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Salim Bueno

Making the Case: Nintendo

It’s significantly slower than competing system. It has less graphic capabilities. Its controller is reminiscent of game play circa 1985. Yet, it has outsold all next-generation video game systems.

Nintendo has dominated the video game world because it isn’t exclusively for gamers; it’s exclusively for anyone that wants to have fun. Showing the Rule of Openness, Nintendo’s aim has always been to make gaming fun, for people age 0 to 100.

Even prior to the 2005 launch of the Wii, Nintendo was no new comer to the field of gaming. Since the emergence of Nintendo’s first video game counsel, the Nintendo Entertainment System (NES), they have kept a clear focus on making clean, simple, and fun games anyone can play. With perennial classics like Super Mario Bros and Duck hunt, anyone in the family can play video games. By 1995, over 62 million NES systems and 500 million games had been sold.

Nintendo released many different gaming systems over the last two decades. Through its metamorphosis, Nintendo has always kept their brand strong and relevant to the consumer by focusing on fun and lovable characters. Game characters such as Link, Donkey Kong, and of course, Mario have always been a key ingredient of Nintendo’s success. These friendly characters have been featured in every Nintendo system and have become a part of celebrated gaming history.

As of September 2006, Nintendo had sold 275 million Mario games worldwide, easily making the little Italian plumber the best-selling game character of all time. This level of commitment to the brand and its characters has kept Nintendo as one of the top choices and must-have video game systems. With raving fans the world over, it is hard not to believe Nintendo has created a community in love with them.

As Nintendo continues developing new video games and systems, two things are always at the forefront of their efforts: fun and easy to use.

Nintendo’s release of the Wii seemed like a profoundly risky move, but all Cult Brands show courage. With a slower processor and simplistic graphics, many critics and market analysts didn’t see how the Wii could effectively compete with the more powerful gaming platforms offered by Microsoft’s Xbox and Sony’s Playstation3. With over 10 million units sold, however, Nintendo is reigning supreme over its more expensive competitors.

By making the Wii a gaming system for everyone, Nintendo has created a new video game frenzy with its motion detecting controller. “While game consoles typically attract young males, the Wii is bringing people across all demographics together: in nursing homes, for Wii bowling leagues, on cruise ships, Wii-themed parties and, of course, in lines – as hordes of consumers clamor to buy the impossible-to-find $250 machine. Nintendo is churning out over a million units a month and still can’t meet demand.” (money.cnn) Nintendo did not only create a video game system, like all cult brands they have created a lifestyle.

Nintendo’s constant strives to make video games easy, fun, and accessible to all have really paid off. While others video game systems have focused all their energy on graphics and fast processors, Nintendo has focused on what is important: making sure their customers have fun. By following the Golden Rules embraced by all Cult Brands, they have cultivated relationships that can last a lifetime.

Where to go from here

Brand Loyalty Expert Kicks Off the Retail Advertising Conference

BJ Bueno to open for RAC 2009

Orlando, Florida, February 16, 2009 – Author, creative strategist, and creator of Cult Branding Bolivar J. Bueno will be opening for this year’s Retail Advertising Conference (RAC). This annual 3-day event in Las Vegas, Nevada (February 25-27), is attended by the heads of top retail brands like Best Buy, eBay, Kohl’s Department Stores, Macy’s, JCPenney, PetSmart, Target, Toys “R” Us, and Home Depot.

Mr. Bueno will be joined on stage with Jennifer Dorian, Senior Vice President, Network Strategy and Brand Development for Turner Entertainment Networks, which includes TBS, TNT, and Turner Classic Movies (TCM).

Together, Mr. Bueno and Ms. Dorian will share how to build an authentic brand while growing a more profitable business.

ABOUT THE CULT BRANDING COMPANY – The Cult Branding Company is the recognized leader in cultivating authentic customer loyalty. Using its trademarked Brand Lover Model, The Cult Branding Company helps businesses understand, connect, and serve their best customers. Clients include Kohl’s Department Stores, Scheels, Turner Classic Movies, and LA Lakers.

Mindfulness in the Workplace

You’re running a business meeting. You notice the tone of the meeting begins to escalate. Someone on your team accuses another for not delivering his work by the deadline. A domino effect ensues. People get defensive. Tempers begin to flare. Emotions run off course. Like dealing with little kids fighting on the playground, you have officially lost control of the meeting.

You interrupt, and ask the team, “Please, let’s take a moment,” in the calmest and most nurturing voice you can muster. You readjust your position in your chair, put both feet on the ground, straighten your back, gently place your hands on your lap, and close your eyes.

You begin to breathe diaphragmatically, watching the rise and fall of each in-breath and out-breath. Your team follows suit. Soon enough, the room is quiet. The only sound you hear is the steady tempo of collective breaths. The conference room transforms into a meditation space.

A few minutes pass by. The tension has dissolved. People open their eyes to a new perspective, where equanimity replaces emotionality, and responsivity replaces reactivity.

You may think that this scene could only happen at a hippie commune where peace and love presumably prevail, but this practice is becoming less marginalized and more accepted in the workplace, perhaps even in the boardrooms of behemoth corporations.

Arousal & Performance

In the context of the workplace, understanding the relationship between arousal and performance is important. Performance is optimal at moderate levels of arousal, while low anxiety and high anxiety both correlate with low performance levels. Like taking an exam, if you’re not anxious enough, you won’t care enough to perform your best. If you’re too anxious, your intellectual capacities shut down in a state of stimulus overload. Moderate amounts of stress can be beneficial, but excessive amounts erode efficiency and productivity.

So what happens in a world that spends most of its time in a heightened state of anxiety? Performance declines because your employees, the lifeline of your business, are decompensating. According to the American Institute of Stress, the cost of stress in the workplace is approaching $300 billion per year in absenteeism, tardiness, poor performance, employee turnover, accidents, and stress-related workers’ compensation claims.

With such staggering statistics, researchers are reaching further into their tool kit for alternative solutions for the perpetually stressed-out workplace. Mindfulness meditation is one promising tool—once considered the proprietary remedy for religiously and spiritually minded folks—that is taking the world one breath at a time.

So what exactly is mindfulness?

Jon Kabat-Zinn, founding director of the Stress Reduction Clinic and the Center for Mindfulness at the University of Massachusetts Medical School, defines mindfulness as “paying attention in a particular way: on purpose, in the present moment, and nonjudgmentally.” It’s the present moment-to-moment awareness that allows us to respond with greater choice.

Rather than reacting as if our minds were stuck in automatic pilot mode where our thoughts and emotions run amok, we develop the capacity for contemplative and conscious awareness. We become the observer at a distance, watching the kids fighting on the playground, instead of playing the bully or the victim. In this position, we’re not at the mercy of our animalistic instincts, and we can shift out of automatic pilot to gain greater control of our emotions.

Scientists and researchers have been researching the benefits of mindfulness for decades, but the recent surge of public interest is propelling the field to greater heights. The National Institutes of Health is currently financing more than 50 studies testing the potential health benefits of mindfulness techniques, compared to three such studies in 2000.

The interest continues to grow as findings support the beneficial effects of mindfulness meditation, especially in enhancing the qualities that workers need most to stay competitive: increased attention, improved concentration, greater intuition, lowered levels of stress, and fewer somatic illnesses.

Mindfulness in the Workplace

Many companies have wisely joined the mindfulness movement, and now offer on-site yoga classes and meditation workshops. Through these mindfulness practices, arousal and anxiety are in check and performance is at optimal levels.

Powerful brands like Google, Apple, and Yahoo were among the early adopters to incorporate mindfulness in the workplace. Apple’s Cupertino, California headquarters houses a meditation room where employees can stop in for an afternoon meditation or prayer session.

At Google, luminaries like meditation researcher and Buddhist monk Matthieu Ricard, and Jon Kabat-Zinn were invited to speak on topics such as setting the inner conditions for authentic happiness and the benefits of mindfulness meditation, respectively.

Online auction site eBay joined the ranks by anointing two prayer and meditation rooms at its San Jose campus. Here, employees can sit in silence—in minimalist rooms decorated in earth tones, accented with cushy pillows, floor mats and fragrant flower buds—to catch a few critical moments of solitude and to decompress from the myriad stresses of a workday.

Green Mountain Coffee Roasters (GMCR), a company specializing in organic, fair-trade, and specialty coffees, offers a Mindfulness Center at their Waterbury, Vermont facility where employees can take year-round retreats and workshops. The culture at GMCR is guided by self-reflection and emotional intelligence, key wellness factors that are considered critical skills for today’s workplace.

GMCR’s Mindfulness Center aims to create “a safe, non-judgmental learning environment” where employees can develop the necessary skills to reach their potential. Attributes like confidence, direction, responsibility and motivation are drivers for GMCR in the workplace, which then translate into greater business acumen.

GMCR returned roughly 3,400% in the stock market in the last decade, making it one of the best performing stocks during that period, growing from a $24.7 million business to an enterprise with close to a billion dollar market capitalization. Although it’s difficult to draw conclusions about causality, is it possible that integrating a mindfulness practice into your business can impact the bottom line?

If employees adopt a spirit of mindfulness, how do you expect they’ll treat your customers in kind? Stressed-out employees are more likely to act out emotionally, creating unforgettably bad experiences for your customers. When workers are more calm and centered, they’ll be in a better position to serve customers with more patience, focused attention, and most of all, respect.

For your afternoon meditation, it’s your job to sit, be still, and not do a thing.

Where your Brand Matters Most

Your brand extends everywhere, especially at the point of purchase. If you have your own retail space make sure your store says, looks, and feels what your brand is trying to communicate.

The luxury brand Coach sets up their merchandise as if they were unique art pieces.

Coach is a leading designer and maker of luxury lifestyle handbags and accessories, so they make their store space feel luxurious and unique. By displaying their merchandise like art they allow consumers to immerse themselves in the world of Coach.

But what if your brand doesn’t have its own retail space and it has to play in someone else’s playground?

American Greetings cards makes sure their brand stays powerful and relevant no matter where it is being experienced.

If you have never been to the world’s largest retailer, Wal-Mart, this is how it looks when you walk through the isles.

As you walk through isle after isle of everything you can imagine everything begins to look the same. Everything from toys to cleaning supplies are racked up with their low price guarantee sticker everywhere you look.

How does any one brand even pop out and get recognition in a world with infinite options for consumers to choose from?

The only way to reach your consumer with so many competitors surrounding you is to be true to your brand and allow it to be reflected in the marketplace.

American Greetings takes care of their personal space and allows their customers to get a unique experience. If greeting cards isn’t a personal category, what is?

Understanding this principle, American Greetings makes their selling space a personal experience. Notice American Greetings’s space is organized as well as the beautiful signage to represent the different genres of cards. To top it off, they even have a beautiful light fixture that completely brings in an atmosphere ideal for selecting and purchasing greeting cards. American Greetings can’t force people to buy their greetings cards, but they set great conditions for the consumer to want to look, touch, and read their cards.

What can you do to make your space better reflect your brand identity?

Happy Brand Building.

 

Happy 105th Anniversary Harley-Davidson!

Hundreds of thousands of people gather from all corners of the world. Some people take months off of work; others quit their jobs. They come from South America, Europe, Asia, and even Australia—and from all across the United States. You can hear them coming miles away as they outnumber cars on every highway.

Of course this gathering can be in only one place: the home of Harley-Davidson in Milwaukee, WI.

On August 28th 2008 Harley owners came together for a four-day celebration of Harley-Davidson’s 105th Anniversary. With the new Harley Museum opening its doors and 500,000 Harley Owners Group (HOG) worldwide members in attendance, this family reunion was bigger than ever.

The experience began with the purchase of a ticket for the main event. With each ticket Harley included a gift set containing a commemorative 105th Harley bracelet, a Harley-branded leather wallet with a key chain, and an American and Harley flag to wave from your bike. Every day, Harley dealers across the state of Wisconsin held parties in celebration with live music, great food, and plenty of beer. Harley made everyone feel like part of the family.

The main event was held at the Summerfest grounds. With four music stages featuring artist like Los Lonely Boys, ZZ Top, Black Rebel Motorcycle Club and many more, it was hard not to have fun. Harley-Davidson bike displays were positioned throughout the grounds and included a traveling Harley Museum, exotic custom Harleys, and plenty of Harley merchandise. Everywhere you looked people where laughing, dancing, and having fun.

The party was not limited to Harley Davidson sponsored events. The entire City of Milwaukee became part of the celebration. Bikers were given free parking all around the city including at the Milwaukee art museum and at the summerfest grounds. Many restaurants and bars around the city held events for bikers every night. Even hotels outfitted their lobbies with Harley Davidson Motorcycle displays and memorabilia. Every detail resembled the look and feel of the 105th Anniversary logo. The entire city of Milwaukee became a Harley haven.

The Harley parade charged the city with excitement. It was a very special event for Harley owners since only 75,000 riders were chosen out of 150,000 riders who registered. Riders began lining up at 6:00am, four hours before the start of the parade. The five-mile route was filled with Harley enthusiast waiting to cheer their fellow HOG members. The parade began with dozens of Police motorcycle units with blaring sirens. Behind them came the Harleys cruising through downtown Milwaukee. The roaring engines echoed off the buildings and the crowd fed on it. Riders proudly waived their countries flag alongside their HOG chapter flags.

Harley’s rallies create Brand Lovers that have no comparison. Every HOG event pushes riders to rally more often and to meet more people. This strengthens the friendships between riders and re-enforces an emotional bond to the Harley brand. It does not matter where you’re from, how old you are, or what you do for a living, if you own a Harley you are family. The brotherhood transcends gender, class, and race.

Harley-Davidson embraces the family and showcases the good times had at the 105th anniversary. They allow the experience to live on.

Harley-Davidson’s 105th Anniversary

The Cult Branding team joined HOGs from around the world in Milwaukee for the 105th Anniversary event to learn more about their love for Harley-Davidson. Check out what we learned.

Where to go from here

Harley Davidson Cult Brand Profile

The Power of Associative Images

The Loyalty Continuum

Service Heroes

In a “dog-eat-dog world,” you better watch out for your own interests because everyone else is watching out for theirs. You’re taught to guard your back and compete without mercy. In this world, winner takes all.

Unfortunately, this type of mentality drives a great portion of corporate America. Corporations that are motivated by greed, concerned only with the bottom line, breed employees that are trained to fight like attack dogs in underground pens, and win at all costs. In this blood sport, employees are driven by animal instincts, dark shadows are exposed, and brute behaviors are rewarded.

Psychiatrist and mystic David R. Hawkins wrote, “Success in any venture is simply the automatic consequence of being the best that one can be as a lifestyle, without looking for gain.” Now this type of mentality would seem antithetical to the mission of corporations, where having a competitive advantage in the market is crucial to their staying power and overall success. But as we know, it doesn’t have to be.

Companies that uphold Cult-Brand values are showcasing a different side of human nature. They expect the best from their employees, because as humans, they have the intrinsic capacity to feel, emote, contribute, and most of all, love.

The Container Store, the nation’s leading retailer of storage and organization products, landed its position on Fortune magazine’s annual list of “100 Best Companies to Work for” for its 9th consecutive years. The company consistently embraces their “do unto others” business philosophy. When this value pervades the organization, employees feel empowered and want to share the positive rewards. At the Container Store, you may hear an employee “being Gumby,” a highly prized attribute of bending over backwards to please co-workers and customers.

Like the Container Store, the pay-it-forward attitude pervades every corridor of Southwest Airlines. Southwest publishes an internal newsletter, Luv Lines, and dedicates a section to highlight how employees have gone beyond expectations, as documented by real customers who have been blessed by a Southwest angel. You’ll read about a passenger who arrived at the airport 20 minutes before her departure, frantic about missing her flight and not having enough time to move her car from the drop-off area. The Southwest employee reassured the passenger and offered to move her car into long-term parking. The following day the employee called to tell the passenger where her car was parked and where her keys could be retrieved upon her return.

You’ll also hear about a customer service representative who stayed overnight at a hotel with an elderly woman who was fearful of being alone after her flight was grounded due to inclement weather. And what about that SWA worker who stumbled across someone in the airport parking lot who had a flat tire? The employee got down on his knees and helped the stranded passenger change the tire. When the passenger said, “You know, I didn’t fly Southwest,” the employee replied, “It doesn’t matter.”

But it makes all the difference in the world.

On September 11, 2001, after the terrorist attacks, all airborne planes were instructed to land. One Southwest plane was grounded, and the passengers and crew were put up in a hotel. Southwest management called to check up on its flight, but the concierge told them that no one was at the hotel. The pilot took everyone on the flight—the crew and the passengers—out to the movies.

And the list goes on.

Ginger Hardage, Southwest’s Senior Vice President of Corporate Communications, explains, “There’s no manual from which to learn that. At Southwest, employees are encouraged to make decisions from the heart, and in turn, these proactive gestures provide positive benefits to the customers and the company.”

The leadership at Southwest knows a thing or two about kindness and love. Herbert Kelleher, founder and former chairman, once said, “You have to be genuinely interested in, and like, people. Show them tolerance, patience, respect and empathy. Drown them in a tsunami of gratitude for their marvelous works … People will respond with an esprit de corps–a desire to perform because they want to, not because they have to.”

With such a visionary at the helm, employees might ask themselves the WWHD question. What Would Herb Do?

Southwest has masterfully made “living legends” out of their “service heroes.” Rewarding values in this way inspires others to offer unparalleled customer service in return. In their pursuit of love, rather than techniques, Southwest inspires their employees to “make love a decision, not just a feeling; then stick to it.”

What values are being rewarded in your organization? Are you breeding dogs to fight for their own survival? Or are you raising angels to uplift and inspire?

Hungry Like The Fox: The Cult of Firefox

A Web browser now lurks among the world’s Cult Brands. I know it’s hard to believe. Seriously, how can a Web browser become a lifestyle? A little incident that happened during a lecture should put it into perspective:

When I lectured at an art university last year in Philadelphia, a student brought up the controversy over Dove and Axe—one company, Unilver, responsible for two campaigns: one that empowers women and one that objectifies them.

He asked: “As a product designer, how can I guard against something like this?” I told him that as a designer there’s nothing inherent in a type of soap that makes it required to be marketed as empowering or objectifying towards women; that’s up to the marketing department and the people managing the brand. It’s a seemingly simple question, but one that has important implications for brand development: any product, as long as it’s good, can, with enough imagination, clarity, and direction, be developed into a powerful Cult Brand.

I’ve been using Mozilla’s Firefox for years and never considered it a Cult Brand until I inadvertently stumbled upon Download Day 2008. Download Day 2008 was organized by Mozilla to celebrate the official release of the 3.0 build by attempting to set a new Guinness World Record for the most software downloaded in one day.

Despite technically difficulties, in the early hours, 9000 copies were being downloaded every minute. By the end of the day there were over 8 million downloads, moving the market share for the 3.0 build up from 1% for beta versions to 4%. Not bad for one day.

I began to wonder, could we have another Cult Brand in our midst?

With it’s first official release in November 2004, the Firefox browser has quickly gained in popularity and is currently the second most popular browser, behind Internet Explorer, with an 18.41% market share. Explorer’s lead is huge, but in the past year Explorer’s market share has gone down nearly 6%, while Firefox’s has risen 4%.

At the end of 2004, Microsoft was unwilling to admit the viability of the Firefox browser, with Australian managing director Steve Vamos claiming that Firefox did not offer any real threat. But, by mid 2005 Microsoft’s filing with the Securities and Exchange Commission (SEC) indicated that Firefox offers features that compete with Explorer.

So how does an open source browser go from a non-issue to a serious competitor in under four years? By embracing the same principles that make other Cult Brands successful.

Open source companies are great foundations for building Cult Brands. By being open, they not only invite everyone to participate, but they immediately position themselves against major market competitors and turn big business into an archenemy.

Open source also forces another hallmark of Cult Brands: collaboration. End users can make their own contributions without back end hacks, which shows in the over 2000 add-on applications Firefox users have developed that are available for download through the Firefox Web site.

If allowing users to contribute programs weren’t enough, in 2006, the development team asked users to submit what changes they would like to see in the browser for the current 3.0 release.

This focus on collaboration facilitates the development of a strong sense of community. And Mozilla encourages and supports this sense of community, making it a key element of the mission statement: “And as a non-profit, public benefit organization, we define success in terms of building communities and enriching people’s lives. We believe in the power and potential of the Internet and want to see it thrive for everyone, everywhere.”

With SpeadFirefox.com, they organize online events, like the Download Day 2008, and provide a community of brand evangelists to come together and speak. At FirefoxFlicks.com there are currently 280 user-submitted Firefox commercials. Users wanting to find other Firefox lovers in the real world can head over to MozillaParty.com and organize or look for a Firefox party in their area. And just so you know, 700 3.0 launch parties were registered.

And, what Cult Brand would be complete without some users branding themselves? One tattooed user, attacked the archenemy and altered the logo to show the fox chomping down on the Explorer E. Another user put a Firefox tattoo alongside two other emblems of the open source movement: the GNU mascot and Tux the Linux penguin. But the branded mark that really tripped me out is a crop circle of the Firefox logo generated by two interns that’s visible on Google Earth.

This investigation into the world of Firefox shocked me; I just liked the browser’s features. But now I’m asking myself: Is Firefox the next Linux?

MINI Mania Across the States

Monterey, California. It’s early morning. Hundreds of MINI’s line up. It’s not a new shipment of cars; in fact some of these MINI’s have driven from as far as Florida.

Why are all these MINI’s gathered? For one of the biggest events in motoring history: MINI Takes the States.

Starting in California and ending in Lakeville, Connecticut, this 4,000 miles road trip was the perfect way to celebrate everything MINI. Hundreds of MINI owners gathered for this historic trip and joined the rally across the states, an annual event inaugurated in 2006.

Great Cult brands create customer communities. MINI Takes The States was held to celebrate MINI’s vibrant community. “MINI owners always bring an unparalleled level of enthusiasm and energy to whatever they do, and I am excited to spend two weeks on the road with them. I encourage everyone, MINI owner or not, to keep an eye out for us in August and join in the fun for a day, a week, or even the full trip.” Jim McDowell, VP of MINI USA.

From the start of this historic journey MINI enthusiasts took every opportunity to have fun. MINI began the party with live music and a drive on Monterey Beach. With events such as MINI Music Festival in Tennessee, Tail gaiting parties, a carnival in New Jersey and a victory lap at the Lime rock racetrack, MINI showcased why they are masters at the golden rule of fun.

MINI is a lot more than a car—it’s a lifestyle. From a couple tying the knot to a husband paying tribute to his late wife, MINI owners became more than just friends, they became family. Over 3,000 registered participants from across the states traveled cross-country to celebrate the motoring lifestyle.

In each city MINI handed out rewards for several categories of enthusiasts. In Boston, Sandy Bouchieer won theI’m Not Afraid to be Noticed Award, for driving her ladybug spotted MINI all the way from Wyoming. The Tallest Person, Little MINI Award went to David Quesenberry who towered in at 6’5”. The Best Vanity Plate Award went to Shannon Polce, whose plate, MINIMZE, pretty much says it all.

MINI’s fun aspect goes way beyond the car. With events like MINI Takes The States and by constantly rewarding the community, it is easy to see why MINI and the people who drive them have a special relationship.

Interesting Links

MINI Takes the States Tour 2006 Video Highlights

A blog written for Motortrend by a MINI enthusiast who traveled and documented the 2006 tour

Most Dangerous Idea In Business

The cover story of the July issue of Wired, “The End of Theory” by Chris Anderson, forecasts a new age of science, the Petabyte Age—an age where data becomes more important than the frameworks we use to understand the data. The supposition is that with the massive amount of data that is becoming available, you will be able to run statistical correlations on the data that show relationships that exist and that the existence of these relationships will be enough to form the basis of decisions.

This model of the future is heavily influenced by the approach to searching the Web: it doesn’t matter why a page is the most relevant, from the perspective of a search; the fact that it is the most relevant is all that matters.

This is a dangerous path.

Every time I talk to clients about statistics I bring up a study published in 2006 by business professors Michael Waldman, Sean Nicholson, and Nodir Adilov. The study statistically correlated autism and watching cable television. The watching of cable television was inferred to occur at the highest rates in areas where cable subscriptions and bad weather were highest—if the weather is bad children were believed to be more likely to stay inside and, therefore, watch more cable television.

Statistically, there’s nothing wrong with the study, but is it an actuality? It’s impossible to tell. First, the correlation between weather and cable subscriptions, and increased cable viewing must be correct. And second, it assumes that the direct correlation between watching television and autism, rather than something like increased autism testing in areas where cable television subscriptions are highest, is correct. It’s a study that opens questions, rather than solving one.

More data, even Petabytes of data, aren’t going to solve the main problem with statistics: correlations can exist without true causality. The only thing that more data does is provide greater certainty that the correlation exists. But, more data also has a big problem: it increases background noise. In other words, it can mask relationships that are there and show ones that don’t exist.

With advanced analytical methods the odds that relationships will be masked is small, given that the software will likely analyze every possible combination. But, it may create relationships that don’t exist. When a data analysis comes up with multiple results, using the data alone, how can you know which is correct? Is it the one with the highest statistical correlation? Does the difference between a possible error of 0.001% and 0.002% make the data with the 0.001% chance of error somehow more true?

This is the main problem with search engines and why the problem of search, as Google even recognizes, is nowhere near being solved. Search engines assume that the highest correlation is the same correlation you’re looking for. In other words, because most people searching for “Robert” want “Robert Scoble” to be the result, then so do you. Correlation, rather than reality, becomes king.

In a 2004 talk for the TED conference, Malcolm Gladwell spoke about his friend Howard Moskowitz, an experimental psychologist and president of Moskowitz Jacobs, Inc., a consumer insights research firm. Moskowitz did research for Prego to discover the best type of tomato sauce. His research was influenced heavily by a study he conducted years before for Diet Pepsi: how much aspartame should be added to the mix to create the ideal Diet Pepsi. The Diet Pepsi experiment was inconclusive; the data was all over the place. Years later Moskowitz made sense of the data. There isn’t an ideal Pepsi; there are only ideal Pepsis. In other words, there should be multiple categories. It’s this thinking that he took to Prego and resulted in the creation of the much beloved category of chunky tomato sauce.

What would happen if this data were analyzed using the philosophy of the Petabyte age? Either the data would be inconclusive or the highest correlation would be revealed to be the ideal mix. In the first case the data would be useless, in the second case the data would be wrong; multiple categories for multiple taste preferences is the ideal solution. Only by understanding what the data means does it become useful; on its own the number crunching tells us nothing.

You’re probably wondering what this has to do with business. The majority of marketing research has been and is still being conducted according to statistical patterns, and, dangerously using these statistics to make future decisions.

For example, imagine a hypothetical, underperforming lawnmower manufacturer is trying to decide what percentages of red and green lawnmowers they should ship to Lowe’s. They analyze last year’s data and see that nine green lawnmowers sold for every red one. The company changes it’s production to make 90% of their lawnmowers for Lowe’s green and 10% red. When it came time to look at sales, hardly any of their lawnmowers sold.

Repeated statistical analyses show no cause for the increase in sales of red lawnmowers. The company hires a consumer insight firm to discover what went wrong. The firm looks at the Lowe’s stores and the purchasing decisions of Lowe’s customers. Looking at the stores, the firm finds that the previous year Lowe’s displayed green lawnmowers at the front of the store. But, this year there wasn’t a display at the front of the store. When asking the customers what color they wanted their lawnmower to be most customers answered red. But when the insight firm showed customers different colors and asked them to select their favorite lawnmower color from the group, 80% said orange—a color no lawnmower company was making. The next year the company released a slew of orange lawnmowers and outsold all other lawnmower makers in the Lowe’s stores.

Analyzing the manufacturer’s data would never have revealed anything. Sense was created from nonsense by coming up with questions to ask and looking for the answers from both the retail stores and the customers.

Just because a lot of data is out there doesn’t mean anyone has ever collected the relevant data. This is exactly what Howard Moskowitz discovered with tomato sauce: no focus group from Ragu or Prego ever came up with the idea of chunky tomato sauce as a type of sauce they would like until they were given the option. And no amount of data would reveal the observation that green lawnmowers were displayed at the front of the store the year before.

Only by understanding the customers can we give them what they want. On their own they don’t know. This has been a guiding force for Steve Jobs at Apple: “You can’t just ask customers what they want and then try to give that to them. By the time you get it built, they’ll want something new … If we’d given customers what they said they wanted, we’d have built a computer they have been happy with a year after we spoke to them—not something they want now.”

Observation and questioning gives us insight into what customers want. Statistical analysis only shows what they’re doing and is best used as a check and balance system to make sure the observations you made and the questions you asked were the right ones. Don’t let anyone try to fool you into believing it’s the other way around.

Making the Case: MINI

If you stop and talk to MINI owners about their car, you’ll see their eyes light up with child-like abandon. They’ll tell you driving a MINI is like driving a go-kart on a raceway course. The pick up is quick, the mileage is great, and the turns are seamless. They’ll even tell you that a MINI can do everything a sports car can do, without breaking the bank. They’ll animate, gesticulate, stimulate, and motivate. After a few minutes, you’ll want to motor to the closest MINI dealership and experience the phenomenon yourself. Their enthusiasm is truly infectious.

Like the Volkswagen beetle, MINI embraces the Golden Rule of Courage and stands out as something different. In the heyday of the gas-guzzling SUVs, the roads were congested with Escalades, Navigators, and the almighty Hummer. With bigger is better sensibility, drivers could preen their feathers and strut their egos by way of their vehicles. Yet when all of the cars were getting bigger, MINI prided itself on getting smaller, much smaller. When MINI wiggled its way onto the scene, it became the little engine that could.

MINI owners will tell you that although you might be the little guy on the road, out there fending for yourself, don’t be fooled. It’s usually the smallest member on the sports team with the most speed and agility. MINI has garnered respect because it can play on the same field as the big guns, sometimes leaving them behind in a cloud of smoke (but not too much smoke because MINI is gentle on the environment). Ultimately, it’s more fun rooting for the underdog.

Not the underdog for long …

MINI USA Sales have jumped 33% in new car sales in the first six months of 2008, compared to one year ago. This is no easy feat, since the car industry is facing its worst sales year in over a decade. With escalading gas prices, consumers are looking for wiser choices, and you certainly can’t beat MINI’s fuel efficiency at 37 miles to the gallon.

But it’s more than fuel efficiency that makes it a smart car. These are just a few reasons why MINI has the qualities of a powerful Cult Brand. Like other Cult Brands that follow the Golden Rule of Freedom, MINI celebrates each individual driver and encourages him or her to “you-ify your MINI.” MINI explains, “Everybody wants their car to say something different about them. Fortunately, the MINI can say anything.”

The roof is viewed as a blank canvas, waiting to be personalized and customized. If you’re feeling a little nationalistic, you can choose a flag, any flag, to proudly display. If you’re a child of the hippie era, flower power becomes your personal icon. If you’re a caffeine addict, you can slap a huge cup of Joe on your roof. There are hundreds of designs to choose from in the Roof Studio. Can’t find one you like? Go ahead and design it yourself.

MINI owners will also happily share their “MINI Moments” like the time when they pulled into a crowded parking lot, and squeezed into a corner spot that no regular-sized car could occupy. When your friends make the dare, you confidently turn your MINI around, drive in reverse, and effortlessly slide in. Fits like a glove.

Drivers will also boast about the ability to turn around on a narrow street in one shot. So forget about the three-point turn, MINIs can drive circles around and around their competition.

Like other Cult Brands, MINI loves surprising their customers at every turn. As a MINI owner, you might receive a cryptic package in the mail, complete with a purple filter sheet, a letter descrambler, a password key, and a note saying, “look forward to our hidden messages.” The following week, you’re reading the New Yorker magazine and you spot a MINI advertisement calling for a special code. Like a good detective, you grab your secret kit to decipher the covert message. But it really doesn’t matter what it says. What matters is that you’re like the lucky kid in the neighborhood holding the prized decoder ring from your winning box of Cracker Jacks.

This child-like, adventurous spirit prevails in the world of MINI. Remember how you could explore the world without constraints as a child? You couldn’t care less about what other people thought because you were too enthralled with each new and exciting discovery. MINI understands the nostalgia adults have for their younger years.

With a scrapbook of playful moments and creative collectibles, MINI defines the Golden Rule of Fun and sells lifestyles defined by freedom, good cheer, and camaraderie. As a Brand Lover or enthusiast, you might take part in MINI Takes the States Tour, traveling across country with a caravan of MINIs, stopping in different cities, attending special events, and mingling with other members of the MINI Family. However, staying true to the Golden Rule of Openness, the event organizers proclaim, “Everyone is invited, even if you don’t own a MINI.

For MINI owners, driving is not just a functional activity that makes going to work and running errands possible. It’s all about the experience. In their Book of Motoring, MINI explains, “The difference is in the mind of the operator. Just because you drive, doesn’t mean you motor. When you drive, you go from A to B. When you motor, you go from A to Z. It’s all about living. Nobody can tell you when you’re motoring. You just know.” Ultimately, for MINI drivers, “Mileage equals experience.”

Most of all, MINI proudly fosters a solid network of customer communities—the MINI Family, as it’s called—connected throughout the world. MINI explains, “Dating back to its birth in the UK, there’s a long-standing tradition of MINI owners acknowledging each other when they pass on the streets … So when you pass another MINI, don’t be shy. Give them a wave. It could be as subtle as raising an index finger off the steering wheel or as enthusiastic as two hands out the sunroof (although it would probably be best if these were passenger hands).” You’ll also hear MINI drivers acknowledging one another by flicking their headlights, and even giving high-fives out the window while passing each other by.

As you’re driving along the road, you might also make a kid smile. He’ll start waving with one hand, while punching his little sister with the other. Today’s new punch buggy perhaps?

That sounds about right.