TOMS Roasting Co. vs. Vogue’s Kimye Cover: A Cautionary Tale in Brand Evolution

Trends come and go. New technologies emerge. Consumer tastes, preferences and habits shift. As a result, brands must evolve or die. But with change comes risk. Will your next big idea be the next big thing or just a big black eye? After all, the history of marketing is riddled with spectacular failures and flops. Sony Betamax. New Coke. The Gap retro logo redesign debacle of 2010. In just the past few weeks two major brands – TOMS and Vogue – have taken major evolutionary leaps with very disparate results. Let’s examine their stories and the valuable lessons they offer to us all in how to maximize our brands’ possibilities for growth while avoiding potentially disastrous pitfalls.

TOMS takes on coffee.

On March 11, TOMS founder and CEO Blake Mycoskie took the stage at South by Southwest to announce its latest venture: TOMS Roasting Co., an ambitious new brand offshoot that encompasses a chain of coffee bars, a wholesale roasting business and an online subscription-based coffee club. Following the “one for one” business model that TOMS first pioneered with its shoes (donating a pair of shoes to a child in need for every pair sold), their coffee likewise comes served with a plan for doing social good. In this case, the “give” (in TOMS-speak) is water. For every bag of beans and cup of joe sold, TOMS will provide clean water to a person in one of the communities in Rwanda, Malawai, Guatemala, Honduras or Peru where TOMS sources its beans. The goal is to make “one for one” giving as much of a deeply ingrained part of their customers’ daily routines as their morning coffee. Reaction to this new venture has been overwhelmingly positive, with celebrities and average Joes alike singing the company’s praises on social media. Actress Olivia Wilde (@oliviawilde) tweeted, “Caffeine with a cause? Don’t mind if I do. I’m helping @TOMS’ mission to provide clean water.” Twitter user @hopevandy said, “TOMS is now selling coffee. My life is now complete.” It’s hard to ask for a more enthusiastic endorsement than that. While only time will tell if TOMS Roasting Co. is truly a sustainable business venture, it’s certainly emerged onto the scene with a well-caffeinated jolt.

Vogue bows to pop culture.

Jennifer Lawrence. Jessica Chastain. Kate Winslet. Sandra Bullock. Michelle Obama. Kim Kardashian and Kanye West. Which of these things is not like the other? On March 21, Vogue magazine proudly unveiled the cover of its April 2014 issue, featuring none other than tabloid power-duo Kim Kardashian and Kanye West (or as they’re known in pop culture circles by their portmanteau, “Kimye"). Immediately, the backlash was swift and vehement, with fans decrying that their Fashion Bible of Record had seemingly fallen prey to the most plebeian fate of catering to the lowest common denominator. Actress Sarah Michelle Gellar tweeted, “Well…I guess I’m canceling my Vogue subscription. Who’s with me???” – a message that has since been retweeted nearly 10,000 times and favored by almost 14,000 users. Another fan responded on Facebook, proclaiming the cover “The official death of Vogue” (a comment which has since received more than 1,500 likes). And while this one cover won’t likely be the singular undoing of this century-old prestige brand, it’s certainly a glaring misstep – one that’s likely to haunt its reputation for some time to come. So how can you ensure that your next big idea follows in the successful footsteps of TOMS Roasting Co. and doesn’t result in a disaster of Kimye-sized proportions? Follow these three commandments of brand evolution:

The three commandments of brand evolution

1. To thine own self be true.

On the surface, coffee does not seem like the next logical evolutionary step for a brand best known as a shoe company. After all, no one expects Nike to step up to the plate and start roasting beans anytime soon. However, shoes are not the core of the TOMS brand. It’s their mission: one for one. And by branching out into coffee, TOMS has created an opportunity for its fans to live that mission every day, not only when they need a new pair of shoes. As Mycoskie explained during an interview with TODAY, “I’ve been saying in the office, ‘Let’s start our day by improving someone else’s.’” By contrast, according to their own mission statement, “the foundation of Vogue’s leadership and authority is the brand’s unique role as a cultural barometer for a global audience. Vogue places fashion in the context of culture and the world we live in — how we dress, live and socialize; what we eat, listen to and watch; who leads and inspires us. Vogue immerses itself in fashion, always leading readers to what will happen next. Thought-provoking, relevant and always influential, Vogue defines the culture of fashion.” Juxtaposed against that is Kim Kardashian. She became a household name as a result of an illicit tape. She’s cemented her celebrity status with a basic cable TV reality show and an omnipresent claim on the tabloid headlines. She designs a clothing line sold in Sears. Which part of that is cohesive with a brand that wants to be “a cultural barometer for a global audience”? Vogue built its name as a brand of high-end aspiration. It’s not supposed to be a clothing catalog; it’s meant to be escapist fantasy. Kim and Kanye are as mass and mainstream as it gets. And Vogue’s readers (and perhaps now former subscribers) saw right through this stunt for what it is: a desperate, grasping, Hail Mary attempt to cling to relevancy in a world where print media outlets are a dying breed.

2. Know thy tribe.

For TOMS, branching out into the coffee business is not a move without risk. After all, there’s no lack of competition in the marketplace. However, TOMS knows its tribe. Customers who buy TOMS do so for a reason: to make a difference with their dollars. With their shoes, TOMS has cultivated with a distinctive style. Their signature beachy canvas slip-ons can be spotted at 20 paces, making a fashion statement that says, “I care.” TOMS knows their customers are torch-bearers who will champion their latest cause, proudly carrying their TOMS coffee bags and cups as a beacon of consumerism with a social conscience. And again, this is where Vogue seemingly overestimated the sheepish loyalty of its tribe. Perhaps the inherent danger in being a self-proclaimed arbiter of high culture and fashion is that it’s too tempting to think you’re better than your tribe. You know best, and they’ll love whatever you give them because you tell them to do so. A word to the wise: you’re never above your tribe. If you lead them, it is by permission through hard-won trust. And that permission will be quickly revoked if that trust is betrayed. First, last and always, you must demonstrate that you exist to serve your tribe and have their best interests at heart.

3. Engage your evangelists.

For a month leading up to the big reveal, TOMS teased their fans. They plugged the upcoming announcement. They solicited guesses from their followers about what the new product would be and publicly promoted those who participated. They challenged their customers to take the cleverly hashtagged “#onedecision pledge” to “change one decision that will help change a life.” In doing so, TOMS literally created an appetite for their coffee. Their customers felt a sense of ownership over the new product line before they even knew what it was, and as a result, came locked and loaded with a sense of investment in its success. Of course, this approach only succeeded because they also delivered on the anticipation with a truly great product that follows commandments #1 and 2 above. After all, publicity in the absence of authenticity is just a recipe for disaster, right Vogue?

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The Ultimate Business Growth Resolution for 2017: Make the Most of Marketing Attribution

As we enter into a new year filled with limitless opportunities and prospects, why not resolve to build a smarter, more profitable business? But in a world where there are so many outlets through which you interact with your customers – from radio and TV to direct mail and email to your website and social media and beyond, how can you know for sure which of your efforts are really working and which are not? That’s where marketing attribution comes in. Marketing attribution is the practice of determining which channels are most effective in attracting and converting customers – both online and off – in order to:

• Measure how many marketing dollars should be allocated to each channel.
• Optimize content to drive more traffic and conversions.
• Attract new customers and win back former customers.
• Sync up offline programs with online campaigns.
• Accurately forecast your marketing budget.

Marketing attribution goes beyond simply counting clicks or following customers’ paths to making their purchases; it uses complex algorithms to determine which channels are driving the most revenue. Naturally, you’ll want to invest more dollars in higher-performing channels. If marketing attribution is such a powerful business growth tool, isn’t everyone taking advantage of it? Actually, no. According to Forrester, only 24 percent of marketers currently measure campaigns across multiple channels, which means that there is a huge opportunity for you to gain a competitive edge by taking the plunge into marketing attribution this year. Here are eight steps you should take right now to get started:

1. Clarify your objectives.

With information coming at us from all directions and devices, it can seem next to impossible to measure the ROI on any given campaign. So what’s the best way to narrow down all the possible factors to determine what’s actually influencing your customers’ behavior? Before embarking down the attribution road, you must establish clear direction. To get the results you seek, start by making a list of questions to help you clarify your objectives: Which channels produce visible results, and which can’t be seen?

• Which metrics will you track in order to gain the insight you seek? Revenue, lead volume, etc.?
• How many conversion points will the attribution system track?
• How do you currently capture and report on metrics? What are some areas where you’d like to see improvement? How do stakeholders receive data reports? Is there a better way to keep them informed?
• What mechanisms will be used to collect the data, such as specialized software or online forms?
• Does your company have in-house expertise on implementing an attribution model, or do you need to leverage an external resource?

Take the time to determine clear objectives before embarking down the marketing attribution path, so you can choose a solution that provides the end results you desire.

2. Start small.

In the digital age, there’s almost no limit to the amount of data you can collect and analyze about your customers and your marketing efforts. However, if you’re new to attribution, keep it simple in the beginning by focusing higher-level data, such as revenue and marketing spend, to avoid becoming overwhelmed with numbers. Save the more granular customer data for future iterations when you’ve got more experience under your belt.

3. Leverage technology.

If interpreting data feels like trying to read foreign language, the first step is to acknowledge what you don’t know and seek external resources to make the job easier. It’s not necessary to hire an expensive in-house expert; there are plenty of effective and affordable solutions available to help you analyze complex data and generate actionable insights. Whatever tool you choose, just be sure that you’re getting clean, accurate and trustworthy results.

4. Match up your metrics.

You probably already have discrete metrics and measurement tools in place for each marketing channel that you currently employ, from email to pay-per-click to social media campaigns. In order to make effective use of marketing attribution, however, you’ll need to establish a set of common metrics that you can use across all channels in your attribution analysis.

5. Work together.

Building a successful marketing attribution program depends on getting buy-in across your organization. Involve all of your key players – from managers to marketers to developers – when choosing a platform and planning its implementation. Collaborate to ensure the right questions are being asked and the relevant data is being collected.

6. Don’t expect perfection.

Rarely is any data set 100 percent clear and comprehensive. There will inevitably be some data that can’t be captured, leaving blind spots in your analysis. Without a crystal ball, there will always be invisible factors – both online and off – that influence your customers’ purchasing decisions. Despite these inherent limitations, even a partial set of attribution data will create a strong foundation for planning successful campaigns across multiple channels. As long as you’re looking at reliable sources, that information can be used to optimize your existing marketing campaigns and plan for future testing and analysis.

7. Compare attribution models.

Under the broad umbrella of marketing attribution, there are a number of models to consider, each with its own strengths and limitations: First and/or Last Interaction: Either the first or last point of contact is given full credit for the conversion.

• Pro: Interaction-based attribution uses previous purchasing behaviors to assign different levels of importance to various touch points.
• Con: This type of attribution can sometimes be subjective.

Last Non-Direct Click: All credit for the sale is attributed to the last indirect point of contact, such as an email link.

• Pro: This model enables marketers to gauge the effectiveness of their external marketing campaigns.
• Con: The Last Non-Direct Click method runs the risk of discounting a myriad of factors that come into play after the customer has clicked through the email.

Last Adwords Click: In this model, the most recent paid search click gets full credit for the conversion.

• Pro: This model enables marketers to gauge the effectiveness of their search spend.
• Con: The Last AdWords method runs the risk of discounting any influences that came after the click.

Linear: In this balanced attribution model, the credit is equally weighted among all points of contact in the path to conversion.

• Pro: This model is simple and straightforward, making it a great entry point for getting starting with attribution.
• Con: The linear method could attribute more credit to a touch point than it actually merits.

Time Decay: Whichever touch point occurred in the closest time proximity to the conversion receives the most credit.

• Pro: It seems logical that the later touch points ultimately prompted the conversion.
• Con: This model disregards initial points of contact, which may have helped to build brand loyalty.

Position-Based: In this type of attribution model, the first and last touch point each receive 40 percent credit, while the other 20 percent is distributed equally across all other interactions.

• Pro: The Position-Based model is a good choice for marketers who want to highlight how leads are generated and then how they ultimately convert while still accounting for the points of contact in between.
• Con: This model runs the risk of giving mid-funnel touch points less credit than they deserve.

8. Consider building your own model.

Every company’s attribution needs are unique. To ensure that everyone in your organization gets the relevant, accurate information they need to make informed marketing decisions, consider building your own attribution model. By partnering with a firm experienced in developing customized, cloud-based business management software, you can work together to design a solution that is tailored to your specific needs and objectives. Here’s to helping you build a more effective marketing and business growth engine in 2017!

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