In our society, Andreas Horx sees a continuous development towards a "new openness", which has far-reaching effects on the brand communication of companies. In order to recognize which forces affect corporate and product brands, but also to be able to use the potential in a targeted manner, he addresses four central factors that must be carefully considered for a brand management concept.
Drivers of brand management with social media
Andreas Horx calls the central factors on which a concept of brand management with social media should be based "drivers. "Today, connectivity is extremely high worldwide and now extends through all levels of society," Horx states by way of introduction. Addressing connectivity, he says, means understanding the increasing organization of humanity in networks. Web 2.0 applications (social media) play an important role in the social networking of people. But how far can I exploit the potential of connectivity to integrate users into a company's value creation process, if necessary? With the "New Openness," Horx answers. By this he means the step "from the collective to the connective," whereby sharing content will become part of everyday life in the future and openness will be its central characteristic. "Sharing is more important than owning," he adds. The path leads away from credit to reputation, away from advertising to community, says Horx. However, such a step needs clear rules and leadership, and brand management must be handled sensitively in the social world. The step into digital brand management also harbors an active influence of the customer on the brand image. "What is achieved counts, not what is told is enough," Horx emphasizes. After all, not only can the number of relevant costumer touchpoints be many, but changes here are also happening very quickly and inquiries must now be responded to very quickly. Not to be neglected is the impact of brand management with social media on the company. According to Horx, this will involve fundamental change processes in companies. For example, it is about the reduction of departmental thinking - towards networked thinking & acting. This will give every employee the opportunity to develop from a "passive" to a "connected" employee. "Perhaps there will soon be no need for a works council," Horx suspects.
In an interview with Werbewoche, Andreas Horx reveals exactly what he means by "revolutionary change" and how a company can respond to it with a targeted brand management concept.
Werbewoche: Andreas Horx, is the Swiss economy ready for digital brand management?
Andreas Horx: The answer to the crucial question. I don't think you can give a blanket yes or no answer to that. I think that since companies are facing fundamental challenges today - accompanying the digitization of business processes and finding an answer to how they want to map their business model there in the future/it will be influenced by it - every company should work out scenarios parallel to their current business model as to how they want to position themselves in the face of such a far-reaching development. I think you have to initiate a corporate strategy process in parallel because, compared to the past, the changes in business are faster and more sustainable.
That sounds very complex. How should we imagine the model of such parallel strategies?
The bottom line is that a business task force would be set up under the leadership of management. But not only in the sense of the management, other qualifications must also be involved in the further process, which then accompany the strategy process of the future business model. I have already accompanied such a strategy at a large travel insurer in Europe, where they met continuously to develop new scenarios that take into account everything that is changing with digitization.
So you're saying that despite the concept, the results of brand management with social media can't really be assessed and therefore a business task force needs to develop parallel strategies?
Yes, I think the "try and error" will be part of it for quite a while. But, the more you look at the strategic dimension and the fundamental drivers (connectivity, technology, transparency, new openness) and their impact on the business, the further you get in answering the question of where the business model of the company should go. The user today is not my user tomorrow. So I shouldn't always be chasing the customer, but instead have a broader view. For example, MacDonalds is currently having big problems in the U.S. because the customer now has a changed need for food and integration. You have to think clearly about what the business model will look like in ten years' time.
Would you recommend digital brand management for companies that are not primarily sales-oriented?
That depends on the messaging potential of a brand. If the storytelling of a brand is relevant, then that is certainly an indicator that you should think about social media strategies. In this respect, you should simply listen to the social media channels, because almost all brands are talked about there. Then, at this point, you have to make a decision before taking the next step. Because opening the door to social media is a consequence that involves a lot of work and money, and you can't close it again so quickly. In that respect, such a business decision is significant and I would think about it much more carefully. In principle, however, the following applies: Brands with corresponding word-of-mouth potential have a thoroughly good relevance for social media.
But opening this door also means the risk of escalation.
Right. In digital media, what you do or don't do becomes more transparent at the same time. So the moment you decide to use social media, you also have to have escalation strategies ready. In other words, if the users out there are not happy, transparency and honesty are important factors in responding properly. We in the communications industry should have learned from the various shitstorms by now.
So in your opinion, it is worthwhile for the majority of all companies to take this step, despite the risk?
There are many companies for which it is worthwhile. However, this is always a fundamental corporate strategy decision to open up to social media without having to close the door again later due to misjudgments. A TV spot, on the other hand, I can turn off again. Such social media strategies are not only interesting for B2C - no, they are also very good for B2B. If you look at customer service, for example, which can be controlled via communities, you can see this very well. The most famous is Apple with the "Apple Talk". There I post my problem in the community and somewhere in the world there is someone who has already had the problem. These are not Apple's own employees, but the community answers the questions because they think the product is so cool and want to help others. So they are actually my service partners. Outsourcing customer service to the community like this is, as you can see, not just a B2C issue. Companies in the B2B space, 90-95 percent of the time, before they buy something, they get their information through digital media. So if I build up a service community with my B2B partners, for example, that can be an interesting business model.
In which direction do you think the innovative power of social media is heading?
This innovative power is extremely strong. For example, you can see completely new business models that have developed as a result of the "share economy," i.e., sharing instead of owning. For example, in the tourism industry, the "Share a bed, underAirbnb.com". In the transport sector, the new cab service "Uber" is very interesting to watch. Here they want to break up the encrusted regulated structures, with an intelligent idea, social media and staying power. And I predict they will succeed! Because it is simply time to allow alternative business models. So I think there's a lot of power in it. But how you break it down for the individual company is a very individual question.
Their statements and example leave the impression that there is a strong competition growing up in the field of social media, which sooner or later not many companies will be able to escape.
I would put it more cautiously: Today, companies have to find an answer to the question of how they want to deal with the topic of social media and the changes that go hand in hand with it. The majority of companies will have to face this question sooner or later. As you can see with Coca Cola and McDonalds, these companies are struggling and are now partly running behind the development instead of driving it as before. Contrast this with the example of Proctor & Gamble, whose concept, for example, in the B2B area with the "connect+develop" platform, which has been extraordinarily successful. So you can clearly see the differences between the driver and the driven.
Do you assume that a large proportion of companies - right up to management level - will have to deal with social media?
Absolutely. If you look at the middle class, which is the basis and stability of the economy in Germany and Switzerland, this is absolutely necessary.... You can deal with social media in the course of generation regulation. This is, of course, a big task. The "people in charge" of the respective company have done many things right, but now comes a new world of thinking, which is very contrary to what they knew before. Accordingly, the challenge for these companies is that someone from the family - in the succession - sets up these processes. The "patriarch" will in part only be able to understand this to a limited extent, because it is simply a completely different dimension of thinking.
You're talking about huge upheavals. What role does Facebook play here?
Facebook is just one platform of many. It is hardly worthwhile for companies anymore, as the CEO of Webguerillas from Germany, Martin Wittman, recently said. At the same time, we are currently seeing a so-called "de-friending movement. This means that around 25 percent of young people are leaving Facebook. The older ones are going in, but the young ones are all going out. They are looking for other platforms that are only now becoming more popular.
These are landslide-like changes, of course. But that's exactly how it is. For example, do you remember AOL, with its campaign featuring Boris Becker's saying "I'm in"? Where is the company today? Does Yahoo still have much market power in Europe? As quickly as one thing comes, another will go - we have a high speed of change these days. Quite a few companies didn't understand the trend/didn't evolve, and then just left.
But platforms are used very differently across cultures. How do you see that?
This is an important aspect to consider in a social media strategy. All the more so if it is a global strategy....
In your presentation, you also linked large-scale processes and global sharing to another topic, the sharing of food. What specific changes do you see in this area?
I see this as a motivationally important field for me. Because in retrospect, advertising is a very superficial thing; we build the beautiful glittering world for products, which in reality sometimes looks different. We should really make sure that advertising is sustainable and that certain things are more in the spotlight. Just like water and food is scarce, some people here in Zurich don't have access to regular food. At least that can be solved right here, for example with "foodsharing" - a recycling of the majority of food that is simply thrown away after an event. I myself have called organizations after company events to have the surplus food picked up and distributed. That is the least. Now, to look at the global, we can't help but think more socially. Unfortunately, this is something that is very contrary to people per se and in its fast pace and short-term thinking. In the social media, however, completely different levers can now develop, people and opinions can be bundled and become a strong movement - and in this sense, society will then also change in the long term. Whether or not this is a change for the better is an exciting question. If you look at the political movements in Saudi Arabia, Tunisia, or North Africa, for example, then this is/was certainly a good path in part. In this sense, social media is also a kind of regulator and this is a powerful & sustainable development that we can all use positively for ourselves privately, or in business.
Interview: Ursina Maurer
In addition to his work as a speaker, Andreas Horx is managing director of his own company Horxbrandconsult - a management consultancy for brand management and strategic communication. He is also active as a lecturer at private educational institutions and co-editor of the book "Social Branding".