[Satoshi Akutsu × Takashi Asaoka Dialogue] Brand Marketing for the Future (Part 2)

Part 2: The Flow Value of Brands Generated by Customers' Spontaneous Actions

The background behind customers' spontaneous actions—such as web searches, information sharing, and expressing expectations about brands. The flow value of brands formed in this context. Also, how companies can leverage such spontaneous actions to guide their own brand expansion and reproduction marketing cycle.

 

 

Stock value and flow value. The intersection of both holds significant meaning.

 

Asaoka: Continuing from last time, I'd like to talk about changes in brand marketing. This time, I'd like to deepen our discussion on "the flow value of a brand generated by customers' spontaneous actions."

Akutsu: The concept of stock/flow in brand value has been around for a long time. Stock refers to what is accumulated in the minds of customers and the history cultivated by the brand. Flow refers to the level of activity, or how active the brand is at the moment. In familiar terms, "word of mouth" is an example of flow.

Asaoka: In my experience, when I was in charge of a certain foreign brand, the term "brand momentum" was frequently used in discussions with the US headquarters. That brand had passionate fans who, even though they weren't asked to do so by the manufacturer, would share their experiences with others and help customers in need, acting like customer support. Driven by these spontaneous customer actions, the brand rapidly gained market share. That was the essence of "brand momentum." Essentially, customers voluntarily took actions like "recommending" and "sharing" with others, which then led to purchases. Today, with social media, customer "word-of-mouth" can be visualized and quantified, allowing companies to more actively leverage its value as flow.

Akutsu: While such customer actions generate flow value, what drives them is stock value. Previously, people searched to find things or information, then shared what they found valuable. Now, ambiguous searches like "It's trending, but what's going on?" are increasing. Search begets search, and the question "What are people searching for?" itself becomes a topic. In the sense of sharing the very "information we're collectively sharing," it's clear that in today's society, where SNS is so widespread, the meaning of search and share has changed from before.

Asaoka: Regarding "brand experience value," which was also our first theme, when customers have an exceptionally positive brand experience and it evolves into creating a story within their relationship with the brand, doesn't that generate a strong motivation to "tell someone about it"? Thus, brand experience and experiential value can be seen as both stock value and the entry/exit point for flow.

Akutsu: The intersection of stock and flow. That's a crucial perspective. Understanding this intersection allows us to leverage stock to generate more flow. Conversely, converting the existing flow into stock and accumulating it enables us to enjoy value over the long term. This is a vital topic for future brand management, one that requires deeper research, including exploring customer motivations and societal dynamics.

Asaoka: Intuitively, I envision flow and stock circulating like a figure-eight, with brand experiences occurring at their intersection—the right side representing stock and the left flow. Alternatively, we could picture concentric spirals, with stock at the core and flow surrounding it.

Akutsu: What if we interpret this as "Spiral In" and "Spiral Out"? We draw concentric circles: Spiral Out moves outward from the center, leveraging stock to drive flow. Conversely, Spiral In moves inward from the periphery, converting existing valuable flow into stock. Explaining it this way seems clearer. We've created a new model.

"In and Out": A New Model for Brand Marketing

Asaoka: Your point about both directions—in and out—being present is very insightful. Does this premise require customers' spontaneous, intrinsic actions?

Akutsu: Intrinsic motivation certainly exists. However, I believe it's up to corporate management to further evoke, activate, and spread it horizontally, enabling multiple people to participate. For example, the act of going to a restaurant and posting about the experience on a blog or SNS isn't driven by a single motive. Some write because they want others to know about a good experience, while others document their experience as a record or to relive it. By properly analyzing the motivations behind consumer behavior, we can better understand how to encourage it and how to support it.

Asaoka: I understand that brands have both stock value and flow value, and that it's possible to craft a brand's growth story through both spiral-in and spiral-out directions. So, what kind of management is needed to link flow value to economic activity? For those involved in management, that's also a major challenge.

Akutsu: People's interest in "things," their "search" behavior, and their "sharing" of purchasing experiences will likely continue. However, there are also "search" and "share" activities unrelated to purchasing. Let's take baby "diapers" as an example. If a company's fan site only provides information about its own diapers, it won't expand its reach. So, consider creating a parenting site instead. By providing comprehensive parenting information, diverse users will come to "search" for it. Then, "sharing" begins—users share how the information they found through "search" worked well when put into practice. These are "actions" like "search" and "share" that aren't directly tied to purchasing. Recently, numerous cases have been reported where such flows have actually led to purchases.

Asaoka: I think the movement to manage the value of the flow and link it to economic impact is a very viable tactic. Previously, the brand's mission or vision might have been to make good diapers and provide convenience to customers. But the moment you decide to control the value of the flow and transform your company, the brand's vision and mission also change, right?

Akutsu: "Change" might not be the most accurate term; "evolve" might be more precise. Furthermore, as you actively seek customer feedback, you inevitably have to create better products. This means striving to do your best in terms of maximizing customer needs while keeping prices low. One company solicited product ideas from customers and developed products based on votes. Voting ultimately translates into "orders." If you consider pre-orders as votes, releasing the product with the most votes typically boosts sales. In a way, it's a model that can't fail. Of course, establishing such a system requires significant trial and error and accumulated know-how. However, once the model is established, theoretically, it has the potential to become a business with far fewer failures than before.

Asaoka: That's the concept of Spiral In. Furthermore, if purchasing/not purchasing isn't the goal, the Spiral Out approach can be used to grow a customer "fan base." This creates a structure where the pool of potential customers who will buy products or services in the future increases. Both could be effective concepts for brand marketing, couldn't they?

 

The final installment is scheduled for February 12.