Calling Smart Phone Marketers - Get Better Insights
Robert Passikoff
Founder, president
Brand Keys
Benjamin Franklin noted, “An investment in knowledge always pays the best interest,” a maxim Palm, maker of ‘handheld devices,’ might well have attended to before having to reduce its revenue goals last week. Had they a better understanding of how to compete against rivals like Samsung and Apple, they wouldn’t have found such a weak demand for their phones.
The cut in Palm’s forecast came in the face of an expanded distribution system – new sales partner, Verizon. And while it’s true that the speed of communication can often help to multiply the distribution of loyalty values, it’s an error to mistake expanded product distribution as an assurance of brand loyalty. More places to buy a product does not guarantee a brand connection with consumers. Only understanding and managing what people really expect can do that. And to do that you need to know what their Ideal for a smart phone really is, not only the places where they might buy one.
The category has shifted so dramatically over the past two years that if a brand doesn’t know – with tremendous certainty – where consumer values are going to be, they can be certain that consumers will disconnect with the brand. According to the 2010 Brand Keys Customer Loyalty Engagement Index, a predictive indicator of consumer behavior toward brands, Palm, once the darling of both consumers and Wall Street, ranked 6th out of seven brands tracked, the current standings looking like this:
1. Apple
2. Samsung
3. Blackberry
4. Nokia
5. LG
6. Palm
7. Motorola
Jon Rubinstein, Palm’s chief executive, said the company was working closely with carrier partners to increase awareness of its products. But that’s a problem too. Awareness – even with expanded distribution – is never enough. Being known, but not known for anything in particular, quickly transforms Brands into Category Placeholders.
These days that’s not a place you want to call home.
END
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