WODEN ANNUAL 2018

WODEN ANNUAL - 2018 - 1 WODEN ANNUAL 2018

PARTNERS

Edward Lynes & Dan McDonough, Jr. WODEN CREATIVE TEAM 2018

Hannah Landers, Lindsay Cottman, Zach Kliger, Zachary Vickers, Kelly Sarabyn, Erin Mullikin, E.M. Ricchini, Dante Pannell, Rachel Fox, Kenly Craighill, Mike Dea, Fred Osu, Justin St. Louis

1520 Locust Street | Fifth Floor | Philadelphia, PA 19102 1.844.469.6336 www.wodenworks.com

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CONSUMERS HAVE THE BEST BULL$#!* METERS 7 ZACHARY VICKERS

#RELATIONSHIPGOALS: CONNECTING BEYOND THE BROWSER 13 HANNAH LANDERS

BEYOND THE BROWSER: HOW DIGITAL BRANDS BECOME TACTILE 17 KELLY SARABYN

WHERE ARE ALL THE TOYS “R” US KIDS? 23 ZACHARY VICKERS

BULL NOT BEAR: THE ECONOMY OF SIX SECOND BRAND STORIES 26 ZACHARY VICKERS

COACHELLA AND THE ART OF CRAFTING A TIMELESS STORY 29 EM RICCHINI

COLLABORATIVE CULTURES CULTIVATE THE CHEESIEST CONCEPTS 33 EM RICCHINI

WEWORK & STARBUCKS AGREE: FATHER KNOWS BEST 36 ED LYNES

IT’S MALL ABOUT EXPERIENCE 39 HANNAH LANDERS

GOOGLE IT, XEROX IT, FEDEX IT, POST IT 42 ZACHARY VICKERS

FIND YOUR CONSTANT AND PIVOT WITH PURPOSE 45 HANNAH LANDERS

FINTECH, DISRUPTED 48 LINDSAY COTTMAN

THE KEY TO MONETIZING CUSTOMER DATA? TRUST 51 KELLY SARABYN

THE VALUE OF A GOOD INFLUENCE(R) 54 LINDSAY COTTMAN

FCK ‘EM IF THEY CAN’T TAKE A JOKE: THE ART OF BRAND APOLOGY 58 HANNAH LANDERS

SELLING A STORY YOU’RE NOT TELLING 62 LINDSAY COTTMAN

YOUR COMPANY ISN’T THE UBER OR AIRBNB OF ANYTHING 65 ZACHARY VICKERS

WHY XEROX DIED 68 KELLY SARABYN

Cover design and cartoons by Terry LaBan.

2 - WODEN ANNUAL - 2018 WODEN ANNUAL - 2018 - 3 AUTHENTIC CONNECTIONS

HOW TO TURN YOUR AUDIENCE INTO NOT JUST CUSTOMERS, BUT EVANGELISTS.

Leverage your story to develop an authentic connection

he most powerful Crafting those well-developed by Zachary Vickers on page T movements in human stories is what Woden does 9 that looks at how Weight history did not begin with for brands, organizations, and Watchers, Radio Shack, and bullet points or a PowerPoint movements. This publication is Dunkin Donuts have attempted deck. Features and benefits may the second Woden Annual—a to connect with their audiences. allow people to understand how collection highlighting some It’s evident that authentic something works, but they don’t of the most powerful writing connections are the tissue that utter a syllable on why someone over the last year in relation to bind people to ideas or brands. should give a damn. Only a well- how purposeful storytelling has It empowers the development developed story can deliver the made its mark and advanced of enthusiasm—not just an kind of authentic connection brands and ideas. In 2018, acceptance—for a brand. That that gets an audience to crave Wodenworkers focused a great enthusiasm is seen in the link more and become excited to deal on the notion of authentic between the world’s fastest- embrace an idea or a brand. connection, kicked off in a piece growing brands and their

4 - WODEN ANNUAL - 2018 adherents. Just as a strong If a brand can connect with its a relatively small sum of money, connection can fasten a brand potential audience by leveraging Woden is worth hiring to guide to its audience, though, those shared values and purpose—the you through the architecture of brands inevitably suffer when brand’s “why”—customers will crafting a strategic narrative. the authentic connection slips consider features and benefits But, if cash is a brand’s most away—as illustrated in the secondarily. They become more precious resource and that brand following pages, most notably accepting of additional services can take the time to do this alone, in a piece by Ed Lynes on page and more likely to embrace their consider this Annual a help to 44 that tackles how the leaders role as the hero in the brand’s get started on a journey of self- of companies such as Tesla and story. discovery. In fact, feel free to Starbucks can get in the way of Brands like Tom’s Shoes, reach out, too, for a conversation their brands’ connections. Warby Parker, and Airbnb have on how you can dive into this. As you make your way grown on their ability to align “Storytelling is the most through this publication, keep customers and partners with underrated skill,” Ben in mind that when story is their purpose. Most essentially, Horowitz told Forbes magazine discussed, it’s much more than all of these organizations have in an interview back in 2014. its application to marketing or authentic purposes that create Horowitz’s main task in sales or advertising. The story of authentic connections; for life—as a founding partner an organization is the strategy of Airbnb, it’s as simple as making in Andreessen-Horowitz, an that organization in the holistic people “around the world feel influential titan in the Silicon sense. It has a direct impact on like they can ‘belong anywhere.’” Valley venture capital world— not only customers, but also These authentic connections are is assessing skill and potential employees, vendors, investors, best developed through stories. for businesses to transcend even and anybody else who touches a Stories are memorable because significant growth trajectories. brand in any way. And the most they are emotionally resonant “Companies that don’t have a successful story strategy is to and easy to take ownership of. clearly articulated story don’t ensure that a brand’s narrative is The storyteller adopts the story have a clear and well-thought- less about its “what” or “how”— in their own image, modifying out strategy,” Horowitz told and all about its “why”. it slightly before passing it on. Forbes. “The company story is Brand narratives must have a Storytelling arose not as a form the company strategy.” higher purpose if they are going of entertainment, but rather as The year 2018 was one of to truly engage audiences. Ample a mechanism for communicating developing powerful brand research confirms that human deeply held truths across stories on behalf of dozens decision-making is based in the societies. People don’t tell of clients around the globe. limbic system, the oldest part stories because they want to— Everyone at Woden hopes of the brain that is distinct from people tell stories because they this year’s Annual is full of the part of a brain controlling are essential. experiences that will help rational thought. That’s why The science is patently clear sharpen the storytelling skills connection starts and ends with that strategic storytelling is needed to thrive in today’s communicating purpose, and not only the best, but also the marketplace. And that each has little do with even the most only way to deliberately build reader will put down this edition compelling features and benefits. authentic connections with a empowered to apply its collected Emotions are different and prospective audience for any idea wisdom toward making their distinct from rational thoughts. or brand. For organizations that organization fulfill its purpose in People make gut decisions value time and the expertise of ways never dreamed of before. because those decisions feel good. specialists more than they value

4 - WODEN ANNUAL - 2018 6 - WODEN ANNUAL - 2018 AUTHENTICITY CONSUMERS HAVE THE BEST BULL$#!* METERS: AUTHENTICITY AND STORY IN BRAND NAMES

BY ZACHARY VICKERS

ecently, Weight Watchers the cure” — must transform in needed to start from scratch. R announced they would be order to survive. The only way However, by rooting a rebrand known as “WW.” Armed with to do it is to tell a brand story and renaming in a compelling a new tagline, “Wellness that that authentically speaks to new story that puts the customer Works,” the 65 year-old company purpose in the company, and all — the story’s hero — first, made a bold and strategic pivot that starts with the name: the companies can authentically to become a wellness-focused title of said story. align with popular trends while organization that aligns with the Weight Watchers or WW did investing in the future. modern embrace of self-care and just that — they transformed WW didn’t merely slim body positivity. In the process, their name, their culture, down their name and opt for they’ve scrubbed their messaging and their message through a a superficial acronym to deter of terms like “dieting,” which compelling story. from the “diet” negativity; has garnered a more negative Critics were initially skeptical they invested their purpose connotation in recent years. of the move, calling Weight in an emotional narrative arc. The decision comes from a shift Watchers’ transition nothing No longer do they pitch quick in perspective. A 2016 Gallup more than “diet culture in weight-loss solutions, or market poll showed that fewer people disguise.” Such a change could with Before/After photographs actively want to lose weight easily be considered facetious of members, which sent a — and while the obesity rate is and inauthentic if purely message that equated thinness among its highest ever, fewer cosmetic — a blatant attempt to healthiness. people describe themselves as to capitalize on the latest trend. Now, WW has revised their “overweight.” Companies have fallen prey signature points system to With more companies like again and again to this rushed account for each individual’s Dove pushing back against and ill-considered approach. At height, weight, sex, and activity; dated definitions of beauty and first glance, WW just seemed they’ve partnered with the wellness, consumers today don’t like one more to add to that list. meditation app Headspace and necessarily see their weight as a Changing a household name launched “Connect Groups” to superficial problem, but rather is riskier, as there is potential of connect like-minded and like- proudly celebrate it as one of the increasingly diminished brand needed members, like those many parts of their individuality. equity. When Kentucky Fried who are gluten-free. They’ve Companies like Weight Chicken abbreviated their name also developed new cookbooks Watchers — who hitched their to KFC in 1991 to remove “Fried” and have removed artificial business model on poor body from their consumer’s vocabulary, sweeteners, coloring, flavoring, image, self-consciousness, or the brand subsequently lost and preservatives from their “show them the flaw, sell them valuable name recognition and food items. All of these moves

6 - WODEN ANNUAL - 2018 WODEN ANNUAL - 2018 - 7 represented inherent and more emotionally invested in aspirational dieting solutions to a fundamental changes to their their members, opening up holistic and realistic investment product and service. their philosophy to anyone who in the way that everyone lives, Though some may be left may not believe that thinness is embracing an approach that confused by the abbreviation (Is healthiness or happiness. While empowers each member to live it short for Weight Watchers our definitions of beauty have their healthiest life. As their new or the new “Wellness that shifted over time, the core of vision statement explains, WW Works” slogan?) and question WW’s story hasn’t. If “WW” aims to “create a world where what it means for the company’s feels directionless, perhaps the wellness is accessible to all, not direction, the answer lies in directionless is the direction — just the few.” their story. Weight Watchers perhaps the open-endedness of “The consumer bulls[#!*] was never about diet shaming, the meaning of “WW” is both an meter couldn’t be higher,” said despite current stigmas around anchor to the Weight Watchers Kevin Hochman, KFC’s Chief dieting culture. Rather, they have history while also striving to Marketing Officer. “They know always been about community be more accessible: members when you’re being authentic and and encouraging each other are empowered to choose their true.” toward a healthier sense of own direction, define their own While an empowering self — founder Jean Nidetch healthiness, and live their best story, authentically told, can envisioned weight loss as being life. connect a company with its easier when like-minded people The name change to WW goes audience across the obstacles of can share tips and support. beyond the cosmetic. They’ve temporary fads and trends and Therefore, the story of WW changed the very culture of the shifting perspectives, it’s a tricky hasn’t changed. It has just become business from one focused on tightrope to walk. Any move that

8 - WODEN ANNUAL - 2018 contradicts a company’s core site tech support. “Our new branding is one of brand story can be just as equally Best Buy’s recent rebrand, for many things we are doing as detrimental. example, simply modernized part of our blueprint for growth In 2009, Radio Shack their logo by reprioritizing all of to modernize the Dunkin’ rebranded themselves as “The the visual elements, and therefore experience for our customers,” Shack” in an attempt to maintain avoided sacrificing brand equity. said Dunkin’ Brands CEO David market share dwindling in the “Telling the story of our people — Hoffmann. “[W]e are working age of Best Buy, Wal-Mart, and and how we make a meaningful to provide our guests with great cellular retail stores. The new impact on customers’ lives — is beverages, delicious food and name (dropping “Radio” to at the heart of this work,” Best unparalleled convenience.” distance the association with Buy Chief Marketing Officer Dunkin’s brand story is one outdated technology) was Whit Alexander said. “The core rooted in fast and convenient meant to evoke relevancy and of what differentiates Best Buy offerings of food (including “coolness,” and draw in new vs. everyone else — and makes donuts) and beverages. Their and former customers. But this us awesome for customers — is new digital ordering kiosks align short-sighted rebrand showed a that we understand your unique with that story. However, even lack of focus on the company’s needs and how tech can enhance though the abbreviated name story — to provide customers your life.” may also reiterate speedy service, with comprehensive answers in Radio Shack’s inauthentic as FedEx’s name similarly a world increasingly inundated rebrand failed to develop the conveys, the change is one that with technology. “cult-like” following with their hurts the brand’s equity, as it While The Shack was perhaps customers they were looking undermines what consumers superficially more relevant, no for because it did not align with think of first — the second other aspect of the company their brand story — that in this “D.” The change has since left changed. They still offered the broken world deluged with new many consumers confused and same products. Customers saw technology and large retailers irritated: no real change other than the that place convenience and price They literally invented the name itself. Radio Shack failed over expertise, Radio Shack was word “Donut.” They should to communicate their story in the only choice because they keep it forever. – tweet by @ the way that competitor Best offered “qualified sales staff to larocciDave Buy has to turn customers into help customers get the most Hold up, Dunkin Donuts drops brand evangelists. Best Buy’s from your technology products.” the donut in their name? The story is to empower customers The brief stint as “The Shack” real questions is, do you still sell to make the best choice for their did more harm than good by donuts though? – tweet by @ lives through convenience and shucking what little brand equity BigballerDee expert staff, from consultation the company had left in their Even back when Dunkin to purchase to installation loyal base. After several more Donuts was originally called to service. If technology is years of significant financial loss Mister Donut, it retained the designed to improve the life and layoffs, Radio Shack filed for “donut.” Keeping the donuts in of the customer, Best Buy bankruptcy in 2015, and again in the name keeps the franchise improves your technology retail 2017. accountable for making good experience, from finding the right More recently, Dunkin’ donuts, as those are the focus! product through large stocks of Donuts dropped the second D Maybe. – tweet by @cryptolectic items at affordable prices and in a rebrand that included a new “For two years, we have been friendly knowledgeable staff design, digital ordering kiosks, focused on evolving Dunkin’ to maintaining that product and nitro-infused cold brew on into the premier, beverage-led, through their Geek Squad on- tap. on-the go-brand,” said Hoffman.

8 - WODEN ANNUAL - 2018 WODEN ANNUAL - 2018 - 9 While the data may support additional coffee offerings and regardless of sales. this decision (approximately opportunities. Sales do not A new name is just as capable 60 percent of Dunkin’s sales are lie — but they also don’t tell of taking a wayward brand and from their drink offerings) the the whole story. By dropping aligning it instantaneously. In data does not weight the value “Donuts,” Dunkin’ has betrayed 1902, the Minnesota Mining and of brand equity when it comes to consumer trust by walking down Manufacturing Company began the name. a path that seems to veer in the as a mineral mining venture in Not to suggest that opposite direction of what their corundum, but quickly fizzled Hoffman shouldn’t invest in consumers love about the brand, out when their mines contained

10 - WODEN ANNUAL - 2018 only anorthosite. For decades, We tried. We failed. We tried Bodega’s snack boxes implied the company operated under something new. Repeat cycle. people don’t need the genuine this clunky name while doing Innovation and perseverance article anymore. That a fancy no mining at all — in fact drove our founders, and it vending machine is just as the company operated (and continues to drive 3Mers today.” good — or better — than a continues to) in industry, health A name is not a catchy, cosmetic family business. That what’s care, and consumer goods, accessory — it’s the title of valuable about a bodega is only and is responsible for making each company’s brand story. the things it sells, and that thousands of products like Post- A brand’s name should never the human connection doesn’t its and Scotch Tape. contradict, misrepresent, or test matter anymore. Tech-driven In the 1950s, the Minnesota the consumer’s bull$#!* meter. convenience alone is a story no Mining and Manufacturing Rather, the company’s name one wants to hear anymore. Company debuted a simplified should reflect their position as Compare Bodega with logo that discarded the a mentor whose magical gift of AirBNB or Lyft, two companies increasingly irrelevant name a product or service empowers with the same roots in using for “3M,” a rebranding that consumers — the hero of their technology for convenience. has famously accommodated story — to solve their inherent Their disruption felt authentic: the company’s growth into need or problem and therefore allowing convenience for an innovative, $60 billion conquer their broken world. consumers, while empowering multinational company. Would Short-term bottom line, but it is others (drivers or homeowners) 3M have achieved this level of inarguable that long-term value to unlock the value of their own success if they had remained is driven by customers’ affection. skills and assets. Their billion- the Minnesota Mining and The point here is not to dollar valuations are based on Manufacturing Company? remonstrate tech companies for more than just technology: they “3M” is still rooted in their their unchecked pride. Neither recognize the hero of their story. history, including their first is the purpose to signal the Silicon Valley may no longer exclusive and lucrative product, a death knell of innovation and be capable of credibly telling kind of sandpaper/abrasive cloth opportunity. an underdog story. Still, that sheet, dubbed “Three-M-ite,” But if Silicon Valley is going doesn’t mean that it’s beyond that posted the company’s first to keep tapping its innovative redemption. There’s still a hero dividend. But the original name to their narratives — it just isn’t potential, the story must change. misrepresented the company’s them. Startups like Bodega must actual operations, as well as their It’s time for a dose of humility, a cede the role of the hero back to story as a global researcher and step back, and a mentality that their customers. Not just in their innovator. elevates the customers and puts marketing, but in the way that Additionally, each “M” could their needs first. they build products. stand for “Mistake,” as three of That kind of shift in the It’s true that there may never its milestones and innovations narrative goes deeper than be heroes in Silicon Valley again, revolve around accidents — the a superficial refashioning of but there can still be mentors, original mines, the “Three-M- image. Bodega didn’t merit such sages, and exemplars — guides ite,” and a pressure-sensitive a negative reaction because of and pathfinders that equip the adhesive agent, Acrylate bad marketing. That may have true hero, the customer, with the Copolymer Microspheres, that played a part, but the product tools they need to achieve their led to the Post-it note. This itself was fundamentally flawed dreams. Now, that is a story aligns with the company’s story: to begin with. When you set out worth telling, and it’s one that “But our success and longevity to build a product it’s going to we all want to hear. were not apparent from the start. tell a story.

10 - WODEN ANNUAL - 2018 WODEN ANNUAL - 2018 - 11 PARTNERING WITH ENTREPRENEURS - WE GOT YOU COVERED

Redbadge was founded on the principle that transformative ideas are a game-changer for a sustainable future. We have a passion for investing in and strategically working with innovative growth and expansion-stage companies. It is not only about innovation, but flawless execution. Grounded by a tradition of partnering with exceptional companies, Redbadge seeks to support entrepreneurs to scale businesses that have the potential to be transformational and create lasting value. 12 - WODEN ANNUAL - 2018 www.redbadge.com MESSAGING #RELATIONSHIPGOALS: CONNECTING WITH A B2B AUDIENCE ON SOCIAL MEDIA

BY HANNAH LANDERS

utodesk is big on Instagram. The informal, playful nature flocking to the web to find that A With 128k followers, the of B2C brands has set the tone information. And these decision brand receives upward of 2k for social platforms, making it makers often prefer to keep their likes on each photo post and difficult for B2B companies to quests for information digital — sometimes more than five times see a place for themselves there: 59 percent of buyers think that that many views on their video Less than half of B2B businesses sales reps are just pushing their posts. But Autodesk isn’t selling consider it worth their time and own agendas. a trendy meal-replacement drink money to come up with a social As B2B decision makers are or celebrity-endorsed hair care media strategy. already online, actively seeking product. It is a company that Yet this is a missed opportunity. unbiased information to help sells 3D design, engineering, B2B businesses need to look them choose a particular and entertainment software to beyond the fact that they are product and a company, social businesses — and their posts of selling to other businesses to see media platforms like Twitter, incredibly lifelike 3D rendered that their customers are people Facebook, and Instagram can cupcakes and enormous — and people are on social provide a forum for companies chocolate rabbits receive the media. A lot. And in addition to to provide that information kind of engagement that most the obvious motive of using social in a way that is authentic and B2B brands didn’t think was media for interactions between relationship-based. possible. friends and family, people are The problems B2B companies Many B2B companies don’t also driven to these sites to seek face on social media often have even have an Instagram account, out and share information. In nothing to do with the platforms believing there is no reason to fact, a study revealed that 75 themselves, but rather the be on social media platforms percent of B2B decision makers strategies that B2B businesses other than LinkedIn, which has found information on social take in entering the multifaceted a business focus. Outside of the media that influenced their landscape. Companies like buttoned-up LinkedIn, the social buying process. Starbucks, Under Armour, media landscape is dominated This nexus of connectivity and Wendy’s continually reap by B2C companies engaging in and curiosity is where B2B in high engagement on social casual conversations, “roasting” businesses can thrive. Decision media, setting the standard for their competitors on Twitter a makers considering products brand practices on Facebook, la Wendy’s and McDonald’s, or like enterprise software or Twitter, and Instagram. answering customer queries via manufacturing equipment But B2B companies that a shirtless mascot on YouTube as conduct research before attempt to mimic the practices Old Spice did. purchasing, and they’re already of their B2C counterparts

12 - WODEN ANNUAL - 2018 WODEN ANNUAL - 2018 - 13 without coopting them to fit cultivate these elements of accessories, Autodesk uses the their own distinct customer base their brand, but also to serve as visual platform to show off the will often fail. Whereas Nike can a wellspring of knowledge for amazing and complicated tasks post stylish photos and videos of B2B decision makers, operating their clients are accomplishing — athletes sporting their apparel at the nexus of connectivity with the help of their software. on Instagram, a company that and curiosity. One tweet, for A video of a machine powered sells accounting software to example, outlines the four by Autodesk’s software carving enterprise businesses would have fundamental elements for intricate designs on the front of a harder time creating a visually sustaining innovation over time, a mandolin, for example, only appealing montage of their with small arrow emojis next to fleetingly mentions Autodesk’s customers using the product. each element and a compelling product (the #Fusion360) in Additionally, the average B2C photo of a bridge next to a the caption. Instead the text brand can use social media to gorgeous waterfall. — and the video content itself promote sales, discounts, or new The tweet contains a link — focuses on Two Cherries products, which would likely to a blog outlining these Instruments and its incredible be a less successful strategy fundamentals in more detail, but creative process. Visitors for B2B businesses, as the sales the tweet on its own is successful interested in learning more process is longer, requires more both in reflecting Salesforce’s about engineering software who background research, involves brand story and providing land on Autodesk’s Instagram more than one person, and is their audience with the kind of account aren’t inundated with generally aimed at a more niche business insight that reinforces the ins and outs of the product. audience. their work as a thought leader Rather, they experience what B2B brands need to take a in customer relations technology the company makes possible for different approach than B2C — building trust in and reliance their clients. brands, thinking of their social on the brand in an unobtrusive But even the savvier B2B media strategy as an extension of and conversational manner brands can make a misstep, their complex relationships with suited both to Salesforce and to such as when Shopify tweeted their more informed audiences. the nature of Twitter. out their version of the popular Customer service software Let’s return to Autodesk and “If you don’t love me at my…” vendor Salesforce has mastered their thriving Instagram account. meme, featuring their regular this strategy. Salesforce has more Instagram is one of the hardest logo alongside one rendered in than 400k followers on Twitter. nuts to crack for B2B brands. neon lighting. The comment Dotted with emojis and hashtags, The photo-centric platform is section panned this attempt each tweet is a reinforcement a no-brainer for B2C brands to leverage this popular meme. of the optimistic, lighthearted — and clothing and apparel “No, memes are for the public attitude of the company, and brands especially, which top not the corporate,” wrote one gives voice to the brand’s story the list of most followed brands user. “Offer me a job and I won’t of empowering their customers on the platform as of December roast you for this,” read another to lead and innovate within their 2017. Instead of taking the reply. “Would’ve worked better industries. Salesforce believes lead from a brand like Chanel, if you used the old/original that their technology can which was ranked at number logo,” replied another user, in a empower business leaders to be 10 on the list of most followed tweet that further proved that “Trailblazers” and the optimistic brands at 23.5 million followers Shopify didn’t even understand aesthetic of their social media in December and whose feed the concept it was trying to cash pages validates this story. is full of glamorous photos of in on. And Salesforce uses their models and celebrities sporting Netflix’s version of the meme, Twitter account not just to their clothing, make-up, and on the other hand, which featured

14 - WODEN ANNUAL - 2018 two different screenshots from asking, “Is your business ready?” ways to fit their personality and Disney’s Hercules, was received Another blog on guerilla brand story into popular memes much more positively. While marketing was posted with the and other internet trends, Shopify’s attempt to make their text, “Unlike big brands such as Infusionsoft chooses content Twitter account inviting and Nike or Target, the average small that aligns with their story and relatable by using a popular business has a tight marketing will best connect with their meme, the responses show that budget. Guerilla marketing is small business audience. B2B brands have to be careful easy on the budget and includes There’s no one-size-fits- when coopting social media finding creative ways to reach all social media strategy — trends. the public!” Infusionsoft’s especially for B2B brands. But it isn’t only multinational acknowledgement of their But looking to successful B2C companies that can find success audience’s needs and limitations techniques like pushing sales on Twitter, Facebook, and creates a social media space and discounts, attempting to Instagram. Infusionsoft makes where B2B decision makers are capitalize on the newest meme, marketing software and has encouraged to gather to conduct or firing off saucy missives aimed a brand story centered on their research and evaluate at competitors is misguided; supporting small businesses Infusionsoft’s expertise in the the B2B social media audience and the communities they industry — without being might be composed of people, serve. Like other successful B2B aggressively sold to. but those people have different brands, much of Infusionsoft’s Infusionsoft engages with needs, wants, and concerns content on Facebook features their audience to develop than the consumer social media original content on helping authentic relationships based on audience. In reaching out to their their customers be successful. knowledge sharing; the company audiences in a way that is true to This includes topics like hosts live web shows dedicated their brands and centers on their changing business regulations to imparting their marketing audiences, B2B companies can with accompanying text on a expertise to viewers and holds form meaningful connections Facebook post that starts with polls for users on topics like through social media rather than “Data, data, data!” and a lock and their preferred organizational simply broadcasting to a tuned- key emoji, followed by text that techniques and communication out audience. directly addresses their audience, tools. Rather than looking for

14 - WODEN ANNUAL - 2018 WODEN ANNUAL - 2018 - 15 16 - WODEN ANNUAL - 2018 Surface risks before they sink your business Learn why the majority of the world’s top 10 investment banks trust our AI-enabled Conduct Surveillance solution to uncover conduct risk in all of their data.

www.digitalreasoning.com MESSAGING BEYOND THE BROWSER: HOW DIGITAL BRANDS BECOME TACTILE

Digital brands finding ways to interact with their audience in the non-digital world are fostering greater levels of connection and communication.

BY KELLY SARABYN

or the first time ever, digital Some tech leaders — sharing — as real as it is in the media F giant Amazon has mailed economy leaders such as Uber, industry. Even with a print out catalogues. With a Pottery Lyft, and Airbnb; and multiplayer circulation of 2 million, Glamour Barn Kids-esque aesthetic, these video game companies such as the is going all-digital in 2019, which catalogues include stickers that makers of Fortnite — are purely follows a decision by Glamour’s children can use to quickly tag digital, but have always bridged beleaguered and financially their favorite toys. And Amazon the digital and non-digital troubled publisher, Conde Nast, isn’t alone: Facebook is placing worlds by enabling interactions to pull Teen Vogue and Self from printed ads at train stops to between contractors and the shelves last year. encourage people to join their customers, hosts and renters, The print circulation of online marketplace. Companies and players and players, that are newspapers continues its long, who were born and live online all too human. But these digitally sharp decline. Printed circulation — such as Amazon,Casper, and driven companies have been of the top “alt weekly” Birchbox— are opening or buying largely agnostic to the human newspapers, most of which are retail stores to sell their wares to interaction. Uber is indifferent free, dropped 37 percent from customers human-to-human. to riders giving the best reviews 2012 to 2017. Even publications Why are digital giants, who to silent drivers, and Airbnb such as The Atlantic and Seventeen, have the latest digital tools and does not weigh in if renters rave which still print magazines, analytics at their disposal, now over the ease of picking a key fob have shifted to a “digital first” trying to connect with people out of a box rather than having strategy, focusing on building in the physical world? After to speak to a host. Uber is even their digital brand over a print all, people have unrelentingly developing self-driving cars, experience. Media monoliths continued to migrate their whose successful creation will like the New York Times and the lives onto the internet, forever presumably cease the company’s Wall Street Journal’s revenues plugged into their devices as facilitation of any human continue to slide toward making they work and play. Perhaps interactions. money from digital advertising these tech companies have Nowhere is the struggle over and digital subscriptions rather realized there are still dramatic whether companies should than the print form. benefits to consuming content communicate with their The two print magazines and interacting in the non- audiences in the digital and with the largest circulation in digital world. non-digital world — or both the country — both from the

16 - WODEN ANNUAL - 2018 WODEN ANNUAL - 2018 - 17 Surface risks before they sink your business Learn why the majority of the world’s top 10 investment banks trust our AI-enabled Conduct Surveillance solution to uncover conduct risk in all of their data. www.digitalreasoning.com AARP — are given away for free, print circulation, and thrive have greater focus, can better and it is unclear whether they financially. Though Garden & refrain from multi-tasking, and are financially self-sustained. Gun has less circulation than remember more information AARP chooses to communicate Glamour did, they have managed when they absorb content with their audience in the non- to make a profit with their through a printed medium. This digital world, even if they pay smaller circulation. is especially truefor longer or for it partially as a marketing In other words, some brands more complex content. expense. The same can be said have figured out a way to not Non-digital interactions for the number-three circulating only exist but to flourish in the between people, when compared magazine, The Costco non-digital world, even in the to digital interactions, leave Connection, which is free to face of the digital world’s ever people feeling happier, with members but also profitable in expanding ownership of people’s a more positive view of their its own right. lives. conversational partner, and lead Some print publications, such Studies comparing humans’ to fewer misunderstandings as Garden & Gun and The consumption of content in and with people less likely to Times Literary Supplement, print versus digital form have feel cold about the interaction. have continued to increase their repeatedly shown that people In addition, non-digital

18 - WODEN ANNUAL - 2018 interactions, even of the same their staff. Affluent Whole Foods still analog creatures, even as length, are more complex and shoppers continue to interact they continue to migrate their nuanced due to the role of facial with their knowledgeable staff, lives into the digital world expressions, physical gestures, who can recommend the best (Americans spend almost 24 and tone, leading to greater cheese, explain the latest charity hours a week online, more than levels of human communication Whole Foods is funding, or double the amount of time they and feelings of closeness. point out their preferred local spent 16 years ago.) Brands who Conversely, digital communications chocolate. This human-to- find ways to interact with their can more efficiently solve certain human interaction dovetails audience in the non-digital types of problems, and are often more with the Whole Foods’ brand of world, whether it be through convenient, and more affordable. creating high quality experiences print publications or in person, For brands, then, venturing and a sense of community. can foster greater levels of into the non-digital world can In contrast, Amazon’s Amazon connection and communication still be advantageous depending Go retail stores are physical with their audience. on what they are trying to stores, but they require no Garden & Gun might not accomplish in their interactions interactions with humans. A have as much as a circulation as with their audiences. It is no customer can simply walk into the soon-to-be purely-digital accident that Amazon’s launch the store, pick up items, and get Glamour, but their affluent into the non-digital world of charged via app on the way out audience is highly engaged physical catalogues resembled the door. These fully digitized with the publication, leading a Pottery Barn catalogue and stores’ brand, unlike Whole to better ad and circulation not a flimsy Walmart circular. Foods’, is built entirely around revenue. Garden & Gun plays to Walmart is about convenience convenience. Walmart, similarly, print’s strengths by offering high and affordability, where the has instituted self-check-outs so quality, curated, and tailored digital world is at its peak customers can get in and out of content, creating a memorable performance; the additional the store as quick as possible. and intimate experience for their expense of print offers little Casper, the internet- audience. advantage. native online mattress giant, The Costco Connection does For more affluent parents and explained their foray into the same. Unlike Walmart, children — to whom Amazon retail stores as an attempt to Costco’s brand is about both selectively sent their beautifully create a “fun atmosphere,” convenience, and quality in designed toy catalogues — a “build a community,” and product and experience — print publication provides an start a “conversation around Costco is the largest seller of experience that parents and sleep.” Clara Sieg, a partner at organic food in the country, has children will focus on more, venture capital firm Revolution, an affluent customer base, and and better remember. The same commented that the future of treats their staff notoriously imagery would resonate less retail, for many internet-native well, which leads to exceptional online, and for the busy affluent, companies, will be “developing customer service. By providing a print catalogue better captures unique and tailored retail quality content tailored to their attention and their larger experiences” that “create more their audience, rather than a share of disposable income. intimate connections with slew of coupons, the audience Similarly, Amazon has consumers.” remembers Costco and associates refrained from digitizing the It is these intimate connections, them with knowledge that they experience of their higher-end a feeling of closeness, and more actually process and remember. retail acquisition, Whole Foods, robust memory that cannot Brands that are purely defined where one can still only check yet be replicated in the digital by affordability, convenience, out by speaking with a member of world. Humans are ultimately and efficiency, need not venture

18 - WODEN ANNUAL - 2018 WODEN ANNUAL - 2018 - 19 into the non-digital world, and sharing knowledge, and creating promising to facilitate a sense of can in fact, continue, like Jet.com, meaningful connections. community and intimacy that can to keep their entire customer For tech companies operating only arise with the facilitation of experience in the digital in the sharing economy, non-digital experiences. realm — as digital experiences like Uber and Airbnb, who Whether born in the digital accentuate their strengths and have traditionally facilitated world or born in the non-digital brand promises. non-digital interactions, as world, brands should consider Amazon’s purchase of Whole automation technology, whether the message and experience Foods and their sending out it be self-driving cars or IoT they are trying to deliver to their of a high-end toy catalogue homes, makes it possible to audience. As the world inevitably suggests they are experimenting eliminate those interactions, marches toward the digital, even with diversifying their brand those companies might digital giants are recognizing holdings, to develop and include rebrand, with some promising there are still distinct advantages, brands that are about more than a highly convenient, automated that are often worth the price, to convenience and an on-demand experience, while others — who communicating and interacting efficiency, and in fact about would likely charge more — in the non-digital world.

20 - WODEN ANNUAL - 2018 PROACTIVE SALES PLATFORM

20 - WODEN ANNUAL - 2018 MINIMIZE DATA ENTRY | REACH MORE PROSPECTSWODEN ANNUAL | CLOSE - 2018 MORE - DEALS 21 SPIRO.AI/WODEN The Standard for Smart Multifamily Living.

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Woden Ad.indd 3 12/12/18 12:01 PM GROWTH WHERE ARE ALL THE TOYS “R” US KIDS? They Grew Up, But Where Are Their Toys “R” Us Kids? BY ZACH KLIGER

he greatest toy store there world where the large, physical knows young eyeballs are glued T is” has decided to shutter toy store isn’t the premiere to devices. But among the 182 outlets across the country option available. most popular content on those — about 20 percent of its total Back in the 80s, 90s, and early screens? Videos of other kids footprint. This isn’t exactly 2000s, there was something reviewing and playing with toys surprising, given the downward magical about stepping into of all kinds. Ryan ToysReview The Standard for Smart fortune of the company year a toy store. It was a window is a YouTube channel hosted in and year out. This latest into a child’s imagination: an by a 6-year-old who rakes in effort to retrench is part of the opportunity for them to walk $11 million a year making toy continual effort to emerge from the aisles, and picture everything videos. Ryan is just one of many Multifamily Living. bankruptcy, which they filed in they could do – if only they could content creators that’s receiving late 2017. just convince mom and dad to let millions upon millions of views There are two predominant them bring that one toy home. every month from a demographic theories to explain the situation. Walking into a Toys “R” Us that’s clearly still present and Some argue that in an increasingly now, it’s clear how sad and clearly still interested in getting digital world, there’s not much decrepit things have become. as many toys as they possibly reason to play with a piece of High ceilings, empty shelves, can. cheap plastic when children and the pervasive feeling that But Ryan’s channel says could have the whole world in something has died — that something else about kids these their hands with an iPad. Others something is missing. The magic days. The accessibility of content suggest it’s just more proof that is gone. on the Internet has transformed these kinds of purchases are Maybe it was always that them into shoppers just as moving online faster than ever. way. Maybe the rose-tinted discerning as any adult, and they These theories have some hint glasses shoppers wore as kids take the time to do their research. of truth to them, but they each made it all look like something They know what makes a good diagnose symptoms, not the so much more than it ever was. toy, and they’re not going to underlying disease. Physical toys But it’s clear that something has settle for anything less than that. never stopped being something changed, and it’s not that kids This is a sea change on a kids want, and there will always don’t like toys anymore. Retail number of different levels, be a place for brick and mortar just doesn’t know how to sell not the least of which is a stores that do a good job selling toys anymore. transformation in who Toys “R” them. Toys “R” Us took for Kids Don’t Need Toys When Us’ true audience is. In their granted that its consumers They’ve Got iPads halcyon days, toy retailers ran would “always be Toys ‘R’ Us Anyone who has spent five youth-targeted advertisements, kids,” and failed to evolve in a minutes in a family restaurant but acknowledged that parents

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Woden Ad.indd 3 12/12/18 12:01 PM retained the power of the purse, of continued play, and drive evidence that digital pleasures and ultimate buying decision. kids to desire something cool, can’t completely usurp the Since they weren’t accountable and something quality that can visceral joy of smacking two to their end user, Toys “R” Us capture their imagination and pieces of plastic together. and other retailers spent decades their playtime. The second, most common cheapening their product: The challenge presented by excuse for Toys “R” Us’ demise relying on low-quality, mass iPads and other devices isn’t is the one used by executives of production to eke out every inch new, either. Pressure from every failing traditional store in of profit margin they could. That electronic games has existed the word: eCommerce. It’s true worked when the toy simply since Atari showed up on the that Amazon’s $400 billion- needed to look good on TV and market, and escalated with dollar market capitalization in mom’s shopping cart, but each new generation of console. leaves even its biggest competitor kids are smart to it now. In- While Roblox and Minecraft Walmart in the dust. But there’s depth YouTube reviews expose may own some of that space still plenty of opportunity in cheap manufacturing or lack now, Ryan’s channel is strong physical retail, and it’s nowhere

24 - WODEN ANNUAL - 2018 close to dead for many different — retailers need to play a Toys R’ Us never sold toys. It reasons. different game. The conclusion sold the magic of imagination. Pointing a finger at eCommerce for Toys “R” Us is similar to that It’s just one more example of the is a convenient excuse for of the mall. Having the most toys enduring truth that people don’t organizations and executives under one roof is impossible, so buy what you do, they buy why that lack the imagination, ability there must be something else to you do it. Toys “R” Us lost track of or awareness of their audience draw shoppers (and their paying the “why” that defined them. They to stay relevant in an era of parents) in the door. focused on the short-term bottom increased competition. It’s not that kids don’t like toys line instead of the true hero of During their initial bankruptcy anymore, and it’s not that they their story (the kids walking into filing in 2017, Harvard Business don’t want to go to the store the store), and they’re paying the Review made it clear that while to see all the wonderful things price for it now. Toys “R” Us is singing its swan they could bring home. They Whether their business is song, most of the physical retail just don’t want empty shelves, selling toys in a retail store or world is doing just fine. Plenty dirty linoleum floors, and cheap shopping software online, no of people still love to get outside plastic. They want a place where company can afford to lose track and shop, but they want to go to they can go, have a great time, of their hero. Engaging them, stores that cater to that desire. and get excited about all the making them care, and creating Greg Satell articulates the new things they could do if they can the right kind of experience for normal of retail well: just convince their parents to them will always be the key to “The reason that Apple stores bring that one toy home. success. look as they do is they are not designed solely to drive transactions — they’re designed to do everything that can’t be done online, such as build relationships, offer service, solve problems, and upsell.” Once upon a time, Toys “R” Us was a part of its own disruption as it and the other big box stores consolidated shopping to massive and accessible locations. But they got complacent, decided that was enough, and failed to adapt to what consumers — kids and adults alike — want out of their shopping experience now. Woden worker Hannah Landers recently analyzed the things that shopping malls can do to lure back shoppers. Her conclusion, in a word: experience. Amazon and other online sellers have achieved a thorough stranglehold on convenience and price efficiency

24 - WODEN ANNUAL - 2018 WODEN ANNUAL - 2018 - 25 MESSAGING BULL NOT BEAR: THE ECONOMY OF SIX-SECOND BRAND STORIES

BY ZACHARY VICKERS

very second counts in the Brands like Bounce, Hefty, and so emotionally compelling E battle for a customer’s Under Armour have adopted they resonate beyond their six attention. Although Internet this structure to surprising seconds. users are consuming video at success — 90 percent of bumper “Like with all storytelling, I ever-increasing rates, 90 percent campaigns boosted ad recall by [want] to start with something of people skip past “pre-rolls:” some 30 percent. A great format relatable,” says six-second the short ads that come before is only half the battle. Brands are filmmaker Alexander Engel. the main content, and can be now challenged to convey their “That’s always important, but skipped after a certain amount brand story in such a brief space. here, especially so. [W]hen of time. Brands are being issued a By following Joseph your audience can relate, they’ll new challenge: craft a compelling Campbell’s Hero’s Journey in project their own experience message in a few seconds, or cast this economical format, brands into the piece — filling in the your investment to the Internet can create six-second bumper blanks and giving you freedom ad-equivalent of the recycle bin. ads that resonate emotionally to move more quickly through Adweek reports that with their audiences. And, like your narrative.” unskippable six-second pre- all great stories across time and The Gorilla Glue Company rolls are seen as 27 percent cultures, they must convey a managed to fully deliver the very effective and 54 percent broken world that the ad viewer arc of the hero’s journey in effective. With attention fleeting identifies with, one whose pain only six seconds — resulting in and audiences programmed to points continue to plague him an incredible ad that ranks in focus on the pre-roll countdown or her. But this format requires the top five of YouTube’s best in anticipation of clicking the extreme precision and attention bumper ads. “Skip Ad” button, brands have — it’s not an abridgement of the While the narration describes developed a new storytelling narrative arc, but a compression. Gorilla Tape (the magical gift), format: the six-second story. Those brands that take the easy “…double-thick adhesive with Just like Ernest Hemingway’s route and abridge their story a rugged outer-shell, for the famous six-word short story, lose the emotion that makes toughest jobs on planet earth,” it’s possible to both say and stories timeless. Those brands the span of six seconds is filled evoke a tremendous amount in that compress the narrative with the broken world (a man in precious little time. Six-second arc — focusing on the economy the woods, his hike interrupted “bumper ads” were revealed of language and imagery that with a damaged shoe), a mentor by YouTube in 2016, to prove multi-tasks through double- (a literal gorilla representing that an emotional story could meanings and subtext — are able the Gorilla Glue Company), and be concise and compelling. to deliver a full arc to audiences the mended world (the Gorilla

26 - WODEN ANNUAL - 2018 Tape has literally mended the Most narratives using the The Gorilla Glue Company. hiking shoe, wrapping the toe, hero’s journey are fairly linear. By “Something is broken and needs and is so durable the tape can be playing fast-and-loose with the to be fixed. Then Gorilla shows walked on). In these six seconds, format, while hewing closely to up with the solution. This the Gorilla Glue Company has its conventions, Gorilla Glue was moment of consumer need is also spoken directly to their able to both leverage the most relatable, common, and visual, core audience in a relatable and powerful storytelling structure, so we really don’t need a long authentic scenario: outdoorsy, and in the engaging six-second format to set it up…Think about rugged consumers who need a format. the problem consumers are reliable tool to get the toughest “The Gorilla Glue story is facing and how you can help jobs done right, the first and only simple,” says Lauren Connley, them tackle it. Then tell that time. Senior Director of Creative at story as simply as possible.”

26 - WODEN ANNUAL - 2018 WODEN ANNUAL - 2018 - 27 Brand missteps often begin vacation loving delivery, but instead.” There is a longstanding by being caught up in a specific we left loving homemade.” In conversation among writers visual, without investing in the another ad, a boy jumps happily about the challenges of the novel narrative structure around it, as into a pool while the mother’s versus those of the short story, in this Scholl ActivGel™ bumper voiceover says, “We went on further elucidate by Henry David ad. The six seconds begin with vacation with a toe-dipper, and Thoreau: “Not that the story need the “what” and “how” of the left with a cannonballer.” Both be long, but it will take a long ActivGel™ insert, its features of these ads end with the same while to make it short.” Novels, and benefits. Significanttagline: “Book your family home while marathons of patience and research shows that customers now.” endurance, are more narratively are initially drawn in not by What Airbnb has successfully forgiving. Short stories require a product features, but by shared done is establish the broken level of compression, precision, purpose — meaning Scholl world — the family “before.” In subtext, and emotional/narrative viewers already likely have their the second half of each narration, ambiguity and ambidexterity cursor hovering on the “Skip Ad” in juxtaposition with the images, in order to fully articulate an button. we see the mended world, families affecting novelistic world in a Viewers are then shown a changed for the better. Airbnb fraction of the space. And, most man in dress shoes bouncing has positioned themselves as a importantly, they must clearly comfortably on a sidewalk mentor who enables that change: understand the message they covered in a giant, imaginary empowering their clients to make seek to convey, and communicate Scholl insert. This commercial home-away-from-homes, ones it quickly. The challenge for fails to establish a broken world where these families can grow brands is no different — the that viewers can relate to — and connect. These short stories more succinct the format of their the key “setting of the story” are hero-focused, and contain message is, the more challenging in a hero’s journey. By only change facilitated by Airbnb — it is to convey something portraying a happy man, one while appropriately positioning meaningful. never portrayed with a problem, themselves as a catalyst, not the The only brands that can do Scholl neglects to communicate driver. this effectively — and most his journey, and catharsis, which And, unlike Scholl, they clearly affectingly —are those that know gives great storytelling the articulate the “why” of Airbnb, the moral of their story inside tension that draws in audiences. or the moral of their brand and out. Telling a compelling, “The core of every good story is story — an emotional narrative compressed marketing message change,” says Tony Xie, Associate of togetherness. In no way does requires a clearly articulated Broadcast Producer at Droga5, Airbnb explain the “what” strategic story for the brand, and “a square becomes a circle; a (a hospitality service) or the internal alignment behind how character learns about herself; a “how” (a web or app booking to tell that. landscape shifts. Six seconds is a system), because Airbnb knows Brands who know their stories limited time frame to show that that these two things don’t well understand that they don’t transformation…” book reservations. Reservations need more than six seconds Airbnb simultaneously shows are the result of a relatable to create a complete hyper- and tells transformation. In one and compelling story that has narrative that speaks to their six-second ad, a mother and inspired consumers. audience. As F. Scott Fitzgerald children joyfully make pizza Mark Twain famously said, notes: “Find the key emotion; in a kitchen as the mother’s “I didn’t have time to write a this may be all you need know to voiceover says, “We went on short letter, so I wrote a long one find your short story.”

28 - WODEN ANNUAL - 2018 MESSAGING COACHELLA AND THE ART OF CRAFTING A TIMELESS STORY

BY EM RICCHINI

wenty-five thousand people practices popular in music. Woodstock ’69 was all about T gathered to watch Pearl Since 1993, Coachella has been free love and expression, its 90’s Jam play at Empire Polo Club in recognized for its heartfelt love counterpart was the antithesis: its Indio, California on November of music, in all its varieties, and organizers co-opted the storied 5, 1993. The show originated spirit of togetherness. Coachella Woodstock brand for purely in protest: Pearl Jam refused has continued to outdo itself. commercial ends. Where open to play in Los Angeles due to But its two-decade lasting power borders characterized the original a dispute with Ticketmaster is instructive to those brands Woodstock, and concertgoers over excessive service fees. The wanting to make an enduring could stroll on to the fairgrounds concert itself went off without impression: stories that stand as they pleased, Woodstock ’99’s a hitch, and Pearl Jam succeeded the test of time remain strong on attendees were barricaded by steel in their principled stand. What their core principles but allow and plywood, constructed with the fans in attendance didn’t for fluidity. the proceeds of their $180 fee. realize at the time was this Coachella’s success proves that If Woodstock ’99 represented event was about more than the having a core story is important, a shameless embrace of connection that only live music and its current place in the corporate interests and rejection can provide. Though it didn’t cultural zeitgeist may even be of its namesake’s noble ideals, put Indio on the map yet, this taken for granted. The constantly Coachella was designed to be event was the pivotal first step shifting musical landscape the “Anti-Woodstock (’99).” toward something much larger: (1999’s #1 Single: “Believe” by Musically, Coachella was the Coachella Valley Music and Cher) is hard enough to keep uniquely positioned in that it Arts Festival. ahead of, but even Coachella sought to book acts based on From that November Pearl Jam itself began as a rejection of the artistry as opposed to airplay. show to Coachella’s inaugural accepted festival norms at the This move became Coachella’s weekend in 1999, promoter time. major differentiator. Paul Tollett (who promoted the 1999’s other big music festival was Tollett focused his booking 1993 show) worked to develop the infamous, violent Woodstock efforts on trendy, lesser-known a carefully crafted festival ’99 that left concertgoers bloodied acts. For promoters, these artists experience. The manner in and disillusioned. That concert have dedicated fans that are which fans embraced Pearl Jam’s featured the biggest acts of the just as willing to travel to see rebellion against unfair ticketing, day, but embraced a commercial them perform — without the and willingness to travel great mentality that was authentic in its massive price tag that comes distance in support of it, inspired inauthenticity (with all tickets sold along with more popular artists. Coachella’s departure from through Ticketmaster). Where This enabled earlier iterations of

28 - WODEN ANNUAL - 2018 WODEN ANNUAL - 2018 - 29 Coachella to be less expensive choice, especially because songwriter Sarah McLachlan’s than other festivals. 1999’s rate Coachella’s modus operandi was iconic Lilith Fair. Aside from was $50: less than a third of to elevate artistry over popularity. ditching the “fair” part of the Woodstock’s. The lower cost In the context of what was name and simply going by and more diverse spread of happening in 2010 though, this “Lilith,” the 2010 reboot wasn’t artists empowered Coachella’s move was strategically brilliant. too different than the original, hero — ardent music lovers — Jay-Z was going through which had a successful run from and crafted a story for them: to changes himself, as middle age 1997-1999. guests, Coachella provides an was bringing out a different, Lilith still focused on female experience unlike any other. more artistic side of him. Jay-Z artists and empowerment, The early Coachella lineups was embracing unconventional billing itself as, “the celebration were dominated by indie rock production, offbeat samples, of women in music.” Despite and 90’s alternative acts — styles and experimental approaches appearing to keep its story that began to lose significance in on his new album Watch the consistent, the tour failed to the late 2000s, as rap became more Throne, making Jay-Z a perfect find an audience: Lilith ended mainstream and the charts began mechanism for Coachella to up cancelling 10 of the 26 stops to be dominated by electronic broaden its sonic horizons while on its tour, and headliner Kelly music. By 2010 Billboard’s top staying true to its story. Clarkson quit along the way. track was Ke$ha’s party anthem Beyond Jay-Z, the festival’s Lilith blamed the recession on Tik Tok— an earworm even founder Paul Tollett poor ticket sales, and compared the snobbiest of music fans implemented a different booking to other festivals that year, the were not immune to. In the face strategy. He spent less on the acts were on the mellow side. But of these changes, Coachella’s headliners so there could be more stars like crooner Cat Power and understanding of their story in the budget for the undercard. country legend Emmylou Harris — and what truly made the He figured that a wider breadth weren’t why Lilith failed to pull fan experience meaningful — of niche artists would encourage a crowd the way McLachlan allowed them to thrive. a better variety of people to would have hoped. Coachella made changes to stay attend. The result? Coachella’s The emotional core of the relevant: it was no longer just a 2010 festival broke attendance original Lilith Fair was that it “rock” festival, trading singer- records. provided a stage for voices that songwriter and rock-heavy Tollet’s genius here was otherwise might not be heard. lineups for DJs and EDM music. understanding what he could Of the 40 acts that were billed as Nothing is more emblematic change — and what he couldn’t. part of the previously maligned of this cultural shift than a He correctly understood that Woodstock ’99, only three quick consideration of 2009’s Coachella’s brand wasn’t the (Alanis Morrisette, Jewel and headliner, Paul McCartney, instrumentation bands used on Sheryl Crow) were female. A lot replaced a year later by Jay-Z. stage, but rather the spirit they changed in the rapidly shifting (Before the hyphen was dropped engendered with the audience. culture in those ten years — and from his illustrious moniker.) Keenly embracing Coachella’s Lilith failed to understand its Hov was the first rapper to narrative truly allowed him to true narrative. headline Coachella since The evolve the festival in a way that Aside from female artists Beastie Boys back in 2003, and felt natural and exciting to its making tremendous strides his set marked a big moment for audience. across all genres, feminism itself Coachella: the brand had grown While Coachella was evolving had made significant progress. beyond alternative music. its strategy, another festival was The fringe sentiment embraced The inclusion of a mainstream facing a similar identity crisis by swarms of soy-milk-drinking, artist seems like an off-brand due to shifting tastes: singer- broomstick-skirt-wearing,

30 - WODEN ANNUAL - 2018 mood-ring-loving Lilith Fair The diversion in understanding spirit in the face of the landscape attendees of the 90’s had gone their hero, and the authentic shifting yet again? mainstream. Kelly Clarkson connection they had with the For the millennial generation didn’t need Lilith Fair as a brand, explained how Tollett that spends its money on platform — she had already been was keeping up with trends experiences rather than declared an American Idol. and making changes to keep investing in real estate or McLachlan’s feminism had Coachella’s audience at the 401Ks, Coachella is the ultimate given way to intersectionality.. forefront, while McLachlan was splurge. That same affinity People objected to Lilith’s stuck in the 90s. Coachella was for experience is why brands absence of support for trans flourishing and would continue are increasingly turning to in- and non-binary people and to set records for the next person activations, presenting a lack of people of color. Lilith few years. In 2011, McLachlan difficult balance that Coachella superficially remained true to decided to put Lilith out of its has struggled to get right: make its female-focused story, but misery and pulled the plug for shows more affordable and failed to understand the deeper good. therefore accessible, but at the emotional core beneath its veneer. Coachella’s brand had cost of some authenticity in In a way, by not staying attuned consistently uplifted music’s commercialization. to the changing hero of its story, most fervent fans and offered According to Tollett, Coachella Lilith became the antithesis of the rebellion latent in its rock is dedicated to preserving the itself. There was still a group in n’ roll roots. 2018 is the area of authenticity of the actual music need of a voice, but Lilith left corporate sponsorships ¬— so experience: no branded signage them without a platform. how can the festival embody that is permitted on stage while the

30 - WODEN ANNUAL - 2018 WODEN ANNUAL - 2018 - 31 Story isn’t a get-rich-quick scheme; in fact, it took Coachella four years of festivals just to get out of the red. And even the most story-driven brands aren’t immune from criticism: as early as 2012, blogs were predicting the end of Coachella’s reign. It’s not going anywhere though — in fact, it’s getting bigger.

artists are performing. “I feel between Coachella, Bonnaroo, innumerable passing fads is like when the band is playing it and Lollapalooza between 2005 the ability to truly understand should be you and the band, and and 2017 to see which of the why the brand exists in the it’s a sacred moment,” he says. three largest modern festivals first place — and to keep that Though Coachella is more had the most overlapping bands. purpose fixed, while allowing profitable than ever, Tollett Coachella maintains the most the surrounding trappings to be is far from “selling out,” and distinct lineup, and has continued as fluid as the situation demands. still practices reverence for to separate itself even further in Paul Tollett and Coachella the sublime art of live music. the past few years. have persisted by hand-selecting Partnerships like Heineken Story isn’t a get-rich-quick acts that fit with their ethos and H&M are helpful because scheme; in fact, it took Coachella — keeping its core audience they offset ticket prices, but four years of festivals just to engaged. The genres, style can be detrimental to the vibe get out of the red. And even the choices and individual attendees Coachella has long curated for most story-driven brands aren’t may change annually, but that its attendees: a space safe from immune from criticism: as early fluidity has accommodated corporatization. as 2012, blogs were predicting inevitable cultural shifts. It is, again, a representation the end of Coachella’s reign. Coachella’s 2030 headliner of Tollett’s keen understanding It’s not going anywhere though is probably still in elementary of what he can change — and — in fact, it’s getting bigger. school, dreaming of music unlike what he can’t. For the small According to Pollstar, in 2017, what dominates contemporary intrusions by outside brands, Coachella was the highest- charts. What can be assured, Coachella has maintained its core grossing festival in the world. though, is that they will posses identity is by keeping its lineup Today, tastes change faster an authentic spirit of rebellion specialized and unique from other than ever. What separates the that makes an April trip to the festivals. Pitchfork compiled data brands that endure from the desert worthwhile.

32 - WODEN ANNUAL - 2018 CULTURE COLLABORATIVE CULTURES CULTIVATE THE CHEESIEST CONCEPTS

Flamin’ Hot Cheetos Shows the Janitor May Be Your Next Product Leader BY EM RICCHINI

n the years since they entered the test kitchen, but former — regardless of their rank — I the market in 1992, Flamin’ Frito-Lay CEO Roger Enrico to make suggestions and offer Hot Cheetos have transcended practically asked for it. Flamin’ critiques in response to his simple snack-status to become an Hot Cheetos is a rags-to-riches challenge. The value he placed on undeniable cultural phenomenon. type tale that inspires dreamers the feedback of employees from They’ve served as a sartorial to never stop creating. It’s also the ground up paved the way muse for Katy Perry and inspired a testament to how important it for a modest janitor to become new culinary creations such as a is to develop a company culture a snack-time legend — and Flamin’ Hot Cheetos bagel and that encourages openness and generated over $1BB in annual Burger King’s infamous Flamin’ collaboration, and affirmation sales for Frito-Lay. Hot Mac N Cheetos. They’ve of the dividend that investment Shortly after this call to action, even created pandemonium pays. a Cheeto machine broke down, and a subsequent ban after the The creation of Frito-Lay’s resulting in bags of un-dusted high content of red dye in its most popular product began Cheetos being left aside, unfit for glorious Flamin’ Hot Dust drove when Enrico shared a video to his sale. This opportunity changed concerned parents to their local 300,000 employees proclaiming: janitor Montañez’s life forever: emergency room, fearing their “we want every worker in this he asked to take a bag home, children were suffering from company to act like an owner. since he’d been wondering for horrendous internal injuries. Make a difference. You belong to some time about what an elote Now the ubiquitous puffed this company, so make it better.” (a popular Mexican street food cornmeal treat’s story is being Many CEO’s pay lip service to consisting of butter and chili made into a feature film — a this type of empowerment, but powder on corn) Cheeto might testament that ever since its few are willing to back it with taste like. Montañez turned conception, the Flamin’ Hot action as Enrico did. those unwanted plain puffs Cheeto has been anything but To Enrico, this sentiment was into his initial Flamin’ Hot normal. Its cult following of business as usual. The son of a Cheeto experiment. The bootleg stoners and gourmands alike proud factory worker, Enrico Cheetos were an instant hit with owes their undying affection grew up being taught the value his friends and family. Montañez to one unlikely hero: a humble of frontline employees — used the hotline Enrico put Frito-Lay janitor named Richard something that impacted the in place to share his delicious Montañez. culture he cultivated as CEO. discovery. Enrico’s personal It may seem unusual that this Along with the video, Enrico assistant took the cultural lead cheesy creation began far from offered a hotline for employees from her boss, gave Montañez a

32 - WODEN ANNUAL - 2018 WODEN ANNUAL - 2018 - 33 date to pitch the idea to the top both lacked authenticity — and Uber employees are leaving in Frito-Lay executives — and the enforceability. No tribe can droves and its customers are, too. rest is delectable, spicy, dust- effectively crib its culture from Contrast this with the covered history. another, and by failing to define company culture at Uber’s Today’s ultra-competitive one themselves, Uber’s executive primary competitor, Lyft. Ron scramble for talent has elevated team left employees to fill the Storn, Lyft’s VP of People “company culture” on an void. frames their talent strategy executive’s priority list, but it isn’t The natural pressure that arises succinctly: “People are trying a new concept. From the earliest in a high-growth organization to find an employer that they tribes of people, any functioning merged with this void to create have a connection with—either group has developed a culture. a Darwinian hellscape among their mission, their values, or Cultures anchor themselves in Uber’s ranks. Employees felt their product.” Lyft publicly shared beliefs and values, and management prized the bottom espouses values that are unique evolve to encompass a set of line above all else — and with to their organization, ensuring norms, behaviors, and codes that no set of shared belief, began to that talent is attracted by more signal belonging for community see each other as competitors than a better set of benefits. This members. Whether meticulously rather than collaborators. A leads to empowered employees planned or a natural evolution, New York Times interview with driven by cause — and sense of every company has a culture. 30 Uber employees revealed belonging. Most companies take for that along with workers feeling Uber and Lyft are identical granted the codified element constantly “pitted against each products. In markets where of their culture: a declaration other,” it seemed that those in they compete, differentiation is or a short piece of a mission authority would often turn a only achieved through pricing statement on a company’s blind eye to the infractions of and customer experience. Lyft’s website. It’s the willingness of “top performers.” company culture has powered leadership to model that culture, Effective cultures prizethe latter — a reminder that and to infuse it into the fabric belonging, and trust that fuels company culture isn’t just about of the organization, that sends superior group performance legendary perks, but rather a the signals required for efficacy. above all else. So it’s no surprise way to define the relationship If Flamin’ Hot Cheetos are the that for the individual successes between customers, the textbook case for alignment, experienced by some employees, company, and the values they look no further than the high- Uber overall has suffered. share. profile disaster that unfolded at Former Uber engineer Susan Values are so often overlooked Uber for the cost of disconnect. Fowler penned a scathing blog in the definition of company At first glace, Uber’s culture post detailing her experiences culture because they are harder would seem to match their with sexual harassment and how to quantify. Google is often innovative technology. Their the company chose to protect seen as the gold standard in fourteen tenets once features on her harasser, an alleged top company culture, and oversized their website, such as, “always be performer. After Fowler’s blog beanbags, free organic meals, hustling,” were straight out of the went viral, Uber was targeted by a complimentary haircuts, and nap playbook for an innovative tech hashtag campaign, #DeleteUber, pods are all touted as examples company. These fourteen tenets resulting in a 5 percent drop in of their employee-centric model. relied on tired startup language market share. Continued cultural This extra attention to HR because that’s all they were. The infractions have resurrected (or, as Google calls it, “People clichés put a nice sheen on the this campaign organically, and Operations”) is not about the company culture for an external repeatedly punished the growth tangible benefits bestowed eye, but in being so generic they that executives so highly prized. on employees — it’s designed

34 - WODEN ANNUAL - 2018 to foster the mission-driven What one organization might feel empowered to advance the innovation required to keep see as a massive, inefficient use organizational mission. Google ahead of competitors. of employee time has given the The collaboration required for Google’s storied 20 percent rule world a product one billion users this type of work is rooted in is a more structured version of rely on daily: Gmail. shared values — which can only Enrico’s video call for employee Google ended the 20 percent come from a unique, authentic collaboration, The premise is rule a few years ago, but the purpose embodied by leadership. simple: Google encourages its culture of exploration and Framing that purpose as a brand employees to dedicate 20 percent innovation it fostered remains story ensures it’s not only of their time to projects that they persistent (and widely copied). heard, but adopted at little or think will benefit Google. This But what Google, Lyft, Frito- no cost to the employer, but is the ultimate act of employee Lay and countless other — as Montañez’s Flamin’ Hot empowerment: act in the way you organizations keep in common Cheeto proved — with an upside see is best for the organization. is a culture where employees impossible to quantify.

34 - WODEN ANNUAL - 2018 WODEN ANNUAL - 2018 - 35 AUTHENTICITY WEWORK & STARBUCKS AGREE: FATHER KNOWS BEST

Arrogance Has Founders Seeing Red (Cups, Meat, and Eyes) BY ED LYNES

f the icons that mark the “war” against Christmas. teams or employees for meals O holiday season, few are more Schultz may value the red cup as that include meat. WeWork celebrated than the Starbucks a symbol of belonging to his blue co-founder Miguel McKelvy Red Cup. Communities count tribe, but should agreement with sees no problem imposing his down the daysto their arrival, and his opinions on the treatment own valueson his employees and their presence is so ubiquitous of refugeesbe a prerequisite to customers: “Companies have in crowded shopping areas that enjoying a latte? greater responsibility to their they take on a talismanic quality. The apotheosis of the team members and to the world The first day red cups are in founder-CEO with a cult-like these days. We’re the ones with stores signals the beginning personalityhas done more than the power. Large employers of the holiday season — and create a lack of accountability are the ones that can move the commences America’s annual in boardrooms. It’s emboldened needle on issues.” debate on the role of Christmas those leaders with a “father WeWork has a well-defined brand in secular society. knows best” mentality that story: When we started WeWork Starbucks is known as much makes them comfortable in 2010, we wanted to build more for their mediocre coffeeas it subverting the personality and than beautiful, shared office spaces. is for the unabashedly – and culture of the company to their We wanted to build a community. publicly – liberal views of own personal ego, and reveals A place you join as an individual, long-time (former) CEO cum an arrogance with ruinous ‘me’, but where you become part celebrity Howard Schultz. long-term consequence for the of a greater ‘we’. A place where Schultz has made a practice of relationship between companies we’re redefining success measured imposing his personal beliefs and their customers. by personal fulfillment, not just onto the company — he may Founders own a business’s the bottom line. Community is our believe his views are in the right, inception, but the future belongs catalyst. That story is supported but data indicate customers to their customers. by clear organizational values: are not terribly excited about Companies signing a big deal Inspired, Authentic, Grateful, connecting coffee with cause. with WeWork shouldn’t expect Entrepreneurial, Tenacious, and His co-opting of Starbucks as to celebrate over the traditional Together. The company as an a platform for his own opinion post-sale steak dinner. In July entity is clear in their focus on means that the release of each 2018, the company made a the customer, the customer’s year’s holiday cup is more than a decision to go entirely meat-free: experience, and promise of statement on aesthetics: it’s to be no meat at corporate events, and community and togetherness at parsed as a salvo in the ongoing also no reimbursement to sales WeWork.

36 - WODEN ANNUAL - 2018 So, where does the meat-free hero of a brand’s story. Woden to be disruptive. You can also commitment come into play? It has written at length about this just be a jackass. doesn’t. WeWork’s draconian, relationship, and how companies While Musk probably thought ideological crusadeis purely about need to be appropriately it was hilarious to light up a advancing the agenda of their positioned as the mentor and jointon Joe Rogan’s podcast, founders. McKelvy recognizes guide for their customer. Too it’s likely his customers would his company’s success has given often, this philosophical ideal have preferred he spend his him a powerful platform, and comes crashing headlong into time focusing on meeting his rather than using it to reinforce the personality of a founder grandiose promises to them. the organization’s story, he’s — already strong-willed by Production deadlines for Teslas coopting the power bestowed necessity, but often inflated to keep slipping, delivery dates upon him by WeWork’s customer arrogance when they realize continue to retard, and despite base. A company committed to success. all the anxiety on Wall Street, the value of community willing Fundamentally, though, the real story is being told by to impose a lifestyle embraced by building a brand that customers: 23 percent who were less than five percent of the global mattersbegins with a clear waiting for a Model 3said “forget populationis completely at odds understanding of purpose, and it,” and went elsewhere. with their values, but perfect for finding a way to position that In a vacuum, maybe his hazy a “reducetarian.” customers can get excited about, afternoon wouldn’t be such a WeWork is an enterprise and crafting a personality that big deal. But his public history is worth $20 billion. The idea that reflects the audience the company one of someone who consistently the founders would so willingly is serving. There’s little room for puts himself ahead of his brands. subvert the customers that ego in the process: it’s about the His Twitter meltdowns and drove them to that valuation is world the company wants to trolling of the Securities and alarming. According to at least actualize, but more importantly, Exchange Commission, show one customer, they should be it’s about the laser-focused way someone more concerned with worried less about dictating the they must accomplish that, and his own public stature than what consumption of red meat, and how they’ll win the loyalty of impact those moves have on his instead listening more — lest their customers to do so. company’s ability to deliver for they drown in a sea of red ink. Customer-driven brands are customers. On Twitter, or by The leadership at WeWork an exercise in humility, and constantly running from one and Starbucks miss a crucial that starts with the founder. half-baked project to another, point: their brands do not belong Embracing the customer as Musk constantly communicates: to them, or even the investors the hero of the story means he is more important than the that capitalize them. Brands surrendering a degree of control, enterprise his customers are are owned by their customers. and even more challenging for buying into. The customers’ willingness some, the limelight. It also means The counter-argument is that to continue investing in the recognizing that the founder Musk’s arrogance is a feature, relationship, embracing the must embrace the values of the not a bug, as many analysts posit brand’s values as their own, company and their community, that deposits on unbuilt Teslas, and supporting that through not vice versa. and sales of ancillary products commerce is what makes a Few founders struggle with like flamethrowers, only arose company viable. Corporate arrogance like Elon Musk. Musk because of the magnetic cult of leadership are stewards of the embraces a comic book founder personality that Musk cultivates. brand, not kings who rule by fiat. persona, and his 2018 challenges Research indicates that founder It seems obvious to state that show that a founder’s personality personality traitssignificantly customers should be the central doesn’t need to be cause-driven impact the brand identity of

36 - WODEN ANNUAL - 2018 WODEN ANNUAL - 2018 - 37 their company. Tesla (and brand subservient to the needs For customers, the message is SpaceX and the Boring Company of his own personality, leading unmistakable: “you matter, but and Neuralink and Hyperloop) to an inevitable outcome: the only so much as it can advance all take moonshots precisely naturally human stumbles that my personal aims.” because Musk is the type of everyone endures infect the Christmas 2018 is the first person who’s willing to publicly standing of the brand, and erode red cup season in years that put himself on the line, stake a trust with customers. has arrived absent a significant claim, and challenge his team Yet amidst the turmoil, he conflict. Howard Schultz has and customers to follow him. doubles down on his own stepped down from his role Since relationships begin brilliance — insisting that it’s at Starbucks, and this year’s with shared purpose, it’s no he, not his customers, who holiday cups are striking a wonder that the world-changing know the best way forward. It’s new tone. Customers “loved ambitions Musk espouses draw a demand for trust that seems the tradition of Christmas,” in customers and investors hardly earned. The lesson here according to Roz Brewer, enamored with a vision for is the same as it is for countless Starbucks’ chief operating the future. But that purpose others: the insular deification of officer, and to get things right must evolve into trust, which a founder is nothing more than this year, “we listened to our is what neuroconomist Paul PR-driven bullshit that should customers.” The company still Zak suggests that really drives be ignored(see: Zuckerberg, struggles with lagging sales and economic transactions. Mark). The opinion that counts a shrinking footprint, but seems Trust takes a lifetime to build, is that of the customer. freshly committed to getting but a moment to break. Every In that regard, Musk has much one thing right: building a brand time Musk fails to deliver on in common with Schultz and driven by the emotional needs a promise, that trust erodes: WeWork’s McKelvy. In each of their customers, rather than among customers, yes, but now instance, they placed their own the egotistical neediness of the increasingly among investorswho priorities — political gain, social founder. If only Schultz can stay are wary of whether Musk can change, or public adulation — out of the limelight. deliver. Musk made the Tesla above the brand they stand for.

38 - WODEN ANNUAL - 2018 THOUGHT LEADERSHIP IT’S MALL ABOUT EXPERIENCE Consumerism to Community: Saving America’s Struggling Shopping Malls BY HANNAH LANDERS

cross America, holiday more than half visited brick and with vivid red and yellow posters A decorations are being mortar stores for some or all of screaming “STORE CLOSING! packed up and returned to the their shopping. EVERYTHING MUST GO!” attics where they live ten months Yet the outlook is still gloomy Vending machines are out of a year. Although the season for malls: Large anchor retailers service, perhaps never to be passes so quickly, treasured like J.C. Penney and Macy’s are fixed, and fountains are dry, the holiday traditions hold a special eliminating physical storefronts chipped and fading porcelain place in the public imagination at an alarming rate, and some tiles replacing chlorine-heavy year-round. Whether it’s the have predicted that between water and the glint of pennies. annual felling of a pine tree and 20 and 25 percent of American And one doesn’t dare venture subsequent attempt to secure malls will close their doors for near the food court. it to the top of a car, or baking good over the next five years. It wasn’t always this way. cookies from a recipe passed So, why did shoppers choose to Suburbanites from the 1950s down through generations, flock to America’s independent through the 1990s flocked to time-honored rituals and rites brick and mortar stores, malls: they were meccas for of the season are comfortable in eschewing the convenience of socializing and gathering. their familiarity. the mall, where they can find Teenagers congregated after Some traditions can’t everything under one roof? school at the local outlet of withstand the test of time: fewer Counterintuitive as it may seem, American Eagle Outfitters or families than ever trekked to retail isn’t about commerce – it’s Hot Topic and met friends on their local mall for the annual driven by experience. If malls the weekend to grab an Auntie family picture with Santa Claus. want to regain their mojo, it’s Anne’s pretzel or an Orange In a surprising twist, consumers time to stop thinking in terms of Julius. Between browsing at still kept up the annual holiday register rings and start imagining Anne Taylor and Gap, mothers tradition of shopping at actual a world where consumers want indulged their children with physical stores. Despite claims to spend their time — not just quarter-fueled rides on small that we’re all in the midst of a their money. plastic spaceships and race cars. “retailpocalypse,” retail sales Patronizing Dystopia Senior citizens took advantage from November 1 to Christmas A shopper entering a mall is of the sprawling layout and Eve rose by 4.9 percent this confronted by rows of empty level terrain for light exercise, year, which is the highest rate storefronts: display cases speed walking past throngs of of growth since 2011. Of the barren, metal fences pulled shoppers. estimated 174 million people over entranceways. Once great Department stores such as who went shopping over the avenues of retail are vacant; the Macy’s and Sears offered in- Thanksgiving holiday this year, stores that do remain are adorned store demos for home goods

38 - WODEN ANNUAL - 2018 WODEN ANNUAL - 2018 - 39 and beauty counters for young that experience made them want need, whereas they loved the women to experiment with that to shop; it’s well known that mall because it helped them new shade of lipstick. Staples like oxytocin releases lead to higher discover what they wanted. Brookstone and Sharper Image economic transactions. They Rather than try to position itself challenged the imagination came because they wanted to, as a resource outside of a person’s with novelties that made a store and bought because they were shopping needs, the mall tried to visit mandatory. Malls were so happy. compete against the convenience central to the American zeitgeist So, how did the mall lose its and cost of online shopping — that they became characters of way? The most obvious, and oft- a misguided investment that their own: George Romero’s repeated, answer is the Internet. led to subpar product offerings, Dawn of the Dead positioned the Over the past decade, online cutbacks on valued experiences, mall as a last refuge of the living, shopping jumped from only 3 and tired interiors that feel like a and the mall served as de-facto percent of retail sales to nearly ghost of shopper’s past. companions to the protagonists 9 percent. But this convenient Most disappointing of all? of early 90s classics Clueless and excuse doesn’t stack up: The The consumers of today — Mallrats. increase in consumer spending especially the desired millennial During the mall’s four-decade and foot traffic of non-mall retail demographic — value experience heyday, it was experience that this holiday season indicates over almost all else. Malls should drew in shoppers. Sure, they there’s still plenty of retail be excelling in a world that prizes needed a new pair of shoes; but dollars to go around. social currency and Snapchat that became secondary to the The mall’s lost its way because photo ops. The average suburban myriad delights, both social and it doesn’t understand its own mall’s struggling Sears and food recreational, unique to the mall story. Customers flock to the court pizza is not enough to spur experience. The enjoyment of Internet to purchase what they these teens to find the kind of

40 - WODEN ANNUAL - 2018 connections that their parents Gifts outlet; while the mall operated store committed to once found in the mall’s prime. might be able to win back fostering local entrepreneurs. These meccas of consumerism some of its foot traffic with an The Mall of America need to look beyond their appeal to nostalgia, a significant understands that its customers current point of stasis to a time investment into providing a don’t brave the bitter when they provided a place for customer experience will ensure Minnesotan cold and legendary people to come together and its survival into the future. parking lots for a chance to shop experience something. America’s most vibrant mall, at Best Buy. They’re there to Forward Through the Past the Mall of America, is a perfect ride the roller coaster, to see live The mall needs a new story to example of such a pivot. The comedy, to have an experience. attract foot traffic — or does it? biggest mall in America had a lot By continually emphasizing Maybe the malls of America just to celebrate last year aside from and improving the experience need to look to their past and its 25th anniversary. Not only of visiting the mall, the Mall of capitalize on the nostalgia of mall is it Minnesota’s most valuable America is providing customers memories by providing a place real estate asset at a whopping with the kind of multifaceted where people can get more than $2 billion — making it twice the mall experience of yesteryear, a new set of cookware. The mall value of the newly constructed updated with a modern twist needs to once again become a Minnesota Vikings football to serve today’s consumer. place that traffics in experiences. stadium — but it can also entice Compared to the more common The journey forward for customers to spend 52 percent suburban behemoth still hitching malls isn’t an evolution: it’s a more than then the national its fate to the bare shelves of a renaissance. average spent at other shopping Sears, it’s not hard to understand Nostalgia can be a powerful malls. their divergent fates. storytelling device. Doctors have A cynic might credit these When brands struggle, many discovered that experiencing successes to the gimmick of seek to reinvent themselves. nostalgia triggers feelings of being “the biggest mall in But America’s malls shouldn’t happiness, boosts self-esteem, America.” That would be a be trying to beat Amazon at a heightens the feeling of intimacy disservice to an institution that game it has perfected; instead, between loved ones, and, has been able to adapt itself so they should be using their four perhaps most importantly, successfully in the rapidly and walls as the unique differentiator infuses life with a greater radically transforming consumer that provides something the meaning. Those who spent landscape. The Mall of America e-commerce model never could. formative teenage years in malls isn’t just a mall — it has counted The challenge is that all great have latent memories begging among its tenants an aquarium, brands, and their inherent stories, to be awakened by a trip to the a community college, and even are rooted in authenticity. No Build-A-Bear Workshop. For a wedding chapel. It hired its matter how hard you try, you younger generations without first black Santa Claus for the can’t change who you are — those memories to tap into, the 2016 holiday season and recently meaning the path forward really nostalgia is for an era they’ve only launched a writer-in-residence is a journey inward. known in media; yet, thanks to program, which was nabbed by a It’s at the core of the brand the twenty-year cycle of trends, poet and his typewriter. The mall where the story resides: In the the 1990s are back in vogue — even encourages development most rapidly changing consumer so the mall and all it has to offer among local businesses, giving landscape ever seen, it’s that should be, too. some online retailers their first constant that must anchor Of course, this will involve brick and mortar location as well any institution with a hope of more than reopening a Spencer as housing a self-owned-and- retaining its relevance.

40 - WODEN ANNUAL - 2018 WODEN ANNUAL - 2018 - 41 GROWTH GOOGLE IT, XEROX IT, FEDEX IT, POST-IT: HOW STORY CAN HELP PREVENT BRAND “GENERICIDE” BY ZACHARY VICKERS

arry Manilow is known something,’ the term would lost in a saturated market B for chart-topping hits like end up defining not what Xerox now categorized by their very “Looks Like We Made It,” but is (a company that makes a name, becoming just another few may realize that many brand distinctive brand of copiers), brand substitutable with their jingles we still can’t get out of but what Xerox’s products do competitors. our heads were also written by (make photocopies),” said Noam Some have become so Manilow, such as “I’m stuck on Cohen in a New York Times genericized that you might be Band-Aid, ‘cause Band-Aid’s article. “In the process, the surprised to discover they aren’t stuck on me…” However, some difference between Xerox and just a category, but also a brand: of us might be singing a slightly its competitors would begin to Aspirin, Kerosene, Trampoline, different lyric: “I’m stuck on melt away.” Thermos, Scotch Tape, Jacuzzi, Band-Aid brand, ‘cause Band- Every brand wants to be the Videotape, Dumpster, and Aid’s stuck on me…” At some best, the leader of their respective Escalator — a product named point, Johnson & Johnson’s legal industry. Brands dedicate large after a portmanteau that marries department advised the company amounts of time and budget the Latin word for steps (scala) to add the word “brand” in order to build brand awareness and with “Elevator.” In 1950, the to differentiate itself from…itself. become a household name. Otis Elevator Company lost its The issue Band-Aid faced was However, total brand dominance registered trademark after the that its popularity had made its can come at a cost, and actually U.S. Patent Office ruled the term name too household. Consumers diminish reputation. had become a general term for a were calling every bandage on “There’s tension between legal moving stairway — so much so their pharmacy’s shelf a Band- departments concerned about that the Otis Elevator Company Aid, even if it wasn’t the one ‘genericide’ and marketing had been using escalator as a manufactured by Johnson & departments concerned about generic descriptive term on its Johnson. Similarly, Xerox ran sales,” says Michael Atkins, a own patents. campaigns to dissuade the use of Seattle trademark attorney. It’s a real struggle that many “Xerox” as a verb and encourage “Marketing people want the companies face, and a fine the use of “photocopy” instead. brand name as widespread as balance — to become popular, But why? Doesn’t every company possible and trademark lawyers relevant, and successful without want their brand name to worry…the brand will lose all becoming generic and therefore become so ubiquitous? trademark significance.” irrelevant, forgettable, and “The fear was that if ‘to xerox Over the years, some brands, tractionless in the market. something’ became another once leaders, have become However, it’s not impossible way of saying, ‘to photocopy shells of their former selves, to walk that tightrope. If a

42 - WODEN ANNUAL - 2018 company tells a compelling than competitors, like Bing and 2013 commercial, in which two brand story that speaks clearly Yahoo, and the ads they do show childhood best friends, separated and resonantly to the emotions are generally curated to each due to the 1947 India-Pakistan of consumers, it will not only user’s individual interests. partition, reunite. Mr. Mehra’s help to differentiate from the And yet, we know well that granddaughter, after listening competition, but will root the today nobody ever searches for to her grandfather poignantly company’s unique significance information, they “google” it reminisce about Yusef, tracks in something more than features, (to the extent that the Oxford him down with a little detective benefits, and brand name. English and Merriam-Webster work via several Google searches. Today, Google is the most Collegiate dictionaries both Additional “googles” for Indian widely used search engine with added it to their editions in visa requirements and flight over 3 billion online searches on 2006). So, how did Google schedules all inevitably lead to a daily basis, and is perceived manage to avoid falling victim to Yusef appearing at Mr. Mehra’s by users to be the best for genericide? doorstep where the two embrace simplicity, ease, reliable and Google invested in a story that after six decades. fast-loading page results, and placed its users — their hero — It’s the kind of commercial the organization of those results at the center. that makes our own searches based on relevancy to the search. A great illustration of Google’s like “Yanny Laurel” and Google also shows fewer ads brand story can be found in their “Grumpy Cat Gifs” and “Do

42 - WODEN ANNUAL - 2018 WODEN ANNUAL - 2018 - 43 fidget spinners fidget or spin?” example of a company that has Compare this, briefly, to the seem almost shameful. Why? remained a dominant force in its UPS Store’s recent commercial, Because while Google’s search industry without succumbing to in which a UPS Store employee engine is tuned to access any genericide. While the company attends a speed dating event information or curiosity, what it is also a colloquialism, a verb — where she spends the entire really does is make anything — you don’t ship a package, you session (and day) rattling off even the seemingly impossible — have it FedExed — FedEx has all of the many services UPS possible. not hitched its brand wagon to does beyond shipping. It’s a Google never once mentions its fast and convenient products commercial solely on features a feature or benefit of their and services. Rather, the and benefits, and while playful search engine’s performance in company speaks to the emotions in tone, it neither transcends the commercial — rather, they of their hero, and shows how emotionally, nor explains invested in an emotional micro- FedEx empowers its customers why these services matter to narrative that reiterates their through possibility. customers and how they can brand story: one that empowers FedEx’s latest commercial, empower possibility. users to take advantage of “What’s Inside?” shows people The end of the UPS commercial the world’s information by receiving FedEx packages while reflects its (lack of) resonance presenting it to them in an a voiceover says, “What’s inside? — the employee is left alone accessible and organized manner A moment of joy. A source of at a table, now night, rattling in service of what matters most inspiration. An act of kindness… off the company’s services to to them. What will it bring? An old nobody. While UPS is not at risk Google avoids anchoring friend? A new beginning? Some of becoming genericized, this their household brand in their welcome relief? Or a cause for failure to align their marketing product and instead invests celebration. The help you’ve with a core story does nothing in a compelling story, and it is been looking for.” to differentiate them from the this story that keeps them from The most powerful aspect of rest of the shipping and business succumbing to genericide. While the commercial is when the point services industry. other comparable, quality search of view assumes the unknown Every company wants their engines are readily available object, and as each box opens we name associated with “the — ones that users “google” see the face of each individual. best” of any given product or information on — none of these “What’s inside?” FedEx asks. service. But heavy is the head competitors can trademark Possibilities. It’s “What [FedEx] that wears the brand crown — the emotional resonance that deliver[s] by delivering.” and dominance can also lead to Google’s brand has captured. FedEx is the vehicle —literally irrelevance by becoming overly Therefore, Google remains a — for whatever a person or household and an umbrella term leader — generic yet different. company needs to experience for every product or service in “Branding is…rooted in possibility. How fast the package their respective industry. In establishing trust with your arrived, the convenience of order to combat “genericide,” customers through a promise,” the shipping process, are both a company should invest in said John Watton on Adobe’s irrelevant to the larger story. a compelling story so that blog. Or, as Al Ries puts it in What’s actually inside each box their name — if generalized AdAge, “Everything in life is is never shown because it doesn’t into a substitute or synonym ‘perceptions.’ There are no matter to FedEx. It only matters for a product or service — is superior products. There are to FedEx to the extent that associated with a powerful only superior perceptions in whatever it is matters to their emotional narrative, and consumers’ minds.” customers, and that’s enough for therefore different. FedEx is another great them (and us).

44 - WODEN ANNUAL - 2018 GROWTH FIND YOUR CONSTANT AND PIVOT WITH PURPOSE

BY HANNAH LANDERS

he scene is familiar in any their order to an iPad synced theirs into almost $10 million a T popular bar on a weekend with the bar’s point of sale year in revenue? night: the crowd is four-or-five terminal, thereby paying their Flowtab failed to pivot with people deep, and there’s a single check without ever handing over purpose. The brand’s vision, bartender trying to keep up their cash or card. The app then simply serving as a “mobile with the patrons. It’s frustrating automatically directed the funds ordering, payments, and enough to order a cocktail in this straight into the bar’s bank loyalty platform for bars and situation, but even more so when account. nightclubs,” was so product- the night is winding down. Smartphone users seamlessly focused it left the organization Departing drinkers elbow their sending and receiving emoji- rudderless when the product way past the rowdy throngs to emblazoned funds on apps like itself had to change. In lacking settle their tab — and wait…and Venmo, as well as the increasing a core, purpose-driven brand wait…for that sole bartender at ubiquity of digital wallet story, Flowtab was unable to the opposite end of the bar, deep services like Apple Pay, would understand the ways in which in conversation with a customer. think Flowtab’s 2011 launch was they alone could empower their Even after a customer waves a cornerstone in the world of customers to mend their broken their hand and captures her convenient, digital payments. world. attention, it’s just to receive Yet, anyone who’s been in a After the initial version of their the check — which inevitably bar recently knows Flowtab platform struggled to profit from is dropped right into the fresh never joined the likes of Venmo charging bars and customers to ring of condensation left by and Apply Pay. The company place and receive orders on the someone’s glass, leaving it an was shuttered in 2013. In its app, Flowtab pivoted their target unreadable, inky blob. Actually two years of existence, Flowtab market away from bars and completing the transaction fought fearlessly to stay afloat. toward funding the company by demands repeating this process Like many fledgling companies, selling advertising space within again, leaving patrons less than they executed a series of pivots the app to alcohol companies — eager to return. in an attempt to gain traction. though that quickly proved to It’s an obvious opportunity What separates companies be pointless, as the app didn’t for disruption, and Flowtab like Flowtab or Fab.com, who have enough users to monetize. (originally christened Apptini) pivoted their way into oblivion, Flowtab then tried for another sought to totally transform that from those like Kabam, whose pivot, this time shifting their process for the better by taking significant pivots resultedfocus to stadiums as their it digital. Downloading their in an $800 million exit, or primary customer. Numerous app allowed patrons to send Printfection, who have turned regulatory issues, combined with

44 - WODEN ANNUAL - 2018 WODEN ANNUAL - 2018 - 45 established players like Bypass already zeroed in the market, made this effort too little, too late. Flowtab was right to pivot. Almost every young company endures a pivot — a shift in business strategy as a reaction to a number of different factors — at some point. In fact, the entire “lean” methodology put forth by entrepreneur Eric Ries in his book, The Lean Startup, makes the pivot a right of passage for organizations that are encouraged to be agile in an ever-changing marketplace. All pivots occur around a fixed point on which everything turns. Understanding what this point is, the constant in a business that cannot change, is the difference Significant changes to any one a discounted price for a short between success and failure. of these four qualifies as a pivot. amount of time. Flowtab lacked this clear Strong or weak, pillars require The decision to switch to an direction, and their pivot left a foundation — something ecommerce platform specifically them scrambling for a viable more elemental even than the focused on unique and finely business strategy. It had less to four items above. The brand’s designed housewares, jewelry, do with shifting the tactics of story forms that foundation. and other accessories was more the organization around the core Understanding why the company than just a blind experiment. In a “why” that drives everyone in exists in the first place clarifies 2012 Inc. interview shortly after the organization forward, and what can change and what must launching Fab, Shellhammer instead was a desperate attempt remain immutable. and Goldberg talked about to remain viable in their final Design-focused ecommerce the rationale behind the pivot. hour. website Fab.com also emerged “[W]e asked three questions,” Kabam began as a social from a pivot. The company Goldberg said. “What are we network, and after several pivots, was originally called Fabulis, most passionate about? What emerged as a successful gaming and had iterations as a social are we good at? Where is there company before their exit. networking platform and a Yelp- an underserved market? The Through the process of evolving or Groupon-type site, all geared answer was design, design, his company, CEO Kevin Chou toward the gay community. When design.” identified four key pillars of his those approaches failed to take Shellhammer and Goldberg organization: off, founders Jason Goldberg recognized that there wasn’t and Bradford Shellhammer a marketplace to find striking »» Product reconfigured the site, shortening yet affordable products for »» Market the name to “Fab” and focusing the design community and, »» Go-to-Market Strategy on the flash sale model: selling combined with their own deep »» Business Model a limited number of items at passion for design, defined the

46 - WODEN ANNUAL - 2018 mission behind Fab’s existence. Less than a year after the pivot, the site had more than two million users and $50 million in funding. Fab faced entirely normal challenges scaling, such as customer complaints about long shipping times. In response, Fab decided to bulk up their overall inventory rather than relying on designers to fulfill orders of their limited product mix. The company inventory quickly ballooned from 1,000 to 11,000 products available per day. Having a larger selection of products meant that Fab was stocking more ubiquitous initial iteration of Printfection defined the organization’s inventory. Those that once was conceived “without a lot of mission. This shared purpose has flocked to the site to find discipline or though for what we led Printfection to post-pivot eccentricities like a chandelier really wanted in life — what we success: the company’s revenue made out of martini glasses, a were really passionate about.” clocks in at $9 million annually motorcycle helmet studded with Shorr convened his team to and they hold an average 4.4-star rhinestones, or other products talk about what kind of purpose rating on business software and curated with a distinct eye by would inspire them to come to services review site G2 Crowd. the Fab team were now met with work every day, excited and It’s rare for a company to nail a items they could just as easily motivated to do what needed perfect business model and plan find on Amazon. By making a to be done. Ultimately, they their first iteration. Even the move contrary to Fab’s core settled on the core story of most transformational and high- “why,” they undid what fueled their brand: “We realized we growth organizations require their initial, successful pivot. were passionate about helping tinkering, and leaders need to Within two years of that other businesses grow,” he be agile, adjusting different fateful change, the brand had said. Printfection defined itself elements of their business as become a shell of what it once as a place for individuals and markets, people, cultures, and was, and was sold for much less organizations alike to create technology shift. The key to than its former near-billion- branded merchandise for ensuring any of these pivots are dollar valuation. marketing purposes. successful is an understanding Contrast this with Printfection, This decision wasn’t driven by of the core “why” that brought which began as an ecommerce a lack of revenue: Printfection their organization into existence platform for artists and designers had surpassed $1 million in sales and the story that communicates to sell T-shirt designs directly to in their original business model. the purpose that team members consumers. Although founder Printfection took the time to can charge toward. A business Casey Shorr told Startups.co evaluate not just their product- is like any equation full of that he felt enthusiasm for the market fit, target audience, or significant variables — solving idea and was energized by a other pillar, but instead truly for them requires a single “passion for technology,” this considered the core “why” that constant: purpose.

46 - WODEN ANNUAL - 2018 WODEN ANNUAL - 2018 - 47 AUTHENTICITY FINTECH, DISRUPTED

BY LINDSAY COTTMAN

ce cream cones melting on the revolutionize the e-commerce financial brand. Historically, I hood of a car. Afghan hounds payment market seemed foolish financial firms have engendered in stylish surrounds. Millennial- at best, doomed to fail at worst. public confidence in their pink Jell-O sculptures swaying In fact, when the young startup’s services by projecting an in slow motion. What may three co-founders entered aura of stately, old-fashioned sound like the makings of a their idea into the Stockholm professionalism. Everything David Lynch film are, in fact, School of Economics’ annual from a bank’s logo to its ad the result of a careful brand re- entrepreneurship competition, campaigns to the physical space boot. Although campaigns this they didn’t come close to its branches occupy is almost quirky are typically reserved clinching the grand prize. Fast always muted, calculated, and for consumer brands on the forward to 2018, and Klarna boring. And according to Lloyds bleeding edge of cool, Swedish- is valued at $2.5 billion with Banking Group’s CEO Antonio based Klarna is in one of the least aggressive plans for expansion Horta-Osorio, in the wake of “cool” spaces there is: digital into new markets, as well as recessions and scandals, boring payment technology. plans to roll-out its very own is exactly how banks should be Financial brands have payment card. portraying themselves. historically relied on conservative Klarna’s recent velocity can Even companies that offered campaigns, and brand identities, be attributed to the company’s disruptive technology, such as to reach their audience. These rebrand, which transformed its PayPal, followed this approach. traditional approaches signaled bland blue-and-white visuals, Its simple design, and blue and the reliability and trust that initially aimed at B2B merchants, gray color palette would meld customers desired from the into a rich, playful palette clearly perfectly with any bank. Klarna brands handling their money. geared toward millennials. The embraced the same approach Klarna, and fun-loving fintech company’s Instagram feed is initially, with a safe, blue logo peers such as Qapital, are rapidly rife with eye-catching GIFs and that sat somewhere between winning away that trust, begging bizarre videos verging on high community bank and insurance the question: are consumers and art (see Exhibit A: Klarna’s viral provider on the design spectrum. businesses looking for something “mermaid dog”). Minimalistic On the surface, Klarna might different from their bank? emoji-like icons pepper its appear as if it’s simply trying In 2005, the term “fintech” website, as does the triple to attract fanfare with flashy didn’t exist. Klarna entered O-ed “smoooth,” a spelling and visuals and irreverent marketing. an industry dominated by concept coined by Klarna itself. But Klarna’s CMO David PayPal and credit card giants, For a long time, though, Sandstrom understands the and Klarna’s ambitions to Klarna just looked like any other need for emotional resonance,

48 - WODEN ANNUAL - 2018 and his perspective on the Branding like Klarna’s does Kingdom utilizes a community customer experience was what more than demonstrate it isn’t platform “where Monzo users inspired the Smoooth campaign thinking like a bank; it signals a come help to build the bank of in the first place. By building a personality-driven relationship the future.” The community is at brand users can relate to, and that its customers can connect the “heart and soul” of everything by presenting content that with on an emotional level. Monzo does, and it goes beyond reaches beyond the payment When a brand’s personality is giving the appearance that the platform’s product features (and revealed through story-driven company cares — it has the beyond fintech at large) Klarna is marketing, and is at the forefront added benefit of providing creating a memorable and truly of everything it does, people regular user feedback, which original experience. can’t help but feel an emotional the company can use to enhance Authenticity is foundational to response — a response that its product and the brand itself. trust. And trust is foundational borders on what we feel for our By cultivating this community, to any financial service. However, closest friends. Studies abound Monzo effectively engages its events like the savings and loan on the science of storytelling, users and encourages them to crisis of the 1990s, and the 2007- and the results unequivocally communicate not just with the 2009 recession have eroded prove that stories move us. Paul brand, but with each other. the implicit trust long given J. Zak, a professor at Claremont We like to think our decisions to financial institutions. More Graduate University and about money are rooted in recently, the Wells Fargo debacle, president of Ofactor, Inc. has long rationality. But the reality is in which employees created studied how stories change our emotions play a gigantic role. millions of fraudulent accounts attitudes, beliefs, and behavior, Before working with Woden to on behalf of clients without their and the fact is: stories foster craft its brand story, banking app consent, and the Equifax breach social cooperation and break Qapital recognized its messaging that compromised 143 million cultural barriers, meaning that was failing to strike an emotional people’s personal data from storytellers themselves stand chord. Until clarifying its story, credit reports, only wreaked to benefit from the favorable Qapital spoke about its services further havoc. connections their stories create. much like any other financial app: The headlines provide a For this new wave of fintech users could deposit money, transfer clear understanding of why brands, cultivating an authentic funds, and manage investments. Americans’ implicit trust in large personality through story-driven Equipped with a narrative financial institutions is at an all- marketing is only the beginning. about empowering users to gain time low, and why simply relying Traditional banking brands’ newfound control and perspective on historical fidelity won’t get strength has always been the on their money, Qapital was able a new market entrant very far. retail footprint. A physical to foster closer connections with In fact, American confidence in branch in the community, and a customers, and revolutionize their banks has fallen 22 percent in friendly face behind the counter, banking experience. the past decade (down to only was a powerful counterweight From Klarna’s offbeat marketing, 27 percent). to the advances and convenience to Monzo’s community-building, Any business or individual of technology. But as traditional to Qapital’s commitment to wants to trust the institutions banks have willingly surrendered helping transform users’ habits handling their money. But, that this powerful advantage, fintech for the better, these efforts are trust has evolved from being has stepped in with its own ways successful because they arise from implicit in the institution to of curating community, and thus authentic brand personalities. earned through an authentic, relationships. It’s also why TransferWise’s meaningful relationship — just Monzo, a digital, mobile- pointedly anti-bank language as two individuals develop trust. only bank based in the United appeals to customers and draws a

48 - WODEN ANNUAL - 2018 WODEN ANNUAL - 2018 - 49 clear line between the brand and While campaigns like Klarna’s employed by Klarna is a guide for traditional banks. Phrases like might be a bit “out there” for fostering that kind of connection “No skyscrapers. No suits.” and some consumers, the brand and dedication. The rules of “Bye-bye bank fees, hello world” succeeds at being authentic in trust-building have changed. make it clear TransferWise has its its own right. By eschewing the Institutions and establishments own personality. outdated tactics employed by no longer have the power that This language is a touch snarky, traditional banks in favor of they used to, and traditional but it provides a sharp contrast portraying a genuine — albeit campaigns are not strong enough to the messaging of traditional quirky — personality, companies to win hearts and minds. banks. Because of the customer like Klarna will be rewarded Instead, what’s required for experience (and controversy) in kind by users who trust its success and genuine trust is an legacy institutions have created, authentic voice. authentic brand that makes every slogans such as “America’s Most Whether a bank, a fintech customer, whether business or Convenient Bank,” or “Together company, or any other business consumer, feel like they are part We’ll Go Far” ring more ironic trying to build lasting trust with of real relationship. than authentic. its audience, this new approach

50 - WODEN ANNUAL - 2018 THOUGHT LEADERSHIP THE KEY TO MONETIZING CUSTOMER DATA? TRUST BY KELLY SARABYN

rust in Facebook is at an to ensure its “guidelines” were model with respect to user data T all-time low. Eighty-one being followed. Yet these is buried beneath lengthy terms percent of people have little guidelines were lengthy and and conditions only a high- to no confidence Facebook obscure: In April, it was revealed, priced lawyer might understand, will protect their data or for example, that Facebook had and even Zuckerberg seems privacy. This lack of trust in reduced the reach of a popular unable, or unwilling, to clarify the company has real financial pro-Trump page of two African- them publicly. The revelation consequences: following the American women because their of recent abuses stemming from Cambridge Analytica data content was “unsafe.” In true this shadowy business model breach Facebook’s market value 1984-style, the women were told exposed a clear disconnect from plunged 80 billion. It turns out this decision about their content Facebook’s public purpose, so customer affinity, and alignment was “unappealable.” it’s no surprise any trust the with the brand’s mission, has a Confronted by this incident in consumer might have had in the tangible value. Congress, CEO Mark Zuckerberg company has vanished. The user data obtained by said it was an “enforcement Facebook’s crime isn’t Cambridge Analytica was error,” but declined to elaborate monetizing user data. After all, allegedly used to help Donald on the enforcement or the if the product’s free, the user is Trump’s campaign, echoing policies being enforced. Indeed, the product. With the continued the earlier use of Facebook’s Zuckerberg’s testimony to growth of big data technology, advertising platform by Russian Congress on how his company the practice of collecting and operatives to try to influence handles and monetizes the leveraging customer data will the 2016 presidential election. massive amount of data it continue to rise. Companies who In both cases, the root cause was collects was cagey and opaque. place customer data at the core not a hack or security breach, but As recently as last year, of their business strategy need rather a savvy exploitation of the Facebook updated its mission: to align their data practices into tools that Facebook put in place to “give people the power to their brand story: the brand story to allow advertisers to leverage build community and bring sets expectations, and acting users’ information. the world closer together.” consistently with it not only will Americans responded with The company’s reactive and not alienate customers, but it even outrage at Facebook for allowing fumbling approach to these creates and fosters trust. By failing these deceptions to happen. scandals is public affirmation of to do this, Facebook’s public The social network apologized, a failure to align the operations image has been tarnished, and the and claimed it would hire more of the company behind that company has lost not only market moderators and fix its algorithms mission: Facebook’s business value, but valuable brand equity.

50 - WODEN ANNUAL - 2018 WODEN ANNUAL - 2018 - 51 Twice as many young people why this information would recommend products tailored trust Google and Amazon to help Facebook meet its internal to specific users’ interests and do the right thing compared goal of selling advertising needs. to Facebook. Americans — for advertisers, the more Amazon also offers brands the overall express much greater information it can have on a ability to put interest-based ads trust, like, and appreciation person’s psychological state, the in front of their users, but, again, for Google and Amazon, as more likely the ad is to convert. these are marked as ads, and well. Yet, like Facebook, both However, providing detailed tailored to what the user is most of these companies leverage psychological data on users’ likely to purchase. Amazon’s use massive amount of user data weaknesses to brands does of user data is aimed at making for commercial ends. Amazon, not empower people to build brands a partner in delivering on who ranks highest in trust and community. To the contrary, their purpose, so it’s logical users appreciation surveys, collects giving companies detailed would embrace it. and uses its customers’ data information to exploit users’ This means there is no need to sell more products. So, why vulnerabilities detracts from for Amazon to obscure their is there such a difference in users’ ability to build community policies, or peddle different perception by customers? — they will feel besieged by stories to different audiences, Behind closed doors, content that is designed to prey fomenting distrust. Their easy- Facebook’s COO Sheryl on their vulnerabilities, and to-read FAQs, for example, Sandberg allegedly asked other less likely to share. As a result, states, “Information about our Facebook executives, “What when this conversation between customers is an important part of business are we in?” and provided Facebook and a potential our business, and we are not in the the answer as advertising. advertiser was leaked, users felt business of selling it to others.” It Publicly, Facebook claims it is betrayed. then states, in plain English, the in the business of empowering Following a spate of bad exceptions to that policy. people to build community. The PR, Facebook has made weak Retailers have complained misalignment between internal attempts to move its internal about Amazon’s failure to share expectations and the externally business model toward its public more of their user data, but articulated mission of the purpose, claiming, for example, Amazon knows the hero of their organization leaves Facebook in January, it was changing story is their customers, not the without a coherent vision. When its algorithms to prioritize brands purchasing advertising a company’s contradictory content from friends, family and or selling products on their stories become public, as they groups, rather than businesses. platform. As a result, Amazon will — and in Facebook’s case, But Facebook still faces a shares user data with retailers have — it erodes trust in a fundamental contradiction in only if it helps to provide company. its brand by failing to identify customers more targeted and Facebook was widely whether the hero of its story is better product options. This criticized, for example, when a advertisers or users. use of customer data does make document was leaked showing Contrast Facebook with Amazon money: the better the company telling potential Amazon’s use of data. Amazon’s tailored displayed products are, advertisers it could identify animating purpose — to whether they are ads or simply when teenagers were feeling empower customers to quickly recommendations, the more “insecure,” “worthless,” and and conveniently buy what they products customers will buy “in need of a confidence boost,” want — is consistent with their on Amazon. But because this and would help brands target using their massive stockpile practice aligns with Amazon’s and tailor ads to take advantage of user data to enhance their core purpose, it also benefits the of these moods. It’s easy to see customer’s experience, and customer.

52 - WODEN ANNUAL - 2018 Amazon’s not an outlier. is tracked via smart wearables As customer preferences Consumers have embraced means the company knows more become more and more scores of brands built on about their plan enrollees than specialized, companies will tracking and utilizing their ever before, but it also provides increasingly leverage big data data, but in each case where it is the opportunity for discounts technology to track data on their successful, it’s a mutual benefit when the data shows they are customers, and many companies characterized by an embrace exercising regularly. This data will rely on utilizing this data of one coherent message. collection is transparent, not for as part of their business model. Netflix is constantly looking sale to third parties, and designed Doing this successfully is not at their customers, creating an to give the customers more only about security, practices, anonymized data analysis of all options and benefits. It’s more and clear terms, it requires their viewing habits, but they invasive than anything done by aligning those practices with a leverage that data to provide Facebook, but is consistent with core purpose that both customers original content more suited to the brand’s underlying mission and employees agree to. their users’ tastes, and improve of healthy lifestyles, and feels When that happens, companies viewing recommendations. This authentic. can be open and honest about use of data benefits Netflix, as Even the classic consumer their data practices, which customers watch more content, loyalty card program is an provides the bedrock for as well as the customer, who example of the myriad ways customers to form a trustworthy can more easily discover content companies can utilize data on and lasting relationship with they like. their customers to make money. the company. As Facebook The John Hancock insurance In each case, customers happily has learned, violating that company has taken data surrender information on what commitment is more than just collection even farther by they are purchasing in exchange a public relations headache: it collecting data on its customers for discounts or free services — causes material damage to the via fitness wearables. Offering its and over time, better product fabric of the community around customers the option of enrolling selection at stores, more suited to the company itself. in a program where their exercise what they actually want to buy.

52 - WODEN ANNUAL - 2018 WODEN ANNUAL - 2018 - 53 MESSAGING THE VALUE OF A GOOD INFLUENCE(R)

How B2B Companies are Embracing Influencer Marketing BY LINDSAY COTTMAN

he word “influencer” A recent customer event in “SAP is one of the few B2B T tends to conjure images of Germany offered SAP the perfect companies to really make good Instafamous pseudo-celebrities opportunity to talk shop with use of influencer marketing,” shamelessly hocking products experts who hold sway in the explained Moses Velasco, Chief and goods to thousands of market. The company invited of Strategy at Socialbakers, in an adoring followers. The very five influencers with expertise interview with MarTech Series. nature of influencer marketing in everything from tech blogging “Not only do they work with lends itself well to the B2C space to cloud computing to discuss industry influencers to build because these strategies rely so topics like AI, machine learning, credibility with their audience, heavily on the public profile of and IoT. These influencers but they also work with the influencer. And let’s face it — took the conversation back to global celebrities, like Justin celebrities, athletes, and known their audience, resulting in an Timberlake, who was performing trendsetters promoting the explosion of online engagement. at the event, to extend their latest beauty or fashion must- The event was trending in reach across industries and age haves tend to attract a wider Germany for two solid days, demographics.” Velasco said. audience than niche experts with influencers driving 50 SAP capitalized on this content or tech bloggers posting about percent of all mentions of the and has since repurposed content B2B products like enterprise event on social. from the live videos to craft blog software. SAP took a similar approach at posts and other original thought And yet, influencer campaigns Sapphire NOW, the tech giant’s leadership targeted at prospects don’t have to be relegated strictly largest event held annually in and customers alike. An added to consumer audiences. While Florida. The event itself draws bonus: Influencers promoted the it’s true that most influencer an average of 20,000 attendees, video content that they helped to tactics naturally align with the but at the latest conference, create on their own social channels. consumer market, B2B businesses SAP was able to reach an online “I treat influencers like can and should leverage audience of as many as 100,000 clients,” SAP’s Senior Director relationships with influencers to viewers. They achieved this of Influencer Marketing, Amisha generate brand awareness, and by selecting a team of 11 hand- Ghandi, said in an interview. more importantly, trust. picked influencers to answer “There should be business value Global software titan SAP has questions submitted by online to both parties.” long used industry influencers to spectators via Facebook Live, Ghandi speaks often about drive demand, and they continue and subsequently succeeded in the benefits of devising an to excel in this arena where so engaging a virtual audience five influencer strategy, counseling many other B2B enterprises fail, times larger than they had at the B2B marketers on how to get or fail to even try. event. their own programs off the

54 - WODEN ANNUAL - 2018 ground. These conversations can be leveraged to tell their through photos, blogs, videos, are sorely needed in the space stories in a uniquely human way. and podcasts. They build — MarketingProfs reports that Brands — even large-scale active communities both while 55% of B2C companies have enterprise corporations — online (through various social ongoing influencer marketing don’t have to be perceived as platforms) and offline (at events) programs, a scant 15% of B2B cold, faceless organizations. around virtually any and every companies have integrated these Influencers offer a means to topic conceivable. As a result, types of initiatives into their break free from this impression their audience turns to them overarching brand strategy. by granting companies informal for everything from industry With experts in nearly every access to their world, as told insights, to new product market regularly engaging on through the eyes of a real, information, to sage advice on social platforms and at industry relatable person. what they should or shouldn’t events, this is a huge missed Influencers spend countless be buying. opportunity. B2B businesses need hours developing new content Given that they have already to understand that these channels and engaging their followers earned the trust of thousands,

54 - WODEN ANNUAL - 2018 WODEN ANNUAL - 2018 - 55 if not millions, of potential employees across the globe, IBM’s employees are familiar customers, it only makes sense greatly improving teamwide with the company’s philosophy, for companies to use influencers collaboration. Those profiled in and they, too, embody its as a means to amplify their the video explicitly attested that core ethos of innovation for story to targeted audiences in Okta delivered on what they progressive change, and are a way that no overt marketing promised — word of mouth just incentivized to share content in initiative can replicate. By doing doesn’t get any better than that. support of this story on social so, influencers can inject a much- As with any other brand alliance media to influence others. needed shot of authenticity into or partnership, it’s important The company even set up any brand’s image. for B2B companies to carefully an internal platform allowing Okta, a B2B tech company assess their own codified brand employees to easily share providing identity and device story, as well as the narratives promotional material on an management solutions to being spun by potential array of social channels, and businesses, takes a slightly influencers, before moving feeds staffers up to six pieces different approach by leveraging forward. Alignment between of potential content per day its existing customer base. the story told by the company that they can choose to share Rather than tapping a and that by the influencer is or not share with their personal traditional influencer, like a essential to fostering the sense of networks. Upwards of one tech blogger, content writer, or authenticity (and trust) that can thousand IBM employees engage industry thought leader, Okta make such a significant impact. in the influencing program, with recognized that the customers One way to accomplish this is many more “banging down the they serve are influential experts to employ the help of influential door” to participate. in their own right. Not only individuals the company already As the actual creators of are these customers able to knows and trusts — their the products, no one is better articulate Okta’s offerings, they own employees. IBM, a known equipped than employees can offer prospects a trusted innovator in the technology to deliver this message. And view into how Okta can solve market, leverages employee as integral members of the their problems, too. advocacy as a way to organically IBM family, no one is better Visual media almost always has grow the brand’s influence. acquainted with the company’s a stronger emotional impact on IBM’s story is one of brand story than the workers viewers than more traditional innovation, and it’s tethered themselves. methods, which is why Okta to a commitment to create Philips Lighting is another opted to promote customer solutions that empower not only successful organization using feedback in this fashion. The end businesses, but mankind itself. employee advocacy to boost result was a series of compelling Evidence of this commitment customer engagement and brand videos created by high-profile can be seen in programs like awareness. “We have been so customers like Adobe, 20th IBM Blockchain, which has surprised in terms of engagement Century Fox, and News Corp. been used by the likes of Plastic and downstream outcomes,” News Corp, for example, Bank to tackle ocean plastic and stated Dana Hyland George, detailed life before Okta, global poverty with blockchain- Senior Manager of Employer including the complex challenges based digital credits. IBM Brand & Recruitment Marketing they faced, from operational Watson is used in a multitude at Philips Lighting. “We saw inefficiencies to technology that of applications, empowering a gap where we could use an required replacement. leaders in spaces like healthcare, employee advocacy platform With Okta, the company was where breakthroughs fueled by to help us amplify our story at better able to roll out applications the technology accelerate the scale… We wanted to humanize and new tools to all of their 25,000 discovery of medical cures. our brand, tell the world who we

56 - WODEN ANNUAL - 2018 As with any other brand alliance or partnership, it’s important for B2B companies to carefully assess their own codified brand story, as well as the narratives being spun by potential influencers, before moving forward.

Alignment between the story told by the company and that by the influencer is essential to fostering the sense of authenticity (and trust) that can make such a significant impact.

are and what differentiates us good reason: partnering with a read, and whose blogs or articles from others.” misguided influencer could put a they find particularly inspiring By quadrupling its employee brand’s entire reputation at risk. is a good first step toward sharing on social media, Philips But the risks can be mitigated identifying potential influencers. has reached over ten million by understanding how a brand’s Customers and employees people with their influencer story aligns with its potential can wield influencing power in campaigns, and increased their influencers’. Businesses who their own right, and offer unique company page followers by 26 are selective and pair with perspectives on products that percent. compatible partners can reach B2B purchasers are likely to take While the B2C space continues new heights, and new audiences. into account when making the to prove that influencer Thought leaders and social decision on whether or not to marketing does in fact work, media pundits can deliver buy in. B2B leaders are slow to adopt serious ROI, based on both their If approached tactfully and similar techniques. A lack of knowledge of their respective thoughtfully, story-driven clear guidelines, plus a lack of field, as well as their established influencer partnerships will readily available, vetted and reach. Finding out who spell success for all parties credible influencers cause some customers and employees watch involved. companies to hesitate, and for and listen to, what authors they

56 - WODEN ANNUAL - 2018 WODEN ANNUAL - 2018 - 57 AUTHENTICITY FCK ‘EM IF THEY CAN’T TAKE A JOKE: THE ART OF THE BRAND APOLOGY BY HANNAH LANDERS

y new goal is not to Brands that seek genuine outraged by (or those who agreed M explain jokes.” In 2015, the relationships with their with) his original comments. The Internet’s mob mentality trained audience must be able to mob moved on, but the lasting its ire on Tina Fey, demanding master the challenges posed negative impact to Damon’s an apology for a perceived by this environment, be able reputation is a cautionary tale to racist joke written into The to differentiate between a real brands: when the mob mentality Unbreakable Kimmy Schmidt. transgression and social media determines who is worthy of Fey not only dismissed the noise, and navigate how to scorn, an authentic response is accusations, but lamented the deliver an apology that turns a more important than ever. way social media has resulted misstep into opportunity. Mercedes-Benz recently in a culture that is constantly This reckoning has been offered what was widely demanding public apologies. amplified in the era of #metoo, perceived as an inauthentic Fans won’t find her on any social where one powerful man after apology for “hurting the feelings” network: “There’s a real culture another has fallen under the of the Chinese people after of demanding apologies, and I’m scrutiny of angry online crowds. posting a Dalai Lama quote about opting out of that.” The success of this movement the value of looking at situations In today’s era of public in soliciting apologies from from different perspectives. Few accountings, brands are routinely (most of) the publicly accused believed that Mercedes was subject to this same social media perpetrators of sexual assault has genuinely sorry for posting the outrage — but they rarely have been a net positive, but the online quote or believed their claim that the luxury of not responding. outrage did not stop with the the post contained “extremely Social media mobs are feared powerful men committing these erroneous information.” While for their well-documented wrongs. Criticism extended this kowtowing may have willingness to conduct public to people who opined on the mollified online crowds in China, trial by internet. No one could #metoo movement in what was it damaged Mercedes’ reputation accuse them of nuance, with perceived as a demeaning way, with most of the world. their Gaston-like fervor for such as Matt Damon, and Research has shown there are six targets ranging from true villains Catherine Deneuve. elements to an effective apology, like Harvey Weinstein to brands Damon’s half-baked apology but the two most important are who tweet an off-color joke — “I don’t want to further an authentic acknowledgement (Chrysler: “I find it ironic Detroit anybody’s pain with anything of responsibility, and making an is known as the #motorcity and that I do or say. So for that I offer of repair. Harvey Weinstein yet no one here knows how to am really sorry.” — certainly might have intuited he needed fucking drive.”) didn’t appease those who were to try to repair his wrongs, but

58 - WODEN ANNUAL - 2018 his meandering apology that humanized — as a result, they Despite an immediate and discussed his intentions to are equally subject to critical widespread outrage against the take down the NRA, instead of online crowds, and, to avoid company, CEO Steve Ellis waited coming up with remotely credible losing customers and brand five weeks for an extensive compensation, indicated he had equity, they need to engage as apology tour. Even with the time no comprehension of the gravity authentically and credibly as lapse, Ellis still hadn’t identified of systemically sexually harassing individuals. nor solved what had caused the E. women in the workplace. The The many failed public Coli outbreak. As Yale School of same can be said for brands who apologies in the #metoo Management Associate DeanJohn commit grievous wrongs — movement illustrates the Sonnenfield commented, “[The paltry offers of repair are more difficulty of offering authentic apology is] not enough and it was offensive than beneficial. Ask and believable apologies, late … it’s false reassurance to go Chevron, who was appropriately especially if the underlying out there and say ‘well, we fixed lambasted in 2014 for mailing wrongs were grievous. Brands are it’ when you don’t even know members of a Pennsylvania town no exception to this. Chipotle, what is wrong yet.” pizza coupons after an explosion for example, floundered their In the apology ad taken out in at one of its natural gas wells public apologies after serving 61 publications, not only did Ellis killed a young worker. food contaminated with E. fail to explain how the outbreaks The latest research shows that Coli and norovirus, resulting in had happened or what Chipotle brands have become increasingly hundreds of sick patrons. did wrong, he insisted Chipotle

58 - WODEN ANNUAL - 2018 WODEN ANNUAL - 2018 - 59 “met or exceeded industry Despite their stock price The company also published standards” for safety, and its and public perception getting a “Customer Bill of Rights” “restaurants are safer now than hammered, Chipotle’s lack of which ensured that any future they had even been.” This is self-awareness continued when, passengers with a delay or hardly reassuring to consumers in 2017, they repeated the same cancellation would be fairly witnessing widespread E. Coli mistakes. Another illness broke compensated. This generous and norovirus’ outbreaks, and out in one of its restaurants; remediation was perfectly on- undermines the credibility of instead of immediately brand for a company that had Ellis’s claims that he would addressing the issue, Chipotle built its reputation on superior implement practices and ignored people tweeting about customer service. procedures to make the risk of the incident, and continued to With its authentic apology further outbreaks “near zero.” blithely tweet out promotional offered in multiple media outlets People respond to deals. and on YouTube, JetBlue was able vulnerability. For a brand to In 2007, JetBlue bet wrong on to restore and even enhance its effectively say “sorry” requires an East Coast ice storm that left brand reputation, as consumers the self-awareness of genuinely tens of thousands of passengers responded positively to their recognizing where it went stranded. While competitor transparency and aggressive wrong, and what it can do better. airlines cancelled flights well attempt to make amends. The Chipotledrew further attention in advance, JetBlue tried to generous compensation also lent to its lack of honest self-criticism preserve service; when the storm credibility to JetBlue’s assurances with its attempt to court lost intensified, staff, equipment and that they would reorganize their patrons by offering them free passengers were stranded in a workforce and update their burritos — hardly compelling mess that took over a week to technology to ensure the same compensation for making people sort out. problems wouldn’t happen in ill with burritos. JetBlue is a brand with a well- the future. This cloying effort atdefined story, and they leaned Most brands will never issue rectification rang hollow — and into it to execute a successful an apology that costs millions inauthentic. Chipotle’s brand is on-brand apology. Rather than of dollars. But not all authentic about disrupting the fast food waiting five weeks like Chipotle, apologies have to be expensive. space by offering healthy and JetBlue CEO David G. Neeleman KFC recently had to temporarily wholesome food. Off-brand immediately publicly apologized. shutter two thirds of their stores free coupons were inconsistent Not only that, he took full in the UK due to a chicken with a brand whose customers responsibility for the delays shortage that arose when they embraced a higher price point and cancellations, explaining altered their supply chain. In in exchange for quality — the exactly how they had happened, response to the store closings, same customers were aggravated and why JetBlue was to blame: #KFCCrisis was quickly by Chipotle’s attempt to woo Neeleman was transparent, trending on Twitter. KFC took them back by engaging in “base authentic and genuine about his complete responsibility for their humor” on its Twitter account. role in the crisis. mistake, but did so in a way that Joking about marijuana and Not only did JetBlue take was reflective of the fact that it sexual “side pieces” on Twitter, responsibility — in a credible was just a minor inconvenience and offering free burritos to way, by explaining how they to would-be patrons, and customers who had fled because were at fault — they immediately embodied their irreverent, fun of concerns about food quality offered to repair the wrong by brand personality. left consumers wondering who giving substantial compensation They took out an ad with the Chipotle was, and what they to everyone affected, at a cost word “FCK” on a bucket of their stood for. of tens of millions of dollars. chicken, with the text below,

60 - WODEN ANNUAL - 2018 Brands are not immune from the justice of online crowds, and they need to be prepared to respond quickly and credibly in order to protect their hard-earned brand equity.

The success of movements like #metoo, and the increased humanization of brands, will only increase the public’s appetite for demanding accountability in this manner.

“WE’RE SORRY. A chicken the problem as soon as possible. the justice of online crowds, restaurant without any chicken. The success of KFC’s apology and they need to be prepared It’s not ideal. Huge apologies highlights the importance of to respond quickly and credibly to our customers … It’s been a a brand evincing their own in order to protect their hard- hell of week, but we’re making distinct story and personality in earned brand equity. The success progress, and every day, more their apologies — and a reminder of movements like #metoo, and and more fresh chicken is being that despite what the online the increased humanization of delivered to our restaurants. mobs say, not all crises should be brands, will only increase the Thank you for bearing with us.” dealt with at the same volume. public’s appetite for demanding This cheeky but sincere Brands must accept they accountability in this manner. apology was quickly trending on live in a moment where public But, by knowing who they Twitter, with people who didn’t reckonings happen at the speed really are, and what they stand even like KFC applauding the a tweet. The #metoo movement for, brands can offer authentic brand. The genuine expression illustrates the perils of apologies that resonate even in of vulnerability, and the relatable inauthentic or hedged apologies; a world where people have 140- “FCK” gave credibility to KFC’s they only bring further derision. word attention spans. promise that they were fixing Brands are not immune from

60 - WODEN ANNUAL - 2018 WODEN ANNUAL - 2018 - 61 THOUGHT LEADERSHIP SELLING A STORY YOU’RE NOT TELLING

Craft a Narrative Built for Indirect Customer Marketing BY LINDSAY COTTMAN

staple of camps and of a company’s sales team. It also to innovation and improving A classrooms is the children’s creates scale: when leveraged its technology, investments game “telephone.” The kids correctly, a solid network of it’s made in streamlining sit in a circle, and work to relatively few partners allow manufacturing processes, and its progressively pass along a a brand to build a significant continued focus on costs. message until it returns to its revenue stream with limited But, according to former originator — only for them to internal resources. Chairman and CEO Donald V. share how much that story has Amidst all the tactics of building Fites, these improvements pale changed as it passed each new partnerships, one concern reigns in comparison to one thing: person. Humorous as it may be supreme. Like the previously Caterpillar’s dealer network and in a room full of third-graders, mentioned “telephone” game, the close customer relationships for some of the world’s largest each incremental step between it fosters. corporations, it’s no laughing a brand and its customer offers Fites observed that dealers matter. an opportunity for confusion know and understand Companies operating in a and diffusion. Those that seek their customers better than number of different industries to build the most effective Caterpillar ever could. Although rely solely on channel partners channel partners require a clear, Caterpillar is a global enterprise, or distributors to sell their compelling message that remains its regional dealers are enmeshed product. Instead of a direct consistent as it’s whispered in their communities, allowing customer relationship, they down the lane. them to forge close bonds with play “telephone” on a daily Take Caterpillar. A Fortune buyers in local markets. They basis, challenged to effectively 100 corporation and the world’s ensure each machine is in perfect communicate their own story, largest construction equipment condition when it’s delivered, while never sharing it with their manufacturer, it is built on and they’re often the ones to customer directly. a network of global dealers. complete routine maintenance Empowering partners, Caterpillar managed to go from and respond to service requests distributors, dealers, and losing $1 million per day in the over the course of a product’s resellers to manage the end 1980s to sales volume double that lifespan. customer relationship has of its nearest competitor two Fites made it a priority to assist several benefits, with the chief decades later. The company’s these key players however he perk being that it takes the time- turnaround can be attributed to could, because he recognized that consuming (and unscalable) onus a number of factors, including this attention to distribution and of connecting with customers off the company’s commitment product support was a crucial

62 - WODEN ANNUAL - 2018 component often overlooked again: competing manufacturers they surrender a large amount of by Cat’s competitors. Even could talk the talk, but when control, including control over though the company could have it came to treating dealers and the narrative. A lack of a clear potentially saved money by suppliers as co-equal mentors, as message for the partner to carry going directly to the consumer, opposed to secondary customers forward can cause much of the Fites believed so strongly in his or supporting actors, they were nuance of a company’s offering partners that “we’d sooner cut simply unable to walk the walk. to get lost in translation. off our right arm,” than bypass Customers know that Caterpillar Big Pharma is no stranger to this dealers. produces the giant, yellow challenge; large manufacturers Caterpillar correctly machines they see everywhere like Pfizer, Merck, and understood its customers as from farms to construction sites. GlaxoSmithKline spend billions the hero of its brand story. But, But it’s the dealers who are of dollars advertising their drugs by fostering vital relationships cementing the company’s image and medical devices to doctors, with its dealers, it engaged them in the minds of consumers. They who in turn prescribe them to as equal partners in mentoring are the faces behind the name, and patients. And although direct- those heroes to success. By they are on the front lines of the to-consumer marketing has being willing to invest in a customer experience. opened up a new advertising true partnership, Caterpillar’s When a company embraces angle for pharmaceutical leadership saw a pattern play a sales model reliant on companies, physicians are still out in the market again and independent or indirect partners, the ones writing the scripts,

62 - WODEN ANNUAL - 2018 WODEN ANNUAL - 2018 - 63 and therefore remain the mutually beneficial relationship. partners will recognized the most important partner in the During this year’s Accelerate hero (customer) of the story, pharmaceutical sales process. Lenovo channel conference, which they share with the With more and more partners unloaded a laundry brand. By building the message medications being rolled out list of concerns onto around a shared desire for that each year, doctors need help leadership, complaining about customer to achieve success, understanding the ever-growing everything from the company’s it makes the channel partner a deluge of drugs entering the compensation model, to its crucial component of the story’s market. Pharmaceutical reps have unmanageable deal approval catharsis. long been known to buy their system. As its channel partners It’s scientifically proven that way into doctors’ good graces talked, Lenovo listened: Rob humans are not persuaded by with expensive dinners and free Cato, the brand’s North American facts and figures alone. When samples, while simultaneously channel chief expressed a we hear stories, our brains bombarding them with insistent desire to take engagement with release chemicals like cortisol, cold calls and emails. And distributors to the next level. dopamine, and oxytocin. though these aggressive, often Lenovo’s plans include bolstered Dopamine and oxytocin promote unscrupulous tactics work for support to Lenovo Gold and engagement and connection, some, physicians are growing Platinum partners, enhanced while cortisol helps to formulate tired of such intrusive methods. communication around key memories — a key component in As Dr. Linda Girgis put it, areas like pricing, and strategic the learning process. “Doctors need the information, alignment between the brand Using story to highlight the but make it meaningful.” and its partners with the goal core elements of the brand’s Customer influence can’t be of strengthening the customer value proposition is critical, as bought, it can only be earned community. its more likely to be retained by by aligning a partner with the As president of Lenovo’s the partner — and they’re likely journey each brand imagines for North American business Matt to receive the same emotional its heroes, and by engaging them Zielinski notes, “trust doesn’t benefits while retelling it. That on that quest. Only then are they come overnight,” and the delivers success well beyond a equipped to play a meaningful company will have to convince sales sheet, as partners can’t help role in a story that resonates with its dealers that doing business but repeat a brand’s narrative far all parts of the customer journey. with Lenovo will spell success and wide. Even technology is becoming for them, as well. Brands like Caterpillar, increasingly reliant on Dr. Girgis’s point about who succeed in instilling its indirect customer influencing. making information meaningful mission and purpose across Multinational technology is essential for any business the organization, invest just as company Lenovo has utilizing channel partners to much in telling their story to traditionally earned the bulk of influence their customers — their partners on the ground as its sales from large businesses and at the core of this approach they do to the team internally. and enterprises. As it attempts is a codified brand story. Channel partners’ dedication to to claw away share in the Businesses that successfully Caterpillar’s old credo — Buy consumer market, however, communicate their message the Iron, Get the Company — Lenovo understands it requires a to consumers are typically rivals that of anyone directly strategic shift in how the brand successful, but generating buy-in working for Caterpillar, and engages its channel partners. As for that narrative among channel it creates a level of trust, and a a result, Lenovo has completely partners first is primary. powerful sales ecosystem, that redesigned its partner program Purpose-driven narratives do leaves competitors behind. and is working to generate a more this exceptionally well. Channel

64 - WODEN ANNUAL - 2018 THOUGHT LEADERSHIP YOUR COMPANY ISN’T THE UBER OR AIRBNB OF ANYTHING BY ZACH KLIGER

“We’re the Uber of After all, who wouldn’t want to minutes to sell their idea to a babysitting.” follow in the footsteps of these room of people who can’t wait to billion-dollar companies? turn them down, they naturally “It’s like AirBNB for bikes.” Because true category-defining fall back on these comparisons to companies earn that status by explain their potential. “Imagine Uber for dog standing alone, and carving out a This method is flawed not only walking.” message that’s wholly their own. because it immediately forces a The “Uber / AirBNB for X” company to chase an impossible t’s the shorthand founders brand story is more than lazy: it standard, but because it I of supposedly innovative undermines the value of product ultimately obfuscates identity, companies use to describe their innovation, forever ties the brand rather than reveals it. offering — to the point that to the fate of those it’s imitating, Instead of digging deeper and it’s become a joke. Hundreds, if and reinforces customers’ really working to uncover the not thousands of startups have love for the innovator, not the elemental and unique ideas that started describing themselves in imitator. define a new business, so many these terms, and maybe it makes Comparison is a primary are content to rely on comparison sense? tool used in decision making. without going any further. No After all, companies like Uber Whether people are seeking time is spent to truly understand and AirBNB are smart, sexy, and to understand a company or who and what a company is. most importantly, successful. each other, comparing a new Uber harnessed the ubiquity of They have captured our collective concept or item to one who’s smartphones and inefficiencies imagination as legendary value is already understood gives of the transportation business stories of how a simple idea can context that might otherwise be to build a ride-hailing service transform how people live their unavailable. that was “a cross between lives. These firms created a new It’s an often-useful approach lifestyle and logistics.” While type of service: simple platforms because with a comparison the company has had no small where people could make their there’s an immediate frame of share of missteps since, the own private property (home or reference — a window into core purpose of ease of use and auto) available for use by others. understanding through shared opportunity for drivers has As other companies have copped knowledge. It’s so much harder remained true. the “gig economy” model, to build context from the ground AirBNB opened people’s homes comparing themselves to Uber or up and to shape a story and an to the world. It unlocked new AirBNB seems like a convenient understanding out of new parts. potential in those assets, and way to explain their offering. When a founder only has a few completely altered how people

64 - WODEN ANNUAL - 2018 WODEN ANNUAL - 2018 - 65 travel and how they leverage real in their footsteps, especially if to copy it. But novel entrants are estate. It was born out of a personal their idea is similarly harnessing most successful, and enduring, problem faced by its founders, and the potential of the gig economy. when they deliver a fresh used the model of the gig economy And it’s no surprise that so approach and story, instead of to generate passive income from many then failed to accomplish making reductive comparisons existing assets. anything of note. Comparisons to the established player. These are good stories — so are easy, and they are often useful, Imagine if iPod had been profoundly game-changing that but alone they show customers introduced as “Rio for Mac users.” they spawned an entirely new nothing new — and offer little in While Rio was the leading MP3 economy. It’s no wonder that the way of inspiration. player and innovator of its time, so many founders see them as When a new model or category it’s hard to imagine the iPod’s motivational, and seek to follow appears, there’s always a desire rapid adoption if Apple had

66 - WODEN ANNUAL - 2018 resorted to simple comparison, can even be successful if you companies out there introducing instead of crafting a wholly are for all intents and purposes genuine innovations to the gig distinct narrative. The ability to literally imitating the product of economy model that have been put “thousands of songs in your an established company. hamstrung because they stopped pocket” wasn’t new — but the As a business model, Careem is at “we’re the Uber or the AirBNB story was, and it was compelling. essentially Uber, adapted to the of.” As Wodenworker Kelly sensibilities of the Arab world. Companies like Homejoy Sarabyn wrote at length earlier But that’s not how the Saudi (Uber for Home Cleaning), this year, getting there first is no Arabian company describes HelloParking (Uber for guarantee of success. Birchbox itself. Instead, it focuses on how Parking), and Cherry (Uber had everything going for it. It it is empowering hundreds of for Car Washing) all presented established a new market as the thousands of people to support worthwhile offers, but struggled original subscription beauty box, their families, simplifying lives, and ultimately failed to find and it was selling a solid product and positively impacting the adoption in part because they with demand. And yet, seven years regional, emerging economy. It didn’t think of themselves as after establishing itself, it was shares the individual stories of anything more than a new Uber losing massive market share to its drivers — dubbed “Captains” tooled for a different purpose. competitors like Ipsy to the point — and firmly positions them as While there were many factors that the company is now battling the hero of the story. contributing to their eventual for survival. Why? Because Ipsy HomeAway takes the same downfall, their lack of a clear and didn’t call itself a new Birchbox, it home-sharing approach as distinct message certainly didn’t told a powerful story of customer- AirBNB but puts its focus on help. focused empowerment. vacation experiences far away Uber and AirBNB are inspiring It is still possible to find a place in cabins, condos, and beach examples, worthy of thousands in an established category even houses, rather than marketing of comparisons. But the enduring if a company doesn’t make it itself as a resource for every type connection that customers have there first. But doing so requires of house for every situation. with them is precisely because messaging in a unique and With this more precise emphasis they are so novel: both arose out compelling way, and not simply in its product offering, it’s able of authentic needs felt by their as a new iteration or additional to tailor its message around founding team, and connected feature on top of the market getaways to exciting locales with with customers inhabiting leader. These easy comparisons new experiences and adventures. the same broken world. And to Uber and AirBNB have It has resulted in attracting a by delivering on that promise, become so prevalent to the distinct, unique demographic — they’ve reinforced their message point that they are an immediate one that often pays a premium. to the point of widespread signal to potential customers Despite the fact that these adoption. and investment partners of companies are functionally very Brands seeking to grow in the unoriginality at best and laziness similar to the category-makers, gig economy must go beyond at worst. they found successful niches on riding their coattails. Like Instead, there’s more impetus the strength of their message the innovators before them, and value than ever to share a alone. They paved their own investing in a clear, authentic, compelling story, rather than way, uncovering stories that hero-focused message will leaning on comparison. As resonated uniquely with the define them on their own — companies like Ipsy and many people they sought to reach. and invite the most favorable of others prove, it’s a strategy that Meanwhile, there are so many comparisons: differentiation.

66 - WODEN ANNUAL - 2018 WODEN ANNUAL - 2018 - 67 GROWTH WHY XEROX DIED

How Brand Story Can Keep a Company Alive BY KELLY SARABYN

ffices everywhere are at the was that it didn’t know its own – and businesses would need O end of an era: after 112 years brand story, and that left them multiple stations. In addition, as an independent company, blind to the opportunities that the workstation was notoriously Xerox has reached a deal to might have led to success. slow. The high price point and be purchased by Fujifilm. The Every Copy Starts with an inconvenient user experience firm’s technology has become Original contradicted Xerox’s brand so ubiquitous that its brand When Xerox first burst on the story, and the product was a flop. and the action of copying are scene, it was a company who Next, Xerox decided to move inseparable. Yet, the ability to used cutting-edge technology into insurance and financial Xerox something on any copier to empower businesses to services, purchasing a casualty obscures the fact that, at its communicate information more insurance company and an roots, Xerox was a cutting- easily and affordably than ever investment firm. These services edge technology company. before. This brand story was not had little to do with the journey Their invention of xerography about Xerox’s particular product the hero of the Xerox brand story revolutionized photocopying. (innovative new copiers) but was on. With nothing tying Yet, like the once great Kodak about enabling businesses to insurance or financial services and Sun Microsystems, Xerox communicate more effectively, to a business’s discovery of easy was eventually surpassed both internally and externally. No and efficient communications, by companies with newer matter how technology evolves, the services floundered before technologies. businesses will always value being sold off a decade later. It’s easy to see Xerox as optimizing and streamlining Xerox could have used these a victim of this period of their communications. As a missteps as a chance to learn. rapid technological change: result, Xerox’s gift of efficient Savvy organizations look inward digital document sharing has and easy communications spoke after such challenges, and proliferated, and the demand to their business heroes in a rededicate themselves to their for physical copies sharply powerful way, and propelled the core brand story. Yet, instead of declined—which resulted in company to success. innovating their photocopying plummeting sales of Xerox’s But as early as the 1980s, there products, or creating a next flagship product. Conventional were signs that Xerox didn’t generation digital product to wisdom is that Xerox fell prey understand its own story. In make document management or to the “competency trap”—it 1981, it released the Xerox Star, business communication easier became so good at making one a workstation that could manage and more affordable, it tacked product that it was incapable documents. The cost was 16,000 in a totally different direction: of developing new ones. But dollars – compared to 1,600 business services. Xerox took on actually, Xerox’s core problem dollars for IBM’s PC for business the end-to-end management of

68 - WODEN ANNUAL - 2018 an eclectic set of programs, from another storied company who replacing declining revenue from E-ZPass to automated traffic tried to move from inventing Xerox’s flagship products. Worst tickets to Medicaid. technologically innovative of all, these efforts were marked In 2012, Xerox’s then-CEO products into services it had by scandals suggesting Xerox Ursula Burns recognized that little experience with, and paid didn’t know what it was doing “if you don’t transform your the price. The business services in this new niche. In 2014, Xerox company, you’re stuck.” But not in Xerox’s transformation were was sued for fraud by Texas for any company transformation tangential to the company’s core its alleged mismanagement of the will be successful—just ask GE, purpose, and proved incapable of state Medicaid program, and in

68 - WODEN ANNUAL - 2018 WODEN ANNUAL - 2018 - 69 2016, it bungled the execution of was competing head-to-head a move into a market that was a New York Medicaid program. with Xerox. Unlike Xerox, IBM both B2B and B2C aligned with Spurred on by activist investor has managed to remain a leading IBM’s brand story. One employee Carl Icahn, Xerox went through technology company. Originally asked, “Why on earth would a second transition and belatedly founded to “provide large- you care about the personal PC? recognized these business scale, custom-built tabulating It has nothing at all to do with services had deviated too far from solutions for businesses,” IBM’s office automation.” its core purpose. In 2016, Xerox core brand story is to provide Eventually, this partial spun off the business services cutting-edge technology for divergence from its brand story division into a separate company. businesses and organizations to proved unsustainable, and IBM Yet this was too little too late, as optimize their operations. From sold its PC group to Lenovo by pouring money and resources sleek typewriters in the 1940s to in 2004, in order to “refocus into business services, Xerox had IBM Watson, the “AI platform on the corporate server and failed to continue to innovate for work,” in the 2010s, IBM has computer services businesses.” how businesses communicate consistently provided businesses By returning to empowering and manage information. with the technology they need the heroes of its brand story— When Xerox wasn’t inserting to efficiently maximize their businesses—to seamlessly itself into completely new resources. optimize their operations with arenas, it had simply been— Internally, IBM has continued innovative technology, IBM has in the words of Carl Icahn— to invest in research, and stay continued to flourish. ”introducing new products that dedicated to its early tagline, If, over the decades, Xerox had do [no] more than play catch- “THINK.” It has obtained the focused on the realization of its up to competitors.” In order to highest number of US patents brand story, and dedicated its continue to thrive, companies for the last 25 years and is vast resources to developing have to transform their products continually searching for ways to new tools for businesses to easily in a way that aligns with their “transform” how people work, communicate information— core brand story. By failing to do seamlessly deploying AI, cloud rather than branching out into that, Xerox failed to survive. computing, IoT and blockchain running a variety of eclectic Innovative companies that technology for use in large programs, like Medicaid and continue to remain at the forefront organizations. E-ZPass—it would have been of their industry over the long haul Over the decades, IBM has, at able to keep its core customers. do so because they are committed times, deviated from this core Businesses trusted Xerox, and to a brand story that animates brand story, but has always they had a relationship with and directs their growth. It’s come back to it. IBM was a the company. It’s not hard to not enough to continue to leader in developing the personal imagine a world where Xerox innovate—the innovation has to computer, which, like cell had invented more innovative serve the particular values that phones, was intended for both ways to manage business customers recognize as core to business and personal use. When documents and workflow, and the company. Companies like the product first launched in the had continued to dominate Texas Instruments, Boeing, and early eighties, IBM boasted that against challengers like Google IBM have stayed ahead of their the PC “can make a surprising Docs or Dropbox by keeping competition for generations difference in the way you work” hold of its loyal customer base. by not just transforming, but – a claim almost identical to Instead, it’s now just a division transforming in line with a its 2018 claim about its AI of an imaging company. coherent vision. technology. Story is not just marketing copy, Consider the trajectory of IBM, Even at the time, IBM or a clever way for a business a company who, decades ago, employees questioned whether to make a point about itself.

70 - WODEN ANNUAL - 2018 When properly understood by dedicated to it, can innovative maintain powerful connections an organization, it functions companies continue to prosper with their customers, even as as a “North Star,” keeping all through the decades. Companies their particular products and stakeholders innovating in a who once dominated in a technologies change. This is consistent direction—one that wide variety of industries— how lauded companies like customers are most likely to companies like Kodak, Pan Am, IBM, AT&T, and Boeing have respond to as a continuation of Compaq, and GM—lacked this prospered from the age of an engaged relationship with the core direction, and fumbled in typewriters and tabulating company. the face of inevitable upstarts. machines through the age of Only by identifying a core Companies who synthesize supercomputers and artificial brand story, and remaining around a coherent brand will intelligence.

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