AT&T CMO Links Brand Love to Customer Acquisition and Retention

Kellyn Smith Kenny, Chief Marketing Officer and Chief Growth Officer at AT&T, has detailed how the company quantifies the impact of "brand love" on key business metrics, demonstrating a direct correlation between customer affection and tangible financial outcomes. Kenny joined AT&T in November 2020, a period of significant strategic realignment for the telecommunications giant. AT&T was divesting from its entertainment ventures, including the $85 billion acquisition of Time Warner and its ownership of DirecTV, to refocus on its core telecommunications business, investing more heavily in 5G and fiber infrastructure while reducing debt. Kenny, who previously held marketing roles at Microsoft, Capital One, Uber, and Hilton, sought a position where marketing would be instrumental in a company's transformation, stating her intention to join only companies where marketing is a "key ingredient" for reaching full potential.

Nearly six years into her tenure, Kenny reports that AT&T has successfully measured the translation of brand strength into customer growth. The company tracks "brand love" by surveying consumers on a seven-point scale, with scores of six or seven indicating brand love. According to Kenny, AT&T's brand love score has increased by 13 points over the past five years, a significant achievement given that a one- or two-point annual increase is typically considered strong performance. This rise in brand affection has been linked to concrete customer behavior changes. AT&T's analysis indicates that prospective customers who express love for the brand are 1.6 times more likely to become paying customers within the subsequent 12 months.

Furthermore, the impact of brand love extends to customer retention. Existing customers who exhibit "brand love" are approximately three times less likely to churn, meaning they are significantly less likely to switch to a competitor. This reduction in churn directly translates to lower customer acquisition costs, as retaining existing customers is generally more cost-effective than acquiring new ones. Kenny also highlighted that customers who love the brand are considerably cheaper to acquire, although specific figures for this cost reduction were not detailed in the provided context. The ability to link marketing efforts to these quantifiable business outcomes, such as increased acquisition and decreased churn, underscores the strategic importance of brand building within AT&T's current business objectives. The company's focus on telecommunications, supported by investments in advanced network technologies like 5G and fiber, provides a foundation for delivering services that can foster deeper customer loyalty and, consequently, greater "brand love."