AT&T's Secret to Building Brand Love
· photography
Marketing’s Hidden Currency: How AT&T is Tying Love to Loyalty
AT&T’s CMO Kellyn Smith Kenny has made a groundbreaking move by quantifying brand strength and linking it to customer growth. Her approach has cracked the code on making marketing matter in the boardroom, where CEOs care about tangible results.
The numbers are compelling: prospects who say they love AT&T are 1.6 times more likely to become customers within 12 months, and existing customers who feel this way are three times less likely to leave. The research also shows that customers who have experienced AT&T’s guarantee program report higher satisfaction than those who haven’t had an issue.
Marketing isn’t just about creating awareness or driving sales; it’s about building a relationship with customers, understanding their needs, and delivering value consistently. By tying this value back to hard business outcomes like customer acquisition, retention, and spending, marketers can create a winning formula.
AT&T’s transformation story is also a cautionary tale for companies in similar industries. The telco giant had been expanding into entertainment, but lost sight of its core business. Kenny has refocused on telecommunications and prioritized customer research to inform product roadmaps and operational strategy.
One key aspect of AT&T’s approach is its emphasis on “invisible” marketing – investments in infrastructure that customers rarely notice when they’re working as intended. This type of marketing can be just as powerful as flashy advertising campaigns, but requires a different skillset and mindset.
The case study of FirstNet, the nationwide public-safety broadband network operated by AT&T for first responders, is instructive here. By promoting FirstNet through mass-media advertising, AT&T has improved perceptions among consumers who aren’t eligible for the service. This gives customers greater confidence in AT&T’s ability to deliver.
AT&T’s approach highlights the importance of tying marketing efforts back to hard business outcomes and underscores the need for marketers to be strategic and nuanced in their thinking. It shows that marketing can shape customer perceptions, even when those perceptions are based on invisible investments in infrastructure.
By making these investments more tangible and visible to customers, AT&T has created a sense of trust and loyalty that is hard to match. As Kenny puts it, “brand strength has value.” It’s not just about creating buzz or generating leads; it’s about building relationships with customers that last long after the sale.
Reader Views
- TSTomás S. · wedding photographer
While AT&T's focus on customer love is laudable, I think it's worth noting that this approach won't automatically translate to other industries. What works for telecoms might not work as well for a business with a more complex sales cycle or one that relies heavily on word-of-mouth referrals. Companies should be wary of trying to apply a cookie-cutter solution without considering the nuances of their own market and customer relationships.
- ANAria N. · street photographer
While AT&T's emphasis on customer love and loyalty is undeniably a step in the right direction, I worry that they're overselling the concept of "invisible marketing". By touting its investments in infrastructure as a key component of their success, Kenny may be encouraging other companies to focus solely on behind-the-scenes efforts without adequately addressing the elephant in the room: transparency. The article glosses over the importance of clear communication and straightforward pricing practices in building customer trust – let's not forget that sometimes what customers don't see can actually hurt them.
- TLThe Lens Desk · editorial
While AT&T's emphasis on tying brand love to loyalty is laudable, it's also worth noting that this approach can be resource-intensive and may not translate to other industries with different customer needs or service models. The telco giant's focus on infrastructure investments, like FirstNet, also raises questions about the role of government subsidies in supporting marketing efforts. As companies seek to replicate AT&T's success, they'll need to carefully consider how to balance customer satisfaction with business sustainability and public policy realities.