Commentary

Brands Must Be Built Inside Out

  • by , Op-Ed Contributor, March 6, 2017

Last year was a turbulent one. And the world continues to be so. Global events have affected society and especially millennials, as our 2017 millennial survey revealed: Many among this influential generation feel that a “closed,” pessimistic world is rising. 

Today, consumers who have witnessed scandals from high-profile global brands have seen the truth — that the inner reality of a company determines its external reputation over the long term. The inside and the outside are dependent on each other. That’s why they are demanding openness, transparency and candor from the companies they reward with their wallets, only placing their trust and loyalty in companies and brands they see as authentic and consistent with what they say and do. 

But, in a world where consumer confidence is low and trust in brands and companies has declined by 50% over the past 10 years, how can brands win back consumer’s trust? 

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It is not an easy task, but in The Impact Project, a global investigation we conducted of how great brands are built today, we discovered that brands that are opening up to consumers and focusing on their inside are winning the battle of trust. 

There’s no magic recipe to do this but there’s definitely a common ingredient: Culture.Brands that are putting culture at the center of every decision and building from it outwards are producing better products, services and a more authentic reputation. The best part? This genuine, purposeful approach is often followed by profits. 

For example, after only five years in the market, online retailer Everlane has mastered building a culture of transparency with its customers. The brand truly embraces its motto of “radical transparency,” showing consumers how, where, and why it sources its apparel. And by developing personal relationships with suppliers in Asia and reinvesting into those companies, Everlane has created connections that not only sustain their business model but also improve the lives of their workers. This company’s ethos has transformed into a $250 million valuation. 

Building inside out also means protecting and cultivating talent. Successful brands understand that employees are their first and most important stakeholders. At Heldergroen, a Dutch design studio, employees are physically forced to find a work/life balance. Every day at 6 o’clock, the company desks, chairs and computers automatically retract to the ceiling. And, just like that, work ends and life begins. 

Another example is General Assembly, the computer programming coding boot camp. CEO Jeff Schwartz fosters an open communication working culture and encourages employees to ask him questions at any time. But the most important aspect is that the company gives employees the autonomy, direction and purpose to succeed at their jobs. The brand relentlessly follows their motto, “Keep getting better,” which has been key to connecting with employees as well as with consumers and their values. 

It’s hard to win consumers’ trust back when they have witnessed so many scandals and false promises. But it is not impossible. When a brand is authentic and is driven by its purpose and culture, it is setting itself up for long-term, sustainable loyalty and growth that fosters success.

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