Utility marketing certainly isn’t a new idea. In fact, André Michelin launched the first Michelin Guide in 1900, less then 10 years after the inflatable tire was patented. What began as a simple marketing ploy to get Parisians driving more (thus buying more Michelin tires) has grown into a global business, spanning more than a century.
But in the last couple of years branded utility has truly come of age. More and more, we see brands providing useful tools and services to forge connections with consumers. Additionally, the penetration of web enabled devices and the massive popularity of iPhone apps are playing substantial role in this new maturation – elegantly illustrating how branded utility can foster an ongoing relationship with people.
By providing frequent, helpful interactions with consumers, these applications can quickly become a meaningful part of their daily lives. This regular contact can be a supremely potent way to establish trust and build brand loyalty.
The mindshare these often small, simple utilities garner can offer a tremendous return on investment. This is not lost on deft marketers with increasingly tight budgets.
Delivering on this requires thoughtful consideration of the intended constituents, uncovering their needs, than determining how the brand is uniquely positioned to fulfill those needs.In the end it has to be authentic, to both the brand and the audience.
Here are a few examples of utility marketing that do just that.
However, by employing utility, brands can effectively “walk the walk”. Manifesting their attributes through functions, interactions and behaviors. Transforming abstract concepts into tangible characteristics. Converting talk into action.
In contrast utility marketing seeks to connect with the audience within the flow of their everyday life. Instead of the brand needing to be a loud, attention-starved pest, it can fit into people’s lives by being helpful practical, being there for them when it counts. Because, when it comes to building lasting relationships, it’s not about sticking out; it’s about fitting in.
However, utility marketing enters a consumer’s life via the condition of need. And need has its own magnetism. From this position a brand can deliver rewarding experiences, open a pathway to ongoing engagement and dramatically shorten the path to brand loyalty.
Consumers assume that ad campaigns will come and go. But they expect that products and services to stick around for them – overtime. Beyond that, consumers expect them to evolve, adapt, and improve over time.
So, when marketing with utility requires an understanding of the commitment that’s inherent to providing it. Developing a great product requires a careful focus on the end-user and their unmet needs. It is a principal tenet and core to success. Additionally a thorough assessment of the effort needed to manage and maintain an ongoing concern will be critical.
Here a few things to keep in mind:
Additionally, once adopted a utility establishes an open channel for two-way communication. A responsive platform from which the brand and the consumer can engage and exchange, thus deepening understanding and strengthening connections for both.
We’ve seen that it’s possible to design a utility so well that it becomes viable concern with it’s own revenue potential. And who could say no marketing initiative that directly contributes to the bottom line?
Proof that that even a small utility has massive potential.
Great examples and guidelines! So often, marketing doesn't get the desired results if it is merely spending lots of money telling potential customers something they may not believe. The irony, in that case, is the more a non-credible message is heard, the greater the drag on the brand. In contrast, few things build brand loyalty more than a great product or experience. Create something useful and it's amazing how many people will embrace it, share it and become loyal advocates.
Fascinating story about the Michelin Guides, I had never actually made the connection. Similarly, I only just recently learned that the Guinness Book of Records was created by the folks at the Guinness Brewery.
Nicely put. This philosophy is also relevant to the current shake-up in the magazine publishing world. It's not enough to replicate printed content online - magazines must embody their service mission. That means providing real value. For some brands it might even make sense for content to take a back seat to utility and community.
Geez, you're smart!
Nice one Guthrie. I especially liked the customer cycle illustration. Simple and informative.
I also liked the illustration BTW...and the literature.
This is really great. Nicely drawn, simple diagram. Easy to understand. But potentially quibble with the outcome, "loyalty". Is brand loyalty a realistic goal anymore? Brand loyalty is under attack from multiple fronts, particularly in commodity products where store brands can undermine name brands on price. Perhaps the best we can hope for is "continued use", which nonetheless utility marketing helps far more than a stream of brand ads.
It looks like you are a true expert. Did ya study about the subject? haha..