCORE

Value

Ease

Innovation

Trust

Consistency

Empowerment

Friendliness

Availability

Efficiency

Customization

Confidence

Safety

Quality

Association

IF A BRAND’S LINE EXTENDS BEYOND THE BASELINE, LIKE BURGER KING IN CUSTOMIZATION, IT OUTPERFORMS THE CUMULATIVE AVERAGE OF THE CATEGORY. IF IT FALLS WITHIN THE BASELINE, LIKE BURGER KING IN EMPOWERMENT, IT UNDERPERFORMS.

A BRAND’S OVERALL SCORE IS MADE UP OF THE ACCURATELY WEIGHTED AND COMBINED RELATIONSHIP AND PERFORMANCE SCORES.

USEFUL BRAND SCORE

USEFUL BRAND ID

THE RELATIONSHIP AND PERFORMANCE SCORES ARE MADE UP OF THE ELEMENT RATINGS IN THEIR RESPECTIVE SECTORS.  

BRAND

BASELINE

LEGEND

13THE USEFUL BRAND REPORT THE USEFUL BRAND STUDY

PUTTING THE ID TO GOOD USE

COMPARISONS

BURGER KING

CATEGORY

BURGER KING

MCDONALD’S

MILLENNIALS

GEN X

BABY BOOMERS

MILLENNIALS RANK BURGER KING LOWEST OF ALL AGE GROUPS.

MCDONALD’S OUTPERFORMS BURGER KING IN AVAILABILITY.

AVAILABILITY

BURGER KING IS A LAGGARD IN ITS CATEGORY.

Burger King vs. Category

Burger King vs. McDonald’s

Burger King by Age Groups

By creating Useful Brand IDs, we can easily take a closer look at brands by category, competitors and demographics. The wealth of data means the comparisons are nearly endless. This gives us a deeper understanding and a more complete picture of exactly how consumers evaluate the usefulness of each brand.

The Useful Brand Score + ID:

For example, we can layer multiple data sets to see how Burger King’s usefulness compares against the category, against its major competitor and among three different demographics.

Ranked at number 202 in the 300 brands we studied, Burger King falls toward the bottom in its category. It follows the general Useful Brand ID pattern of other restaurants, just at a lower level of usefulness.

Even though McDonald’s and Burger King are highly comparable in the QSR category, Burger King loses in terms of Availability. With over 14,000 locations in the U.S., McDonald’s sheer number of restaurants makes the brand there when people need it, wherever they are.3 With Burger King only reaching half that number of locations, it’s easy to see why they may fall short.4

Somewhat surprisingly, Burger King is seen as less useful by Millennials. Many of their “oddvertising” marketing tactics are aimed at the younger demographic. Are they missing the mark?

• Highlight areas of strengths and weaknesses

• Give brands an accurate perspective of their position in the category

• Help companies develop a concise, prioritized roadmap

THE USEFUL BRAND 100: MEET THE LEADERS

01. Amazon INTERNET

Ranked the number one Useful Brand, Amazon’s mission to get you what you need when you need it (sometimes in under an hour) helps make it the most balanced and generally well regarded brand in the panel. Offerings such as Prime, Video, Prime Now and Alexa give consumers instant gratification—and show that what Amazon currently offers may only be the beginning. Young and old, well-off and cost conscious, users and nonusers all agree: Amazon.com and its various services are highly useful.

THE USEFUL BRAND REPORT THE USEFUL BRAND 100

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WHO CAME OUT ON TOP

THE USEFUL BRAND 100 02. Band-Aid CPG

Johnson & Johnson’s Band-Aid Brand is an enduring icon that sets the standard for Quality, particularly for GenXers, upper middle-income homes and parents. Trust and Confidence are also key ingredients in Band-Aid’s success. With a variety of styles and solutions ranging from Hello Kitty to sports injuries, Customization boosts their score.

03. Google INTERNET

The undisputed king of search connects users to what they need to know, the way they want that information. Google scores particularly high relative to its peers for being quick, easy to use and on the cutting edge of technology. Google greatly outperforms the other brands we studied in Confidence, Empowerment and Innovation.

04. Kleenex CPG

Like Band-Aid, Kleenex has set the bar high in its CPG category. Grocery decision makers and quality seekers in particular rate Kleenex highly across multiple elements. Its product options for almost any scenario, such as home, restroom or purse designs, give it an edge over other brands in terms of Ease and Availability. 05. Visa FINANCIAL SERVICES

The credit card company’s knack for being almost everywhere scores points with many different demographics and psychographics. Online buyers, restaurant goers and impulse shoppers rank this brand particularly high. Visa’s high level of Availability is complemented by its ability to reduce friction for consumers in everyday life.

SCORE

SCORE

SCORE

SCORE

PERFORMANCE

AMAZON

390PERFORMANCE

418808RELATIONSHIP

BRAND

BASELINE

LEGEND

792

783

755

753

THE USEFUL BRAND REPORT THE USEFUL BRAND 100

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06. UPS 746LOGISTICS

SCORE 13. Samsung 737TECHNOLOGY

SCORE 20. Lowe’s 733RETAIL

SCORE 27. Bose 717TECHNOLOGY

SCORE

09. Microsoft 740TECHNOLOGY

SCORE 16. Hanes 737APPAREL

SCORE 23. Sony 728TECHNOLOGY

SCORE 30. Maytag 715APPLIANCE

SCORE

07. FedEx 744LOGISTICS

SCORE 14. Clorox 737CPG

SCORE 21. Oral-B 732CPG

SCORE 28. Hewlett-Packard 716TECHNOLOGY

SCORE

10. Quaker Oats 739FOOD & BEVERAGE

SCORE 17. Whirlpool 737APPLIANCE

SCORE 24. Kenmore Appliances 725APPLIANCE

SCORE 31. Tide 714CPG

SCORE

12. USPS 739LOGISTICS

SCORE 19. Campbell’s Soup 735FOOD & BEVERAGE

SCORE 26. Cheerios 717FOOD & BEVERAGE

SCORE 33. Subway 713RESTAURANT

SCORE

08. The Home Depot 743RETAIL

SCORE 15. PayPal 737FINANCIAL SERVICES

SCORE 22. Crest 728CPG

SCORE 29. Jell-O 716FOOD & BEVERAGE

SCORE

11. Windows 739TECHNOLOGY

SCORE 18. Glad 736CPG

SCORE 25. General Electric 720APPLIANCE

SCORE 32. Apple 713TECHNOLOGY

SCORE

THE USEFUL BRAND REPORT THE USEFUL BRAND 100

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34. Colgate 709CPG

SCORE 41. Nike 697APPAREL

SCORE

37. Ace Hardware 699RETAIL

SCORE 44. Adobe Systems 696TECHNOLOGY

SCORE

35. Lipton 705FOOD & BEVERAGE

SCORE 42. Levi’s 696APPAREL

SCORE

38. Advil 699CPG

SCORE 45. LG Electronics 694TECHNOLOGY

SCORE

40. Gillette 698CPG

SCORE 47. Walgreens 692RETAIL

SCORE

36. LEGO 704ENTERTAINMENT

SCORE 43. YouTube 696INTERNET

SCORE

39. Wikipedia 698INTERNET

SCORE 46. Disney 693ENTERTAINMENT

SCORE

CATEGORY WINNERS The Useful Brand Study demonstrates time and again that usefulness is not just about function. It’s not just the high-tech brands that are seen as useful by consumers. CPG and Food & Beverage brands make up one-third of the top 100. Technology and Internet brands add up to only 20 percent. 

48. Planters 691FOOD & BEVERAGE

SCORE

51. Waze 690INTERNET

SCORE

49. Target 691RETAIL

SCORE

52. Reese’s 690FOOD & BEVERAGE

SCORE

54. Betterment 689FINANCIAL SERVICES

SCORE

50. Bed Bath & Beyond 691RETAIL

SCORE

53. Postmates 689INTERNET

SCORE

55. Febreze 688CPG

SCORE

58. Honda 688AUTOMOTIVE

SCORE

56. Listerine 688CPG

SCORE

57. Minute Maid 688FOOD & BEVERAGE

SCORE

THE USEFUL BRAND REPORT THE USEFUL BRAND 100

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62. Pixar 682ENTERTAINMENT

SCORE

65. Dell 680TECHNOLOGY

SCORE

63. Barnes & Noble 681RETAIL

SCORE

64. Best Buy 681RETAIL

SCORE

59. Columbia Sportswear 686APPAREL

SCORE

61. New Balance 684APPAREL

SCORE

60. Jimmy Dean 685FOOD & BEVERAGE

SCORE

66. MasterCard 680FINANCIAL SERVICES

SCORE

68. Lay’s 679FOOD & BEVERAGE

SCORE

67. Staples 679RETAIL

SCORE

69. Netflix 679INTERNET

SCORE

72. Toyota 676AUTOMOTIVE

SCORE

70. North Face 679APPAREL

SCORE

71. Yahoo! 678INTERNET

SCORE

73. Kohler 676APPLIANCE

SCORE

75. Wendy’s 675RESTAURANT

SCORE

74. Simply Orange 675FOOD & BEVERAGE

SCORE

76. Holiday Inn 675TRAVEL & HOSPITALITY

SCORE

79. Palmolive 673CPG

SCORE

77. Tropicana 675FOOD & BEVERAGE

SCORE

78. Panasonic 674TECHNOLOGY

SCORE

80. Tylenol 673CPG

SCORE

82. Marriott 672TRAVEL & HOSPITALITY

SCORE

81. Office Depot 672RETAIL

SCORE

83. Wealthfront 672FINANCIAL SERVICES

SCORE

86. Tostitos 671FOOD & BEVERAGE

SCORE

84. Yoplait 672FOOD & BEVERAGE

SCORE

85. Ford 671AUTOMOTIVE

SCORE

THE RANGE OF THE USEFUL BRAND STUDY

An overlay of the Useful Brand IDs for the top brand (Amazon, #1), a middle-of-the-road brand (Best Western Hotels, #150) and lowest ranked brand (Monster Energy, #300) shows how a wide range of brands compare. Amazon sets the standard—far above and beyond the last brand in the 300 we studied. Keeping the baseline at the same scale across all visualizations of the Useful Brand ID gives us a standardized frame of reference when looking at any brand. It’s easy to see how brands measure up.

BASELINE

LEGEND

THE USEFUL BRAND REPORT THE USEFUL BRAND 100

19

90. Gatorade 668FOOD & BEVERAGE

SCORE

93. Pantene 666CPG

SCORE

97. eBay 661INTERNET

SCORE

91. Costco 667RETAIL

SCORE

87. Snickers 670FOOD & BEVERAGE

SCORE

98. Olive Garden 661RESTAURANT

SCORE

89. Mattel 668ENTERTAINMENT

SCORE

100. Enterprise Rent-A-Car 660TRAVEL & HOSPITALITY

SCORE

92. Coca-Cola 666FOOD & BEVERAGE

SCORE

88. Cascade 669CPG

SCORE

99. Adidas 661APPAREL

SCORE

94. Special K 664FOOD & BEVERAGE

SCORE

96. State Farm 663FINANCIAL SERVICES

SCORE

95. Hyatt Hotels 663TRAVEL & HOSPITALITY

SCORE

AMAZON

BEST WESTERN HOTELS

MONSTER ENERGY

THE USEFUL BRAND REPORT THE USEFUL BRAND 100

Scoring DistributionThe distribution of the 300 brands we studied aligned closely with the bell curve. Brands could receive a maximum overall score of 1,000. The consumers rated brands as low as 474 and as high as 808. The average score was 636. According to aggregated responses, most brands are only considered moderately useful.

Category DistributionWhen we analyzed the scores by category, we realized consumers as a group think that some categories are more useful than others. While it would be easy to assume technology would come in first, we actually discovered that there are categories of usefulness that are surprisingly low-tech, like Consumer Packaged Goods.

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WHERE THE BRANDS FALL

BRAND LANDSCAPE

25 % 62 % 13 %

BELL CURVE SCORING DISTRIBUTION

0%

12%

474 544

544

580

615

618

632

633

634

639

642

652

656

678

698

715

636

SCORES BELOW 600 SCORES 600–700SCORES

ABOVE 700

Cate

gory

Perc

ent o

f Bra

nds

Stud

ied

Useful Brand ScoreUseful Brand Score

808 715641

APPLIANCES, 715

CPG, 698

TECHNOLOGY, 678

APPAREL, 656

ENTERTAINMENT, 652

FOOD/BEVERAGE, 642

INTERNET, 639

RESTAURANT, 634

RETAIL, 633

AUTOMOTIVE, 632

TRAVEL + HOSPITALITY, 618

FINANCIAL SERVICES, 615

TELECOMMUNICATIONS, 580

ALCOHOLIC BEVERAGES, 544

544 641 715

APPLIANCE

CPG

TECHNOLOGY

APPAREL

ENTERTAINMENT

FOOD + BEVERAGE

INTERNET

RESTAURANT

RETAIL

AUTOMOTIVE

TRAVEL + HOSPITALITY

FINANCIAL SERVICES

TELECOMMUNICATIONS

ALCOHOLIC BEVERAGE

MINING THE DATA: FINDING NEW OPPORTUNITIES

THE USEFUL BRAND REPORT MINING THE DATA

22

THE POWER OF ASSOCIATION

ELEMENT INSIGHTS

Element Spotlight: AssociationOne of the most surprising discoveries was just how important brand association is when it comes to usefulness. Most people associate usefulness with how a product performs, but we found that the element with the most weight was Association.

Consumers understand that they use brands for practical purposes, but they also use brands for personal reasons. Brands are useful in helping consumers understand and communicate something about themselves. A person who wants to be seen as athletic might wear Nike. Someone who believes they are socially conscious might wear TOMS. People who want to project the message that they’ve made it—to others and to themselves—might own a Porsche. Often, consumers are defined by the brands they use, whether they mean to be or not. If a consumer doesn’t want to be associated with your brand, they certainly don’t find it very useful.

ASSOCIATION

BRAND OVERALL RANKING ASSOCIATION RANKING

27

Bose ID

Ranking by Association Element

12

BRAND

BASELINE

LEGEND

Real-World Example: Bose

Bose is the single greatest beneficiary of Association. Its overall Useful Brand ranking is 27. When you rank all the brands by this element it jumps up to 12, which is interesting when you look at the market.

Its single greatest competitor, Apple-owned Beats by Dre, markets its products almost exclusively through Association—people who own Beats are cool.

Bose, however, markets on Quality and Performance. It would seem going to market with a message that using Bose over Beats says something about you is an untapped opportunity. Is Bose fully taking advantage of the strong Association consumers feel for the brand?

THE USEFUL BRAND REPORT MINING THE DATA

23

Element Spotlight: ValueThe concept of Value required further exploration early in the research process. As one participant pointed out, “If I have to pay $500 for $50 worth of utility, that’s really not very useful, is it?” This sort of mental accounting is prevalent in behavioral economics and plays a critical role in the health of a Useful Brand.

You can see how the elements of Association and Value interact in this example. Let’s say a wealthy, yet frugal, golfer buys his tees at a discount shop. The fact that he’s saving money caters to his overall sense of Value, but he wouldn’t necessarily brag to his golf buddies about where he shopped. 

The discount shop’s overall Useful Brand Score would be helped by a high Value score, but dragged down by a low Association score. All elements are interrelated, and all have an impact on the overall score.

VALUE

BRAND OVERALL RANKING VALUE RANKING

29

Jell-O ID

Ranking by Value Element

10

BRAND

BASELINE

LEGEND

WHAT VALUE IS REALLY WORTH

Real-World Example: Jell-O

One of the oldest Food & Beverage companies we studied, Jell-O is seen as a powerful Value brand. Overall, it’s ranked 29. But when we look at the data through the lens of the Value element, it rises meteorically to the top 10. 

Consumers understand and credit Jell-O for doing so much and asking so little in return. They get enjoyment, ease of preparation, fun and variety—all for less than a dollar. Put another way, that’s a lot of usefulness for not a lot of money.

How can Jell-O use this insight to capitalize on their high Value ranking and protect against potential competitors looking to take their place?

24THE USEFUL BRAND REPORT MINING THE DATA

TWO SIDES TO A STORY

SECTOR INSIGHTS

Sector Spotlight: Relationship vs. PerformanceThe balance between the Relationship and Performance sectors becomes even more apparent when we examine brands through those two lenses. We can see how consumers give a brand credit in one area, while hinting that they could be doing more in the other. How can brands take advantage of a strong Relationship score while also increasing their Performance score?

Hanes ID Crest ID Microsoft ID

BRAND

BASELINE

LEGEND

BRAND

BRAND

OVERALL RANKING

OVERALL RANKING

RELATIONSHIP RANKING

PERFORMANCE RANKING

16

16

22

22

09

09

Ranking by Relationship

Ranking by Performance

06

27

13

31

27

06

25THE USEFUL BRAND REPORT MINING THE DATA

THE ONLINE BUYER BOOST

PSYCHOGRAPHIC INSIGHTS

BRAND OVERALL RANKING ONLINE SHOPPER RANKING

173

123

97

165

Ranking by Online Shoppers

20

25

22

16

Buyer Spotlight: Online ShoppersBeyond the basic respondent information, we solicited feedback on 15 psychographic profiles, ranging from bargain hunters and grocery decision makers to social media mavens and online shoppers. This allowed us to see how Useful Brands perform through the lens of people’s opinions, behaviors and aspirations in addition to traditional demographics.

For example, we can take a look at online shopping-related brands such as Instacart, Square and eBay from the perspective of our online purchaser profile.

When ranked by all the consumers in our panel, they fall toward the end of the pack. But when we see these brands through online buyers’ eyes, all have top 25 rankings. That’s quite the jump from their overall position. Instacart, the Internet-based grocery delivery service, moves ahead of 150 brands—more than half of the brands in our study.

Real-World Example: Publix

But online brands aren’t the only ones to move up. Publix moves from being ranked 165 by all consumers to 16 according to online shoppers.

While the supermarket chain does offer online tools, they don’t offer something online shoppers want—same- or next-day home delivery, a service that will no doubt continue to rise in popularity in the years to come.

Looking at data in new ways uncovers significant opportunities. It turns out Publix recently started testing same-day delivery in their Tampa Bay market. Based on our data, we believe it will prove to be a smart move.

26THE USEFUL BRAND REPORT MINING THE DATA

THE GENERATION GAP IS REAL

DEMOGRAPHIC INSIGHTS

We assumed many rankings would shift among different age groups, but what was surprising was how they shifted.

Much research has been devoted to the behaviors, attitudes and idiosyncrasies of Millennials. Many explorations also find that they see the world differently than older generations. Looking at how brand rankings change through the lenses of different age groups, this study is no exception.

It’s tempting to crown Google as the biggest beneficiary from the Millennial perspective since it beat out Amazon. But the true winners are LEGO, Oral-B and Netflix. Those brands are ranked significantly higher by Millennials than by Gen Xers and Baby Boomers.

Also, what power does Hewlett-Packard hold over Boomers? This is not an insignificant insight when you see this distinct relationship and keep in mind the size and spending power of the Baby Boomer market, which spends $3.2 trillion annually according to AARP.5 Is HP taking advantage of this brand affinity?

One tech giant that almost everyone uses might not be universally loved across different demographics. Google moves from the top for Millennials, down to 3 for Gen Xers, then out of the top 10 for Boomers. We could chalk up that descent to Boomers being more technologically out of touch, but they still rank Amazon at the top. It seems like we’ve found a significant deficiency for Google.

MILLENNIAL RANKING GEN X RANKING BOOMER RANKING

Ranking by Generations

BUILDING USEFUL BRANDS: HOW WE MAKE IT HAPPEN

28THE USEFUL BRAND REPORT BUILDING USEFUL BRANDS

The Useful Brand approach is an important tool for understanding a brand’s overall ability to engage and create value for consumers. It’s also a powerful platform for identifying a brand’s place in the category as well as its opportunity for growth.

A brand’s overall score is seen in relationship to the average of its competitive or category set. This allows us to assign one of three statuses and come up with a plan of action for each type of brand.

Laggards are brands whose overall score falls below the category average.

Performers are brands whose overall score falls at or around the category average.

Leaders rise above the other brands in their category by maintaining an overall score that significantly exceeds their competitors’ averages.

PUTTING USEFUL INTO PRACTICE

LAGGARDS, PERFORMERS AND LEADERS

Laggard

Performer

Leader

NEEDS TO BECOME MORE USEFUL IN ORDER TO TURN INTO A PERFORMER

NEEDS TO BECOME MORE USEFUL IN ORDER TO TURN INTO A LEADER WHILE GUARDING AGAINST ADVANCING LAGGARDS

Looking within the Internet category, we can see clear examples of brands that measure up or miss the mark in Craigslist, Etsy and Amazon.

NEEDS TO CUSHION THE LEAD AND DEFEND ITS POSITION AGAINST PERFORMERS

Levels of Usefulness

Data is one thing. Insight is another. Through the Useful Brand study, T3 now has the concrete facts and tools necessary to understand a brand’s usefulness. But more importantly we have the understanding and experience to put the data to good use.

Our approach consists of three phases, and we work closely with brands in a methodical way through each stage.

First we get a clear picture of a brand’s usefulness and find potential opportunities. Then we develop a way forward through a comprehensive program. Finally, we help them execute and take their usefulness to the next level.

HOW T3 CAN HELP

PROCESS

THE USEFUL BRAND REPORT BUILDING USEFUL BRANDS

29

Phase OneWe start off by getting a good grasp of a brand’s perceived usefulness as related to consumers, its category and its competition.

Research: We work with a national panel of consumers to determine the Useful Brand Score.

Analyze: We look at how a brand compares to the market relative to its category, competition and consumers to find the hidden insights.

Key Output: The Useful Brand Report shows how a brand performs on all 14 elements, its category ranking and how it’s viewed by key demographics and purchaser profiles.

Phase TwoThen we further analyze the data to create a plan for making it actionable.

Find Gaps: We take stock of where a brand is falling short relative to competitors and according to consumers to identify opportunities.

Prioritize: We determine what opportunities brands should pursue now vs. later.

Key Output: A Useful Brand roadmap is more than a planning document that helps define level of effort. It’s part of a relationship with our clients to continually improve their usefulness.

Phase ThreeFinally, we roll up our sleeves and execute against the strategy.

Build: Following the roadmap, we determine and kick off key milestones as projects with the greater team to bring them to market.

Say: As the last step, we figure out the best way to communicate to consumers how we’ve made the brand more useful.

Key Output: A more Useful Brand is built. The deliverables can be anything from an app to a new product feature—along with a communication strategy to bring it to market.

Understand

Plan

Do, Then Say

CONCLUSION: PUTTING IT ALL TOGETHER

31

USEFUL: THE NEW WAY FORWARD

FINAL THOUGHTS

Do, Then SayPositioning is no longer enough. Brands must create value for consumers first, then create messaging around that value. We’re in the new age of “do, then say.”

Relationship + PerformanceConsumers see brand usefulness as a balance between two complementary sectors: Relationship and Performance. Companies must make themselves useful in emotional and functional ways.

Finding OpportunitiesUsefulness means many things to many people. By determining a company’s Useful Brand Score and ID, we can perform a thorough exploration of a brand’s perceived usefulness and analyze it by consumers, categories and competitors. This identifies strengths and opportunities. Building the Useful BrandWith an accurate understanding of usefulness, brands can create a prioritized roadmap and make better decisions about investments and resources. The right insights can help brands become more useful to consumers, which in turn help them succeed.

THE USEFUL BRAND REPORT CONCLUSION

BRA

ND

REL

ATIO

NSH

IP A

ND

PER

FORM

AN

CE, 2

SEC

TORS

BRAND RELATIONSHIP+ PERFORMANCE

LAGGARD

PERFORMER

LEADER

Notes1 IBM Customer Experience Divide Study 2 T3 Useful Brand Study 3 McDonald’s 2014 Financial Information 4 Burger King Worldwide Reports Q3 2014 Results 5 U.S. Census Bureau, 2013 Consumer Expenditure Survey

It’s Time for a ChangeThe world has shifted. Talking about being useful isn’t enough. You have to back it up. You have to understand what usefulness means to consumers, in all of its many aspects, and step up to their high expectations. 

Change can be difficult, but it’s also full of opportunity—for those who take advantage of it. Smart brands have the chance to move past competitors.

Armed with the “do, then say” knowledge and approach, companies can tap into this shift in the marketing landscape. The brands that adapt the fastest will be the ones that win. 

What We Were Made to DoWe’ve been helping brands become more useful for nearly three decades. It’s something we’re passionate about, and we’d love to talk about it with you. If you have any questions about our findings or are interested in working with us, please get in touch.

For more insights on Useful Brands, contact Ben Gaddis, Chief Innovation Officer at ben.gaddis@t-3.com or 512.721.1380.

© 2015, T3. Reproduction prohibited without prior consent.

The company, product and service names used in this report are for identification purposes only. All trademarks and registered trademarks are the property of their respective owners.

For more insights on Useful Brands, contact Ben Gaddis, Chief Innovation Officer at ben.gaddis@t-3.com or call 512.721.1380.

ATX

1801 N. Lamar Austin, TX 78701 512.499.8811

SF

500 Washington St., Suite 200 San Francisco, CA 94111 415.983.0815

NYC

126 5th Ave., 15th floor New York, NY 10011 212.404.7045

ATL

1447 Peachtree St. NE 7th floor, c/o Industrious Atlanta, GA 30309 404.751.1246

Building the Useful Brand.™ T3 is a full service experience agency dedicated to building Useful Brands. We help our clients identify, prioritize and ultimately use brand relationship and performance in a way that builds meaningful and exclusive bonds with their customers.