Au­then­tic­i­ty

The demand for authenticity is driven by five key factors: availability of experiences, arrival of new technology, society's awareness of authenticity, influence of the baby boomer generation, and erosion of confidence in major social institutions. Consumers today are more inclined to pay for packaged and structured experiences, which has led to a greater emphasis on authenticity. New technology, such as automated voice mail systems and websites, has made it more challenging for consumers to discern genuine interactions from automated ones.

Authenticity can be perceived in five distinct genres. The first is Natural authenticity, which refers to commodities that exist in their natural state, untouched by human hands, such as organic foods or handmade items. The second is Original authenticity, which is attributed to products that are pioneers in their field, like Levis jeans, Coca-Cola, or the Apple iPod. The third genre is Exceptional authenticity, which is associated with offerings performed exceptionally well, such as exceptional customer service or treating people well and responding to their needs. The fourth genre is Referential authenticity, which draws from the rituals of human history or long-standing cultures, like drinking beer at a country pub in England or the Chinese tea ceremony. The fifth and final genre is Influential authenticity, which is perceived in sources that exert influence and urge humans to higher goals, such as sustainable buildings and fair trade practices.

Authenticity in business is a delicate balance. It's not about making explicit claims of authenticity, but rather about demonstrating it through actions and offerings. The more a business insists on its authenticity, the more skepticism it may invite. Authenticity is a personal judgment made by each customer, influenced by their experiences with the business. Businesses can't declare their authenticity through marketing or other means; instead, they must lay the groundwork and allow customers to discover it for themselves.

Shakespeare's character Polonius poses two critical questions for businesses assessing the authenticity of their products or services: "Is our offering true to itself?" and "Is our offering what it says it is?" The answers to these questions can be plotted on a matrix, creating four quadrants: Fake/Fake, Real/Fake, Fake/Real, and Real/Real. For instance, Nike's retail shops, Niketowns, fall into the Fake/Fake quadrant. They sell products without aligning with Nike's "Just Do It" ethos, failing to offer an experience that resonates with Nike fans. On the other hand, the NBA Store exemplifies the Real/Fake quadrant. It is run by the National Basketball Association and sells official merchandise from every NBA team, but it discourages hands-on interaction, contradicting the NBA's ethos. To transition from Real/Fake to Real/Real, businesses should acknowledge their inauthenticity and work to incorporate more genuine elements into their offerings.

The concept of authenticity is multifaceted and can be divided into two categories: "Are you what you say you are?" and "Are you as an organization true to yourself?". These categories encompass ten key measures that help define and assess authenticity.

The first category, "Are you what you say you are?", includes five measures. The first measure is the essence of your enterprise, which is a combination of your legal entity, corporate ethos, and business model. This measure reflects the core identity of your organization. The second measure is what you offer others, which is the nature of your products, services, and offerings. This measure reflects the value you provide to your customers or clients. The third measure is the impact of your heritage on what you do today, which is where, when, and why your organization came into being. This measure reflects the history and legacy of your organization. The fourth measure is why you are in business, which is the reasons why your firm exists and what you are working towards achieving. This measure reflects the purpose and mission of your organization. The fifth measure is how your corporate identity is projected, which is the ways in which your beliefs and values are reflected in your decisions, actions, and priorities. This measure reflects the image and reputation of your organization.

To enhance your authenticity, it is suggested to shift from traditional marketing to placemaking. The latter involves creating spaces, either permanent or temporary, where customers can directly experience your offerings. This approach is gaining traction as traditional advertising, often perceived as inauthentic, is losing its effectiveness. Placemaking can be physical or virtual, free or fee-based, and aims to create engaging experiences that prompt customers to make purchases.

To implement this, you need to develop a portfolio of experiences across five different classes of placemaking:

Flagship location: A single place that exemplifies everything your business stands for, offering a hands-on and memorable experience for existing or potential customers. Experience hubs: Locales famous for specific industry niches, like Detroit for the automobile industry or Hollywood for the movie industry. Major venues: Places with large populations where you can run high-level hands-on experiences. Derivative presence: Having a presence inside some other venue or event. Worldwide markets: Every conceivable place where customers might encounter your company’s offerings.

To foster authenticity in your business, align your commercial strategy with your core values instead of solely focusing on profit-making. Understanding your opportunity space is crucial to staying true to your company's identity. This involves recognizing your "Execution Zone," which is the range of possibilities you can achieve in the future based on your past performance. It's essential to stay within this zone and avoid getting sidetracked by unattainable options. Two key principles to achieve this are studying your heritage and ascertaining your current positioning. Understanding your company's history and origins can help avoid options that contradict your past values. Meanwhile, your current positioning, or what you're doing in the present, influences market expectations for your future actions.

Understanding the authenticity matrix provides a strategic direction for competing against an established competitor. If a competitor is well-positioned in one segment of the matrix, an effective strategy is to position oneself in the opposite corner of the matrix, which can be more authentic than trying to match them in their current position. For instance, consider the competition between natural and artificial grass. Most people consider natural grass to be Real/Real, despite it being planted, mowed, fertilized, watered, aerated, and edged. In contrast, artificial grass, which is completely synthetic and requires no maintenance, is considered Fake/Fake. Despite this, many homeowners in the southern United States have installed synthetic grass due to its lack of maintenance requirements and similar "playability" to natural grass.