Code and Culture - Two Powerful Forces At Work Building Thick Brands

We've spent the last two years researching the state of brands today. And based on our observations, it’s clear that if you want to operate a strong brand in the twenty-first century, you must create value for customers rather than simply promise value to them.

Brands that create value for people are different from brands that just promise value. They’re more useful, more helpful, and more accessible to people. But they’re also more resonant in culture—seemingly more in tune with the way the world is changing. To express these important differences, we’ve called these brands "thick brands”.

Through our research into the inner workings of thick brands, we’ve unlocked the dynamics of this value-creation process and discovered that two powerful forces are responsible for creating customer value: code and culture.

Culture is the ideas, content, and artifacts that shape our aspirations, conversations, and behaviors. Culture creates a belief system that enables your customers to assign value to your product or service.

Code enables us to write the software that enables people to search, interact, and transact in new ways. It allows your customers to compare your brand to other brands in the category, learn more about your products, and connect with others who have similar needs and interests.

Thick brands use a combination of code and culture to create one-of-a-kind experiences that not only help make a stronger emotional connection with customers but which also work hard for them in their everyday lives.

How does this fusion of code and culture drive value creation for customers? Our research identifies five key ways that these powerful forces create tangible value:

1. Personalization and customization: Code and culture enable thick brands to provide personalized experiences tailored to individual customers. Through advanced data analysis and algorithms, thick brands gain insights about customer preferences and behaviors, allowing them to deliver highly relevant and customized recommendations, products, and services. This level of personalization enhances customer satisfaction, deeper engagement, and genuine affection.
2. Seamless Journeys: The fusion of code and culture enables brands to create seamless customer journeys. Technology-driven solutions, such as intuitive interfaces, mobile apps, and digital platforms, streamline the customer experience, making it easier for them to interact with the brand at every touchpoint. This seamless integration enhances convenience, saves time, and helps promote a positive brand perception.
3. Access to Information: Code gives brands the power to provide customers with access to vast amounts of valuable information. Smart, creative code enables brands to offer their customers comprehensive product details, transparent pricing, and valuable insights. This information enables customers to make well-informed decisions, compare options, and have a deeper understanding of the brand's offerings, leading to increased trust and confidence in their choices.
4. Greater Engagement: Brands that understand and leverage culture can tap into the emotional and social motivations that drive brand engagement. By aligning with customers' values, beliefs, and aspirations, thick brands can create meaningful connections and foster a sense of belonging. Cultural elements such as storytelling, community building, and social responsibility initiatives evoke positive emotions, generate brand advocacy, and help create lasting relationships.
5. Innovation and Co-Creation: Code and culture together stimulate innovation and co-creation between brands and customers. Technology-driven platforms and digital tools allow customers to actively participate in product development, share feedback, and contribute to richer brand experiences. This collaborative approach fosters a sense of ownership, empowerment, and loyalty among customers.

Let’s take a quick look at how some of the world’s most iconic brands have harnessed the power of code and culture to create value for their customers:

1. Nike: Nike combines innovative digital products with cultural content like inspirational storytelling and athlete endorsements. Nike’s Membership ecosystem combines these two forces to create personalized experiences, enabling closer social connections among athletes, empowering them to track their fitness goals, and enhancing the overall brand experience.
2. Spotify: Spotify leverages software to deliver a seamless music streaming service that offers personalized recommendations, curated playlists, and data-driven insights. At the same time, they embrace cultural diversity and promote discovery through their algorithmic playlists, collaborative features, and initiatives that support emerging artists and fandoms.
3. Airbnb: Airbnb's digital platform utilizes code to connect travelers with unique accommodations worldwide. The company’s software provides personalized recommendations based on user preferences, streamlines booking processes, and offers trust-building features like user reviews. For the past six years, Airbnb has been promoting the idea that travel enables us to experience local communities, fostering connections and greater understanding between hosts and guests.

By co-opting the power of code and culture, thick brands create value for customers by delivering personalized experiences, seamless interactions, access to information, stronger emotional connections, and opportunities for co-creation with customers.

Let’s go a level deeper to explore how five of the thickest brands of the modern era are harnessing code and culture in increasingly creative ways:

1. Red Bull: Red Bull is famous for its energy drinks, but the brand goes beyond just selling beverages. It embraces extreme sports and youth culture, organizing and sponsoring events such as the Red Bull Air Race, Red Bull Crashed Ice, and Red Bull Rampage. By combining their association with adrenaline-pumping activities with digital content creation and cultural energy campaigns, Red Bull has successfully built a brand that resonates deeply with their adventurers and thrill-seekers.
2. Glossier: Glossier is a beauty brand that’s gained a strong following by leveraging both code and culture. Their online-first approach focuses on building a community through social media engagement, user-generated content, and influencer collaborations. Glossier's minimalist packaging and emphasis on natural beauty align with the cultural shift toward authenticity and inclusivity. They also utilize technology to provide personalized skincare recommendations and offer a seamless online shopping experience.
3. Patagonia: Patagonia has made a name for itself by blending code and culture in its brand building. The company actively promotes environmental sustainability and social responsibility, encouraging customers to make more conscious choices. Patagonia's Worn Wear program emphasizes repair and reuse, reducing waste, and promoting a culture of durability and longevity. Additionally, their online presence and e-commerce platform enable customers to access information about their products' environmental impact and ethical sourcing.
4. LEGO: While being renowned for its timeless toy bricks, LEGO promotes the power of play to enhance kids’ total play experience. The brand has introduced products such as LEGO Boost and LEGO Mindstorms that combine physical building with programmable elements. These sets enable children to learn coding concepts while constructing and controlling their creations. By integrating code and culture, LEGO has expanded its appeal to tech-savvy kids and fostered creativity, problem-solving skills, and imaginative play.
5. Lush: Lush, a cosmetics company, combines code and culture to offer a unique shopping experience. They utilize technology to create an immersive in-store experience with interactive displays and digital content. Lush also embraces a culture of sustainability and ethical sourcing, emphasizing handmade, cruelty-free, and environmentally friendly products. Their commitment to transparency and advocacy for social causes resonates with customers who value conscious consumerism.

These examples highlight how thick brands continue to find creative ways to harness code and culture to stand out in their respective industries, thereby creating more valuable brand experiences for their customers.

Building a thick brand is a significant undertaking so it’s definitely worth considering some of the significant challenges that these companies have experienced in using code and culture to increase the value of their brands. While not exhaustive, here are seven of the major challenges that companies may face when implementing a “code and culture” brand-innovation strategy.

1. Technological Complexity: Harnessing the power of code in your brand's strategy requires a solid understanding of technology and its implementation. Companies may face challenges in navigating the complexities of emerging technologies such as artificial intelligence, data analytics, and digital platforms. They need to ensure they have the right technical expertise or can identify a partner who can effectively leverage code to build robust and reliable brand experiences.
2. Cultural Acuity: Embracing culture in brand innovation requires a deep understanding of your audience's values, beliefs, and aspirations. It can be challenging to accurately identify and tap into cultural trends and shifts. Companies need to invest time and effort in conducting thoughtful research and analysis, and staying up to date with societal shifts to ensure their brand will continue to resonate in authentic ways with customers.
3. Balancing Innovation with Authenticity: Investing in code-driven experiences shouldn’t compromise your brand's authenticity. While adopting new technologies and trends, companies need to ensure that their brand's core identity and values are preserved. Striking the right balance between brand innovation and brand integrity can be a challenge, requiring careful decision-making and strategic planning. (We’re looking at you AI)
4. Data Privacy and Security: Leveraging code and technology involves collecting and analyzing customer data. Companies must navigate the complex landscape of data privacy regulations and ensure compliance with laws such as the General Data Protection Regulation (GDPR) or the California Consumer Privacy Act (CCPA). They need to implement robust data protection measures to safeguard customer’s information and bank of trust with the brand.
5. User Experience and Adaptability: The successful integration of code and culture relies on delivering a seamless and user-friendly experience. Business owners must prioritize user experience design and ensure that technological advancements enhance, rather than hinder, customers’ journeys. Additionally, companies need to remain adaptable and responsive to evolving customer needs and preferences, as both code and culture can change rapidly.
6. Talent and Skills Gaps: Building a team with the right skill set and expertise in both technology and cultural understanding can be a challenge. Business owners may face difficulty finding individuals who can bridge the gap between code and culture effectively. This means investing in the right talent, training, and strategic partnerships.
7. Return on Investment: Implementing code and culture strategies may involve significant investments in technology, talent, and marketing. Companies need to carefully assess the potential return on investment and develop metrics to measure the effectiveness of their efforts. Demonstrating the value and impact of code and culture integration can be challenging, requiring continuous monitoring, analysis, and optimization.

In today's rapidly evolving business landscape, brand owners face immense challenges creating meaningful connections and delivering value to their customers. In an era of digital transformation and hyper-connectivity, traditional brand building strategies are no longer sufficient to capture the attention and loyalty of customers.

Modern consumers demand personalized experiences, seamless interactions, and enduring integrity from the brands they buy. But in our estimation, code and culture offer a powerful one-two punch to reshape the way brands create value for their customers.

The convergence of code and culture presents a unique opportunity for brands to differentiate themselves, drive innovation, and foster long-term customer relationships. The true power lies in the synergy between these two forces to:

• Deliver personalized experiences at scale: Code enables brands to collect and analyze customer data, while culture guides the interpretation of this data, leading to personalized experiences that resonate with diverse customer segments.
• Drive innovation and co-creation: Combining code and culture empowers brands to co-create with their customers, leveraging technology to involve customers in product development, feedback loops, and customization.
• Establish authenticity and trust: The fusion of code and culture allows brands to demonstrate authenticity by aligning their technology-driven capabilities with cultural relevance, earning the trust and loyalty of customers.
• Adapt and thrive in a changing landscape: Code and culture provide brands with the agility to adapt to evolving customer expectations, technological advancements, and cultural shifts, enabling them to stay more relevant, more competitive, and more valuable.

Catalyst Strategy is a Los Angeles-based independent brand innovation studio.

Our mission is to help clients grow their businesses by rethinking how their brands can add value to the lives of the people they serve. Our approach combines insight, foresight, and lateral thinking to help businesses create brands that their customers will find invaluable.

Whether you're a B2C company or a B2B company, we believe you should be making a significant investment in brand innovation because of the importance of creating tangible value for your customers. And, after two years of in-depth research on the most innovative brands, we've concluded that true brand innovation must occur at the intersection of code and culture.

Please get in touch if you'd like to talk about how code and culture can help unlock innovation at the heart of your brand.