C2. Lect 3. MITSMR Connecting With Customers

EXECUTIVE GUIDE
Connecting With
Customers in the
Age of Acceleration
Winter 2021 Brought to you by
CONTENTS
EXECUTIVE
GUIDE
Connecting With Customers in the Age of Acceleration
1 Making Meaningful Customer Connections in a New Era

By Ally MacDonald
2 Want to Build Intimacy With Customers? Get to Know Digital Campfires

By Sara Wilson
6 Business Unusual: The Pandemic Forces a Social Reset

By Dipanjan Chatterjee
9 Developing Strategy for New Customer Expectations

By George Westerman
13 How Marketers Can Address Data Challenges to Drive Growth

By Raj Venkatesan and Kimberly A. Whitler
17 Moving Beyond Trust: Making Customers Trust, Love, and Respect a Brand
By Andreas B. Eisingerich, Deborah J. MacInnis, and Martin Fleischmann
21 How Customer Connections Can Help Drive Decision-Making for Marketers

Tamara Mendelsohn, interviewed by Ally MacDonald
24 The Power of Video: Connecting, Storytelling,

and Creating Messages That Resonate
Sponsor’s Viewpoint from Brightcove
FROM THE EDITOR
Making Meaningful
Customer Connections
in a New Era
A century ago, after a global pandemic upended the global
economy, the rebound that followed produced enormous
growth, consumerism, and technological advancement in a
decade that’s still referred to as the Roaring ’20s. As the world
recovers from our own once-in-a-lifetime-pandemic, businesses
and leaders must now adapt to the changes made in the past two
years to deliver on new customer expectations in the next era
— one that is being defined by accelerated transformation.
One of the pandemic’s most consistent to leverage data and adapt according to shift-
features across sectors has been its ability to ing customer behavior and expectations. In this
accelerate existing trends by decades in a mat- MIT SMR Executive Guide, experts in market-
ter of just weeks or months. Take e-commerce, ing, branding, and digital transformation offer
which for the past two decades had grown 1% insights and practical resources for managers.
annually and represented 16% of U.S. retail at In this collection of articles, authors Raj
the beginning of 2020. Two months into the Venkatesan and Kimberly A. Whitler, pro-
outbreak of the pandemic in the U.S., that num- fessors at the University of Virginia’s Darden
ber had grown to 27%. Lockdowns and social School of Business, examine how marketing
distancing accelerated digital transformation as leaders can craft a better data and analytics ap-
companies adapted to delivering products and proach to critical business problems. Elsewhere
services to customers virtually. in the series, Sara Wilson looks at the rise of
The forced digital catch-up across indus- microcommunities within social platforms
tries brought about increased accessibility, ease as an opportunity for investment and growth
of use, and connection for customers. In addi- when it comes to community engagement and
tion to fast-forwarded digital trends, customers brand resilience. Other articles explore re-
and society have also experienced rapid change thinking pre-pandemic customer assumptions,
during this period. Socially conscious val- communicating brand purpose effectively and
ues, which had been an increasing focal point authentically with customers, and engaging
among customers for years, have also become with new technologies to enhance the customer
a key issue in the pandemic, with customers experience.
gaining a greater sense of power in holding or-
ganizations to account for their brand purpose Ally MacDonald // @allymacdonald
and values. Senior Editor
Many of the more successful brands MIT Sloan Management Review
throughout the crisis have been the ones able
CONNECTING WITH CUSTOMERS IN THE AGE OF ACCELERATION MIT SLOAN MANAGEMENT REVIEW 1
EXECUTIVE GUIDE
Want to Build Intimacy

With Customers? Get to
Know Digital Campfires
Smaller, often more private and interactive online communities
and platforms are reinventing the way brands and consumers
connect. Here’s what marketers need to know.
BY SARA WILSON
R
emember the Ice Bucket Challenge? The grassroots ef-
fort to raise funds for research on ALS quickly went viral
in 2014, when what seemed like all of your Facebook
friends (and countless celebrities) posted hypershare-
able video clips of themselves pouring buckets of ice water over their
heads. It resulted in a groundswell of local and network TV coverage
and a global audience donating $220 million to the cause.
Moments like that feel almost quaint now.
Sure, social media challenges still capture eyeballs, but now
they’re more likely to take the form of blink-and-you’ll-miss-it
TikTok trends. Today, cultural mindshare moments are far like-
lier to ignite on smaller, private, and more intimate platforms like
Roblox, Reddit forums, and Discord than in the public squares of
traditional social ones like Instagram, Facebook, and Twitter. In the
past year alone, hip-hop artist Lil Nas X gave a concert on gam-
ing platform Roblox that garnered 36 million visits and has so far along with more niche destinations like Co-Star (an AI-powered
sold close to eight figures’ worth of merchandise; the Reddit forum astrology platform), DePop (a fashion resale platform recently
r/wallstreetbets fueled the GameStop stock frenzy; and a Discord bought by Etsy), and Geneva (a small-group chat platform) have
server helped turn the Bored Ape Yacht Club from a relatively exploded in popularity, especially among Gen Z audiences. These
obscure community centered on nonfungible tokens to one now younger consumers consistently tell researchers that they love the
worth hundreds of millions of dollars. platforms because they’re more private, less judgmental spaces than
All three of these platforms are what I call digital campfires, a traditional social media sites. Users feel that they can express them-
term I coined in early 2020 in Harvard Business Review to describe selves more freely and build authentic connections and friendships
the smaller, often more private and interactive online communi- based on shared beliefs and interests. (Even social media behemoth
ties and platforms that are trending with modern audiences. These Facebook seems to be embracing digital campfire principles with
types of platforms are especially popular among younger people — its recent corporate rebrand as Meta, signaling the company's shift
and a growing number of the creators they follow, according to a in focus to the metaverse — a type of shared experience campfire).
recent study. Data has repeatedly shown that younger audiences are Younger audiences’ shift from traditional platforms, coupled
indeed retreating from larger, more established social platforms. In with an array of audience and technology factors — including short-
the past two years, Roblox, Discord, Twitch, Fortnite, and Snapchat, ened attention spans, the notorious unreliability of ad targeting, and
EXECUTIVE GUIDE
mobile operating system updates — have made it more audience (such as memes, cultural references, and
expensive than ever to reach the right customers. For nostalgia-driven humor), thus communicating with
brands, this means that finding different ways of con- them as a friend would and designing products with
necting with customers is paramount. Ideally, they a social feedback loop solidly in mind.
build relationships with consumers first and sell to If all of this sounds overwhelming, it’s because it
them second — which research has shown is a far more can be. Figuring out what it takes for your brand to suc-
effective strategy, especially with Gen Z consumers. cessfully leverage digital campfires is a lot like learning
Since campfires are ideal vehicles for fostering intimate a new language. But you have to start somewhere. The
consumer relationships, which are fundamental for best place to begin is with an honest self-assessment
driving the trust, brand loyalty, and love required to to determine where your brand falls on the digital
retain customers and attract new ones, campfires have campfire continuum. To what extent does company
become an essential element of the marketing mix. leadership understand and prioritize campfires in its
Some brands are going all in and making digital marketing strategy? What resources do you have to
campfires central to their business models by hiring get your campfire off the ground? What tangible value
dedicated teams, devising custom programming, can you provide to the campfire audience? How en-
and setting targets directly tied to their bottom lines. gaged is your audience at present, and what clues can
Direct-to-consumer hormone test brand Modern their engagement — or lack thereof — provide about
Fertility, for instance, launched a digital campfire, how receptive they’ll be to your efforts?
first on Slack, then on a stand-alone platform called Whether you decide to dive in or dip a toe in, the
Circle, to provide fertility-related information as first thing you need to understand about digital camp-
well as fertility-adjacent support on topics such as fires is the primary reasons people gather there: to
miscarriage and single motherhood to an audience privately message one another, connect to a microcom-
well beyond its customer base. The strategy has munity, or participate in a shared virtual experience in
turned the campfire into a major draw and helped the metaverse. Beyond that, it helps to know the rules
build engagement, even with consumers who’d of the road. Here are three key steps that should be a
never heard of the brand. By functioning as a trust- part of every marketer’s digital campfire playbook.
worthy source of health information and providing
a forum where customers can share honest product 1. Think Niche
feedback, the campfire drives both top-of-funnel It can be tempting to try to reach everyone with
awareness and customer retention. So central is the your marketing efforts. But brands that are success-
campfire strategy to the brand’s success, it has devel- ful at leveraging digital campfires to build intimacy
oped custom metrics to track the strategy’s impact understand that campfires are meant to cater to a
on the business and campfire members. smaller audience subset — one that is, by definition,
Other brands are partnering with existing digital more highly engaged. So the first principle in the
campfire platforms to build out custom experiences, campfire playbook is to narrow your focus.
such as immersive virtual worlds. Vans recently Part of understanding this principle is knowing
launched Vans World, an interactive skateboarding how campfires fit within your overall marketing mix.
environment inside Roblox where its 47.3 million A digital campfire is not meant to replace a social
daily active users can hang out, perfect their moves, presence but rather complement it. After all, your
and design personalized virtual apparel and gear. The digital campfire and social strategies serve two dif-
company can use data on which products users re- ferent but related purposes. Whereas social media
spond to most to inform future designs. Vans World functions as a digital billboard of sorts — establish-
thus functions both as a sales driver and highly en- ing brand awareness, driving product discovery, and
gaged customer listening channel. helping place a brand within a broader cultural and
Still other brands are integrating digital camp- market context — digital campfires exist to cultivate
fire principles into the way they develop and market and build a core community of brand MVPs through
their products. Streetwear brand Market (formerly ongoing, bespoke, and high-touch interactions.
Chinatown Market) prioritizes relationships over For some brands, this means catering to their
commerce by speaking the same “language” as its most engaged power users who evangelize for their
EXECUTIVE GUIDE
products, share their content, and repeatedly buy 3. Customization: Offering customized campfire
what they’re selling. (Glossier, for instance, used to products, services, and experiences.
maintain city-specific Slack channels for this group 4. Content moderation: Enforcing rules for engage-
alone.) Others simply reach a portion of their audi- ment and/or appointing live moderators.
ence in a deeper way for a shorter amount of time. 5. Consistency: Continually acknowledging and re-
Take Chipotle, for example, which earlier this year warding participants.
launched a weeklong career fair on Discord that gar- Spotify’s Stars program (formerly Rock Stars),
nered north of 23,000 job applications — more than a dedicated digital campfire for about 50 Spotify
double the number the company usually attracts Community superusers from 15 countries, em-
within the same time frame. bodies all five C’s — especially the first, given its
approach to offering perks and benefits. Among
2. Put Your Audience First other things, the Stars answer
Without even realizing it, Figuring out what it questions in the Spotify com-
marketers often put their own
needs first. But as in any good
takes for your brand munity, respond to brand
mentions on Twitter, flag
relationship, it’s not all about to successfully potential real-time product
you. That’s why you have to leverage digital issues, and identify customer
flip the script by viewing your
end goal (attracting consumers
campfires is a knowledge gaps about every-
thing from app functionality
who think you’re special and lot like learning a to technical limitations. In ex-
will buy what you’re selling) new language. But change, Spotify provides Stars
through your audience’s eyes.
Instead of touting your brand’s
you have to start with direct, private access to
the Spotify Community team,
unique features, provide a somewhere. invites them to participate in
forum where you release an ex- product research and beta pro-
clusive merchandise drop that’s available only to your grams, and offers them one-of-a-kind perks, such as
campfire audience — that makes them feel special, the opportunity to attend an annual in-person event
which in turn drives sales. in Stockholm.
Another creative way brands are flipping the Caring for its MVPs has enabled Spotify to
script is by building a digital campfire that genuinely accomplish a variety of business goals, such as an-
supports its audience. Apparel brand Madhappy, ticipating and averting user issues and negative
whose mission is to generate inclusive conversations sentiment prior to new product releases. In this
about mental health, cleverly leveraged the brand’s sense, its digital campfire is the gift that keeps on
merchandise to drive virtual engagement by releas- giving because it creates a ripple trust-maintenance
ing a collection featuring a 10-digit phone number effect for the brand as a whole.
for the Local Optimist Hotline. Anyone who texts Indeed, leveraging digital campfires to build
the number is connected to free mental health re- intimate relationships with consumers doesn’t just
sources and support. burnish a brand’s image. When product delays, bad
press, or corporate scandals happen, a loyal digital
3. Maintain Trust campfire following can deflect attention from the
While gaining your audience’s trust is paramount, negative publicity.
maintaining it over the long term also requires a Peloton provides an example of a brand that has
thoughtful approach. Brands can build lasting trust in looked to its digital campfire community during ups
a variety of ways, but any successful brand draws on and downs. In late 2019, Peloton released what came
five basic principles, which I think of as the five C’s: to be dubbed the “Peloton wife” ad, which featured
1. Caring for MVPs: Offering campfire perks, such a man giving his wife the company’s signature exer-
as special gifts, virtual badges, and credits. cise bike for Christmas — suggesting to some that he
2. Collaboration: Providing users with opportuni- wanted her to lose weight. Widely attacked as sexist,
ties for creative collaboration and learning. tone deaf, and even dystopian, the negative publicity
EXECUTIVE GUIDE
resulted in a $1.6 billion drop in the company’s market

value. But inside the company’s highly engaged private
Facebook group where nearly half-a-million mem-
bers regularly share posts on deeply personal topics,
you would never have known there was an issue.
As the backlash raged and the company
plunged headlong into crisis mode, group members
proactively shared positive stories about how Pelo-
ton had affected their lives, with users describing
how the company’s classes and sense of community
had helped them recover from grief, trauma, depres-
sion, illness, and more. The company bounced back
from the PR setback and saw incredible sales during
the pandemic, but it has more recently faced chal-
lenges with a 2021 product recall and a drop in sales
momentum as people have returned to gyms. The
online community has stood by Peloton throughout
its challenging moments, something that has not
gone unnoticed by the brand. An ad campaign from
earlier this year that shines light on the Peloton com-
munity points to how much the company values the
trust and commitment of this digital campfire.
Navigating this new landscape for the first time
can feel intimidating for companies and brand lead-
ers, especially when the landscape and technologies
are constantly changing, and there’s no one-size-
fits-all approach. But digital campfires also present
brands with unique opportunities to engage in ways
that completely reinvent the standard brand-con-
sumer dynamic while also giving them valuable new
avenues for shaping their culture.
That’s why brands that fail to take digital camp-
fires seriously do so at their peril. The companies
that recognize how crucial campfires are to their fu-
ture stability — and are willing to master the skills to
engage and reward members and gain and maintain
their trust — will reap the benefits many times over,
perhaps in ways they never even imagined.
Sara Wilson (@wilsonspeaks) is the founder of SW

Projects, where she works with brands, publishers,
and high-profile individuals to grow devoted
communities across digital channels. She also speaks
frequently about Gen Z marketing trends and the
online behavior of young audiences to internal teams
at companies such asYouTube and Microsoft.
Copyright © Massachusetts Institute of Technology, 2021.

All rights reserved.
EXECUTIVE GUIDE
Business Unusual:
The Pandemic Forces
a Social Reset
In a highly polarized and flammable political climate, brands have to
play an active role in society well beyond their commercial remit.
BY DIPANJAN CHATTERJEE
C
ommerce, as traditional economists see it, is a the-
ater where rational and impersonal actors transact,
exchanging goods and services for payment. The
burgeoning field of behavioral economics has
taught us that these actors are not rational, and since March
2020, we’ve learned that these actors aren’t impersonal, either.
They are human, and this tremendous acceleration of a human-
centric mindset in commerce is one of the defining forces that
will shape business strategy for the foreseeable future.
In the long months since the pandemic first struck, human-
ity has taken a hard look inward. We’ve seen it in the weary faces
of health care workers, in the throngs gathered to demand eq-
uity for the marginalized, and in the depth of profound suffering
worldwide. Once, we were comfortably numb, buying cheaper,
bigger, better; now, the pandemic has wrought grief and trauma,
and the introspection it has prompted has exposed our fragility.
The pandemic has changed us, and now we seek more from mole, constantly swatting at a multitude of issues that pop up with
commerce. We expect fulfillment, not just consumption. We expect dogged persistence. Rather than responding reflexively, brands
the brands we patronize to be not just manufacturers and retailers but should be deliberate in their choice of action.
active, helpful contributors to our society. In this transition lies one of Don’t be reactive. Resist the pressure to react to every prov-
the most significant resets for the modern brand. This new social reset ocation, especially when a response is not warranted. (See below
is uncharted territory for most companies that now find themselves for when it is.) Popular media may suggest that brand activism in
having to navigate new customer and employee expectations. They all things is the order of the day, but we mistakenly conflate how
are being forced to see their stakeholders differently — as consumers memorable something is with how frequently it occurs (a phenom-
who don’t just acquire products but have more complex needs, and as enon known as the availability heuristic). For example, the state of
employees who don’t just contribute labor but hitch their identity to Georgia’s restrictive voting law changes received some high-profile
the brand. As if that weren’t enough, now consumers expect brands criticism from brands like Delta Air Lines and Coca-Cola, but if
to play an active role in society well beyond their commercial remit. you started counting the number of Fortune 500 companies that
took a vocal position, you wouldn’t get very far.
How to Navigate Uncharted Territory Be responsive. Taking a position on social issues, includ-
In a highly polarized and flammable political climate, brands ing responding to current events, is well warranted when doing
have to play a sociopolitical version of the arcade game whack-a- so aligns with serving the company’s key stakeholders. Such a
EXECUTIVE GUIDE
response goes well beyond internal or external to identify consumers who felt strongly about social
marketing to introduce meaningful changes. After and community issues and regularly made purchase
Texas’s recent abortion ban, for example, few com- decisions based on them. We found that, on average,
panies took a stand, but those that did acted in the 18% of the U.S. adult buying population was moti-
interests of a stakeholder. Uber and Lyft came to the vated to reward or punish brands based on their
support of drivers at risk of legal action, and Sales- social positions. But averages don’t describe any spe-
force offered to relocate employees concerned about cific brand; our demographic analysis suggests that
accessing reproductive care. brands with younger audiences, like TikTok, will
Build a foundation for response. By estab- over-index on values-motivated consumers in com-
lishing a clear, well-informed process, companies parison with brands that cater to an older segment,
can eliminate the risks that come from ad hoc re- like Consumer Reports. Do the math for your brand.
sponses while facilitating the ability to take quick, 2. Commit to your employees. Losing a good
consistent actions. Without a clear process, even customer is bad for business; losing a good employee
companies with a strong social track record end up could be disastrous. Faced with the “Great Resigna-
vacillating, as when Starbucks waffled on whether tion” and tightening labor markets, companies are
to allow retail employees to wear Black Lives Mat- competing to attract and retain the best talent. But in
ter pins and clothing. This foundation for guiding this social reset, employees bring their whole selves
social action must be informed by a thorough un- to work and want more than a paycheck from their
derstanding of stakeholders, the zeitgeist, and the employers. As workers have recalibrated their ex-
company’s role. This is the new pectations, companies have
face of brand strategy: It’s as realized that catering to them
much about “who you are” as it
The pandemic has is business-critical. Adidas,
is about “what you do.” changed us, and for example, rolled out an
now we seek more extensive diversity and inclu-
Foundation for a New sion program encompassing
Brand Strategy
from commerce. We internal and external efforts
For nearly two years, we’ve expect fulfillment, not — mandatory training, clear
witnessed companies and con- just consumption. hiring targets, and scholarship
sumers reacting to social stimuli funding for students of color
of a sort they’ve seldom had to — introduced by its CEO with
contend with. I have researched and written exten- this message: “Many employees told us — and told me
sively on how companies are reshaping their strategies personally — that they believe there are not enough
in the face of emergent social movements like the de- equal opportunities for all. This is not acceptable.”
mand for racial equity. At Forrester Research, we have 3. Adapt to be relevant. In tandem with the
created a consumer model based on a 4,700-respon- acceleration of social purpose in business, there
dent survey that provides an unvarnished estimate of have been significant ongoing structural changes,
the segment whose purchasing behavior is influenced especially among the world’s youngest citizens. In
by their social beliefs. My work in these areas shows the U.S., minority children will be the majority by
that the path to constructing a new brand strategy that 2023. In some Tokyo public schools, a gender par-
reflects the social reset must embrace multiple mo- ity rule that succeeded in bringing more girls into
dalities, such as a customer’s propensity for action, the the educational system is now keeping many out,
employee experience, and corporate values. This new despite performing better on admissions tests
brand strategy has four parts: than boys, in order to maintain a 50-50 gender
1. Know your customer’s mind. Many gen- ratio. American Girl now has a boy doll, and Mat-
eral surveys show that consumers at large want tel has a gender-neutral one. To remain relevant in
brands to be socially active. But do you know how a future that we know will look very different from
your own customers — who make purchase deci- today, companies must adapt to evolving needs and
sions that impact your bottom line — feel about the preferences. Marketers must do double duty as so-
matter? We built a segmentation model at Forrester ciologists. Target has been down this road for many
EXECUTIVE GUIDE
years when it comes to changing gender percep-

tions. The company has altered signage, displays,
inventory, and even its restroom policy (despite
strident opposition) to strip them of gendered ste-
reotypes and build a brand experience more attuned
to an evolving consumer mindset.
4. Tune your values compass. The success of
your actions will be dictated by how authentic they
are to your brand, but finding this compass to guide
authentic action is not easy. A lucky few have it
— for example, Mod Pizza is defined by its commit-
ment to offer a second chance to those exiting the
criminal justice system. Most companies, however,
lack a meaningful and usable values framework.
(Corporate communications-polished mission and
vision statements do not count.)
To build that compass, start with the company’s
original intent. IBM, a leader in fighting discrimi-
nation — its equal opportunity policies predate the
1964 Civil Rights Act by over a decade — looks to
its history to plot a future path: “The character of
a company … is shaped and defined over time …
formed over nearly 100 years of doing business.” Ben
& Jerry’s has announced that it will stop selling ice
cream in Israeli-occupied territories at the end of
2022 because doing business there “is inconsistent
with [the company’s] values.” The highest levels of
leadership must agree on precepts that guide the
company’s behavior and actions.
The long-term value of a company is de-
termined by its ability to remain relevant to its
stakeholders in a manner that is credibly authen-
tic. A brand strategy guides this journey, the exact
nature of which will depend on customer charac-
teristics and product category dynamics. Not every
brand needs to take the same road or get to the same
place. But every brand ought to have a reliable brand
strategy road map at its disposal to navigate this new
social reset.
Dipanjan Chatterjee is a vice president and principal

analyst at Forrester Research, where he leads the brand
strategy research practice. He is also a fellow at the
Kautz-Uible Economics Institute at the University of
Cincinnati’s Carl H. Lindner College of Business.

EXECUTIVE GUIDE
Developing Strategy
for New Customer
Expectations
Companies and leaders must reexamine key assumptions about customer
behavior in order to deliver value in the post-pandemic era.
BY GEORGE WESTERMAN
T
he pandemic caused organiza-
tions around the world to rethink
how they were doing business.
Remote work, distance learning,
and curbside retail pickups became a neces-
sity, whether or not managers felt they were
a good idea before the pandemic. Preparing
for the post-pandemic era requires leaders
to weigh their options for the future. What is
the right combination of the old ways and the
new ways? What do customers and employ-
ees really want as we move forward?
Making these decisions requires not
only weighing new options but also rethink-
ing the decision-making process itself. The
unspoken assumptions that helped to speed
decision-making in the past may lead com-
panies to take the wrong path. As leaders develop strategy for a from 16% to 27% in the first two months of the U.S. COVID-19 out-
future that has been reshaped by the pandemic, they need to re- break, compared with two decades of annual growth in the 1% range.2
think their fundamental assumptions about how employees work, This growth in e-commerce showed how many people are just as
what customers want, and how to drive change in organizations. In happy with self-service shopping as they are with buying from a per-
this article, I will examine some key assumptions about what cus- son, and the pandemic accelerated this preference.3 Now nearly every
tomers want. While some prior assumptions may remain true, all product, whether books, insurance, or cars, can be sold effectively on-
of them need serious consideration, and many will need rethinking line. As technology continues to become more sophisticated — with
for the post-pandemic economy. increasing numbers of algorithm-based recommendation systems
and chatbot-based customer service processes — more aspects of
Customer Assumption 1: commerce can cut back on human interactions. After COVID-19-
Customers want the human touch. related restrictions reduced the role of in-person interactions in the
People want personal service — but they don’t necessarily need it from restaurant, retail, and real estate industries, among others, customers
a person. Consider that 71% of customers expect personalization are seeing even less need for them during the buying process.
from brands and businesses, and 76% get frustrated when they don’t Companies that rely on human salespeople should consider
experience it.1 Meanwhile, digital retail transactions skyrocketed whether that approach will remain viable for their products in the
EXECUTIVE GUIDE
coming years. Where humans are essential in selling, ups happen online. Beyond serving existing markets
providing luxury services, or making people comfort- better, organizations can use this approach to expand
able (such as during insurance transactions or at luxury their geographic market and position themselves for
hotels or funeral homes), consider how to optimize the other growth opportunities down the line.
human contact. Where humans provide cover for bad
back-end processes or data, work to fix those processes Questions to consider:
now. For situations where human contact is needed, • Why did your formerly in-person activities hap-
such as managing exceptions, providers should rethink pen that way? Were you optimizing for the
the assumption that making helpers hard to reach will customers’ convenience or the company’s?
make customers more willing to engage in self-service. • What would you have to change to develop a hy-
It may just convince them to switch to companies that brid experience for your customers?
seem to care more for their customers. • How might these updates vary across different
customer segments?
Questions to consider:
• What types of service do your customers really Customer Assumption 3:
want? People won’t pay full price for a digital ver-
• Are you using people for the right types of selling sion of a product/service.
and service activities? Or just in the areas where A funny thing happened in the executive education
you’ve always used them? world during the pandemic: When courses moved
• Are humans in the loop mostly to cover for chal- online, prices didn’t drop. Enrollment, after an ini-
lenges in your processes and data? tial dip, is strong again. Executive students realized
• How can you redesign your products and services that the value of professor engagement still holds
to improve human-free personalization? during synchronous online learning, while the digi-
tal approach to learning doesn’t require the cost or
Customer Assumption 2: inconvenience of traveling. Interactions with other
In person is better than digital. students can happen virtually through breakout
Prior to the pandemic, many industries had ex- rooms or other mechanisms. In the post-pandemic
perimented with virtual offerings but resisted using era, many educational institutions will maintain “live
them for fear that customers would not adopt them remote” offerings in addition to in-person or asyn-
in sufficient numbers. For chronous digital programs.
example, telemedicine and Yes, your customer The schools can charge the
virtual learning have been same price, but the all-in
practiced for years, but not
may welcome an in- cost to students is lower,
widely. During the pandemic, person visit to close a while the value of the expe-
experiences that previously new deal or to maintain rience is still strong.
had to be in person — doc- Other industries
tor visits, school, and so on
the relationship. But is have found that custom-
— quickly flipped to digital. it worth the cost and ers are happy to pay more
Providers learned that cus- inconvenience — for for a digital experience
tomers often preferred the than previously thought.
convenience of digital visits
both of you? For example, Disney now
over the perceived benefits of launches some movies for
in-person engagement. a premium above what customers already pay for
When thinking about going back to “normal,” their Disney+ subscription. The price to watch Black
companies should consider a combination of physi- Widow at home was the same as paying for a theater
cal, virtual, and hybrid approaches so that customers ticket in Boston. Kindle books often sell for the same
can make their own choices. For example, many price as paperbacks of the same title — especially
medical practitioners are considering models where surprising given the far lower distribution costs of
initial patient visits take place in person while follow- digital products versus physical ones.4 Additionally,
EXECUTIVE GUIDE
new ways that celebrities and performers engaged the public is more accustomed to restrictions and
with customers during lockdowns and social dis- alternative ways of operating, expectations for what
tancing — such as Taylor Swift’s TV specials in lieu is required are no longer clear. Furthermore, as pro-
of live concerts, or rapidly organized fundraising viders frame these restrictions in terms of a greater
campaigns by the casts of Hamilton and Star Trek — good, such as environmental sustainability or qual-
may persist as models for digital engagement into ity of life in neighborhoods, it becomes even more
the post-pandemic world.5 difficult for customers to unequivocally demand
that they return to pre-pandemic norms. Hotels
Questions to consider: reducing daily room cleaning means less laundry
• What is the real value to the customer of the prod- and thus less damage to the environment. Traffic
uct or service you provide? restrictions can motivate drivers to choose different
What need is it serving (that is, what job is it doing) commuting methods, or lead to quieter neighbor-
for your customers?6 hoods that are more pedestrian-friendly.
• Can a digital approach actually be more valuable It’s much more difficult to remove services than
for your customers, or a value-added extension of to resist adding services. And it’s easier to resist add-
your existing value proposition? ing services when vocal customer segments argue
that adding the services runs counter to their val-
Customer Assumption 4: ues. Before restoring prior services and bearing the
Pandemic-era service restrictions costs and other implications of that choice, consider
are only temporary. whether the move is really necessary. Will your best
In a recent hotel stay, I was told that, because of customers flee your brand if the restrictions stay?
COVID-19 restrictions, maids would clean my room Will other customers like your brand better because
only every third day. For the other days, I was on my of what the restrictions represent to them?
own. This harked back to years ago, when hotels an-
nounced that they would refresh towels only every Questions to consider:
second or third day, gaining tremendous cost benefits • Should those “temporary” service cuts become
ostensibly in the interest of global sustainability. Re- permanent after all?
gardless of the real reason for reducing housekeeping • Who will be affected — customers, employees,
services, I didn’t really miss it, and some hotels would other stakeholders — if restrictions remain in place?
still provide it if I asked early enough in the day. • Should you reinstate the services only for certain
I felt somewhat differently about hotels cancel- time periods or high-value customers?
ing free breakfasts and concierge lounges for their • What would be the real value of removing the re-
best customers last year, but I didn’t have much strictions? Would everyone agree?
choice. Will hotels restore these services when CO- • If you choose to make the restrictions permanent,
VID-19-related worries dissipate? how will you “sell” the idea? Do you need to?
Because of restrictions on indoor dining, many
cities allowed restaurants to build outdoor seating Customer Assumption 5:
on roads and sidewalks. Others used lower com- The old way was the right way.
muter volumes as an opportunity to convert traffic Family businesses often encounter conflict as younger
lanes into bike or bus lanes on busy roads. These family members challenge the assumptions of older
moves restricted traffic and parking but did not founders: “I’ve known our customers for 40 years. I
cause much uproar when people were not driving know what they want” — except when you don’t. It also
much. As people return to work, school, and en- happens in startups and even large public companies,
tertainment venues, and traffic increases, will cities when entrenched leaders limit the amount of atten-
rescind these allowances to make room for pre-pan- tion given to new ways of doing business. While far
demic levels of traffic and parking? from optimal, breaking an entrenched management
While some people would argue that tempo- deadlock often comes only through a major upheaval
rary restrictions should go away when life returns to — such as massive customer defections, the death of
“normal,” others could argue the opposite. Now that the founder, or a board intervention to change leaders.
EXECUTIVE GUIDE
COVID-19 has been a major upheaval. It REFERENCES

spurred big changes. If and when conditions return 1. N. Arora, D. Ensslen, L. Fiedler, et al., “The Value of Get-
to normal, it’s essential not to assume that “normal” ting Personalization Right — or Wrong — Is Multiplying,”
is still correct. The pandemic caused huge changes McKinsey & Co., Nov. 12, 2021, www.mckinsey.com.
in consumer behavior. While some changes were 2. “Fifty Five: The Quickening,” McKinsey Quarterly, July
28, 2020, www.mckinsey.com.
COVID-19 specific, many simply accelerated trends
3. J. Degnan, “Using Self-Service Technologies as a
that were already underway.7 Yes, your customer Competitive Advantage in a Post-Pandemic Retail Environ-
may welcome an in-person visit to close a new deal ment,” NCR, April 6, 2021, www.ncr.com. The preference
or to maintain the relationship. But is it worth the for traditional retail was 68% pre-pandemic, but when
shoppers were asked what their preferred shopping
cost and inconvenience — for both of you? method would be post-pandemic, it dropped to 47%, with
Customers may welcome the convenience of the shifters distributing their preferences broadly across
shorter virtual visits rather than long, in-person online shopping options in terms of delivery turnaround
times and onsite pickup options.
events. Or they might still want in-person meetings
4. On Amazon on Nov. 19, 2021, the Kindle version of
but fewer of them. Or some may want them, while “Lonesome Dove” was priced at $15.99, and a paperback
others don’t. Similarly, customers may or may not cost $14.69 (including free shipping for Prime members).
want to pay the extra cost for onsite consulting teams. For comparison, the hardcover was $21.99, and the audio-
book was $39.18. The 2021 novel “We Begin at the End”
What’s critical is to rethink the selling and was $14.99 on the Kindle and $14.17 for the paperback,
service proposition for today’s environment, not compared with $22.99 for the hardcover and $21.83 for
the audiobook.
yesterday’s. Present customers with new options,
and they may reveal new preferences — or old ones 5. C. Chaffer, “‘Hamilton’ Cast to Host Virtual Fundraiser
for Joe Biden Campaign,” Rolling Stone, Oct. 13, 2020,
that were not previously satisfied. www.rollingstone.com; and T. Johnson, “‘Star Trek’ Cast
Members to Hold Fundraiser for Georgia Senate Runoff,”
Deadline, Dec. 7, 2020, https://deadline.com.
Questions to consider:
• How do your customers want to work with you? 6. T. Levitt, “Marketing Myopia,” Harvard Business Review
82, no. 7 (July-August 2004): 138-149; and C.M. Chris-
• If two customers had the same preferences tensen, T. Hall, K. Dillon, et al., “Know Your Customers’
before COVID-19, do they have the same pref- ‘Jobs to Be Done,’” Harvard Business Review 94, no. 9
(September 2016): 54-62.
erences now?
• What is the right combination of in person and 7. S. Kohli, B. Timelin, V. Fabius, et al., “How COVID-19 Is
Changing Consumer Behavior — Now and Forever,”
virtual, or of custom and commodity, or of high McKinsey & Co., July 30, 2020, www.mckinsey.com.
and low service levels, for your customers and
for you?
George Westerman (@gwesterman) is a senior
lecturer with the MIT Sloan School of Management
Common among these assumptions is the and principal research scientist for workforce learning
need to reexamine the leadership mindset before in MIT’s Abdul Latif Jameel World Education Lab.
making serious decisions about how the organiza-
tion will work in the future. A key thought process Copyright © Massachusetts Institute of Technology, 2021.
for making this shift is to identify deeply embedded All rights reserved.
assumptions and assess whether they are still true.
Not every pre-pandemic assumption needs to be
rejected. But, using lessons from the past two years
and considering what’s to come, now is the right
time to think carefully about the assumptions that
rule your decision-making processes.
EXECUTIVE GUIDE
How Marketers Can

Address Data Challenges
to Drive Growth
A research-based tool offers marketers methods for designing
an analytics architecture that fits the business need.
BY RAJ VENKATESAN AND KIMBERLY A. WHITLER
I
magine that you have just been Today’s marketers are more responsible ceptual goal of “delivering analytical value”
promoted to manager at a large than ever for leveraging their company’s data to actually use analytics to drive growth. In
food company and will be in charge acquisition, integration, and analytical ef- the same McKinsey study, 23% of CEOs in-
of a popular candy brand primarily forts to shape a better customer experience dicated they don’t believe their marketers are
sold in grocery stores. The brand has been (CX). In fact, a recent McKinsey study found able to deliver on the growth agenda.
declining for some time, and you have to that 83% of global CEOs expect marketers In our research into this gap between
figure out the source of the decline and to be a major driver for most or all of their marketing analytics availability and ca-
fix it. What do you do? If you’re like most company’s growth agenda. Despite mar- pability, we have interacted with over 200
marketers, you turn to readily available keting leaders’ increasingly important role senior executives across the world in semi-
reports and market studies to find the in building analytical capability, many still nars, onsite visits, observations, consulting
answer. But is this the best approach? struggle to effectively move beyond the con- engagements, and interviews. We also part-
EXECUTIVE GUIDE
nered with analytics software provider Teradata to vas (MAC). The objective is to provide a road map
collect survey data from 300 executives. An impor- that helps marketers approach customer experience
tant source of variance in marketing leaders’ ability challenges where analytics plays a key role. We relied
to deliver analytical value traces back to where they on marketers’ familiarity with marketing technology
are getting their data. We found there is a tendency blueprints and customer journey maps to create a
to rely on existing data and reports rather than start tool that would enable marketers to go beyond exist-
with a clean slate to map out what is needed. In many ing data and reports to think through how to solve
cases, existing reports are simply insufficient or inef- challenging CX issues.
fective at addressing CX issues. The MAC provides a structured framework to
Our interviews and experience with successful elaborate the analytics challenge, the options that can
CMOs suggest that in order to address this problem, be tested to address it, the business or financial con-
marketers need to understand the strategic business sequences expected from implementing the options,
challenge first, identify the required data needed, and and the data and analytical methods for measuring
then design the appropriate analytical solution. In some and estimating the connections between the strate-
cases, this may mean acquiring new data, accessing new gic options and business and financial consequences.
data within the company, or bringing in analytical skills (See “The Marketing Analytics Canvas.”)
missing in the current team. Importantly, this approach This tool helps address marketers’ analytics
increases the likelihood that marketers will use better challenges in two ways. First, by anchoring the so-
data sources and analytical methods that map directly lution on the core strategic business challenge, this
onto their business challenges. approach increases the likelihood that the data and
analytics will help solve it. Second, it opens marketers’
The Marketing Analytics Canvas Tool minds to letting the hypotheses drive the identifica-
To help marketers address such challenges, we cre- tion of data needed and analytical method rather
ated a tool that guides the process of designing an than what is readily available or has been used in the
analytics architecture: the Marketing Analytics Can- past. This increases the likelihood that the data and
THE MARKETING ANALYTICS CANVAS

This tool provides marketers with a framework for solving customer experience challenges
with data and analytics.
Source: Raj Venkatesan and Kimberly A. Whitler
EXECUTIVE GUIDE
analytics being used are the most appropriate ones for ad that predicted the insurance premium a customer
the business challenge. would be offered. The company selected the “predict
premium” option for initial testing based on the speed
Compare.com: A Case Study with which it could test it, estimates that indicated
To provide insights on how to use the MAC, we it would likely yield a more immediate impact, and
offer the case study of Compare.com, a comparison limitations associated with the other two options. For
shopping website that gives customers a list of real- example, Compare worried that consumers would
time available quotes from affiliated automotive not download a mobile app and that connecting via
insurance providers. Its offering is unique in the email might not work because of spam filters.
U.S. market because customers receive actual price As shown in “The Compare.com Marketing
quotes (in contrast to the estimates provided by Analytics Canvas,” the rationale for choosing the
other companies) after completing a questionnaire. predictive banner ad was that customers would be
A significant strategic challenge Compare.com motivated to finish the questionnaire if they saw
faced in 2016 was low and declining completion rates an estimate of the savings they could obtain from
on its questionnaires — 12% in March 2016, after a Compare.com. Improving questionnaire comple-
peak of 18% in January 2016 (a 33% decline in three tion rates would directly translate into higher rates
months). Improving completion rates was a critical of customers clicking through and purchasing one of
goal, given that Compare.com gets paid only when a the policies presented to them, subsequently increas-
customer fills out a questionnaire and accepts a quote ing the total revenue Compare.com would obtain
provided by an insurance partner on the platform. from insurance providers. The MAC also included
To begin development of its MAC, Compare other processes the company was already using to
debated three options for solving the questionnaire improve questionnaire completion rates, including
completion rate challenge: (1) create a mobile app, (2) providing questionnaires on a single page, asking for
obtain emails from customers so that they could fill vehicle information first and personal information
out the questionnaire later, and (3) provide a banner later, pre-filling forms for customers coming from
THE COMPARE.COM MARKETING ANALYTICS CANVAS

In this example, the Compare.com team mapped their strategic challenge to determine
what new data sources and analytical methods would solve a critical customer problem.
Source: Raj Venkatesan and Kimberly A. Whitler
EXECUTIVE GUIDE
broker websites, and asking customers for email ad- readily available data and previously tested methods.
dresses so that the questionnaire could be emailed to The issue is that these reports and efforts might miss
them. The premium-prediction initiative needed to macroeconomic effects. They might not capture a
improve completion rates beyond these status quo shift in consumer habits and practices. Or they might
actions. The MAC helped the team formalize the ignore significant, recent competitive changes. The
problem, design the solution, and test the outcomes. Marketing Analytics Canvas tool enables market-
If the MAC hadn’t been used, Compare.com would ing leaders to step back and craft an approach that
have likely directed its efforts toward redesigning the is driven by the business challenge so that they can
user experience of the questionnaire instead of ex- then acquire the right data and employ a method-
ploring the premium-prediction option. ology to address the problem more effectively. By
The projected results from implementing the following an easy-to-use framework, marketers can
prediction banner was a 15% improvement in ques- avoid putting the proverbial cart before the horse.
tionnaire completion rates and a corresponding
increase in revenue from insurance providers.
In completing the MAC for this particular busi- Raj Venkatesan is the Ronald Trzcinski Professor of
Business Administration at Darden. He is coauthor of
ness challenge, the Compare.com team detailed the Cutting-Edge Marketing Analytics (Pearson Educa-
data necessary to conduct the tests, sources of such tion, 2014) andThe AI Marketing Canvas (Stanford
Business Books, 2021). More than 275,000 indi-
data, and the analytical methods required. Impor-
viduals have participated in his Coursera course
tantly, these are the final steps of filling out the canvas, on marketing analytics. Kimberly A. Whitler is the
to ensure that the right data and analytical methods Frank M. Sands Sr. Associate Professor of Business
Administration at the University of Virginia’s Darden
are identified. Website visitors from three states were
School of Business, a former general manager and
assigned to the test group to receive the predicted chief marketing officer, and author of Positioning for
premiums as a banner advertisement as soon as they Advantage:Techniques and Strategies to Grow Brand
Value (Columbia University Press, 2021). Her articles
landed on Compare.com. Visitors from the rest of
for Forbes, where she is a senior contributor, have
the states were in the control group. The test showed garnered over 4 million views.
an improvement of 4% in questionnaire completion
rates and a 6% improvement in consumers choosing Copyright © Massachusetts Institute of Technology, 2021.
to purchase insurance from one of the providers. A All rights reserved.
follow-up test showed a 22% improvement in comple-
tion rates among consumers who chose to receive a
predicted premium after answering five questions
before completing the rest of the questionnaire. The
results from these experiments motivated Compare.
com to explore personalized nudges for improving
completion rates based on the preferences of differ-
ent consumer segments. Using the MAC allowed the
team to adopt new methods to improve the CX of the
website and develop new analytics methods for solv-
ing the company’s strategic challenges.
Despite the fact that most marketing leaders would
like to leverage data and analytics more effectively,
many continue to struggle. It is not for lack of interest
or will, but rather because many marketing teams fail
to structure the business challenge in a way that helps
to identify the appropriate data and analytical methods
necessary to address opportunities and challenges.
Consider the example from the introduction.
Many managers in charge of a popular candy brand
facing a business decline would immediately turn to
EXECUTIVE GUIDE
Moving Beyond Trust:

Making Customers
Trust, Love, and
Respect a Brand
Research shows that the most admired brands find
innovative ways to enable, entice, and enrich customers.
BY ANDREAS B. EISINGERICH, DEBORAH J. MACINNIS, AND MARTIN FLEISCHMANN
R
apid digital acceleration, coupled with the global
pandemic, has dramatically shifted customer
expectations and needs in recent years. These
changes exist amid a backdrop of global supply
chain problems, concerns about how companies are responding
to social injustice and climate change, and growing distrust of
major social institutions. This dizzying array of shifts has left
companies, executives, and marketers searching for insights
as to how brands can withstand and thrive through periods of
uncertainty. What North Star concept can marketers follow to
navigate these challenging times?
For over a decade, we’ve been gathering empirical evidence
on how brands create resonance with customers. In this article,
we’ll examine one such North Star for marketers — brand admira-
tion — up close, including why it’s critical to brand health and how
companies can harness it to withstand the challenges of the current
and future business environment. When customers admire a brand, they are far more likely to
be loyal to it. They demonstrate this not just by buying the brand
Why Brand Admiration Matters repeatedly over time but by paying a price premium to acquire it.
Data shows that trust is declining across the globe, and customers Customers are willing to endure stock-outs and supply chain prob-
may lack trust in certain social institutions or societal leaders. But lems because the brand is worth waiting for. They’ll even work on
when it comes to brands, some evoke feelings of love, trust, and behalf of it: Loyal customers are more likely to speak out in favor of
respect: Customers have come to admire these brands and view the brand, both online and in person, and they seek out and build
them as essential and indispensable to their lives. Positive emo- community with other brand advocates.
tions like gratification from brand usage and pride from brand Indeed, brand admiration and its effects on customer loyalty
ownership generate a tight link between the brand and customers. and advocacy behaviors allow brands to enjoy higher revenues at
Brand trust, love, and respect don’t just give meaning to customers’ lower costs. Brand admiration also protects the brand from com-
lives; they also create a safe haven where things seem right with the petition while creating opportunities for alliances with highly
world, especially in turbulent times. regarded companies. Admired brands earn higher returns for all
EXECUTIVE GUIDE
these reasons and fare better in challenging times abling benefits), but brands that truly resonate with
disrupted by technological and societal change. customers stand out by providing all three types. In-
deed, our work shows that when combined, the 3 E’s
Creating Brand Admiration have an exponential effect on enhancing customers’
Through the 3 E’s quality of life and hence the brand’s value to custom-
Brand choices are largely driven by customers’ ers. (See “The Brand Admiration Framework.”)
perceptions of what brands do for them (that is, So, what does it mean to say that brands enable,
their benefits). Benefits refers not to what features entice, and enrich customers? Let’s look at strategies
the product offers or has but rather how it helps that companies and marketers can consider for un-
customers meet their needs, wants, and goals. As locking these benefits.
Harvard Business School professor Theodore Levitt
famously quipped, customers don’t want a quarter- Solve Customers’ Problems
inch drill; they want a quarter-inch hole. Whereas Benefits that enable customers empower them in
product features can help realize benefits, the ben- their daily lives. They help customers solve problems
efits themselves lead customers to the marketplace. (physical, social, emotional, and cognitive) in ways
We’ve learned that customers fundamentally that are economically feasible, reliable, efficient, and
want three types of benefits in brands. They want convenient. When brands genuinely enable cus-
benefits that enable, entice, and enrich them. We tomers, they remove negative emotional states like
call these benefit types the 3 E’s.1 Many brands do a frustration, anxiety, fear, impatience, and anger —
good job of offering one type of benefit (usually en- which inhibit admiration and loyalty — and instead
THE COMPARE.COM MARKETING ANALYTICS CANVAS

In this example, the Compare.com team mapped their strategic challenge to determine
what new data sources and analytical methods would solve a critical customer problem.
Source: Andreas B. Eisingerich, Deborah J. MacInnis, and Martin Fleischmann
EXECUTIVE GUIDE
foster peace of mind and satisfaction. There are sev- they are good people who do good things in the
eral different ways brands can enable customers: world. They want to act in ways that are consistent
Resolving problems. Brands can provide en- with their beliefs, values, and hopes. They want to feel
abling benefits by giving customers the agency to solve like they’re part of a group in which others accept and
their problems — both small and large — at work or respect them, yet they also want to show how they are
home or in their business or personal relationships. unique and different.
When customers feel a sense of agency in solving their The following approaches can help brands affirm
problems, they experience a greater sense of control and enrich customer identity:
over their environments. This in turn leads to a sense Offering opportunities for self-expression.
of relief and security from future threats. People derive meaning and value from being able to
Conserving resources. Benefits can also enable convey and signal their own distinct personal tastes,
customers differently: By helping them conserve aesthetic sensibilities, lifestyle, and uniqueness to
scarce time and monetary, psychological, and others. Consumers come to respect a brand when it
physical resources, brands make customers feel less offers them opportunities to express their identity
mentally taxed, less tired, and less anxious. When and connect with others. For example, a brand could
a brand consistently enables customers over time, offer an online game in which customers could ex-
they begin to trust the brand. They know that they press their individuality or personal tastes and thus
can rely on it to solve their functional problems and signal and affirm their identity, making them feel
conserve their scarce resources. special and distinct.
Enriching by self-expansion. By purchas-
Make Customers Feel Good ing and using brands that make people feel part of
Benefits that entice please customers by stimulating a group, customers have an expanded sense of self.
their minds, senses, and hearts. They replace work They are not alone; they are a part of one or more
with play, displeasure with gratification, boredom groups. This sense of belonging is symbolically
with excitement, and sadness with feelings of warmth. meaningful to customers, particularly if they can
The levers brands can use to entice custom- use the brand to signal their group membership to
ers include: others. Brands are respected when they help con-
Stimulating cognitive and sensory experiences. sumers create a sense of belonging. Consider, for
Brands can please the senses by providing cognitive example, the respect that consumers have for their
stimulation, arousing curiosity and imagination, and alma maters. These institutions connect consumers
fostering creativity (through games or puzzles, for in- with others and expand their sense of who they are.
stance). Brands can also please the senses when they Enriching by self-transcending benefits.
arouse sensory experiences by activating pleasant These benefits focus on going beyond one’s self-
sights (such as through appealing product design), interests to engage in helping improve the welfare
sounds (through sonic logos or jingles), tastes and of all people, cooperating with others to enhance
smells (such as signature flavors or fragrances), and social harmony, and preserving the beauty and
tactile sensations. Enticement benefits arouse the power of nature. It comes from the notion of moral
mind and senses and preempt boredom and hence are beauty, which involves caring for the well-being of
potent drivers for customer experience. all people. We are all part of the same world; we help
Building warm and authentic connections. one another to make the world a better place and do
Brands can also provide enticing benefits by stimulat- what is right for the sake of the larger good. Thus,
ing and warming the heart. They can induce feelings the essential characteristic of self-transcending ben-
of sentimentality, poignancy, humor, empathy, grati- efits is that the brand is moral or benevolent.
tude, and nostalgia, which help customers develop Our findings show that when customers
genuine affection, admiration, and love for the brand. experience pleasure from a brand’s self-affirming en-
richment benefits, they begin to respect the brand for
Build Self-Affirming Identities what it stands for and supports. Such esteem, it turns
Benefits that enrich customers affect their sense of out, appears to be a powerful driver of brand admira-
who they are as people. Customers want to feel that tion, brand loyalty, and brand advocacy behaviors.
EXECUTIVE GUIDE
In short, our research finds that when brands quality apparel and hard goods that perform in any
enable, entice, and enrich customers, brand admira- weather condition. Its products entice customers
tion and the subsequent pro-brand behaviors are all with clothing that’s soft and gentle and backpacks
maximized.2 That said, all brands can benefit from that are comfortable to wear on long hikes. Most
regularly evaluating customer perceptions and as- importantly, Patagonia is effective at enriching its
sessing pathways to enhance brand admiration. customers by offering hope for the future, and in-
deed for humankind, by being a leader in addressing
Companies Leading the Way climate change through sustainably sourced and
in Brand Admiration ecologically minded product materials. Patagonia’s
Let’s look at Caterpillar, Salesforce, and Patagonia as products are built to be used for years (or even de-
examples of companies in different industries that cades). The brand empowers customers to make
are leveraging the 3 E’s with customers. their own repairs and encourages them to resell to
Caterpillar’s heavy-duty machinery and its ef- like-minded individuals via its Worn Wear program.
ficient supply chain enable customers to get the The takeaways from our research are clear: To
most challenging construction jobs done and en- remain competitive amid uncertainty and shifting
sure that dealers receive urgently needed specialty trends, companies must take building brand admi-
parts in the shortest time possible. The company ration seriously. We know that successful brands
alleviates longer-term needs, too: Dealers are con- do so by offering enabling, enticing, and enriching
cerned about the future of their businesses once they benefits in authentic ways, and becoming an essen-
retire, mainly because many of the dealerships are tial and indispensable part of their customer lives.
family-owned. To address this concern, Caterpil-
lar organizes conferences and networking events
that introduce dealers’ children to Caterpillar and REFERENCES
get them interested in the company. This activity 1. C.W. Park, D.J. MacInnis, J. Priester, et al., “Brand
serves as an enticing benefit because it helps build Attachment and Brand Attitude Strength: Conceptual
excitement among dealers’ families. When it comes and Empirical Differentiation of Two Critical Brand Equity
Drivers,” Journal of Marketing 74, no. 6 (November 2010):
to enriching benefits, as members of the Caterpillar 1-17; and C.W. Park, A.B. Eisingerich, and J.W. Park,
community, dealers are self-affirmed that they are “Attachment-Aversion (AA) Model of Customer-Brand
Relationships,” Journal of Consumer Psychology 23, no. 2
doing good things for the world by aligning with
(April 2013): 229-248.
the company’s mission to “help our customers build
2. C.W. Park, D.J. MacInnis, and A.B. Eisingerich, “Brand
a better world.” This belief gives dealers a sense of Admiration: Building a Business People Love” (New York:
pride, and it provides a powerful signal to others John Wiley & Sons, 2016).
about who they are and what they do.
In a similar vein, Salesforce’s easy-to-use soft-
ware enables users to get more out of their current Andreas B. Eisingerich is a professor of marketing at
Imperial College Business School, where he heads
customer-brand relationships, time, and customer the Department of Analytics, Marketing, and Opera-
data, leading to greater efficiency and helping their tions. He previously managed the Center for Global
Innovation at the University of Southern California’s
clients serve customers better. Numerous prod-
Marshall School of Business. Deborah J. MacInnis
ucts, resources, and support ensure that customers is the Charles L. and Ramona I. Hilliard Professor of
can find the help that they need. At the same time, Business Administration and a professor of market-
ing at the Marshall School. Martin Fleischmann is
Salesforce prioritizes customer experience and sat-
a professor of international marketing at HFU Busi-
isfaction by offering numerous learning events for ness School.
educating customers. Finally, Salesforce’s ethos of
dedicating itself to humanitarian causes such as Copyright © Massachusetts Institute of Technology, 2021.
helping people gain access to higher education and All rights reserved.
celebrating the success of all of its employees en-
riches people’s lives and builds community.
Patagonia empowers its customers to overcome
common outdoor sports challenges by offering high-
EXECUTIVE GUIDE
How Customer
Connections Can
Help Drive Decision-
Making for Marketers
A conversation with Eventbrite’s chief marketing officer about lessons from the
pandemic on connecting with customers and building virtual communities.
TAMARA MENDELSOHN, INTERVIEWED BY ALLY MACDONALD
N
o organization has escaped the pandemic’s im-
pact, but for many companies, the experience has
allowed them to learn more about their own cus-
tomers. In many ways, it’s been an instant exercise
in building empathy with customers.
For Eventbrite, the global ticketing and event technology
platform, the growing recognition of customer needs occurred
as the company focused on helping event creators and attendees
adapt to rapid change. I recently spoke with Eventbrite’s chief
marketing officer, Tamara Mendelsohn, about how deepening
customer connections has reshaped her team’s marketing efforts
throughout the pandemic and what opportunities might lie ahead
when it comes to changing customer attitudes and behavior.
The following is an edited and condensed version of
our conversation.
uncomfortable to talk to people about integrity, because they know
MIT Sloan Management Review:The pandemic meant they’re not perfect themselves. They don’t want to preach it. There’s
that many companies and industries went virtual the question of “Do I want to impose my values or my morals on
overnight. How did your team pivot when it came to people?” I think the answer is, at work, to some extent you do.
your customers who use the Eventbrite platform to In a time when no one knew what was going to happen next
bring people together for live events? or how long lockdowns were going to last, it was clarifying to have
our customers at the forefront of our decision-making. We knew
TAMARA MENDELSOHN: The fact that we were experiencing if we could help our customers succeed, we could succeed. So, for
something so similar to what our customers were going through us, the measure of success became how well we could help our
was a very important bond between us and our customers, customers redefine what gathering meant in this new normal. To
because it gave us a North Star — something to focus on in a do this, we aligned with the goal of helping our customers navi-
moment that was very chaotic. If you want to make an impres- gate uncertainty, we lobbied for our creator customers, we worked
sion, you have to be human and authentic. For leaders, it can be with Congress to secure relief for them, and we quickly shifted our
EXECUTIVE GUIDE
product road map to make sure that we could support that operate across different regions, where
the move to virtual events. restrictions may differ greatly. For your
We found that we actually increased our con- team, how has locality come into play when
nection to our customers in these early months, as we it comes to meeting customer needs and
wanted to make sure we were getting their feedback crafting marketing strategy?
in as close to real time as possible.
MENDELSOHN: We realized that reopening was
I’m interested to know more about how not going to be a linear event. It was not going to be
you think about weighing different types a strike of lightning but rather a series of waves that
of customer concerns and challenges that ebbed and flowed by locale. To respond effectively, we
may arise in times of uncertainty. Some needed to be nimble and watch the data very closely.
feedback might lend itself to a long-term For example, we knew that the moment it felt safe to
or permanent change to strategy, while gather again in person, for both event creators and
other feedback during the pandemic consumers, there would be pent-up demand, and
has prompted very quick — and often we would want to be able to serve those customers.
temporary — solutions. How does this Thus, we needed to focus on designing our product
feedback loop play a role in shaping new for speed and flexibility, so that when a community
offerings on the marketing side? had reached a level of safety for in-person gathering, a
creator in that community was empowered to get up
MENDELSOHN: The experience has reinforced the and running with their business.
importance of being able to empathize with the cus- We focused on speed, flexibility, and driving
tomer. When connecting with customers on a more audience, because many creators had not been able
frequent basis, we realized that in many cases we to reach or connect with customers and needed help
needed to rethink the data or reporting being used, reviving and rebuilding their audience and their com-
to help make decisions or even to change goals and munities. On the local side, we were watching data,
metrics to be more customer-centric. sometimes down to the city level, to help predict when
We’ve also put in place new processes and prac- people would start to feel safe to gather again. Here, we
tices to address customer needs that will be here to were looking at everything from external metrics, like
stay post-pandemic. An example is our Reconvene COVID rates, to internal metrics, like the number of
event series, which launched in May of this year as a searches on the platform for in-person events.
virtual summit for our event creators. Even with the
hope that the spring of 2021 was bringing with vac- Clearly, data and analytics have played
cines and reopening, our creators were telling us they a huge role in helping your team adapt
were feeling more isolated than ever. They were crav- to change, as is likely the case for most
ing connection and learning. They wanted to know, marketing teams today. Has there been
what were other event creators doing? How were anything illuminating in terms of new data
other people navigating uncertainty? How would approaches your team has used?
people manage the shift between in person and
virtual? Are they planning to keep virtual in their pro- MENDELSOHN: Given our need to stay nimble and
grams? What is the future for events? help customers quickly, this experience has taught
By keeping close connections and listening to us to focus in on the data points that are the most ac-
feedback, we were able to develop this into a whole tionable. Our company likely has the largest data set
marketing program to provide resources for creators on global events in the world. When you’re working
in the way they wanted to be supported. with this much data, it becomes critical to determine
which metrics really matter most to meet your goals.
We often think about the impact of COVID-19 As an example, we realized that we needed to
at a global, national, or industrywide level, monitor search behavior on the site to understand
but it’s also the case that the pandemic has where people were searching for virtual events ver-
posed incredible challenges for companies sus in-person events. When they reached a certain
EXECUTIVE GUIDE
threshold for either type of search, we could then

switch the default of the homepage to surface more of
the type of event they preferred.
It’s also important to remember that what’s
most critical or actionable now might not always
be. The data points that are the most meaningful
to our business are constantly evolving as our busi-
ness evolves. This reinforces the need for teams to be
consistently evaluating the data and assessing which
metrics are the most meaningful.
As many companies are returning to

some form of in-person work, we’re
learning more about what employees and
companies want out of different types of
connection. Given everything your team
is learning about Eventbrite customers in
the pandemic, what do you see as the best
opportunities of in person versus virtual?
MENDELSOHN: What we’re seeing is that virtual

events are here to stay. More than half of the consum-
ers that we surveyed said that they’re going to continue
going to virtual events, even once the pandemic is over.
We’ve learned that virtual events have a very im-
portant role to play both in our lives as consumers and
also in the businesses of these event organizers. Virtual
events create an opportunity for a hybrid business model
and give companies and creators the opportunity to ex-
pand their audience or increase their event size in ways
they might not ever have been able to do in person.
This provides an exciting new opportunity for
businesses to lean into. A fun example of one Event-
brite creator is Daybreaker. They host morning
dance parties — and they have done so for years, pre-
COVID — but since the beginning of the pandemic,
they have doubled the number of livestreaming at-
tendees and reached more than 80 countries.
Just as there are new opportunities for virtual
and hybrid models, there is also a new appreciation
for in-person connection. The desire to gather to-
gether has never been stronger.
Tamara Mendelsohn is chief marketing officer at

Eventbrite. Ally MacDonald (@allymacdonald) is
senior editor at MIT Sloan Management Review.

EXECUTIVE GUIDE
SPONSOR’S VIEWPOINT
The Power of Video:

Connecting,
Storytelling, and
Creating Messages
That Resonate
Jennifer Griffin Smith
CMO, Brightcove
Jennifer Griffin Smith leads

the marketing organization at
Brightcove, overseeing product
In this Q&A, Jennifer Griffin Smith, chief marketing officer of
marketing, demand generation, Brightcove, discusses the COVID-19 pandemic’s impact on
and marketing communications,
and is responsible for worldwide
today’s marketing landscape, shares examples of effective use of
operational execution. Previously, video for business goals, and offers insights on future trends.
she was CMO at Alfresco Software
(recently acquired by Hyland),
where she led the transformation
of the company’s positioning from This conversation has been edited for clarity, length, and editorial style.
a technology vendor to a platform
solution provider. Before that, Q: What are some of today’s most important marketing trends? What is, or what should be,
she was CMO of Software AG, an at the top of marketers’ agendas right now?
enterprise software company with
10,000+ customers in more than
Jennifer Griffin Smith: Connecting with our audiences, no matter where they are, is the
70 countries; CMO of Globoforce
most challenging goal for marketers right now. Customers are still not back in their offices,
(now Workhuman); and senior
and with the overcrowded digital landscape, it’s hard to connect with the right people at
vice president and CMO of Avid
the right time to get your messages across. Working remotely is likely to be one of the only
Technology and Progress Software.
constants in our future, and in-person events will be challenging to organize for large
She also held senior marketing
audiences for years to come.
roles at Information Builders,
PeopleSoft, and Microsoft.
Because of our new remote reality, digital marketing is more important than ever before. But
it’s a crowded space. How many pop-ups do you get every time you search for something
online or want to read a news article? As marketers, our challenges are to create messages that
resonate with our audiences and to find new ways of getting their attention and strengthening
our connection.
Q: What makes video a unique marketing tool?
Smith: Viewers retain 95% of a message when they watch it in a video, compared to 10% when
reading it in text form, according to WordStream [an online advertising company]. Just like in a
movie, if it’s a great story, you won’t forget it. Not only do your customers retain your message,
but marketers who use video grow revenue 49% faster than non-video users.
We work with many media companies, and we help enterprise companies act more like those
media companies. They can now entertain and educate their customers with branded video in a
whole new way. For example, with Brightcove CorpTV, you can create corporate TV, a Netflix-
like channel that will recognize your customers and serve them your company content based on
their past viewing habits. Brightcove CorpTV is our “always-on channel,” and we’re working with
customers to build their own channels. So that’s an example of a totally new marketing medium,
a way of getting your message out to customers that I believe we all need to think about.
SPONSOR’S VIEWPOINT • 24
EXECUTIVE GUIDE
SPONSOR’S VIEWPOINT
Q. How do people figure out when to use video rather than now the CEO is just like us. With virtual events, everyone is equal,
other approaches to marketing? and everybody’s getting the same information.
Smith: We spend a lot of time discussing when video is There is an equality-and-inclusion message that’s emerged
appropriate and what kind of video is best, depending on what from doing things remotely through the pandemic. We need to
you want to achieve. But it can often be used to complement consider and focus on continuing that when we start going back
other content. For example, if you have a white paper, why not to a hybrid working model, because if you end up with some
do a short video intro to the topic to get people engaged, along people back in the in-person situations and others not able to be
with a five-part summary? We try to do that within our company. close by, that divide is created again.
When I send out a message to the entire company, I tend to
create a video on my phone and send that out. It’s fast, engaging, Q: Where is video headed? And what other considerations do
and impactful. you believe today’s marketers should keep in mind?
Q: Could you provide some examples of successful video Smith: There are many exciting aspects of video innovation.
marketing during the COVID-19 pandemic? Imagine a world where video interactivity is completely standard,
where live interactivity in e-commerce will drive greater choice
Smith: We have many examples of different industries using video for the customer and quicker time to sale for the supplier.
to stay connected and reach new audiences during the pandemic.
For instance, many sports and arts and entertainment customers Imagine a world where corporate marketers don’t need to run
simply couldn’t put on sporting events or live concerts and shows A/B testing on best-performing campaigns because artificial
during the pandemic. Imagine a symphony orchestra using video intelligence and machine learning make recommendations
to stream a concert to their viewers, for example, or a major on video content for audiences based on their previous
football team using video to show behind-the-scenes interviews interactions, where companies can serve up the most appropriate
with the players. These organizations found opportunities for advertisements for each audience during a video. And imagine a
connecting in ways that they could never have done if they were world where real-time translation into 15 different languages for
in the stadium or a concert hall, and this is a new business model one video can happen at the click of a button.
that will continue for them.
But success involves the right mindset as well as the latest

Another great example is South by Southwest [the music, film, technology. For instance, we’ve been conducting research and
and technology festival held annually in Austin, Texas]. Their discussing with CMOs the positive impact that video platforms
whole business was an in-person event, and due to COVID-19, and technology have on their ROI.
it was canceled in 2020. Now, of course, when they started on
the virtual angle for 2021, they just wanted to do something. They
And I recently heard a quote from a global technology company
never said: “Hey, we want to get the same number of people
CMO that resonated with me. She warned against thinking
through the door online as we would have in person.” They said:
that what we have right now is good enough because “good
“Can this even work?” They found that it did work because they
enough” is the enemy of innovation. That is a big challenge for
had multiple channels; they didn’t have just one. People were
marketers. You’ve got so much to do, and it’s so busy, and you
popping in and out of different kinds of content. And now, their
think, “Ah, that’s OK, that’s good enough.” But that’s not going to
content strategy is far greater than it ever was before. They’ve
get you where you want to go. You’re not going to outgrow your
been able to expand their reach. They had people globally who
competitors with “good enough.” So keep challenging yourself
attended who might not ever come in person.
to innovate.
Q: How about using video for training and internal

communications? What trends have you seen in those areas,
either before or during the pandemic?
ABOUT BRIGHTCOVE INC.

Smith: We have a lot of very well-known fast-food retailers as
customers. They use us for training not just for employees but Brightcove creates the world’s most reliable, scalable, and
their franchisees, too. Then there are corporate organizations secure video technology solutions to build a greater connection
using video because all-hands calls and town hall meetings and between companies and their audiences, no matter where
company meetings have changed so much. One example is our they are or on which devices they consume content. In more
customer Akamai, which has 9,000 employees in 40 locations; than 70 countries, Brightcove’s intelligent video platform
keeping them connected with video all-hands calls was critical. enables businesses to sell to customers more effectively, media
leaders to stream and monetize content more reliably, and
The pandemic also brought a sense of equality to every employee every organization to communicate with team members more
regardless of where they were based. In the past, if you were, powerfully. With twoTechnology & Engineering Emmy Awards
say, in a subsidiary in Asia when your CEO is based in California, for innovation, uptime that consistently leads the industry, and
you probably felt less connected than the people there in person unmatched scalability, we continuously push the boundaries of
during every company meeting. Well, that’s changed, because what video can do.To learn more, visit www.brightcove.com.
SPONSOR’S VIEWPOINT • 25
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EXECUTIVE GUIDE

Connecting With Customers in the Age of Acceleration

1 Making Meaningful Customer Connections in a New Era

2 Want to Build Intimacy With Customers? Get to Know Digital Campfires

6 Business Unusual: The Pandemic Forces a Social Reset

9 Developing Strategy for New Customer Expectations

13 How Marketers Can Address Data Challenges to Drive Growth

21 How Customer Connections Can Help Drive Decision-Making for Marketers

24 The Power of Video: Connecting, Storytelling,

Want to Build Intimacy

resulted in a $1.6 billion drop in the company’s market

Sara Wilson (@wilsonspeaks) is the founder of SW

Copyright © Massachusetts Institute of Technology, 2021.

years when it comes to changing gender percep-

Dipanjan Chatterjee is a vice president and principal

Copyright © Massachusetts Institute of Technology, 2021.

COVID-19 has been a major upheaval. It REFERENCES

How Marketers Can

THE MARKETING ANALYTICS CANVAS

Source: Raj Venkatesan and Kimberly A. Whitler

THE COMPARE.COM MARKETING ANALYTICS CANVAS

Source: Raj Venkatesan and Kimberly A. Whitler

Moving Beyond Trust:

THE COMPARE.COM MARKETING ANALYTICS CANVAS

Source: Andreas B. Eisingerich, Deborah J. MacInnis, and Martin Fleischmann

threshold for either type of search, we could then

As many companies are returning to

MENDELSOHN: What we’re seeing is that virtual

Tamara Mendelsohn is chief marketing officer at

Copyright © Massachusetts Institute of Technology, 2021.

The Power of Video:

Jennifer Griffin Smith leads

Q: What makes video a unique marketing tool?

But success involves the right mindset as well as the latest

Q: How about using video for training and internal

ABOUT BRIGHTCOVE INC.

Articles published in MIT Sloan Management Review

MIT Sloan Management Review articles, permissions,

Reproducing or distributing one or more MIT Sloan

To request permission, use our website

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