2. THE USEFUL BRAND REPORT
TABLE OF CONTENTS
For more insights and information, visit
t-3.com/useful-brands or drop us a line.
Ben Gaddis
Chief Innovation Officer
ben.gaddis@t-3.com
512.721.1380
02
EXECUTIVE SUMMARYWHY WE DID THE USEFUL BRAND STUDY, HOW WE DID IT AND WHAT WE FOUND OUT
THE CHANGING MARKETING LANDSCAPE AND OUR HYPOTHESIS ABOUT THE SOLUTION
METHODOLOGY, THE COMPONENTS OF A USEFUL BRAND AND THE USEFUL BRAND SCORE + ID
PROFILES OF THE TOP 10 USEFUL BRANDS AND A FULL LIST OF THE TOP 100
INSIGHTS AND OPPORTUNITIES BY ELEMENT, SECTOR AND DEMOGRAPHICS
THE PROCESS FOR HELPING BRANDS BECOME MORE USEFUL TO CONSUMERS
FINAL THOUGHTS AND WAYS TO GET IN TOUCH
03
INTRODUCTION05
THE USEFUL BRAND STUDY08
THE USEFUL BRAND 10014
MINING THE DATA21
BUILDING USEFUL BRANDS27
CONCLUSION30
4. BRANDS MUST
DO, THEN SAY
EXECUTIVE SUMMARY
04
BRANDRELATIONSHIPANDPERFORMANCE,2SECTORS
BRAND RELATIONSHIP
+ PERFORMANCE
Consumers are in control now more than
ever before—and they demand more than
ever before. We’ve felt this shift during our
27 years of experience and have adapted our
approach instinctively. It’s no longer enough
to focus on brand positioning. Our core belief
has been that, first and foremost, brands
must offer something of value to consumers.
Something useful. Then they can communicate
this usefulness through messaging.
The word “useful” eludes many brands. Most
think it’s only about function. T3 believes—and
consumers do, too—that usefulness is much
more than one thing. Brands fail to be useful
because they don’t understand what that word
means to consumers. We put this hypothesis
to the test through the Useful Brand Study.
The Useful Brand™ Study
With data from a diverse panel of consumers, we identified 14
elements of a Useful Brand. From Friendliness to Innovation,
these elements are the ways consumers judge a brand’s
usefulness. The elements can be divided equally between two
sectors: Relationship (emotional) and Performance (functional).
The Useful Brand Score + ID
By assigning these 14 elements and two sectors appropriate
weights, we created an accurate, holistic view of a brand’s
usefulness. The Useful Brand Score shows a brand’s overall
score, along with scores for the seven Performance and seven
Relationship elements. The Useful Brand ID visualizes strengths
and weaknesses when compared to a baseline average.
Top Performers
We can analyze any brand on a multitude of levels—through the
lenses of consumers, categories and competition. We ranked 300
brands and found that Amazon came out on top, partially due to
its investment in R&D and continual innovation.
Building the Useful Brand
With an accurate view of the landscape, we can rate brands as
Laggards, Performers (those on par with competitors) or Leaders.
The task then becomes how to help companies improve their
standing or build on their advantages.
We do so by our three-step process. We run a Useful Brand
analysis to get a thorough understanding of a brand’s situation.
Then we create a prioritized roadmap based on the opportunities
we found. Finally, we help brands put their plans into action.
THE USEFUL BRAND REPORT
EXECUTIVE SUMMARY
For more insights on Useful Brands, visit
t-3.com/useful-brands.
6. 06THE USEFUL BRAND REPORT
INTRODUCTION
Customer expectations are rising. Many
brands aren’t keeping up. A recent IBM
report states that “four out of five consumers
say brands don’t really understand them,”
and that’s just one of multiple examples
indicating a larger trend. Unfortunately, many
brands don’t understand this disconnect.
No matter their size or category, companies are
struggling to keep up with consumer demands.
There’s a growing divide between what
consumers expect and what brands deliver.
For more than 45 years, the breakthrough
marketing book Positioning: The Battle for Your
Mind by Jack Trout and Al Ries has served as
the defining guide for how brands are built. It
explained that marketers could improve the
perception of their products by simply carving
out a niche and owning a specific space in
the consumer’s mind. Volvo equaled safety.
Coca-Cola was happiness in the bottle.
Positioning was not what you did to a
product but what you did to the mind of the
prospect. It was about telling consumers
what they should think, not changing
the product or the brand experience.
Enter technology and a new world that moves
faster every day. Media channels continue to
explode. Audiences continue to fragment as
they scatter across screens. Thanks to price
comparisons and reviews, consumers are now
more knowledgeable and instantly opinionated.
They have control. They are ad blind.
CUSTOMERS
WANT MORE
INTRODUCTION
PO·SI·TION·ING
/pəˈziSH(ə)niŋ/
NOUN. PRESENT PARTICIPLE
“Not what you do to a product, but what you do to the mind of the prospect”. – Trout & Ries
80%
OF CONSUMERS IN THE U.S. SAY THE
AVERAGE BRAND DOESN’T REALLY
UNDERSTAND THEM AS AN INDIVIDUAL.1
88%
OF CONSUMERS SAY ADVERTISING HAS
LITTLE TO NO INFLUENCE ON THEM WHEN
MAKING THEIR PURCHASING DECISIONS.2
THERE’S A GROWING DIVIDE
BETWEEN WHAT CONSUMERS
EXPECT AND WHAT BRANDS
DELIVER.
7. 07
Positioning Is Not Enough
If a brand is standing on image alone, it’s on
shaky ground. We see a new paradigm—in fact,
we’ve seen it emerging for two decades. This
new model may prove to be just as impactful
as Trout and Ries’ revolutionary theory.
The issue holding back most brands is an
imbalance in a simple equation. Most brands
still focus too many resources on getting
their message across when they should be
focused on getting customers what they need.
Today’s consumers have moved past
positioning and image to expect personalized
brand experiences that extend beyond
the product itself. In turn, marketers must
move past their traditional positioning,
campaign and CRM models to adapt products,
experiences and marketing to deliver what
consumers now demand. It’s a much bigger
responsibility than marketers have had before,
and it should change the way they operate.
Stronger Brands Do, Then Say
Brands that first “do” and then “say” have the
greatest chance for long-term success. The
do-say philosophy is at the heart of what
T3 calls Useful Brands™. Useful Brands will
win hearts, market share and margin.
Others have talked about usefulness in
terms of utility or function. Our hypothesis
contends that usefulness is more. It is not
just a word; it’s a mindset. Usefulness is a
standard consumers use to judge brands. It
determines the brands they prefer and the
companies that earn their ongoing business.
Being useful means different things to different
consumers, and the reason most marketers
fail is because they don’t understand that.
We set out to define what being useful
means and test our hypothesis. Our research
proved we were onto something—and so did
insights from a diverse panel of consumers.
THE USEFUL BRAND REPORT
INTRODUCTION
WELCOME TO THE
NEW PARADIGM
HOW WE USE THE
TERM “USEFUL”
The word “useful” may bring to mind the more objective and
quantifiable aspects of the term. It could make people think of
performance or speeds and feeds. In fact, many brands equate
it with “functional.” We believe that’s their first mistake.
Through our study, we found that performance was only
part of the equation. Consumers demand usefulness in more
intangible, subjective ways. Usefulness is not just about how
people use a brand, it’s also how it makes them feel when they
use it. A brand must make itself useful emotionally, too.
We hypothesize that usefulness means many things, and it
means different things to different people. The brands who take
a multifaceted approach to usefulness will make better, lasting
connections with existing customers—and gain new ones as well.
USEFULNESS IS NOT JUST ABOUT HOW PEOPLE
USE A BRAND, IT’S ALSO HOW IT MAKES THEM
FEEL WHEN THEY USE IT.
9. 09THE USEFUL BRAND REPORT
THE USEFUL BRAND STUDY
DEFINING WHAT
USEFUL MEANS
METHODOLOGY
60+ Qualitative
Consumer Interviews
In Phase I, focus groups helped identify
potential elements of a Useful Brand.
Discussions with a wide range of
participants helped determine 44
possible aspects of a brand’s usefulness.
500+ Quantitative
Consumer Interviews
Phase II consisted of a wider survey
with more concrete data to help validate,
refine and rank those potential elements.
Extensive analysis helped narrow
down the 44 initial elements to 14.
5,500 Consumer
Surveys
In Phase III, a panel of consumers rated
300 top brands on the useful elements
determined in the previous two phases.
The panel ultimately helped rank the
brands and develop a usefulness index.
Outcome:
The Useful Brand Score
The Useful Brand Score is an analysis of a
brand’s usefulness to consumers. Think of it
like a FICO score. It’s a diagnostic tool to help
brands build plans to become more useful
and complete in the minds of consumers.
10. 10THE USEFUL BRAND REPORT
THE USEFUL BRAND STUDY
Value
GIVES ME SOMETHING
WORTHWHILE
Ease
PROVIDES A USER-
FRIENDLY EXPERIENCE
Innovation
OFFERS NEW IDEAS
AND SOLUTIONS
Trust
PROVES I CAN DEPEND
ON THE COMPANY
Consistency
DELIVERS THE SAME
RESULTS EACH TIME
Empowerment
ENHANCES MY ABILITIES
AT A NEW LEVEL
Friendliness
INTERACTS WITH
ME EASILY
Availability
IS ALWAYS THERE
WHEN I NEED IT
Efficiency
MAKES ME FASTER
AND MORE EFFECTIVE
Customization
CONFORMS TO ME
AND MY NEEDS
Confidence
DOES WHAT I EXPECT
IT TO DO
Safety
BRINGS ME NO HARM,
RISK OR INJURY
Quality
OFFERS THE
CALIBER I WANT
Association
REFLECTS WHO
I AM AS A PERSON
While many marketers may think about
“useful” as one easily definable term,
we found it’s actually much more.
We uncovered 14 elements consumers apply
to define a Useful Brand. They prove our
hypothesis that usefulness is not one thing—it’s
a mindset. From the way a brand interacts with
consumers (Friendliness) to the way they adapt
for consumers (Customization), all elements
make an impact on a brand’s overall usefulness.
Multi-phase statistical analysis allowed us
not only to identify these 14 elements, but
also to understand their relative importance.
For example, consumers told us Association
is the most important thing a brand can
offer, but not the only thing. Value, Efficiency
and Availability were all close behind.
Added together and weighted
correctly, these elements form the
unique DNA of the Useful Brand.
USEFUL IS
MANY THINGS
USEFUL BRAND COMPONENTS
14Elements
11. 11THE USEFUL BRAND REPORT
THE USEFUL BRAND STUDY
Once we identified the 14 elements, we
discovered they clearly divide into two sectors.
The Relationship sector contains
the more subjective and emotional
elements of a Useful Brand.
The Performance sector contains the more
rational, tangible and operational expectations
consumers have for a Useful Brand.
Instinctively, marketers may think of
usefulness as being directly related to
concrete, quantifiable tasks. But by listening to
consumers and analyzing the data we prove
usefulness is about function and emotion.
Both are important. Consumers see them
as two halves of a whole, and brands
must do the same. Being a Useful Brand
means mastering a balancing act—
succeeding in two areas simultaneously.
USEFUL IS
BALANCED
Value
GIVES ME SOMETHING
WORTHWHILE
Ease
PROVIDES A USER-
FRIENDLY EXPERIENCE
Innovation
OFFERS NEW IDEAS
AND SOLUTIONS
Trust
PROVES I CAN DEPEND
ON THE COMPANY
Consistency
DELIVERS THE SAME
RESULTS EACH TIME
Empowerment
ENHANCES MY ABILITIES
AT A NEW LEVEL
Friendliness
INTERACTS WITH
ME EASILY
Availability
IS ALWAYS THERE
WHEN I NEED IT
Efficiency
MAKES ME FASTER
AND MORE EFFECTIVE
Customization
CONFORMS TO ME
AND MY NEEDS
Confidence
DOES WHAT I EXPECT
IT TO DO
Safety
BRINGS ME NO HARM,
RISK OR INJURY
Quality
OFFERS THE
CALIBER I WANT
Association
REFLECTS WHO
I AM AS A PERSON
52%
48%
How does the brand
make me feel?
How does the brand
perform for me?
Relationship
Performance
12. 12THE USEFUL BRAND REPORT
THE USEFUL BRAND STUDY
USEFUL HAS
A SCORE
Value
Ease
Innovation
Trust
Consistency
Empowerment
Friendliness
Availability
Efficiency
Customization
Confidence
Safety
Quality
Association
IF A BRAND’S LINE EXTENDS BEYOND THE BASELINE, LIKE BURGER
KING IN CUSTOMIZATION, IT OUTPERFORMS THE CUMULATIVE
AVERAGE OF THE CATEGORY. IF IT FALLS WITHIN THE BASELINE,
LIKE BURGER KING IN EMPOWERMENT, IT UNDERPERFORMS.
A BRAND’S OVERALL
SCORE IS MADE UP OF THE
ACCURATELY WEIGHTED AND
COMBINED RELATIONSHIP
AND PERFORMANCE SCORES.
USEFUL BRAND SCORE
USEFUL BRAND ID
THE RELATIONSHIP AND
PERFORMANCE SCORES
ARE MADE UP OF THE
ELEMENT RATINGS IN THEIR
RESPECTIVE SECTORS.
BRAND
BASELINE
LEGEND
13. 13THE USEFUL BRAND REPORT
THE USEFUL BRAND STUDY
PUTTING THE ID
TO GOOD USE
COMPARISONS
BURGER KING
CATEGORY
BURGER KING
MCDONALD’S
MILLENNIALS
GEN X
BABY BOOMERS
MILLENNIALS RANK BURGER KING
LOWEST OF ALL AGE GROUPS.
MCDONALD’S OUTPERFORMS
BURGER KING IN AVAILABILITY.
AVAILABILITY
BURGER KING IS A LAGGARD
IN ITS CATEGORY.
Burger King vs. Category
Burger King vs. McDonald’s
Burger King by Age Groups
By creating Useful Brand IDs, we can easily take
a closer look at brands by category, competitors
and demographics. The wealth of data means
the comparisons are nearly endless. This
gives us a deeper understanding and a more
complete picture of exactly how consumers
evaluate the usefulness of each brand.
The Useful Brand Score + ID:
For example, we can layer multiple data
sets to see how Burger King’s usefulness
compares against the category, against
its major competitor and among
three different demographics.
Ranked at number 202 in the 300 brands
we studied, Burger King falls toward the
bottom in its category. It follows the general
Useful Brand ID pattern of other restaurants,
just at a lower level of usefulness.
Even though McDonald’s and Burger King
are highly comparable in the QSR category,
Burger King loses in terms of Availability.
With over 14,000 locations in the U.S.,
McDonald’s sheer number of restaurants
makes the brand there when people need it,
wherever they are.3 With Burger King only
reaching half that number of locations, it’s
easy to see why they may fall short.4
Somewhat surprisingly, Burger King is
seen as less useful by Millennials. Many
of their “oddvertising” marketing tactics
are aimed at the younger demographic.
Are they missing the mark?
• Highlight areas of strengths
and weaknesses
• Give brands an accurate perspective of
their position in the category
• Help companies develop a concise,
prioritized roadmap
15. 01. Amazon INTERNET
Ranked the number one Useful Brand, Amazon’s mission to get you what you need when you need it
(sometimes in under an hour) helps make it the most balanced and generally well regarded brand in
the panel. Offerings such as Prime, Video, Prime Now and Alexa give consumers instant gratification—
and show that what Amazon currently offers may only be the beginning. Young and old, well-off and
cost conscious, users and nonusers all agree: Amazon.com and its various services are highly useful.
THE USEFUL BRAND REPORT
THE USEFUL BRAND 100
15
WHO CAME OUT
ON TOP
THE USEFUL BRAND 100 02. Band-AidCPG
Johnson & Johnson’s Band-Aid Brand is an enduring icon
that sets the standard for Quality, particularly for GenXers,
upper middle-income homes and parents. Trust and
Confidence are also key ingredients in Band-Aid’s success.
With a variety of styles and solutions ranging from Hello
Kitty to sports injuries, Customization boosts their score.
03. Google INTERNET
The undisputed king of search connects users to what they need
to know, the way they want that information. Google scores
particularly high relative to its peers for being quick, easy to use
and on the cutting edge of technology. Google greatly outperforms
the other brands we studied in Confidence, Empowerment
and Innovation.
04. Kleenex CPG
Like Band-Aid, Kleenex has set the bar high in its CPG category.
Grocery decision makers and quality seekers in particular rate
Kleenex highly across multiple elements. Its product options for
almost any scenario, such as home, restroom or purse designs,
give it an edge over other brands in terms of Ease and Availability.
05. Visa FINANCIAL SERVICES
The credit card company’s knack for being almost
everywhere scores points with many different demographics
and psychographics. Online buyers, restaurant goers and
impulse shoppers rank this brand particularly high. Visa’s
high level of Availability is complemented by its ability
to reduce friction for consumers in everyday life.
SCORE
SCORE
SCORE
SCORE
CE
AMAZON
390
PERFORMANCE
418
808
RELATIONSHIP
BRAND
BASELINE
LEGEND
792
783
755
753
17. THE USEFUL BRAND REPORT
THE USEFUL BRAND 100
17
34.
Colgate
709CPG
SCORE 41.
Nike
697APPAREL
SCORE
37.
Ace Hardware
699RETAIL
SCORE 44.
Adobe Systems
696TECHNOLOGY
SCORE
35.
Lipton
705FOOD & BEVERAGE
SCORE 42.
Levi’s
696APPAREL
SCORE
38.
Advil
699CPG
SCORE 45.
LG Electronics
694TECHNOLOGY
SCORE
40.
Gillette
698CPG
SCORE 47.
Walgreens
692RETAIL
SCORE
36.
LEGO
704ENTERTAINMENT
SCORE 43.
YouTube
696INTERNET
SCORE
39.
Wikipedia
698INTERNET
SCORE 46.
Disney
693ENTERTAINMENT
SCORE
CATEGORY
WINNERS
The Useful Brand Study demonstrates
time and again that usefulness is
not just about function. It’s not just
the high-tech brands that are seen as
useful by consumers. CPG and Food &
Beverage brands make up one-third of
the top 100. Technology and Internet
brands add up to only 20 percent.
48.
Planters
691FOOD & BEVERAGE
SCORE
51.
Waze
690INTERNET
SCORE
49.
Target
691RETAIL
SCORE
52.
Reese’s
690FOOD & BEVERAGE
SCORE
54.
Betterment
689FINANCIAL SERVICES
SCORE
50.
Bed Bath & Beyond
691RETAIL
SCORE
53.
Postmates
689INTERNET
SCORE
55.
Febreze
688CPG
SCORE
58.
Honda
688AUTOMOTIVE
SCORE
56.
Listerine
688CPG
SCORE
57.
Minute Maid
688FOOD & BEVERAGE
SCORE
19. THE RANGE OF THE
USEFUL BRAND STUDY
An overlay of the Useful Brand IDs for the top brand (Amazon, #1), a middle-of-the-road
brand (Best Western Hotels, #150) and lowest ranked brand (Monster Energy, #300)
shows how a wide range of brands compare. Amazon sets the standard—far above
and beyond the last brand in the 300 we studied. Keeping the baseline at the same
scale across all visualizations of the Useful Brand ID gives us a standardized frame
of reference when looking at any brand. It’s easy to see how brands measure up.
BASELINE
LEGEND
THE USEFUL BRAND REPORT
THE USEFUL BRAND 100
19
90.
Gatorade
668FOOD & BEVERAGE
SCORE
93.
Pantene
666CPG
SCORE
97.
eBay
661INTERNET
SCORE
91.
Costco
667RETAIL
SCORE
87.
Snickers
670FOOD & BEVERAGE
SCORE
98.
Olive Garden
661RESTAURANT
SCORE
89.
Mattel
668ENTERTAINMENT
SCORE
100.
Enterprise Rent-A-Car
660TRAVEL & HOSPITALITY
SCORE
92.
Coca-Cola
666FOOD & BEVERAGE
SCORE
88.
Cascade
669CPG
SCORE
99.
Adidas
661APPAREL
SCORE
94.
Special K
664FOOD & BEVERAGE
SCORE
96.
State Farm
663FINANCIAL SERVICES
SCORE
95.
Hyatt Hotels
663TRAVEL & HOSPITALITY
SCORE
AMAZON
BEST WESTERN HOTELS
MONSTER ENERGY
20. THE USEFUL BRAND REPORT
THE USEFUL BRAND 100
Scoring Distribution
The distribution of the 300 brands we studied aligned closely with the bell curve.
Brands could receive a maximum overall score of 1,000. The consumers rated
brands as low as 474 and as high as 808. The average score was 636. According to
aggregated responses, most brands are only considered moderately useful.
Category Distribution
When we analyzed the scores by category, we realized consumers as a group think
that some categories are more useful than others. While it would be easy to assume
technology would come in first, we actually discovered that there are categories of
usefulness that are surprisingly low-tech, like Consumer Packaged Goods.
20
WHERE THE
BRANDS FALL
BRAND LANDSCAPE
25% 62% 13%
BELL CURVE SCORING DISTRIBUTION
0%
12%
474 544
544
580
615
618
632
633
634
639
642
652
656
678
698
715
636
SCORES BELOW 600 SCORES 600–700
SCORES
ABOVE 700
Category
PercentofBrandsStudied
Useful Brand ScoreUseful Brand Score
808 715641
APPLIANCES, 715
CPG, 698
TECHNOLOGY, 678
APPAREL, 656
ENTERTAINMENT, 652
FOOD/BEVERAGE, 642
INTERNET, 639
RESTAURANT, 634
RETAIL, 633
AUTOMOTIVE, 632
TRAVEL + HOSPITALITY, 618
FINANCIAL SERVICES, 615
TELECOMMUNICATIONS, 580
ALCOHOLIC BEVERAGES, 544
544 641 715
APPLIANCE
CPG
TECHNOLOGY
APPAREL
ENTERTAINMENT
FOOD + BEVERAGE
INTERNET
RESTAURANT
RETAIL
AUTOMOTIVE
TRAVEL + HOSPITALITY
FINANCIAL SERVICES
TELECOMMUNICATIONS
ALCOHOLIC BEVERAGE
22. THE USEFUL BRAND REPORT
MINING THE DATA
22
THE POWER OF
ASSOCIATION
ELEMENT INSIGHTS
Element Spotlight: Association
One of the most surprising discoveries was
just how important brand association is
when it comes to usefulness. Most people
associate usefulness with how a product
performs, but we found that the element
with the most weight was Association.
Consumers understand that they use brands
for practical purposes, but they also use
brands for personal reasons. Brands are
useful in helping consumers understand and
communicate something about themselves.
A person who wants to be seen as athletic
might wear Nike. Someone who believes they
are socially conscious might wear TOMS.
People who want to project the message that
they’ve made it—to others and to themselves—
might own a Porsche. Often, consumers are
defined by the brands they use, whether they
mean to be or not. If a consumer doesn’t
want to be associated with your brand,
they certainly don’t find it very useful.
ASSOCIATION
BRAND OVERALL RANKING ASSOCIATION RANKING
27
Bose ID
Ranking by Association Element
12
BRAND
BASELINE
LEGEND
Real-World Example: Bose
Bose is the single greatest beneficiary
of Association. Its overall Useful Brand
ranking is 27. When you rank all the brands
by this element it jumps up to 12, which is
interesting when you look at the market.
Its single greatest competitor, Apple-
owned Beats by Dre, markets its products
almost exclusively through Association—
people who own Beats are cool.
Bose, however, markets on Quality and
Performance. It would seem going to
market with a message that using Bose
over Beats says something about you
is an untapped opportunity. Is Bose
fully taking advantage of the strong
Association consumers feel for the brand?
23. THE USEFUL BRAND REPORT
MINING THE DATA
23
Element Spotlight: Value
The concept of Value required further
exploration early in the research process.
As one participant pointed out, “If I have
to pay $500 for $50 worth of utility, that’s
really not very useful, is it?” This sort
of mental accounting is prevalent in
behavioral economics and plays a critical
role in the health of a Useful Brand.
You can see how the elements of Association
and Value interact in this example. Let’s
say a wealthy, yet frugal, golfer buys his
tees at a discount shop. The fact that he’s
saving money caters to his overall sense of
Value, but he wouldn’t necessarily brag to
his golf buddies about where he shopped.
The discount shop’s overall Useful Brand
Score would be helped by a high Value score,
but dragged down by a low Association
score. All elements are interrelated, and
all have an impact on the overall score.
VALUE
BRAND OVERALL RANKING VALUE RANKING
29
Jell-O ID
Ranking by Value Element
10
BRAND
BASELINE
LEGEND
WHAT VALUE IS
REALLY WORTH
Real-World Example: Jell-O
One of the oldest Food & Beverage
companies we studied, Jell-O is seen
as a powerful Value brand. Overall, it’s
ranked 29. But when we look at the data
through the lens of the Value element,
it rises meteorically to the top 10.
Consumers understand and credit Jell-O
for doing so much and asking so little
in return. They get enjoyment, ease of
preparation, fun and variety—all for less
than a dollar. Put another way, that’s a
lot of usefulness for not a lot of money.
How can Jell-O use this insight to
capitalize on their high Value ranking
and protect against potential competitors
looking to take their place?
24. 24THE USEFUL BRAND REPORT
MINING THE DATA
TWO SIDES
TO A STORY
SECTOR INSIGHTS
Sector Spotlight: Relationship vs. Performance
The balance between the Relationship and Performance sectors becomes even more apparent
when we examine brands through those two lenses. We can see how consumers give a brand
credit in one area, while hinting that they could be doing more in the other. How can brands
take advantage of a strong Relationship score while also increasing their Performance score?
Hanes ID Crest ID Microsoft ID
BRAND
BASELINE
LEGEND
BRAND
BRAND
OVERALL RANKING
OVERALL RANKING
RELATIONSHIP RANKING
PERFORMANCE RANKING
16
16
22
22
09
09
Ranking by Relationship
Ranking by Performance
06
27
13
31
27
06
25. 25THE USEFUL BRAND REPORT
MINING THE DATA
THE ONLINE
BUYER BOOST
PSYCHOGRAPHIC INSIGHTS
BRAND OVERALL RANKING ONLINE SHOPPER RANKING
173
123
97
165
Ranking by Online Shoppers
20
25
22
16
Buyer Spotlight: Online Shoppers
Beyond the basic respondent information, we
solicited feedback on 15 psychographic profiles,
ranging from bargain hunters and grocery
decision makers to social media mavens and
online shoppers. This allowed us to see how
Useful Brands perform through the lens of
people’s opinions, behaviors and aspirations
in addition to traditional demographics.
For example, we can take a look at online
shopping-related brands such as Instacart,
Square and eBay from the perspective
of our online purchaser profile.
When ranked by all the consumers in our
panel, they fall toward the end of the pack.
But when we see these brands through online
buyers’ eyes, all have top 25 rankings. That’s
quite the jump from their overall position.
Instacart, the Internet-based grocery delivery
service, moves ahead of 150 brands—more
than half of the brands in our study.
Real-World Example: Publix
But online brands aren’t the only
ones to move up. Publix moves from
being ranked 165 by all consumers to
16 according to online shoppers.
While the supermarket chain does
offer online tools, they don’t offer
something online shoppers want—same-
or next-day home delivery, a service
that will no doubt continue to rise in
popularity in the years to come.
Looking at data in new ways uncovers
significant opportunities. It turns out
Publix recently started testing same-
day delivery in their Tampa Bay
market. Based on our data, we believe
it will prove to be a smart move.
26. 26THE USEFUL BRAND REPORT
MINING THE DATA
THE GENERATION
GAP IS REAL
DEMOGRAPHIC INSIGHTS
We assumed many rankings would shift among
different age groups, but what was surprising
was how they shifted.
Much research has been devoted to the
behaviors, attitudes and idiosyncrasies of
Millennials. Many explorations also find
that they see the world differently than older
generations. Looking at how brand rankings
change through the lenses of different
age groups, this study is no exception.
It’s tempting to crown Google as the biggest
beneficiary from the Millennial perspective
since it beat out Amazon. But the true winners
are LEGO, Oral-B and Netflix. Those brands
are ranked significantly higher by Millennials
than by Gen Xers and Baby Boomers.
Also, what power does Hewlett-Packard hold
over Boomers? This is not an insignificant
insight when you see this distinct relationship
and keep in mind the size and spending power
of the Baby Boomer market, which spends
$3.2 trillion annually according to AARP.5
Is
HP taking advantage of this brand affinity?
One tech giant that almost everyone uses
might not be universally loved across different
demographics. Google moves from the top
for Millennials, down to 3 for Gen Xers, then
out of the top 10 for Boomers. We could chalk
up that descent to Boomers being more
technologically out of touch, but they still
rank Amazon at the top. It seems like we’ve
found a significant deficiency for Google.
MILLENNIAL RANKING GEN X RANKING BOOMER RANKING
Ranking by Generations
28. 28THE USEFUL BRAND REPORT
BUILDING USEFUL BRANDS
The Useful Brand approach is an important
tool for understanding a brand’s overall
ability to engage and create value for
consumers. It’s also a powerful platform for
identifying a brand’s place in the category
as well as its opportunity for growth.
A brand’s overall score is seen in relationship
to the average of its competitive or
category set. This allows us to assign
one of three statuses and come up with a
plan of action for each type of brand.
Laggards are brands whose overall score
falls below the category average.
Performers are brands whose overall score
falls at or around the category average.
Leaders rise above the other brands
in their category by maintaining an
overall score that significantly exceeds
their competitors’ averages.
PUTTING USEFUL
INTO PRACTICE
LAGGARDS, PERFORMERS AND LEADERS
Laggard
Performer
Leader
NEEDS TO BECOME MORE USEFUL IN
ORDER TO TURN INTO A PERFORMER
NEEDS TO BECOME MORE USEFUL
IN ORDER TO TURN INTO A LEADER
WHILE GUARDING AGAINST
ADVANCING LAGGARDS
Looking within the Internet category,
we can see clear examples of brands
that measure up or miss the mark
in Craigslist, Etsy and Amazon.
NEEDS TO CUSHION THE LEAD
AND DEFEND ITS POSITION
AGAINST PERFORMERS
Levels of Usefulness
29. Data is one thing. Insight is another.
Through the Useful Brand study, T3 now has
the concrete facts and tools necessary to
understand a brand’s usefulness. But more
importantly we have the understanding and
experience to put the data to good use.
Our approach consists of three phases,
and we work closely with brands in a
methodical way through each stage.
First we get a clear picture of a brand’s
usefulness and find potential opportunities.
Then we develop a way forward through
a comprehensive program. Finally,
we help them execute and take their
usefulness to the next level.
HOW T3
CAN HELP
PROCESS
THE USEFUL BRAND REPORT
BUILDING USEFUL BRANDS
29
Phase One
We start off by getting a good grasp of a brand’s perceived usefulness
as related to consumers, its category and its competition.
Research: We work with a national panel of consumers to determine the Useful Brand Score.
Analyze: We look at how a brand compares to the market relative to its
category, competition and consumers to find the hidden insights.
Key Output: The Useful Brand Report shows how a brand performs on all 14 elements, its
category ranking and how it’s viewed by key demographics and purchaser profiles.
Phase Two
Then we further analyze the data to create a plan for making it actionable.
Find Gaps: We take stock of where a brand is falling short relative to
competitors and according to consumers to identify opportunities.
Prioritize: We determine what opportunities brands should pursue now vs. later.
Key Output: A Useful Brand roadmap is more than a planning document that helps define
level of effort. It’s part of a relationship with our clients to continually improve their usefulness.
Phase Three
Finally, we roll up our sleeves and execute against the strategy.
Build: Following the roadmap, we determine and kick off key milestones
as projects with the greater team to bring them to market.
Say: As the last step, we figure out the best way to communicate to
consumers how we’ve made the brand more useful.
Key Output: A more Useful Brand is built. The deliverables can be anything from an app to
a new product feature—along with a communication strategy to bring it to market.
Understand
Plan
Do, Then Say
31. 31
USEFUL: THE NEW
WAY FORWARD
FINAL THOUGHTS
Do, Then Say
Positioning is no longer enough. Brands must create
value for consumers first, then create messaging around
that value. We’re in the new age of “do, then say.”
Relationship + Performance
Consumers see brand usefulness as a balance between two
complementary sectors: Relationship and Performance.
Companies must make themselves useful in emotional and
functional ways.
Finding Opportunities
Usefulness means many things to many people. By determining a
company’s Useful Brand Score and ID, we can perform a thorough
exploration of a brand’s perceived usefulness and analyze it by
consumers, categories and competitors. This identifies strengths
and opportunities.
Building the Useful Brand
With an accurate understanding of usefulness, brands
can create a prioritized roadmap and make better
decisions about investments and resources. The
right insights can help brands become more useful to
consumers, which in turn help them succeed.
THE USEFUL BRAND REPORT
CONCLUSION
BRANDRELATIONSHIPANDPERFORMANCE,2SECTORS
BRAND RELATIONSHIP
+ PERFORMANCE
LAGGARD
PERFORMER
LEADER
Notes
1 IBM Customer Experience Divide Study 2 T3 Useful Brand Study 3 McDonald’s 2014 Financial Information
4 Burger King Worldwide Reports Q3 2014 Results 5 U.S. Census Bureau, 2013 Consumer Expenditure Survey
It’s Time for a Change
The world has shifted. Talking about being
useful isn’t enough. You have to back it up. You
have to understand what usefulness means
to consumers, in all of its many aspects,
and step up to their high expectations.
Change can be difficult, but it’s also
full of opportunity—for those who take
advantage of it. Smart brands have the
chance to move past competitors.
Armed with the “do, then say” knowledge and
approach, companies can tap into this shift
in the marketing landscape. The brands that
adapt the fastest will be the ones that win.
What We Were Made to Do
We’ve been helping brands become more
useful for nearly three decades. It’s something
we’re passionate about, and we’d love to talk
about it with you. If you have any questions
about our findings or are interested in
working with us, please get in touch.
For more insights on Useful Brands, contact
Ben Gaddis, Chief Innovation Officer at
ben.gaddis@t-3.com or 512.721.1380.
