Thursday, July 7, 2016

Why brands succeed or fail : The Persuasion Factor

"Half the money I spend on advertising is wasted, the trouble is I don't know which half." So said John Wanamaker.Indeed this question continues to be asked even today by every marketing and communication professional across every discipline as new brand failure rates across category range from 40% right upto 75% in the packaged consumer goods retail categories.
While it is impossible to give one reason to account for all product failures, what is emerging as an important reason for consumer off-take is the extent of Persuasion Factor that a brand has built into it.
A brand's Persuasion Factor is what drives a consumer to finally choose, select and purchase it over all it competitors. Persuasion Factor is very different from the other attributes brands use today in their identity viz. brand values, brand differentiator, consumer insight and brand personality. While all of these are important in defining a brand and in making it distinct, none of them can guarantee that a consumer will definitely buy the brand in question. 
Persuasion Factor as the name suggests, is the indicator of this very critical aspect of consumer selection. Brands with a low Persuasion Factor will definitely not get picked up whereas brands with a high Persuasion Factors have a greater chance of being purchased. Persuasion Factor is not merely a communication variable, it's intrinsic to a brand's DNA, instilled in it during the creation process.
Brands that have a high Persuasion Factor have a clear answer to the question: "What about this brand makes it impossible for a consumer to resist buying?"
If the answer is merely Hritik Roshan or Shahrukh Khan, you know just how little that's going to help.
Similarly, answers that are mundane and given simply to fill up the blanks aren't really going to work in the marketplace e.g It's convenient or It's cheaper.
The answer has to be and sound COMPELLING.
Why will a consumer break an age old habit to pick this?
Why does he NOT BUY a cheaper, equally good option but choose to pay a premium for this brand?
What will make her take the trouble to walk all the way to come to this shop for his groceries?
Persuasion Factor is the sum total of reasons that drives, needles and forces a consumer to undergo discomfort, jump out of his/her comfort zone, take a gamble, fight lethargy, habit, tradition OR change, peer pressure and modernity... to choose your brand.
Where does your brand score in the Persuasion Factor index?