Take cars, for example. We all know that dozens of options exists that can deliver all the rational benefits: engine size, price range, fuel efficiency, horsepower, and amenities like navigation or premium sound. While I may have many rational reasons for buying a car, the emotional benefits play a huge role in helping me choose one model over another: the look, the way it handles, how safe I feel, etc. Which benefits, though, should be touted in marketing to convince the target audience to buy? Rational benefits might actually have a stronger play in helping sell a premium or luxury car, after realizing that the emotional benefits are obvious. Here’s where consumer context too often gets left out of the mix.

The question marketers ought to ask is this: How does the consumer want to feel about purchasing this product? Our research suggests that certain verticals make big mistakes by telling consumers how they should feel about their brand. A low-interest category like residential electricity, for example, might misfire by trying to differentiate its brand based on emotional benefits, because consumers don’t want to feel loyal to a utility company. Understanding the way your target wants to feel about your brand will help in deciphering which RTBs make their way into your marketing message. Another low-interest category like insurance, however, must lead with emotional benefits if it’s not differentiating on price; the consumers who will pay more for insurance are doing so because of the way they want to feel about their choice: like they’re “in good hands.” While the rational benefits are relevant for insurance, they’re secondary for premium brands of insurance, but primary for low-cost competitors, simply because the consumer context drives different RTBs within this particular category. Marketers of premium brands need to understand that, in order to convince consumers that you’re worth more, having a real understanding of want your target wants to be told is critical to influence purchase.

I know this: My wife doesn’t like it if I tell her, “Don’t be upset,” or “You should be happy about this.” My experience is that consumers don’t like it, either. And I think I’m premium, by the way.

The other day, Mr. Bossy Boss told me a tale about this Facebook friend calling him and reiterating an interesting conversation he had with “Mr. Boss Man” on Facebook chat. Evidently, “Mr. Boss” had told this friend that he needed money for his cousin but he had been mugged while in the UK. FBfriend replies, “Are you a Nigerian Prince?” The profile hijacker immediately shuts down the chat and unfriends the witty little guy.

Needless to say, Bossy changes his password, and his status to tell everyone about the potential scammer on the loose. Later that night, his wife goes to check his Fbook, and lo and behold … he is not there.

No friends. No profile. No Farmville Animals. Mr. Bossy Boss was Facebook murdered.

Shocking tales like these are occurring more and more within the Facebook realm. Due to its international popularity, Fbook has become the #1 target for spreading viruses, hijacking information and all-around chaotic malarkey! It is an alarming powerhouse in our world today—it has the ability to connect you to anything, but also disconnect you from the world, your fans, and even worse, your consumers—all in the blink of an eye.

Premium brands that don’t engage with newer types of interactive media are like Mr. Bossy Boss and his imposter—someone out there is representing their brand, whether they like or not, and they are taking control. However, if you play the game right, those imposters won’t matter, because, like real-life friends, once you build your relationships, brand advocates will know that you’re not a “Nigerian Prince.” They’ll recognize your brand’s true voice and learn to trust it.

The bottom line to consider is this: Life is scary. And social media is just life happening online. So, learn how to interact effectively with the real world, and you’ll see that being a “victim” online isn’t as easy as it first sounded. Your brand will be able to handle it. Your brand will be better for it.

The video below illustrates just one key component of why it is so hard to do business these days. Basically, the lighter the color of the U.S. of A., the better off we are, the darker, the worse.

Although the “end” date of this downward spiral is a moving target, and one of great debate, if history is any teacher this is a cycle that will turn around. When it does, a generation of Americans who have been forced out of the market for all sorts of creature comforts, or forced to trade down from their preferred brand due to budget constraints, will be ready to spend again.

What should you be doing to build/preserve your premium brand?

• Fish where the fish are today. – Sell where people can buy. Don’t sell where people can’t buy.
• Don’t ignore your legacy customers. – When things turn around, they will be the first to spend again. Do NOT make them feel like you only care about them for their money. Doesn’t work for most relationships, and this is no different.
• Don’t stop promoting. – You have competitors that have cut marketing budgets to preserve margins. This is especially true in public companies that are under intense pressure to hit earnings targets. Take advantage of that to build the perception of your brand as premium in the absence of competition for share of voice.
• Don’t sacrifice your brand quality. – Just because the competition is going down to the 10 oz. box, doesn’t mean you have to. Unless, of course, you REALLY have to. Continue to provide as high a quality product as you can for as long as possible. And when things pick up, you’ll have a reputation of premium quality even through the tough times to fall back on.

Take these principles, apply them, and see what a difference it makes to customer loyalty, brand perception and overall brand equity. Though right now, those valuable assets may seem useless to turn a profit, your brand will be the outlier in the category. These moments of heat are the ones that define your brand’s legacy. Be the bold brand. Be the rebel. Be the premium brand that thrives in tough times, instead of struggling to merely survive.

Last night, while watching my recording of Wednesday’s So You Think You Can Dance (yes, I’m one of those people), the show’s host introduced me to a group called “The Legion of Extraordinary Dancers.” While this seems like a fun name, I was hardly going to believe what a TV show produced by American Idol aficionado Nigel Lythgoe told me. Like any consumer, I had to consider the source.

But as the music began and I saw the opening moments of the performance, there was an immediate sense of pride in making the right decision to stick with the program. The time and effort put into each execution. The attention to detail! They were fantastic. Beyond excellent. They were extraordinary. And I proceeded to go online and watch the YouTube version of the performance below 5 more times that night. And then a few more today.

There were other performers on the show who were great. It’s a dance competition, for heaven’s sake! But these performers stood out because they have created this product, this “brand,” with creativity, something distinguishable, something unique, and, hopefully not to be too trite, something premium. And not every brand can play at this level, but when articulated and executed well, the consumer is hooked. And living up to your claims defines consumer retention.

So, brand managers, before settling with any creative or strategic execution, ask yourself a few things—what is it about your brand that is truly extraordinary? What is it that your product does within its category that is beyond normal? And how can you tell that story in a like fashion? Articulate and demonstrate these assets, and your customers will develop a sense of pride and belief in your brand, as well. And though it may seem basic, it works. Trust us. We at WD create such extraordinary every day.

Mr. Nese is the perfect example of the fact that just because an opportunity comes along that others have taken and seen success, that doesn’t mean it is the path for every brand out there. His greatest line is that each brand should “set yourself apart and provide your customer with something no one else has.” He did that by offering over 500 premium brands of soda pop rarely found any other place. And from the video, you can tell he’s had fun counting his success as he continues to stick to the ultimate goal of creating something with worth to his customer and not being enticed by every shiny opportunity that comes along.

In this day and age where consumers are barraged with messaging assuring them that every brand they try is, in fact, superior, it can be hard for the consumer to trust advertising anymore. It reminds one of the classic 50s commercials about some product X, which were easily and readily believed. These days, it is much harder to break through the gimmick.

This brings us to the new trend in marketing for premium brands—transparency. Seems pretty simple, yet few brands engage in it because it is deceptively hard to come up with an actual tried and true reason why one brand is better than another. But the glorious truth is, if your brand truly does fit the definition of premium, there will be a pertinent message that makes sense and builds trust with the consumer.

Take one of Warren Douglas’s clients, Briannas Fine Salad Dressings. After years of being number one in the specialty salad dressing category, Briannas decided to hire us to share with more people what they and their loyal following love about the product. After going through our Premium Brand Process, we determined something very simple, yet true—Briannas is just plain good. Though there is more to the marketing plan than just this revelation, it is a succinct statement that rings true with everyone who tries it. Briannas doesn’t try to be anything they aren’t, but simply adhere to the new golden rule of advertising—when you tell the truth, people love you for it.

So, if you truly want to be perceived as a premium brand, make sure you aren’t peddling that gimmick, but really taking the time to get to know what it is that sets your brand apart. More importantly, have the courage to put your brand out there exactly as it is, with complete and utter transparency. Trust us, you’ll get the results you want and the credibility you need to be called “premium.”

In the land called “reality,” a recent study published by Engagementdb.com found that brands with a strong presence online had an average revenue growth of 18% while those with limited interaction online actually lost an average of 6%. This same study revealed that these same premium brands also utilized the largest number of social channels, pushing out huge amounts of relevant content to the masses. This begs to plead the case that if you’re going to go swimming in the big pool of the social media world, you had better be prepared to jump in head first. And, just as any good marketing campaign, this growth is the result of a well-rounded effort.

From a premium brand manager’s point of view, this is a call to action. In a world where all brands—again, ALL brands—are online in some manner, usually controlled by the consuming masses in the form of blogs, comments and reviews, why wouldn’t a premium brand take the opportunity to brag about itself in as many channels as possible? And why would a brand go in expecting anyone to notice them while just sitting dormant?

The tendency of any campaign to go in half-baked, whether via traditional or “new” media, is against what we at Warren Douglas know to be true about good marketing and advertising. The key to social media isn’t going to be accomplished in one small tactic, but rather by being relevant, smart and available for consumption in a well thought out and strategic approach across multiple channels. So, what a brand should really be afraid of when it comes to social media, is that their fear of engaging fully will keep them from real success.

Question: Do you know of any premium brands whose image has actually been damaged by being too reserved in social media?

As another example, take Steinway pianos. Their music room grand could cost as much as $80,000. To the wealthy entrepreneur who wants the nicest piano for entertaining and to make a furniture statement, it’s a luxury item. A $40,000 alternative could functionally do the trick, but there’s no status with the lesser alternative. However, to the music teacher who views the piano as a necessary tool, the Steinway is a premium choice. In this case the “share of wallet” in relation to household income is likely opposite that of the fountain pen example above. Yet the secret ingredient to marketing to premium and luxury consumers has to do with the “function index,” and how strong that factor is to influence purchase.

This topic becomes really fascinating when considering brands in categories that are much more commoditized, such as grocery items, home furnishings, and even pet care. For more information on premium brands, or information on how Warren Douglas can index premium brands in a specific category, visit the Warren Douglas website.

1. They see their spend as an investment. Whether they’re building, remodeling to sell, or just upgrading, these premium consumers want what they spend to add value to their home, which is still perceived as a solid investment.
2. The benefits bring immediate gratification. Although conservative these days, consumers recognize that they’ll see the benefits of making good choices and enjoy those benefits on a daily basis.
3. Fear of regret drives indecision. Nobody wants to un-plumb a kitchen faucet they’re not happy with, nor do they want to replace it after its warranty has expired. The biggest fear, though, seems to be overall dissatisfaction—not necessarily because of a faulty product, but simply product that does not live up to the premium consumer’s expectation.
4. Differentiators are not obvious. While look and design continue to be a strong influence in product selection, there is a lack of rational differentiators at the point of sale that premium shoppers seek to support the direction driven by their emotion.
5. Word-of-mouth builds brand equity. Still the biggest influence on brand preference is the experience from a trusted friend. Home brands that can create brand advocates through builders, contractors, and consumers will stand the best chance of garnishing sales in this slow economic trough.

There is hope, however, and the premium brands who play their cards right today could find themselves coming out of the economic slump quicker than even their lower-cost competitors. Here are some thoughts on how to play those cards:

1. Keep prospects engaged —The fact that buying has slowed so much in home furnishings and remodeling means that customers have time to make their decisions. This means they will research more, compare more, and will likely avoid making financial commitments. This is the premium brand’s opportunity to engage the customer in meaningful dialogue, and if your brand is well-positioned, it could mean you have more opportunity to disqualify your competitors. If you have a retail storefront, you should be working hard to get face-time with your prospects, having them frequent your store.
2. Don’t forget to deal —Since many customers want to avoid big financial commitments right now, they may feel that actually buying is far off in the future. However, even premium buyers like a good deal, as an earlier Premium Chatter post suggests. Allowing your sales team the appropriate negotiating power on the prospects who will matter most allows your brand to turn the negative economy into a strategic opportunity. But you have to be selective and careful not to discount to a level that erodes your brand’s perceived value.
3. Put on the customer’s shoes —With sales being slow, your brand may have the time now to focus on things that have needed repair for a long time. For instance, try shopping for your own product, consider the competition, and evaluate whether or not your brand can command the price you’re asking in today’s economy. If not, use this down-time to clean-up your brand’s position and articulate your superior differences.
4. Don’t do nothing —For many home brands (even premium ones), spending has stopped because sales have stopped. While we don’t recommend  spending in a “business as usual” manner, doing nothing is very risky, and could prove fatal for your brand. If you’re not in a financial position to take advantage of the great media buys that abound today, develop some appropriate, low-cost ways to keep the conversation alive among prospects who are shopping. When you consider what a great investment a person makes in his/her home, their patience in this category is wise for them; your brand’s challenge is to rise to the top of their mind for preference in your segment. When they do purchase, they’ll be happy, satisfied, and a vocal champion on your behalf. But you’ve got to do something to make that happen.

Marketers of premium brands should not lose sight of the fact that, even in home furninshings and remodeling,  people purchase because of an emotional benefit as well as a rational benefit. The emotional benefit is the biggest driver in impulse buys when project timelines and healthy budgets are pushing consumers to purchase. However, current economic conditions allow a lot of time for the rational part to influence their decision. Will this extra time to consider the rational benefits of your brand talk your prospects out of choosing you over the competition? The premium home brands that will emerge as winners will justify a higher price point and win the sale by satisfying both the emotional benefits and smart, well-articulated rational benefits.