What's Next: Follow the Feeling

What’s Next:
Follow the Feeling 
Brand Building in a Noisy World
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Welcome
Dayoán Daumont
Consulting Partner 
Ogilvy Consulting
Kai Wright
Consulting Partner
Ogilvy Consulting

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FOLLOW
FEELINGbrand building in a noisy world
KAI D.WRIGHT
the

@KAIWRIGHT//©KDWRIGHT.2018
F O L L O W T H E F E E L I N G ™
C U R R E N T
B R A N D & F E E L I N G
6

www.kaidwright.com//@KAIWRIGHT
# F O L L O W T H E F E E L I N G

?

W E A R E A L L
H O M O
E C O N O M I C U S .
Originates in the 18th century
from Adam Smith and David Ricardo:
We are driven
by reason.
1
We know what
we want.
2
We can judge the
utility (i.e., benefits)
of our choice.
3
We can
properly value
our choices.
4
We behave selfishly,
doing what is in our
own best interest.
5
F O L L O W T H E F E E L I N G ™ 17

M E D I U M
Sender
(encodes)I N O U TReceiver
(decodes)
Message
(noise)
Feedback
R E C E P T I V I T Y M AT T E R S
20
Source: Adler and Towne, 1978.

Possible
Event
Triggers
Scanning
Perception
Schema
Production
Appraisal
Schema
Evaluation
Emotion
Schema
Database
Behavior
Emotional
Responding
Cognition
Physiology
Subjective
Experience
Expressive
Behavior
MATCH
NO MATCH
Source: David Matsumoto, The Origin of Universal Human Emotion

C O M M U N I CAT I O N
A S A “ SYS T E M ”
Para-linguistics
How we express and deliver it
tone, modulation, pauses
Verbal
What we say
words
Non-verbal
What it looks and sounds like
sounds, visuals, gestures
7%
55%
38%
22

B E H A V I N G
P R E D I C T A B L Y
In theory, based on “standard” homo
economicus:
We are driven by reason.
We know what we want.
We can judge the utility (i.e., benefits) of our
choice.
We can properly value our choices.
We behave selfishly, doing what is in our own
best interest.
,
26
I R R A T I O N A L

– DANIEL KAHNEMAN
Mental effort, I would argue, is relatively rare.
Most of the time we coast.“ ”
27

Over 95% of our decisions are made in “auto-pilot” with emotions
influencing nearly 70% of our decisions.
28

“ ”29

Source: Russell and Mehrabian, 1974.

Source: Plutchik, 1980.

1,500
fast-growing companies (2015 - 2018) from Alibaba to Zara.

Just Released
fast-growing companies (2015 - 2018) from Alibaba to Zara.

LEXICON TRIGGERS
VISUAL STIMULI
EXPERIENCE DRIVERS
CULTURAL CONNECTIONS
AUDIO CUES
37
FINDING TRUE NORTHL.A.V.E.C. // CLAVE (A MAGIC KEY)

Mental structures that organize the
information we consume - both
actively and passively.
Taxonomy
Identity Appeals
Associations
Vocabulary
Triggers
LEXICON
Four legs
Stripes
Eats Grass
ZEBRA
38

how we
evoke recall
semantics
how we
remember
categories
what we
remember
associations

Source: Readable

Vocabulary size
(no. lemmas)
% of content in OEC Example lemmas
10 25% the, of, and, to, that, have
100 50%
from, because, go, me, our,
well, way
1000 75%
girl, win, decide, huge, difficult,
series
7000 90%
tackle, peak, crude, purely,
dude, modest
50,000 95%
saboteur, autocracy, calyx,
conformist
>1,000,000 99%
laggardly, endobenthic,
pomological
Source: Oxford Dictionary
LEXICON
Inside the
Feelings Zone

B R A N D E D
VO CA B U L A RY
42
LEXICON

LEXICON

AUDIO CUES
An audio cue or tone,
effective in marketing
and communication when
used repetitiously to
reinforce behavior or
recall:
mood
atmospherics
sonic signatures
usability cues
behavior triggers
mnemonics
MOST RECOGNIZABLE
TRADEMARKED SOUNDS
45

AUDIO CUES

B I R D B OX T E S T
47
AUDIO CUES

1
2
3
5
4
6
7
8
9
10
11
12

behavioral reminders
ambient brand triggers
mnemonics (i.e., memory aids)
usability cues
SONIC BRANDING LOW-HANGING FRUIT AUDIO CUES
50
AUDIENCE

VISUAL STIMULI
51
Something that
stands for or
represents
something else
(e.g., an ideal).
Symbols
Shapes
Colors
Signs
Memes
Gifs
Emojis
Images
Video

BRAND SIGNATURE
SYMBOL FONT
SHAPE COLOR

Tiffany
Blue
1
T-Mobile
Magenta
2
Barbie
Pink
3
UPS
Pullman
Brown
4
3M
Canary
Yellow
5
Cadbury
Purple
6

McDonald’s Christian Cross

VISUAL STIMULI
2019

H O U S E PA R T Y
62
VISUAL STIMULI

VISUAL STIMULI

75

Atmosphere for
interacting with a
brand through physical
and/or digital
channels, creating a
“customer-centric
system.”
Closed Feedback Loops
Choice Architecture
User Experience
Proximity Cues
Dialogue
EXPERIENCE
76

EXPERIENCE

N O R M AT I V E
B E H AV I O R
80
EXPERIENCE

C LO S E T H E
F E E D BAC K LO O P
82
EXPERIENCE

CULTURE
Principles and
standards of behavior
that govern judgement
and operations for
people, groups and
institutions (e.g.,
governments):
Values
Purpose
Practices
Policies
Protocols
86

CULTURE

CULTURE
EMPOWERMENT
EMPATHY
EARNEST

LEXICON TRIGGERS
Building a tribe
branded vocabulary
tribe appeals
VISUAL STIMULI
Becoming a
conversation brand
symbols & shapes
rich media
glyphs
EXPERIENCE DRIVERS
creating a “system” with
a closed feedback loop
normative behavior
feedback
CULTURAL CONNECTIONS
Aligning thoughts & action
practices & policies
purpose
AUDIO CUES
Developing instant
recognition
sonic signatures
atmospherics

Just Released

Tribe
Individual
Machine &
Artificial Intelligence
Human-to-Human

the
K A I D . W R I G H T
F O L L O W
F E E L I N G

40 Issue 4 - 2014 ©LONDON BusINess sCHOOL w w w.london.edu/bsr ©LONDON BusINess sCHOOL Issue 4 - 2014 41w w w.london.edu/bsr
PHOTOGRAPHsHutterstOCk
H
owdoyoumeasure
emotions in the
overallexperience
of customers?
Wouldthismeasurecontribute
toyourbottom-line?Isitpossible
toestimatethebusinessgenerated
by, for example, a new positive
emotionatacertainstageofthe
customerjourneyor,conversely,
when suppressing a particular
negative emotion?
Emotions have become
increasingly important in
marketing,fuelledbybookssuch
as Lovemarks (Kevin Roberts,
2005), The DNA of Customer
Experience (Colin Shaw, 2007)
and Emotionomics (Dave Hill,
2010).Sometopresearcherson
management have studied the
so-called‘experienceeconomy’
and the importance of creating
emotionalbondswithcustomers.
Fromfieldsasdiverseasneuro-
science,experimentalpsychology
and behavioural economics,
the theoretical basis proving
that emotions are key when
customers make decisions is
increasingly established.
The reality is that emotions
createvalueforcompanies,and
resourcesshouldbeearmarked
for understanding, measuring
or managing them.
Loyal practice
Inmanycompanies,measuring
customers’emotionsregarding
their experience is embedded
intheparametersthatmeasure
loyalty or satisfaction. Often,
companies attempt to quantify
satisfaction or loyalty without
including emotional variables
intheequation.Tofurtherconfuse
the picture, recent advances in
marketingsciencearebeginning
toshow that levels of customer
loyalty or satisfaction do
not necessarily predict
future behaviour, such as
recommendingrepurchasingor
upselling the product.
In particular, it is assumed
that the NPS (Net Promoter
Score),awidespreadparameter
measuring loyalty, faithfully
embraces the emotions that
customersfeelateachphaseof
the customer journey. NPS
originated with a 2003 Harvard
Business Review article by
FrederickReichheld–‘TheOne
Number You Need to Grow’. It
isameasureofthepercentageof
customerswhoarepromotersof
abrandnameorcompany,minus
the percentage of detractors.
Thisletsorganisationsmeasure
and manage customer loyalty.
This indicator has gained
popularity over the years: it is
simple to obtain, easy to
interpretandexplainandoffers
abenchmarkwithcompanies
and sectors in relation to
levels of loyalty. But it has, at
times, attracted controversy.
Several pieces of research have
questioned its suitability as a
parameter to be used by
companies. One, published in
2007intheJournalofMarketing,
argued that NPS is a poor
indicator to predict the growth
of a company.
Meanwhile, scientific
evidence is overwhelming
regardingtheroleofemotionsin
decision-making.Itconcludes:
are not directly related to
decision-making – may have a
significant impact on the
opinion or final decisions
innate or experimentally
induced, may degrade the
quality of decision-making.
models of decision-making
improve their explanatory
power tremendously.
Most recently, Daniel
Kahneman, a Nobel prize-
winningpioneerinbehavioural
economics,publishedhisbest-
selling Thinking, Fast and Slow
(2010).Hetheorisesonthetwo
systemsbywhichthemindworks,
showingtheroleemotionsplay
inmostdailydecisions.System
oneisfast,automatic,frequent,
emotional and unconscious,
while system two is slow,
vigorous, uncommon, logical,
scheming and conscious.
Despite the fact that no one
questions the enormous
influence of emotions in
customer decisions, a
standard measure is
missing:onethattakes
intoaccountemotions
and,atthesametime,
hasahighpredictive
power on customers’
future behaviour. In
ordertofillthisgap,EMO
Insights International
developed its EMO Index (see
box), which summarises the
emotional state of single or
groups of customers towards a
company(ona-100to+100scale),
depending on the strength of
measured, together with the
possiblereasonsthatmayhave
causedthem(emotionaltriggers).
Customer classification
To understand how this
indicatorisbuilt,imagineasteel
yardinwhichthetwoemotional
dimensions,positiveandnegative,
counterbalance each other,
leaningthecustomer’semotional
balance and, therefore, their
EMOIndex,towardthepositive
ornegativeside.Customersare
then classified, depending on
theemotionalprintduringtheir
experienceswiththecompany,
into Fans, Believers, Followers,
Standby,LostSouls,Burned-out
and Opponents.
Thenanewparadigm,called
emotional segmentation is
introduced based on this
classificationofcustomers.This
tiesinwiththepowerofemotions
on the future behaviour of
customers, as opposed to the
traditionaltypeofsegmentation
which tends to use customers’
socio-demographic variables
(sex, age, social class, et al), or
classificationparameterslinked
to a specific sector (purchased
product, purchase volume,
during the period between the
two pieces of research. This
established a correlation
between the emotional
segmentation in the first wave
and the subsequent behaviour
of customers. In addition, a
comparison was made against
the predictive power of the
segmentation used by the NPS
parameter:promoters,neutrals
or passives and detractors.
One comparison between
the two approaches looked at
a specific behaviour essential
to the retail-banking sector:
recommendation.Theaimwas
to compare both approaches
according to their capacity to
predict the percentage of
customers that truly advised
relatives/acquaintances to
becomecustomersoftheirmain
bank(positiverecommendation);
andthepercentageofcustomers
who advised relatives/friends
not to become a customer
(negative recommendation).
The objective was to use
emotional segmentation to
predict the real behaviour of
customers. It also served to
verify the benefit of this new
paradigm compared with
traditionalapproachesofloyalty
and satisfaction measuring.
The difference observed
amongthedetractorsidentified
bytheNPSapproach,comparedto
thoseidentifiedbytheemotional
approach,isnoteworthy.TheNPS-
identified detractors actually
recommended their bank
positivelytoagreaterextentthan
negatively. In contrast, those
identified as opponents
overwhelmingly gave negative
recommendations of their
banks. Again,thissuggeststhat
emotions provide greater
predictive power.
Although these insights
confirm the initial hypotheses,
they are only applicable to a
specific sector(retailbanking),
andtheyhaveonlybeenstudied
in a single country. However,
they do establish an empiric
testofsomethingthatintuitively
seems very logical: including
emotionswhenmeasuringand
segmentingisastepcompanies
should begin to take, since it is
likelythattheycanincreasethe
explanatoryandpredictivepower
of customers’ behaviours. This
approach will add significant
valueincomparisonwithmore
traditional and simplistic
classification approaches.
Once empirical science has
taken major steps towards
demonstrating that measuring
emotions is not only possible,
butalsoimportant,inpredicting
behaviours, it is time for
managementtotakeadvantage
of these breakthroughs. The
corporateworldshould embrace
customer emotion analysis, as
enough evidence supports its
prediction power, and hence
its impact on companies’
bottomlines.Welcometoanew
era of management.
Elena Alfaro (ealfaro@emo
insights.com)isCEOandapartner
at EMO Insights. Santiago Urio
(surio@emoinsights.com) is a
senior business advisor and
partneratEMOInsights.Hehas
anMBAfromLondonBusiness
School.GonzaloMartín-Vivaldi
(gmvivaldi@emoinsights.com)
is COO and a partner at EMO
Insights,andaProfessoratESIC
Business School
positiveandnegativeemotions
feltbycustomersbasedontheir
last experiences.
To calculate the EMO Index,
first extensive analysis is
performedtodeterminewhich
emotions are relevant for the
given sector (for example,
surprise, happiness, irritation,
disappointment, etc). Then a
representative sample of
customersisselectedandasked
if they have felt each of these
emotionsatanyparticulartime
in the interaction with the
company, based on their
customerexperiencememories.
Emotion levels are also
purchase reasons, et al).
The big question is the
predictivepower–orotherwise
–ofthisnewsegmentationwith
regard to customers’ future
behaviour. Does the index
increase predictive power in
comparison with other
measurements, such as NPS?
To test it, EMO carried out a
study in the retail-banking
sectorinSpain.Itwasperformed
for the first time in 2011 (with
1,968interviews).Asecondwave
was carried out in 2013 (3,102
interviews).Duringthesecond
wave there was analysis of the
real behaviour of customers
BURNED-
OUT
LOST
SOULS
STAND
BY
FOLLOWERS BELIEVERS FANS
Emotional link to the company- +
OPPONENTS
-100 -30 -5 +15
THE EMO INDEX
+30 +55 +80 +100
Measuring emotions is not only
possible, but also important, in
predicting behaviours
Emotions are a better predictor of whether customers will return than conventional loyalty measures.
Elena Alfaro, Santiago Urío and Gonzalo Martín-Vivaldi argue for an emotional standard
An emotional business

LEXICON
whimsical tone
of voice
VISUAL STIMULI
castle, ears,
sparkles
EXPERIENCE
global,
accommodating
CULTURE
“family” co-
marketing deals
Feeling: Happiness
AUDIO CUES
fireworks, harps,
chimes
105

LEXICON
motivational,
“fuel”
VISUAL STIMULI
neon-colored
drinks, orange
EXPERIENCE
youth sports
training, 360 (pre-
during, post)
CULTURE
victory,
celebration
AUDIO CUES
uplifting,
uptempo
Feeling: Endurance
106

LEXICON
minimalistic,
English/Spanish
VISUAL STIMULI
lime, beach,
sand
EXPERIENCE
beach balls,
streamers
CULTURE
relaxed,
personable,
conversational
AUDIO CUES
pelicans,
ocean waves
Feeling: Relaxation
107

What's Next: Follow the Feeling

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