Making it human: Why the best businesses focus on people not transactions
How do you build engaged communities around your brand? The most successful businesses design for fans not customers. They focus on the human not the transactional. They are innovative but also sincere, delivering compelling products that have the brand’s DNA embedded. But it’s easy to hit the wrong note.
I found someone who knows exactly what to avoid and what to push for. Philippe Roucoule has had a hugely varied, 30-year career. He held senior roles in F&B businesses and retail before Disney called. After a decade, he moved to become Senior Vice President at Warner Bros Discovery. In every role, he has worked with partners to make his brands come to life in products that connect with customers every day. These customers become fans; and this is the key to his success.
It’s no secret that forging an emotional connection with customers is a tool that can elevate a business. An article in the Harvard Business Review detailed how diverse businesses have done just this. As the authors write: “The most sophisticated firms are making emotional connection part of a broad strategy that involves every function in the value chain, from product development and marketing to sales and service.”
It’s game play straight out of the sports industry where fans have always been fans (but now have everything from experiences to merchandise to buy to proudly show off their loyalties). According to 90min.com, Nike topped the list for shirt and merchandise sales in 2023, making £153m from Barcelona’s merchandise. These are products bought by fans not customers; and it’s big money.
Creating that emotional connection
Let me make this clear – it’s not the sole responsibility of your marketing department. As Philippe explains: “They are not the guardians of how the brand comes to life for fans.” Each person in a business – and partners too – share this responsibility. It’s built on trust. This means they have ownership and it changes creative thinking.
Philippe sums this up. “Gone are the days of saying, I’m going to put the logo of my brand on the product, and that’s called licensing. It’s not the case”, he explains. “You have to be much more inclusive in the way you look at it. You have to be able to actually translate the essence and the DNA of the brand onto the product itself. It becomes really symbiotic.”
“You have to make sure it’s right for the fans, because you don’t get a second chance.”
If you get it wrong – especially if you are not authentic – the fans will pick up on this. If they are emotionally invested in a brand, anything that doesn’t do it justice will immediately be on their radar. As Philippe states: “You have to make sure it’s right for the fans, because you don’t get a second chance.” He admits walking away from deals with “multi-billion dollar” businesses for exactly this reason. “[They were] easy money, but they weren’t right for the brand,” he shares.
But when you get it right…
The companies that have fostered the emotional connection – making fans of customers – win not only fans but sometimes lifelong loyalty. Philippe holds Lego up as an example of how a laser-focus on humans has changed a company’s fortunes.
The company was in dire straits in 2003 with a reported $800 million debt. News reports suggested it was just weeks away from collapse. A new CEO, Jørgen Vig Knudstorp, was brought in. Key to his new strategy was created partnerships with huge brands including Stars Wars.
Not only did Lego fans go wild for the new launches but Lego also won over the fans of the iconic brands it partnered with. Lego doesn’t disclose how much these branded products bring in for the company, but its revenue was DKK 65.9 billion (nearly 9 billion euros) in FY 2023, which was up 2% despite a declining toy market.
Yes – there will be people who will not come on that journey with your brand. Businesses need to stay connected with those who will. As Philippe says: “…give fans a spectrum of options for them to be able to connect with a brand through a multiplicity of products – and products that are relevant to them.”
Measuring loyalty
To unravel your fans’ preferences – and be nimble – you need data. Warner processes vast amounts of data using AI. But what do you do with this data? Philippe argues that you must have clarity of vision on where you want to be. This then gives you the problems that you need to solve; but all with an end goal in sight. These are your metrics and the data will tell you if you are hitting them. Are you solving the problems? Are you delivering what your fans want? Keep focussed on this.
“If you can’t measure it, don’t do it.”
“Starting with the end in mind makes sure that you don’t get distracted along that path. You can go a bit right and a bit left, but you know where you’re heading,” explains Philippe.
He adds categorically: “If you can’t measure it, don’t do it.” Success is a measure of the emotional connection that you have with your fans. To be agile and reactionary – to keep delivering – you need to measure this engagement so you can build when things are working and tweak when they’re not. This rigorous approach to getting it right – along with authenticity and consistency – are what makes fans of customers; and keeps people engaging with your brand even when the competition is fierce.