Thanks for coming back for part 3 of my theory of the Well of Good Will. In case you missed them, part 1 can be found here, and part 2 here. For the third and final part of the theory we will be exploring a few (there are certainly others) of the key areas/ways in which a brand can increase the amount of good will they have stored in the well. We will be looking into the importance of a brand being consistent in their messaging and choosing their topics well. We will also be looking at a high level into the building of advocacy and encouraging advocates for your brand. This is a topic which is of special interest to me and an area in which I see myself as a specialist due to my past history and as such I will certainly be writing future blogs on the topic in more detail. Lastly we will look into the potential for scarcity to have a positive impact on perception of your brand.
For more details on the overarching theory at play in this piece, please see part 1 which I posted earlier in the week. This blog will be focused on the practical application of the theory as described in part 1 and will provide a framework for measuring customer perception. Meanwhile, part 3 will be focused upon key areas for adding good will to the well.
Measuring Industry Perception
The first step is to identify how your industry as a whole is perceived by consumers? Is your company in an industry such as Oil & Gas, or Insurance which tends to skew towards a more negative consumer perception overall? If you are looking for a rough benchmark you can look at average net promoter scores by industry to identify where your industry falls in the list. Please do keep in mind this isn’t necessarily the best way to track overall perception towards your industry but is likely the most cost effective as NPS data is easy to come by and understand. Second word of warning on this is that ofte...
Why do Some Businesses Succeed Inspite of Their Response to a Debacle Where Others Fail?
In September of 2015 allegations came to light against Volkswagen that they were using software specifically installed to cheat emissions tests done by agencies such as the EPA. A staple of automotive engineering and “the people’s car” of Germany has since faced massive fines, penalties and no shortage of bad press. This led to a massive fall in share price of ~30% in 2015 and €23 billion being set aside by Volkswagen, of which $4.3 billion was paid in fines to the US alone, to cover settlements, legal fees and restitution. However, instead of damaging car sales or profit margins, Volkswagen went on to sell 10.3 million automobiles in 2016 and posted revenue of €217 billion, up from €202 billion (7.4%) in 2014. 1
How do we account for this disconnect between investor and consumer confidence? How is it that inspite of the way that Volkswagen handled this fiasco that they have gone...