Archive for October, 2013

“People don’t buy what you do; they buy why you do it.”

Tuesday, October 29th, 2013

Simon Sinek spoke at TED in September, 2009 and he offered this wisdom about leaders and powerful brands: “people don’t buy what you do, they buy why you do it.”

I was reminded of this in a conversation with a colleague in the automotive industry.  He asked me what I thought of his most recent advertising.  There was nothing decidedly wrong with the advertising but it fell into the trap of doing what Sinek called speaking from the outside-in.  In other words the advertising basically said we sell luxury cars that have these mildly interesting features.

I told my colleague that I felt that the advertising didn’t have a point-of-view that came from the brand and therefore it fell short of having the power to change perception.  I spoke about the need for “core values” that in turn would shape the brand’s perspective.  I suggested that he needed to find the 2 or 3 immutable truths about the brand without which it wouldn’t be the same brand.

Sinek gets at the same issue by asking:  “What is your belief? What is your cause?”  Another way to express it is: What is your company’s or brand’s ethos, what are your guiding principles?

People don’t buy what you do; they buy why you do it.

How can it be that in an industry where we expect people to make the second largest purchase of their lifetimes (a home being the largest) the “why you do it” piece of strategy gets so little emphasis.  We know this to be true because so much of the marketing in the category is uninspired.  Most of it emphasizing features and pricing in mildly entertaining executions.

But there are a few great automotive brands that do understand “why they do it.”  Mercedes-Benz, BMW, Audi, Jeep, Suburu, Lexus all come to mind.  Each of these brands have a defined “why they do it” that truly shapes what they make and at their best how they market it.

Despite from time to time losing their way, these great automotive brands always seem to come back to their “why they do it.”

Recently, Mercedes-Benz introduced their latest S-Class.  The S-Class has always been the epitome of what Mercedes-Benz represents.  True to form, the S-Class marketing overtly expresses the brand’s “why they do it:”

While I don’t love the line “The best or nothing,” it is a literal translation of “das beste oder nichts,”  the company’s “why they do it” in the founder’s own words. Somehow editing the translation seems inappropriate.

Just today Jeep announced the introduction of the new Cherokee and despite having seemingly lost their way in recent years, here comes a new campaign about the joy of adventure and exploration, values that have always been at the heart for the brand: (more…)

Do customers really want an “experience” from automotive manufacturers and their dealers?

Monday, October 14th, 2013

I don’t know about you, but I really don’t want to have an “experience” with my automobile dealer.  I don’t want my dealer to send me birthday cards, acknowledge my anniversary, or give me special gifts that reflect my personal preferences. I’m not even sure I’m open to periodic emails from the dealer or manufacturer because somehow “periodic” becomes every other day. I don’t want that kind of relationship with the company(ies) I purchased my cars from.

Yet automobile manufacturers seem intent on differentiating themselves based on “experience:”

“The need to deliver exceptional, truly differentiating customer experience has never been greater,” Steve Cannon,  CEO, Mercedes-Benz NA, Automotive News 1/21/13

“Lincoln wants customers to receive the kind of pampering, both at dealerships and online, that they would get at luxury hotels.” Automotive News 8/20/12

This is not new, the industry, particularly the luxury marques have been working on improving customer experience for years. These efforts were precipitated by the introduction of Lexus. When Lexus was introduced in 1989, the DNA of the luxury segment and the whole industry was re-arranged.

Customer service was re-defined. (more…)