Episode Transcript
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Speaker 1 (00:00):
Welcome back to the
Brand Builder Lab.
Speaker 2 (00:01):
Great to be here.
Speaker 1 (00:02):
We're here to give
you your daily dose of creative
inspiration for building yourbrand, helping you cut through
all that noise out there.
Speaker 2 (00:08):
Yeah, there's a lot
of it and connect in a world
that feels well pretty chaoticright now.
Speaker 1 (00:15):
Absolutely.
Today we're drawing inspirationfor the Brand Builder Lab
newsletter, which really tacklesa huge issue.
Speaker 2 (00:22):
It does, it gets
right into this massive
problem-facing brands.
You know scale and history, thethings that used to protect you
, yeah Well, they aren't enoughanymore.
The newsletter points outsomething pretty stark Since the
digital boom like around 2000,.
Over half of the original.
Speaker 1 (00:42):
Fortune 500 companies
are just gone.
Wait over half.
Speaker 2 (00:44):
Vantage Gone
Dissolved, acquired bankrupt,
you name it Wow.
Speaker 1 (00:48):
That really makes you
rethink things, doesn't it?
It shows that just being big orhaving been around forever it
guarantees nothing now.
Speaker 2 (00:56):
Exactly, and the real
disruption, it's often not the
usual suspects, the oldcompetitors Right.
It's these community-firstbrands, maybe even creator
driven ones, that pop up andbuild something fundamentally
different.
Speaker 1 (01:09):
How so Different how.
Speaker 2 (01:10):
They connect
emotionally in a way that,
frankly, a lot of the legacyplayers just struggle with.
Speaker 1 (01:16):
Okay.
So the core idea the newsletterreally emphasizes is
sustainable growth.
Isn't about chasing short-termmetrics or relying on your past
reputation.
It's built by focusing onfeelings, like how do you
actually make people feel?
Speaker 2 (01:32):
Precisely the brands
that are winning and the ones
set up to win in the future.
They're cultivating realemotional connections.
Speaker 1 (01:38):
You're not just
selling stuff.
Speaker 2 (01:40):
No, it's building
loyalty, building community,
resonating deeper.
And there's, you know, soliddata behind this.
It's not just fluff.
Speaker 1 (01:48):
You see it, even with
giants right, Like the
newsletters.
Example Coke versus Pepsi,classic rivalry.
Speaker 2 (01:53):
A perfect example.
Back in 85, they were neck andneck in the US Market share
around 20% each, even after Cokehad been around for ages.
Speaker 1 (02:01):
And Coke has always
been a masterclass in building
those emotional culturalconnections, for a way.
Speaker 2 (02:06):
Oh, absolutely, their
advertising their visuals.
I mean, Coke is apparently thesecond most recognized English
word after OK.
Speaker 1 (02:14):
Seriously, that's
incredible.
Speaker 2 (02:15):
It says a lot about
their power to differentiate
through feeling, throughassociation.
Speaker 1 (02:20):
It really does.
But OK, even with Coke beingthis brand value titan, the
newsletter mentioned thatPepsi's brand value has actually
grown quite a bit over the last.
What 25 years.
Speaker 2 (02:31):
They've definitely
held their own.
Yeah, but here's where it getsinteresting.
Tying back to that communitything, the newsletter
highlighted recent 80 weekresearch.
It shows Sprite a Coke brand,remember is starting to leapfrog
Pepsi, leapfrog Pepsi.
Speaker 1 (02:45):
Leapfrog Pepsi.
Speaker 2 (02:46):
Well, specifically
activating youth communities.
And here's the kicker.
Speaker 1 (02:50):
Yeah.
Speaker 2 (02:50):
They're apparently
doing it with about half of
Pepsi's ad spend.
Speaker 1 (02:54):
Half the spend, but
jumping ahead.
That's why.
Speaker 2 (02:56):
Yeah, sprite example.
It's such a clear signal of theshift we're talking about.
It's not just budget size ordistribution anymore, it's about
how effective that connectionis.
Exactly, sprite seems to befinding ways to like embed
itself authentically withincertain communities, speaking
their language, showing up wherethey are, fostering that sense
(03:16):
of shared identity.
Speaker 1 (03:18):
Right Resonance over
just awareness.
So this isn't just theory,these warm fuzzy feeling stuff,
this focus on emotion, oncommunity, it's a hard strategic
advantage.
It impacts the bottom line.
Speaker 2 (03:30):
Totally, and the
numbers cited in the newsletter.
They're pretty hard to ignore.
Like Ipsos found, brandstriggering strong emotions see a
three times greater brand lift.
Speaker 1 (03:39):
Three times?
Ok, let's unpack brand lift fora second.
What does that actually mean?
Is it just people knowing thename or, okay, let's unpack
brand lift for a second?
Speaker 2 (03:45):
What does that
actually mean?
Is it just people knowing thename, or it's usually more than
that?
Yeah, awareness, but alsothings like message, recall how
much people like the brand,whether they intend to buy it.
Speaker 1 (03:51):
Got it so strong
feelings don't just make people
remember you.
Speaker 2 (03:55):
No, they make them
like you more and actually be
more likely to choose you.
That's a direct hit on themarketing funnel.
Speaker 1 (04:00):
Okay, that makes
perfect sense.
Speaker 2 (04:09):
Yeah, Over double.
Think about that.
Just listing features might getyou a sale, but focusing on how
your brand makes people feelthat can literally double your
profit.
Speaker 1 (04:19):
Does it mean better
margins or?
Speaker 2 (04:21):
Yeah, probably a mix
Better margins, more repeat buys
.
People are less sensitive aboutprice.
You're building value beyondjust the product itself.
Speaker 1 (04:29):
So it's not just
about being efficient, it's
fundamental to business value.
Speaker 2 (04:33):
Yeah.
Speaker 1 (04:33):
And the value grows.
Numbers Kantar Research sayingmeaningful and different brands
grow value 2.5 times faster.
Speaker 2 (04:42):
Yes and being
meaningful, being different.
Those are key results of strongemotional branding and
community focus.
When you stand for something,connect in a way that feels
significant.
You just become more valuablefaster.
Speaker 1 (04:57):
And gives you more
clout in the market too.
Right?
Distinctive brands grow twiceas fast and emotive brands have
1.5 times the pricing power.
Speaker 2 (05:02):
That's also cantar
that pricing power bid is huge.
Anyone running a business knowsthat it means.
Because of that emotional bond,people pay more exactly they're
willing to pay a premium.
You're not just fighting onprice anymore, you're competing
on connection, on perceivedvalue.
That's powerful.
Speaker 1 (05:19):
And it changes the
whole customer relationship long
term.
I saw that Motista's stat inthe newsletter emotionally
connected customers have 306percent higher lifetime value.
306 percent.
Speaker 2 (05:31):
It's almost hard to
wrap your head around.
Right, it's not a small bump.
It transforms a customer fromlike a one-off buyer.
Speaker 1 (05:37):
Into an advocate.
Speaker 2 (05:38):
Totally.
Someone who buys more stayslonger is less likely to leave,
and Harvard Business Reviewfound something similar
Emotionally connected customersare twice as valuable as just
satisfied ones.
Speaker 1 (05:50):
So satisfaction isn't
enough.
Speaker 2 (05:52):
It's important, sure,
but that emotional layer that
unlocks so much more value.
Speaker 1 (05:56):
Which means ignoring
emotion isn't just less good,
it's actively leaving money,huge potential on the table,
even online.
Speaker 2 (06:05):
Especially online.
Sometimes, Kantar and Effectivafound digital ads evoking
strong emotions four times morelikely to build brand equity.
Speaker 1 (06:13):
Four times.
Speaker 2 (06:14):
And Nielsen found ads
with above-a average emotional
scores generate 23% more salesvolume.
Even in performance marketing,emotion isn't noise, it's an
amplifier.
Speaker 1 (06:25):
It feels like every
single data point just
reinforces it.
Feelings drive real results.
And that Motista number again71% of customers recommend a
brand based on emotionalconnection.
Speaker 2 (06:37):
That's the dream,
isn't it?
Word of mouth driven by realaffinity.
Speaker 1 (06:40):
The ultimate
marketing.
Speaker 2 (06:41):
It really is and this
is where those community first
brands just shine.
They get this, they leverage itinherently.
Speaker 1 (06:47):
Yeah, the newsletter
lists some great ones Liquid
Death, elf Beauty, Glossier,Duolingo, Oatly, Poppi, Ritual,
Crocs, the NBA, Lego, Peloton,YouTube, even.
Speaker 2 (06:59):
It's a diverse list,
but they share something.
They aren't just running ads,they're cultivating movements.
Speaker 1 (07:04):
That's a good way to
put it.
They're selling belonging, notjust water or makeup or language
apps.
Speaker 2 (07:09):
Exactly, they often
have these really distinct
voices, sometimes kind ofprovocative.
They attract passionatefollowers, almost cult-like.
Sometimes they create rituals,symbols.
People feel part of something.
The newsletter calls thembrands with emotional engines.
Speaker 1 (07:21):
Emotional engines.
Okay, that sounds intentional,not accidental.
How do they actually build andlike fuel those engines?
Speaker 2 (07:28):
Right.
So this is where the newsletterintroduces the LAVEC method.
It's pronounced LAVEC, lavec,lavec.
It's a system that came out ofstudying like over 1,500 of
these fast-growing disruptivebrands, you know, the ones on
the fast company most innovativelists, inc.
5,000.
Speaker 1 (07:46):
So it's based on
what's actually working for
these successful disruptors,what makes it a system.
Speaker 2 (07:51):
It's a systems
thinking approach.
It looks at all the connectedpieces that create that
emotional resonance.
It's meant to be a holistickind of objective way to see
where your brand is emotionallyand figure out how to evolve it.
Speaker 1 (08:04):
So it helps assess
your assets, audience intent,
behavioral impact.
Speaker 2 (08:07):
Yeah, all of that
Bringing some structure to
something that can feel reallyfuzzy.
Speaker 1 (08:11):
Definitely it sounds
like applying intelligence to
creativity.
Speaker 2 (08:15):
That's a good way to
think about it, applying
creativity strategically and thenewsletter stresses you don't
need like a formal design degreeor deep strategy background
necessarily.
Speaker 1 (08:25):
Just creativity,
applied thoughtfully.
Speaker 2 (08:27):
Exactly.
Fundamentally, lavsc is aboutearning trust, sparking that
lasting loyalty and reallyembedding your brand into the
emotional world of yourcommunities.
Speaker 1 (08:35):
Okay, so what are the
five elements
Speaker 2 (08:38):
Right.
So first is lexicon triggers.
Speaker 1 (08:42):
Lexicon Like words.
Speaker 2 (08:44):
Exactly the specific
words, phrases, slang, the whole
language your brand uses.
Is it formal, playful, edgy?
Does it sound real to thecommunity you want to reach?
Speaker 1 (08:55):
Okay, L is lexicon.
What's A?
Speaker 2 (08:57):
Audio cues Think
sounds, jingles, theme music,
voiceover style.
Speaker 1 (09:02):
Like the Intel bong
sound maybe.
Speaker 2 (09:04):
Perfect example those
iconic sounds.
They create instant recognition, evoke feelings.
Speaker 1 (09:08):
Got it L-A-V.
Speaker 2 (09:09):
Visual stimuli,
everything you see Logos, colors
, fonts, photos, video, stylepackaging, the whole visual
personality.
Speaker 1 (09:16):
Where it says.
Speaker 2 (09:17):
E Experience driver.
This is crucial.
It's the feeling people getwhen they interact with your
brand at any point.
Speaker 1 (09:22):
Any point.
Speaker 2 (09:23):
Website visit using
the product calling customer
service going to an event.
What's the emotional texture ofthat whole interaction?
Is it smooth, Frustrating, Fun,Inspiring?
Speaker 1 (09:36):
Oh, ok, that's broad
L-A-V-E-C.
Speaker 2 (09:38):
And cultural
connections.
How does your brand connectwith or tap into or even shape
cultural trends, values, causes,subcultures?
How does it become part ofsomeone's identity or lifestyle?
Speaker 1 (09:51):
Lexicon Audio Visual
Experience Cultural Connections
L-A-V-E-C.
Ok, that really breaks it down.
Can we apply it quickly?
Yeah, maybe to one of thosebrands like Liquid Death.
Speaker 2 (09:59):
Yeah, Perfect example
Liquid Death, their lexicon,
super aggressive counterculture,murder your thirst.
Death to plastic Right.
Speaker 1 (10:07):
Very distinct.
Speaker 2 (10:07):
Their audio, often
heavy music screaming in ads.
Their visuals that tall boy can.
The skull logo, the crazyimagery totally unique.
Speaker 1 (10:15):
Definitely visual.
Speaker 2 (10:16):
The experience they
project is all about rebellion,
irreference and their culturalconnections Deep in
skateboarding, punk rock, thatwhole vibe.
Speaker 1 (10:24):
So they align all
those LAVEC elements.
Speaker 2 (10:26):
Exactly.
They're all pointing in thesame direction, building this
really strong emotional identityand pulling in that specific,
passionate community.
Speaker 1 (10:34):
That makes the
framework much clearer.
It's about ensuring all thosesignals work together to create
a specific feeling, a specificconnection, and the newsletter
mentioned this approach hasroots in systems thinking,
behavioral science Kahneman,thaler, donella, meadows.
Speaker 2 (10:49):
Yeah, drawing from
those big thinkers, it adds that
layer of rigor.
It suggests this isn't just,you know, marketing guesswork.
It's grounded in how complexsystems actually work and how we
humans make decisions.
Speaker 1 (11:00):
The emotion isn't
irrational, it's just another
system driver.
Speaker 2 (11:04):
Precisely, which
loops us back to Coke versus
Pepsi.
Looking at it through thatlight, lav AES analysis.
Speaker 1 (11:10):
the newsletter
mentioned Right, we said Coke
historically mastered theemotional assets.
Speaker 2 (11:15):
For decades.
Yeah, Especially visuals, audio, those classic jingles and deep
cultural connections worldwide.
Pepsi built strong assets too,for sure, but the future.
The newsletter argues thefuture isn't just about who has
the strongest history.
It's about who can keepcalibrating their LAVEC elements
, lexicon, audio, visual,experience, culture, to stay
(11:35):
relevant and resonant with theircore communities now and going
forward.
Speaker 1 (11:39):
And that's where
Sprite comes in today.
Maybe leapfrogging Pepsi withyounger groups.
Speaker 2 (11:45):
It suggests Sprite
might be doing a better job
calibrating its LAVECspecifically for that audience
right now.
Speaker 1 (11:51):
Maybe their lexicon
feels more current.
Their audio choices, theexperience on the platforms
youth use, feels more authentic.
Their cultural connections feelmore plugged into specific
subcultures today.
Speaker 2 (12:03):
Could be all of the
above.
It's dynamic.
The world shifts, communitieschange, brands have to
constantly tune those emotionalengines to stay relevant,
investing systemically in thatconnection.
It's not just survival anymore.
It's about leading, connectingdeeply in a world that really
craves that authenticity andbelonging.
Speaker 1 (12:19):
So it's about using
creativity intentionally,
systemically focusing on thehuman side first to get those
strategic results.
Speaker 2 (12:26):
Ultimately yeah,
Speaker 1 (12:30):
And, like the
newsletter says, brands like
Duolingo, elf, Liquid Death,Crocs, NBC, Lego, Peloton,
YouTube, poppi they prove it,that deep emotional connection,
that community vibe, it canabsolutely beat massive ad
budgets that just run attention.
Speaker 2 (12:46):
Because they're
building owned attention, owned
affinity and the real threatmoving forward.
It might not be the big legacyplayer down the street.
Speaker 1 (12:55):
Who then?
Speaker 2 (12:56):
It could be that
nimble community first startup
or, increasingly, maybe a brandbuilt by a creator with a huge,
super engaged audience alreadybaked in Think you know, a Mr
Beast or a Kardashian, or even areally successful crowdfunded
founder.
Speaker 1 (13:13):
That's, yeah, that's
a powerful thought for anyone.
Building a brand Is yourbiggest competitor someone using
their direct emotional linkwith an audience you haven't
even thought about.
Speaker 2 (13:22):
It definitely makes
you reassess the landscape,
where the real leverage is today.
Speaker 1 (13:26):
Well, if you want to
explore these ideas more,
understand the secrets of thesefast-growing brands and really
focus on emotion in your ownwork, I definitely recommend
checking out Kai D Wright's book.
It's called Follow the FeelingBrand Building in a Noisy World.
Speaker 2 (13:40):
It really dives deep
into this stuff and for ongoing
insights like the ones wediscussed, definitely subscribe
to the Brand Builder Labnewsletter on LinkedIn.
That's where today'sinspiration came from.
Speaker 1 (13:50):
Oh, and speaking of
the newsletter, you can actually
download a free PDF guiderelated to the content we talked
about today.
It's great to save, share withyour team, use for brainstorming
or just send to someone youknow building a brand.
Speaker 2 (14:03):
Yeah, it's a handy
resource.
Speaker 1 (14:04):
Just visit the Brand
Builder Lab newsletter page on
LinkedIn.
You can grab that PDF guide forfree right there.
Speaker 2 (14:10):
Gives you a good
summary, some prompts to get you
thinking based on these ideas.
Speaker 1 (14:15):
Definitely food for
thought as you work on building
those connections that are morethan just transactions real
relationships.
Thanks for tuning in.
See you next time in the BrandBuilder Lab.
Let's get to work.