The Golden Circle is a concept presented as a circle, like its name suggests, with layers similar to onions and ogres. The three layers represent the questions: why, how, and what. The theory suggests that by answering these three questions, a company can understand the purpose of its business.
The Golden Circle is mentioned in the book Start with Why by Simon Sinek. In the book, Sinek discusses how crucial it is for brands to know why they were created and how this understanding helps them grow.
The 3 Layers of the Golden Circle
Each layer represents the questions: why, how, and what. Although they seem simple, they are a great exercise to understand a company’s purpose. In Start with Why, Sinek advises companies or their leaders to use the Golden Circle starting by addressing the why.
Golden Circle: Why?
In the first layer of the Golden Circle, Simon Sinek suggests that this is where you need to write down the purpose of your business. We must identify the reason for the existence of this business or venture, what drives and motivates all actions. This is the company’s purpose.
If the company truly identifies its why, everything moves naturally and flows. For this reason, it is the starting point for businesses—if you know why you are doing it, it gives you a direction for your entire business or venture.
Golden Circle: How?
In the middle layer of the Golden Circle, we determine and establish the strategies we will apply to achieve results aligned with the company’s purpose. This is where the company’s action or work plan is located and should always align with the company’s values.
Golden Circle: What?
In the last layer of the Golden Circle, Simon Sinek points out that this is where we must specify what the company sells or does. This layer of the Golden Circle is the easiest to understand because it involves the product or service the company sells.
Why Have the Golden Circle?
Having the Golden Circle is essential for an organization, especially if it is not clear about the reason for its existence. Having this information and understanding it allows you to conduct various marketing and communication campaigns, thus achieving better results.
By leveraging the Golden Circle, we can achieve various objectives and facilitate decision-making and good outcomes. Some of the impacts on your business include:
Inspiring Communication
Starting with the why can make all your communication exciting, impactful, and inspiring, increasing loyalty through a sense of belonging.
Example: Apple doesn’t just sell computers; it promotes challenging the status quo and innovation, resonating with a certain profile of customers.
Brand Strategy
Having a why helps the brand to be strong and coherent, achieving omnichannel presence as previously shared, which allows you to have a brand narrative that communicates clearly and maintains good communication.
Example: Patagonia, the clothing brand, achieves good communication focused on its purpose of sustainability and environmental protection, reflected in all its corporate actions, marketing, and products.
Differentiate from the Market
When you compete only by product (the “What”), you will likely compete on price. However, if you have a “Why” and “How,” you begin to compete on different variables.
Example: Southwest Airlines is distinguished not only by its low-cost flights (the “What”) but also by its commitment to friendly service and the democratization of air travel (the “How” and “Why”).
Customer Loyalty
Customers are more likely to become loyal and advocates for the brand if they can identify with the purpose, the Why of the company. This simplifies customer satisfaction.
Example: Tesla customers feel part of a larger mission towards sustainability and innovation in mobility.
Do you already know your Why, do you know why your company does what it does? If not, we recommend you start today and begin applying it.
El golden circle es un círculo, como lo dice su nombre, con capas como las cebollas y los ogros. Las tres capas representan las preguntas ¿por qué?, ¿cómo? y ¿para qué?. La teoría dice que resolviendo estas tres preguntas, una empresa puede entender el propósito de su negocio.
Cada capa representa las preguntas ¿por qué?, ¿cómo? y ¿qué? Y aunque parecen preguntas sencillas, es un gran ejercicio para entender el propósito de la empresa. En el libro Start with Why (empieza con el porqué) Sinek recomienda que las empresas o líderes de las mismas utilicen el golden circle empezando por resolver el porqué.
Golden circle ¿Por qué?
En la primera capa del círculo dorado, Simon Sinek indica que aquí es necesario escribir el propósito de tu negocio. Debemos identificar el motivo de la existencia de este negocio o este emprendimiento, lo que empuja y motiva todas las acciones. Este es el propósito de la empresa.
Si la empresa realmente identifica el porqué todo se mueve naturalmente y fluye, por este motivo es el punto de partida de los negocios, si sabes por qué lo haces te da un norte para todo tu negocio o emprendimiento.
Golden circle ¿Cómo?
En la capa intermedia del círculo dorado es donde debemos de determinar y bajar las estrategias que vamos a aplicar para lograr los resultados y que estén alineados con el propósito de la empresa, ese es el por qué. Aquí es donde está el plan de trabajo o acción de la empresa, debe de estar siempre alineado a los valores de la empresa
Golden circle ¿Qué?
En la última capa de círculo dorado Simon Sinek nos comenta que en este punto debemos poner lo que vende la empresa o lo que hace, esta capa del círculo dorado es la más fácil de entender de todas ya que es el producto o servicio que vende la empresa
Por qué tener el circulo dorado
Contar con el círculo dorado para una organización es esencial, especialmente si no tiene claro el motivo de su existencia. Contar con esta información y entenderla te va a permitir hacer diversas campañas de mercadotecnia y comunicación teniendo así mejores resultados
Cuando aprovechamos el círculo dorado podemos lograr varios objetivos y facilitarnos la toma de decisiones y buenos resultados alguno de los puntos que impactan en tu negocio son:
Comunicación inspiradora
Si comienzas con el Why (por qué) podrás lograr que toda tu comunicación sea emocionante, impactante e inspirador, logrando mayor lealtad a través de un sentimiento de pertenencia
Ejemplo : Apple no vende computadores, promueve desafiar el status quo y la innovación, esto resuena con cierto perfil de clientes
Estrategia de marca
Contar con un Why (por qué) ayuda a la marca a ser fuerte y coherente, lograr la omnicanalidad como ya te hemos compartido con anterioridad, lo que te dejará tener una narrativa de marca que comunique claramente y logres tener una buena comunicación
Ejemplo: Patagonia la marca de ropa logra tener una buena comunicación la cual se enfoca en su propósito de sostenibilidad y la protección del medio ambiente y esto se refleja en todas sus comunicaciones en todas sus acciones corporativas, mercadotecnia y sus productos
Diferenciate del mercado
Cuando compites solamente por producto (el “What”), muy seguramente vas a pelear por precio, pero si cuentas con un “Why” y “How” comienzan a competir con otras variables
Ejemplo: la aerolínea Southwest Airlines se distingue no solo por sus vuelos baratos (el “What”), sino por su compromiso con el servicio amigable y la democratización de los viajes aéreos (el “How” y “Why”).
Lealtad de clientes
Es más posible que los clientes se vuelvan leales y defensores de la marca si logran identificarse con el propósito, el Why de la empresa, esto vuelve más simple la satisfacción del cliente.
Ejemplo: Clientes de Tesla se sienten parte de una misión más grande hacia la sostenibilidad y la innovación en la movilidad.
When we talk about marketing, we always have the idea of generating campaigns or strategies so disruptive that they change the course of marketing and how it is perceived. However, not all campaigns achieve this, and not all campaigns withstand the test of time. That’s why we bring you 5 marketing campaigns that may not last forever but definitely change the way we see a marketing campaign.
Surreal, recommended by celebrities
Surreal is a high-protein cereal brand focused on functional foods, a company from England that has managed to make disruptive and different campaigns like their fake celebrities campaign.
In their fake celebrities campaign, they found people who share names with famous celebrities and had them try the cereal. After tasting it, they gave some comments or opinions that were used for the campaign, always clarifying that it was not the celebrity you thought it was.
This campaign is extraordinary because they took an element already known as the use of celebrities and with this in mind, they sought out celebrities with the same name to create a campaign using their names but not their images, managing to give a twist to the well-known campaigns of using celebrities without spending what it would cost to hire a real celebrity.
Vicio Burgers with Neighbors
when opening a new branch that involved distributing flyers locally, but as it is known, flyers quickly become trash.
With the task of executing an effective marketing campaign, Vicio created flyers that mimic the typical neighborly complaint found in condos or buildings, and with that, they promoted their new branch.
This changes the way we view advertising because instead of invading space, it becomes part of it and integrates, achieving a more effective campaign.
Although not the first to do so, Barbie, the doll that adapts to any season or job it faces, decided to launch its movie in 2023, which, like its dolls, was a success.
The movie is an excellent marketing tool because it is not only an eternal product placement but also managed to increase doll sales by 3%, representing the sale of 1,538 million dolls and a 16% increase in profits.
The movie not only manages to place the product well but also repositions it as a doll concerned with current issues, making it a benchmark in cinema for product placement, something Lego had previously achieved with its movie.
Burger King Real Size
How many times have you seen a burger on a billboard that looks giant, making you crave something that big? Burger King has bet on honesty with this advertisement by creating billboards that show the real size of the burger, and you can compare it with your hands.
This advertisement not only draws attention by achieving a typographic design that catches the eye but also invites users to interact with a billboard that normally does not interact. It is disruptive from the traditional advertisement, thus changing the perspective of burgers and their marketing.
Distance Steal Them If You Can
The brand Distance decided to run a campaign where you can steal sneakers from the store and keep them for free only if you manage to escape from the security guard, who is Mickael Zeze, a 100m runner in just 9.99 seconds.
This campaign attracted more than 100 visitors, and only one person managed to escape. This campaign is completely disruptive because it not only invites participation in an activity but also encourages people to do sports and face a different challenge with its campaign.
These campaigns are completely disruptive, either by the way they were done or by the quality with which they were executed. We have a lot to learn from them, both in terms of campaign style and openness to doing things differently. Sometimes it’s not a lack of ideas but a lack of courage to start doing them.
And you, are you willing to do something different?
The purchase process for a user is the same at all times, but it can last months, years, or happen in seconds. This purchase process occurs daily, and we often don’t even see it happening; it occurs without us thinking about it.
What is the Purchase Process?
The purchase process is what the consumer does before, during, and at the time of acquiring a service or product, and the process can occur over a long period of time or in a very short period. Knowing this purchase process, identifying it, and aligning it with your sales funnel is essential to achieve a good purchasing experience and good objectives.
Consumer behavior is the understanding and analysis of the factors that influence the behavior of a market when buying a product or service. To better understand it, it’s how a person decides based on time, money, and effort factors to meet their consumption needs.
This stage of the purchase process begins when the user is not so sure that they have a problem, referring even to a need. At this point, they just begin to see which companies exist and which ones catch their attention more.
Problem Recognition
In the user’s purchase process, problem recognition is the basis for there being a need to buy. The recognition that there is a need to cover a need or a problem occurs at this moment, this need can be self-generated or induced by companies through marketing and that’s when the real search begins.
Solution Consideration
At this point in the purchase process, the user is reviewing and evaluating the possible brands or companies from which they can buy, starting to research and inquire more deeply into the benefits each one offers.
Purchase Decision
When the customer reaches this point, there is no turning back; the user has already decided to make the purchase of the desired product or service knowing exactly the benefit they expect to obtain.
If at the last point of the purchase process the consumer does not get what they expected, there is a great possibility of disappointment and as we know this causes us not only to lose a customer, but they spread the word, something that would be completely opposite if this customer receives more than what they expected.
It is important to highlight other instances that have to do with the purchase process or that help you speed up the same. For example, when a user wants to buy something, they look for the product they want to acquire to have validity, whether real or not, and that it really works for what they want, and to help them with this, a very good tool is to use comments or reviews.
Sell More with Comments and Reviews
Comments and reviews can help you sell many more products, thanks to the fact that even though your product looks impeccable, your site is perfect, and you promise everything, even though it is true, your word is all they see, so having comments is of utmost importance to allow users to validate if the information is true through the experience of other consumers.
Encouraging reviews is necessary and useful, to achieve it you can carry out various strategies:
Strategies to Encourage Reviews on Your Products
Discounts for Reviews
When you manage to sell a product, you can offer users discounts on their next purchases in exchange for a review on your website or in your restaurant, even if you sell through platforms like Mercado Libre or Amazon.
Unforgettable Experience
Ensure that the process of purchasing and obtaining the product provides the user with an excellent experience so that the user’s emotion is expressed in a good review.
Email Marketing for Reviews
You can directly request the review right after they have made the purchase by sending the email directly to the users and receiving the invitation to give a review.
Using comments in your purchase process is essential and understanding that this is directly related to the sales funnel and managing to link these two to understand and solve the real problems of the customers and convince them is something that will optimize your brand and your business.
Have you ever noticed these points from your purchases or do you overlook them? What do you think about these steps we live without realizing it?
