Posts in Consumer insight

The strategic role of brand advocacy

Advocacy: Serving Consumers’ Unrelenting Drive for Trust

May 22nd, 2024 Posted by brand strategy, consumer behavior, Consumer insight, Marketing Strategy, purchase funnel, purchase funnel, purchase funnel brand strategy, Strategic Planning 0 comments on “Advocacy: Serving Consumers’ Unrelenting Drive for Trust”

People yearn for belief and assurance…

Is it any surprise the most powerful force influencing consumer choice is the desire to avoid making a bad decision? The threat of disappointment lurks in every corner on the path to purchase. So great is our need to elude the risk of unhappiness, we will stubbornly hang on to anything we believe to be true, while potentially missing the opportunities of new product or category exploration.

  • Yet herein lies an enormous opportunity for brands to step into the midst of this condition with tools that work to resolve consumers’ express need for certainty in an uncertain world.

Yes, you can help people overcome their perceptions of risking a bad decision.

Yes, you can earn consumer trust and confidence.

Yes, you can solve this intractable barrier on the path to purchase.

Yes, you can create a real relationship with users that evolves into fandom.

Why are people so distrustful and risk averse?

In our hyper-digital media-saturated world, we have entered the era of glass brand houses where anything that can be known, will be known almost instantly. Thus, people are exposed to a revolving rogues’ gallery of living, real world case studies in deceit, manipulation, lies by omission, under-delivering, overt selfishness or failures to protect the integrity of promises made. Too many times we witness the extension of claims conveyed that either can’t or won’t be served and instead appear as a form of marketing spin or at the minimum, outright failures of honesty and integrity. People witness too many brand perp walks that fuel distrust, enable anxiety and cement our static cling to the tried and true.

The end result is a more cynical mental state that slathers on a deep coating of skepticism factored into risk assessments of literally everything we consume and do. Fearless people, those most likely to step into the abyss of uncertainty and take the risks of new product and service trial, represent a small proportion of any addressable market – roughly 14% on average. For a business to be successful, you simply must leap way beyond the fearless minority of early adopters.

Dawn of the age of advocacy

Every day, you have an opportunity to earn trust and belief. By the way trust is a prerequisite to secure a lasting, genuine brand-to-consumer relationship. Yet people are subjected to outcome claims and assertions by brands, mounted too often inside self-promotion of product features and benefits. Therefore, the brand’s commercial self-interests is the primary message and leaves the consumer to think the brand cannot be an objective, reliable guide.

You can step into the warmth of belief and trust by carefully examining all points of consumer interaction, while working to field flags and symbols of purpose, mission and beliefs that convey there’s a genuine heart and soul informing your brand’s business behavior and ethics.

Consumers want to believe they are always your top priority – that their happiness and wellbeing is paramount to your brand. When the business presents itself as customer-first, and actively operates in their best interests, then and only then have you opened the door to gaining trust.

Brand communication and action on the road to credibility

Having instilled customer centricity as an anchoring principle of brand ethos, advocacy is your most important strategy towards cultivating risk-abating comfort and confidence. What do consumers actually want from trusted brand communication?

Credibility – consider the mediums of trusted communication

Validation – invoking the imprimatur of respected sources

Verification – deploying believable voices

Advocacy can help you narrow the chasm between what brands proclaim and what consumers will accept as true.

The source of advocacy

There are outside voices we pay attention to and believe. …Those with unique knowledge and credentials that qualify them as respected experts. Especially people who elect to study and evaluate the merits of products and businesses and whose objectivity and reputations precede them. Thus, we grant these voices a mantel of independent assessment that we’ll accept.

Important to note, advocacy at its heart is about independent observation, and is not the province of paid influencers who have commercial biases attached to their endorsement.

Whom do we trust?

  1. Outside third-party subject matter experts, scientists and authorities
  2. “Medium is the message” – credible channels such as social community activation and earned media reporting
  3. Activating word of mouth – the most credible form of communication available
  4. Employees – the most overlooked cohort for advocacy support

Active and optimized brand social communities are recognized when the majority of content is supplied by community members who share their experiences, rather than the usual ample dosing of brand self-promotion content. We accept the evaluations and testimonials of IRL users before we will believe the brand’s claims of performance.

Advocacy in action

We represented the largest cheese company in the Italian sector at a time when adulteration, mislabeling and misrepresented products had been growing like a cancer in the category. We were tasked with working to help put an end to food fraud in Italian cheese. As our client was market share leader, we needed to bring the voices of the entire industry to bear in support of eradicating adulteration, otherwise the effort risked being seen as self-serving.

We met with industry and government organizations and leaders to advocate for change. Their presence was intended verify and validate the scope of the problem and reinforce why consumers deserved to know the cheese they were buying was genuine and made correctly according to the Federal standard of identity.

When we launched this effort in the media, these voices were essential to confirm the conditions impacting Italian cheese and the call to “out” the practice of making fake products in order to hit a lower price point. The project turned into a referendum on truth and best practices in cheese making. It would not have been successful without advocacy from all sectors of the business.

Advocacy in brand communication

We worked closely with the CEO of Jamba Juice Company on an enterprise level strategy to re-stage the business from a smoothie chain to a healthy lifestyle brand. This was happening at a time when consumers were increasingly scrutinizing Jamba beverages based on sugar content against the desired concept of healthier choice.

Thus began an initiative to address product formulation and new product innovation in an effort to reframe consumer perceptions of Jamba’s menu board and its role as part of a healthy lifestyle. To help confirm, verify, validate and educate consumers about these key initiatives we formed the Jamba Healthy Living Council, recruiting some of the most well-known and respected names in the world of registered dietitians and nutrition expertise.

We asked Council members to advise the company on healthier recipes while also verifying the efficacy of the changes Jamba was making to its existing products. Their voices were essential to helping the world see and believe that real changes were being made by America’s number one smoothie restaurant brand. It was the Council’s affirmation and validation of these developments that built credibility under the brand’s healthy lifestyle strategy.

  • Brands are faced with risk-averse consumers who seek belief from the right sources when uncertainty is present. Which is everywhere by the way. Advocacy offers a path to reliable, credible truth that works to authentically confirm what we want people, retail customers, consumers, employees and other category players to believe.

Belief leads to trust while trust leads to acceptance and repeat purchase. If this sparks a conversation on your end about the potential role of advocacy strategies in your business, use the link below to start an informal conversation with an experienced team of advocacy strategy experts.

Looking for more food for thought? Subscribe to the Emerging Trends Report.

Bob Wheatley is the CEO of Chicago-based Emergent, The Healthy Living Agency. Traditional brand marketing often sidesteps more human qualities that can help consumers form an emotional bond. Yet brands yearn for authentic engagement, trust and a lasting relationship with their customers. Emergent helps brands erase ineffective self-promotion and replace it with clarity, honesty and deeper meaning in their customer relationships and communication. For more information, contact [email protected] and follow on Twitter @BobWheatley.

Apple swings for the emotional fence, breaks ad rules

Seven Million Reasons Why Strategy Eludes the World’s Most Expensive Ad Spend

February 23rd, 2024 Posted by Behavioral psychology, Brand differentiation, brand messaging, branded content, Consumer insight, Digital disruption, Emotional relevance, Mission, resonance, storytelling 0 comments on “Seven Million Reasons Why Strategy Eludes the World’s Most Expensive Ad Spend”

Important to respect the human sitting on other side of the screen

The Super Bowl attracted a bit north of 123 million viewers, the greatest aggregation of human eyeballs in one place at one time, and thus the reason why 53 TV spots aired at a $7 million per 30-seconds clip. It is an unprecedented event where advertising is as much of a contact sport as the action on the football field. People tune in specifically to consume the ads — what an amazing impact opportunity-in-the-waiting, but nevertheless not often optimized largely due to an absence of sound strategy on how people make decisions and take action.

  • David Ogilvy once famously remarked that if attention was all that mattered then you could put a ‘gorilla in a jockstrap’ in an ad. Yet that’s not what drives real effectiveness. He knew it and built a global agency powerhouse on that model of respect for consumer insights, perhaps now forgotten in the age of ‘can you top this’ over-reach with the display of so many digital bells and whistles.

Moreover, the Super Bowl ad is just the tip of the spending iceberg when looking at the total costs of gargantuan celebrity contact fees, massive production budgets and the veritable supermarket of extensions in packaging, retail tie-ins and social media on and off ramps.

Yet in astounding fashion, sound strategy is mostly absent from this festival of short form cinematic spectacle. The temptation to pursue attention at the expense of real relevance is just too great. In circa 2024, the ad party turned into a conspicuous mish mash of celebrity faces, much like excessive name-dropping at a Hollywood cocktail party. It’s no secret that all-too often the celebrity brand will outshine the product brand. So why does it go this way?

Guess what, emotion drives behavior

The neocortex area of the human brain governs our decisions and the actions we take. As much as we would all prefer to believe that people are logical beings who make decisions based on facts and information, instead we respond to emotional cues – how we feel in the presence of a brand. Yet too few of the ads we saw were designed with intention to drive for that kind of authentic connectivity. Given the huge one-shot spend level, you’d think it would be different.

Yes, a different approach is needed

In 2023’s super game, the highest rated commercial was a total outlier from a small pet food company called The Farmer’s Dog. This high-level and instructive achievement in strategic brand communication was the polar-opposite of the celebrity dragon-riding special effects we witnessed this year. Here Farmer’s Dog offered a story well-told that traced the poignant and touching relationship between a dog and young girl owner, charting the course of their life’s journey together. Not a word was spoken. No celebrity cameo. No green screen special effects wizardry.

It was an emotional, heartfelt, memorable celebration of the incredibly powerful and important relationship between a person and their dog. There was no recitation of production formulation features or superior ingredient claims. The brand wasn’t shouted in every frame. It didn’t need any egregious self-promotion to get the message across. It was supremely effective because people left it with an emotional connection. We all recognize that unique bond between pet parent and furry family member. The pet food existed as an enabler of pet wellbeing on life’s pathway.

Desperately seeking attention

Creating content for an engaged audience is just different than trying to capture an audience with some wild content. Too many brands seeking attention at the expense of sound strategy. The truth is human beings are feeling creatures who think not thinking creatures who feel. If you want to manage perceptions of your brand, and yes that should be a goal, then you really need to manage emotions. If your objective is to assure communication is remembered, to have impact, then emotional gravitas is paramount.

Proper use of the world’s greatest ad venue to deliver boldness

Way back in 1984, Apple used the setting to unveil their new Macintosh computer with a historic ad that captivated the world’s attention. It was a bold and also controversial strike, so much so the Apple Board was wary of showing it right up to the telecast. It aired and both ad history and the upstart Apple brand was made. It was a powerful message about democratizing the power of creativity and expression in the hands or everyone – railing against the dictates of the “establishment.”

Speaking of bold, what about sustainability and ESG in the midst of uncertainty?

Nearly every major brand in the food, beverage and lifestyle worlds is working hard to address their sustainability bona fides and emissions performance. It is by definition an opportunity for a brand to focus on higher purpose, mission, reputation and value beyond transactional thinking. Yet we don’t see that showcased here. We have entered a new era where brands are expected to have a point of view, a belief system and to be standard bearers of change. We remain hopeful that someday soon, a progressive brand will take advantage of the super venue to convey what people seek – a healthier, safer planet.

Guidance going forward

Put the consumer at the center of your planning and thinking and work backwards from there. Recognize that shameless self-promotion makes a brand the hero of any story told, and by doing so casts the brand in direct competition with the consumer who sees themselves each and every day as the hero of their life’s journey. Celebrate your consumer and their wishes, needs and aspirations like Farmer’s Dog did with such excellence. This is sound strategy. Your brand deserves this approach to spending effectiveness and outcomes, whether at the Super Bowl or in routine quarterly brand and business support.

If this post gets you thinking about how best to optimize and improve your planning for improved communications effectiveness, use the email link below to ask questions and start and informal conversation.

Looking for more food for thought? Subscribe to the Emerging Trends Report.

Bob Wheatley is the CEO of Chicago-based Emergent, The Healthy Living Agency. Traditional brand marketing often sidesteps more human qualities that can help consumers form an emotional bond. Yet brands yearn for authentic engagement, trust and a lasting relationship with their customers. Emergent helps brands erase ineffective self-promotion and replace it with clarity, honesty and deeper meaning in their customer relationships and communication. For more information, contact [email protected] and follow on Twitter @BobWheatley.

Narrowcasting to the most relevant and engaged audience

Brand Strength in Fewer Numbers

January 23rd, 2024 Posted by brand advocacy, brand messaging, Brand preference, Consumer insight, Emotional relevance, Social community, Social media, storytelling 0 comments on “Brand Strength in Fewer Numbers”

Narrowcasting to fans, followers and advocates…

If you look under the hood of a strong brand with a demonstrated higher purpose, belief system and investment in social community building, you will find a percolating audience of consumer ambassadors and believers. A symbiotic relationship exists here as the brand invests in them and they reciprocate with support as frequent users and evangelists often via word-of-mouth. All of this, mind you, can be strategic and intentional, even when the manifestations appear to be organic.

An outcome of the digital age, we find greater efficacy in narrower channels of media that cater to special interests and topics resonating to the hearts and minds of the brand’s most devoted followers. In many cases this also attests to the 80/20 rule: 80 percent of profits come from 20 percent of a brand’s most ardent followers and users. This happens repeatedly.

  • So we pose the question: how does this play out in earned media strategy? It’s a fair question because earned media outreach is often devoted to a long-standing tool of the mass media era, the venerable press release, its distribution usually a shotgun affair that goes in every direction.

Narrowcast vs. broadcast

Name the category where strong brands exist and you’ll find media resonant to core lifestyle interests and passions of a brand’s most frequent users. It is here where the truly gifted earned media artists devote time and energy to building relationships with editors and contributors – those who populate these influential media channels with engaging content.

Earned media isn’t transactional, at least not most of the time. The path to outcomes in this setting are negotiated through interaction and conversation between people. The communications experts from the brand side are packaging and presenting relevant story background ideas/material to discuss with reporters whose areas of focus closely matches the topics of interest for a brand’s best users.

The entire proposition is driven by mutual respect, credibility, service to the reader, editorial sensibility and well-researched supporting material, reports and sources who form the alchemy of any solid feature story treatment. The paradigm is fueled through mutual interest and effort over time to build a solid, reliable relationship between source and scribe. It’s definitely not “spray and pray” as press releases can be referred to in wire service distribution terms.

  • Our point: there’s more to be gained in narrowcasting earned media strategies to specific channels where special interests are served, and this is territory where media relationships are nurtured over time. Reporters tend to go back to reliable sources.

The ladder: vertical to national

Ask any brand executive and you’ll get feedback that national bluechip media coverage is always a desirable outcome from elite media brands like the New York Times, Bloomberg, Washington Post, Wall Street Journal or network TV news. Vertical media often get the short sheet in this conversation, but they shouldn’t. Category trade media plays a vital, vibrant role not only between a brand and its key stakeholder audiences of distributors and retailers, it’s also a proving ground for larger story ideas.

Trade coverage that touches on a core editorial idea relevant to larger national media is an immediate credibility booster to the story efficacy and dimensions in a non-competitive setting. This comprises a circular editorial eco-system where coverage in trades is useful in conversations with national media. While national coverage tends to drive incremental stories in vertical channels. Both are good, solid, strategic components of a strong earned media plan.

  • Both indeed are driven by relationships, creativity and solid performances by brand PR experts who know their results depend on fulfilling the promises in a good working relationship with key editors, reporters and producers.

If this stimulates some questions about optimal editorial media strategies or similar situations you wrestle with, use the link below to open an informal dialogue.

Looking for more food for thought? Subscribe to the Emerging Trends Report.

Bob Wheatley is the CEO of Chicago-based Emergent, The Healthy Living Agency. Traditional brand marketing often sidesteps more human qualities that can help consumers form an emotional bond. Yet brands yearn for authentic engagement, trust and a lasting relationship with their customers. Emergent helps brands erase ineffective self-promotion and replace it with clarity, honesty and deeper meaning in their customer relationships and communication. For more information, contact [email protected] and follow on Twitter @BobWheatley.

Emergent analysis of what happens when brands fail to keep their beliefs and mission

What Happens When You Lose Your “Why”

August 10th, 2023 Posted by Behavioral psychology, brand advocacy, Brand Beliefs, brand marketing, brand messaging, Brand preference, Consumer insight, Emotional relevance, engagement 0 comments on “What Happens When You Lose Your “Why””

Reclaiming higher purpose renews brand energy

Most brands with a strong higher purpose (a refined “why” that informs behaviors and decision making) got that way because the founder(s) injected beliefs from their own sense of mission.

Staying true to the founder’s core purpose/vision and retaining the brand’s deeper meaning over time can be challenging. If higher purpose is intentionally woven into the fabric of how the organization operates, the belief system can be steadfast generationally. If the mission is largely a reflection of the leader’s ethos and the company experiences regime change, the “why” can disappear in the hands of executives who manage most often for profit and loss priorities rather than refueling the company/brand belief system.

  • Apple lost its way when Steve Jobs was forced out in 1985. The company suffered as a result. When he returned in 1997 the higher purpose roared back. Business boomed.
  • Starbucks began with religion around changing the coffee experience, from better beans to establishing the Italian espresso beverage traditions in its unique “3rd Place” setting. When Howard Schultz left, the “why” went with him and subsequent leadership focused on operational efficiencies and expansion. Business declined until Schultz returned.

“Why” is influential to how a brand is built and sustains – providing a true north that transcends changing conditions and cultural shifts over time by securing a devoted community of true believers. It is fundamental to how brands engage successfully with core customers. It flies in the opposite direction from commoditization pressures and an unproductive focus on the competition.

  • Nonetheless “why” can be left behind if new leadership isn’t entrenched with the same point of view as the founders.

Our brush with half-baked “why” – A mini case study on reclaiming purpose

In 1949, Chicagoan Charles Lubin was trying to figure out how to send his epiphanous cheesecakes to a man in Texas enamored with his sweet, dense creations. But cheesecakes (and baked goods like them) generally didn’t travel well; thus, why the bakery industry of the era primarily consisted of smaller businesses servicing a local trading area.

Lubin began experimenting and later innovated a new brand at retail through his pioneering of flash freezing tech – a process to preserve the taste, texture and eating experience of his baked delights. As a result, a new category was established through his single-minded mission to make high quality baked goods available to a much wider audience. Reinventing the baked goods business to create widespread access was his “why.”

Lubin’s innovation was personified by creating the iconic Sara Lee brand – named after his nine-year old daughter, who for most of her life would remain hidden in the background. He was wildly successful and eventually sold his company to Consolidated Foods. The corporation renamed itself after the bakery division (Sara Lee Corporation) even though it was largely a meat products business. After the sale, Lubin eventually retired and a series of CPG experienced leadership teams came in to run the company, expanding distribution into foodservice and adding new categories to spur growth. But along the way Sara Lee lost its why.

The company was focused on volume and balance sheet considerations, not the embedded love affair with bakery creations that touch people’s lives. With a diluted soul, the business resorted to price promotions and other commoditizing behaviors to keep the volume numbers going.

As we’ve seen before when the “why” dissipates or disappears all together, the energy underneath the business often goes with it. Sara Lee lost relevance as the focus moved from consumers to chasing the competition. Performance inevitably flagged and the parent company started to consider if it was possible to divest the Sara Lee baked goods division even though their corporate identity was tied to it. Tough to do.

In a last ditch effort to turn the bakery ship around, we were retained on a mission to restage Sara Lee Bakery and recapture the qualities and meaning Charles Lubin had originally brought with him. We needed to break with the most recent past in a big way and author a new story for the future.

  • How do you quickly, decisively disrupt perceptions?  You do something over-the-top that forces consumer reassessment. You create a new story and put substance underneath it. It was time to swing for the fences.

Solution: Sara Lee’s First International Symposia on Dessert

Go big or go home. We sat down with Sara Lee, the actual person, and after many hours of conversation about our plans to rescue the business her father had started, Sara agreed to become a spokesperson for the brand named after her. To properly showcase her debut, we decided to create an event to showcase a new era at Sara Lee, complete with an updated product line. It would be done specifically for the top North American food media so the story could be told as widely as possible in a credible setting.

We decided to create a symposium on dessert – in the dessert capitol of the world, Vienna, Austria – the birthplace of sweet bakery creations and traditions beginning in the 18th century. We also knew that a media event staged in Vienna was likely to be enthusiastically attended, and over three days we would have the full and undivided attention of our media audience 24 hours a day. It would be an extraordinary opportunity to exercise great influence, a ‘must-do’ if we were going to change the paradigm of what people think Sara Lee is.

Working with Austrian Airlines, the Austrian Economic Council and the Vienna Tourism Board, we were able to secure airline seats for 56 journalists for a song, hotel rooms at the famous Hotel Imperial at a rate more like Motel Six and free access to the famed palaces that made Vienna the cultural heartbeat of the world during the time of Mozart.

We recruited the top seven pastry chefs of Vienna to help reimagine new desserts using Sara Lee products as a base, to enchant and inspire the food media luminaries who would attend. We developed a comprehensive itinerary of educational events and experiences designed to provide so many varying story angles that any media decision maker would feel they could carve their own unique narrative around the experience.

  • We brought a in a food historian who charted the emergence of sweet baked goods from the Roman Empire to modern day.
  • We created a section on the psychology of eating dessert revealing the cultural issues at work between American sensibilities and European attitudes on indulgence.
  • We prepared a hands-on cooking experience for all 56 media, dividing them into teams to work alongside Viennese pastry experts each challenged to work with a specific Sara Lee product.
  • We brought the media to the oldest operating bakery in the world, opened in 1560, to hear a presentation on the history of chocolate.

The most important facet of all though was on the opening night where the editors gathered for a special reveal – they would be meeting the real Sara Lee and Charlie Lubin’s wife for the first time. This event, fit for royalty, was staged in a palace next door to The Hofburg, the Imperial seat of the Hapsburg dynasty. The editors were to experience a curated menu based on a 18th century royal banquet, dining on china from the royal house. Ahead of a presentation that would whisk them forward to the modern era of baked goods and the new Sara Lee brand.

After dinner a video presentation chronicled  the history of dessert – a retrospective on the birth of sweet baking traditions and its evolution over time, a way for the brand to lock in its ‘knowledge broker’ cred on bakery expertise. At the conclusion of the video the room went dark and then Sara Lee was introduced to an awestruck crowd of food journalists (there really is a Sara Lee). You could feel the electricity when Sara walked into the room. Sara spoke of her father’s legacy, mission, values and unveiled the new product line for the editors, inviting them to join a dessert fantasy experience.

  • Sara Lee’s top chefs created a dessert fantasy in the adjoining gold-gilt ballroom where Viennese pastry masterpieces were arranged near and around new desserts made with Sara Lee products. The editors were challenged to determine which was which. To a one, they couldn’t tell the difference. Perceptions were changed.

For three days it was around the clock substance interlaced with dazzle, including a specially staged concert with the Vienna Symphony Orchestra at another palace in an unusual oval shaped hall where Mozart conducted his first concert when he was six years old.

From this hosted media experience, Sara Lee Bakery dined for more than a year on story after story after story about the events and tastes in Vienna. The media showcase for new products was unprecedented for Sara Lee. A reacquiring of the brand’s “why” sat at the center of the entire venture and with it a departure from the price oriented self-promotion that had been going on for years before.

  • The business results were gratifying and the project was credited at Sara Lee Corporation’s annual shareholders meeting as the reason for significant improvement in the bakery division’s results.

The most important aspect of this campaign was its ability to reframe the Sara Lee brand and product experience in a relevant and resonant way. Sara went on to be the centerpiece of  brand communication for three more years before she ’retired’ to her former and much quieter life with her family.

The lesson: when the “why” is diluted, the business resorts to manipulations to create a reason to buy, and these tactics don’t – and will never – connect in the same way as purpose, beliefs and values. When Sara Lee found its footing again, it was remarkable how that change was reflected in the brand’s performance. Beliefs, deeper meaning and mission are core to creating the emotional connections that impact consumer buying decisions and actions.

  • Great care should be exercised to help ensure your company’s “why” will remain steadfast and vital over time – even if new leadership arrives to carry the torch forward.

If locking in your company’s “why” resonates with you or if your organization needs to optimize its purpose and belief system, use this link to start a conversation. We promise it will be interesting and enlightening.

Looking for more food for thought? Subscribe to the Emerging Trends Report.

Bob Wheatley is the CEO of Chicago-based Emergent, The Healthy Living Agency. Traditional brand marketing often sidesteps more human qualities that can help consumers form an emotional bond. Yet brands yearn for authentic engagement, trust and a lasting relationship with their customers. Emergent helps brands erase ineffective self-promotion and replace it with clarity, honesty and deeper meaning in their customer relationships and communication. For more information, contact [email protected] and follow on Twitter @BobWheatley.

Sustainability performance is impacting consumer preference and driving sales

Is Sustainability Performance Driving Sales?

April 12th, 2023 Posted by Brand Activism, brand advocacy, brand messaging, brand strategy, Carbon footprint, Climate Change, consumer behavior, Consumer insight, Greenhouse Gas, storytelling, Sustainability 0 comments on “Is Sustainability Performance Driving Sales?

New report confirms ESG impact on business outcomes

The consumer’s growing concern about sustainability and the environmental impact of food products is translating into behaviors on the path to purchase. A new study released by Glow, a Nielsen IQ research partner, affirms that ESG performance is impacting brand switching, preference and purchase.

  • Glow reported their calculations that a brand with $500 million in sales and a Social Responsibility Score (SRS) that is 10 points higher than a similarly sized competitor, can expect to secure an additional $25 million in revenue over three years, on average.  

Glow’s study verified consumers are exercising choice by “shedding” brands that don’t meet their sustainability expectations, while also moving their allegiance to products that are more closely aligned with their values. In sum, consumers are increasingly regulating their purchases to operate in sync with their beliefs about environmental responsibility.

Sustainability driven brand switching – how much and which categories

The percentage of consumers switching brands based on their assessment of devotion to more sustainable behaviors and policies ranges currently between 30 and 40 percent. The categories where switching is occurring most often include:

Meat and seafood

Pantry (pasta, rice, condiments, oils)

Frozen

Pet

Bakery

Dairy

Don’t ignore the business driver – communications

The research also flagged that some brands aren’t getting the sustainability performance recognition they deserve, and thus aren’t seeing an impact on business outcomes. This happens because their environmental story isn’t breaking through. Glow’s report is a rallying cry for food brands to work harder to close the gap between rising consumer expectations of ESG commitments and actual progress towards credibly fulfilling and activating the brand’s sustainability story.

  • Emergent’s recent Brand Sustainability Solution analysis of 25 food, beverage and lifestyle brands and retailers’ sustainability readiness, showed an almost universal weakness tracing back to sub-optimal communications efforts. Sustainability communications outreach to close the loop with consumers is missing or tepid. Read: not effective.

Glow’s study revealed the top five channels where consumers prefer to learn about ESG commitments:

  1. News media
  2. Product packaging
  3. Advertising
  4. Brand web site
  5. Social media

News media scored highest because of its perceived credibility as a trusted third-party source. Packaging also tracked high given it’s a shelf-ready, shopper-facing place to get information. The most important on-pack claims to consumers were animal welfare, environmental impact, social responsibility and sustainable packaging.

According to Glow:

  • Nine out of 10 consumers believe it is important for brands to act responsibly in their environmental policies and actions.
  • One out of two consumers say they have changed brands based on their perceptions of ESG performance.
  • 78% of consumers say brand purpose and values play an important role in their purchase decisions.
  • 79% claim they are more loyal to brands with a clearly defined higher purpose.
  • 85% believe it’s important for companies to act responsibly about climate impact.
  • One in five rank ESG and sustainability in the top three purchase considerations alongside price and quality.
  • Despite the challenges of inflation, sustainability commitments also provide a compelling reason not to trade down, especially among Millennial consumers.

Glow’s study analyzed the impact of 13 different ESG characteristics on consumer behavior. In the food category the most important considerations are:

  1. Reducing emissions and climate change
  2. Respecting natural resources (like water)
  3. Protecting wildlife and eco-systems.

This study verifies what we at Emergent have been reporting now for over a year, that sustainability and environmental policies and commitments have formed one of the most important foundations of marketplace competitive advantage for the foreseeable future.

  • Consumers are voting their preferences in the checkout lane and make decisions on the brands they prefer based on their perceptions of sustainability readiness.

When sustainability communications is just a quarterly progress report

Importantly, strategic communications cannot be underestimated in its relevant role to close the deal and convince consumers. And this goes way beyond regurgitating complex and often confusing scientific data points. Creative outreach works to connect investments in sustainability readiness progress with audiences most likely to act on that information. The absence of strong communications usually occurs when the sustainability team is not connected to the marketing team, or it operates as a stand-alone silo and isn’t integrated into the main go-to-market strategic plan.

  • The Glow study validates that sustainability commitments, policies and performance isn’t just “talk” as far as consumers are concerned. It is impacting the “walk” of what goes in the shopping cart and gets purchased.

In our view, when organizations understand and act to secure the business benefits of sustainability investments, we will see more meaningful progress on the path to emission reductions and a healthier planet. And businesses will see consumer reciprocation in the form of enhanced brand preference, purchase intent and product movement. Sustainability is a business builder.

If you believe your sustainability strategies and communications could use fresh strategic eyes and a creative lift, use this link to start an informal dialogue around your questions.

Looking for more food for thought? Subscribe to the Emerging Trends Report.

Bob Wheatley is the CEO of Chicago-based Emergent, The Healthy Living Agency. Traditional brand marketing often sidesteps more human qualities that can help consumers form an emotional bond. Yet brands yearn for authentic engagement, trust and a lasting relationship with their customers. Emergent helps brands erase ineffective self-promotion and replace it with clarity, honesty and deeper meaning in their customer relationships and communication. For more information, contact [email protected] and follow on Twitter @BobWheatley.

Consumer tribes and clans cloud the question of relevance

Rise of “Individuals” Requires Shift to Focused Strategy

April 3rd, 2023 Posted by brand marketing, brand messaging, Brand preference, Brand trust, consumer behavior, Consumer insight, engagement, Strategic Planning 0 comments on “Rise of “Individuals” Requires Shift to Focused Strategy

Matter to someone or risk mattering to no one…

According to Stanford University, the computational power of AI is doubling every three months, helping to catalyze another transformational scientific revolution. The impact is everywhere, all at once. Equally rapid-fire shifts in cultural behaviors and conditions mandate a move to focused marketing over anything remotely resembling a broad brush. These two fluid developments are evidence of a pace and speed-of-change that are unprecedented and thus requires more vigilance from business decision makers.

Narrowing, specializing, customizing, individual-izing

Dear CEO and CMO – it’s time to identify a priority core customer audience and go all in. The era of mass markets and mass media serving a homogenous population is officially gone forever. To what extent is this reflected now in the business and marketing plan?

Let’s take a brief look at a few recent sea changes impacting the future of marketing and business strategy:

  • In 2034 Americans over the age of 65 will outnumber those under 18. Notably, an increase in life expectancy of just one year adds $38 trillion in annual global GDP. Meantime the birthrate in the U.S. has now fallen below replacement levels.
  • Over a recent 10-year period, household wealth of 65 to 75 year-olds increased 54% while the wealth of 25 to 35 year-olds declined by 11%. Gaps are growing.
  • The top 10% of American families hold a whopping 69% of total wealth. The bottom half holds only 2.8%.
  • Remarkably, the baby boom generation is 75% white. Contrast that number with Gen Z which is 52% white. By 2044, the majority of the U.S. population will be non-white.
  • 35% of the U.S. population age 25 to 50 has never married – compared to 9% in 1970. Young people increasingly are deciding not to marry, not to have children, not to own autos and are delaying home ownership. More impact to come.
  • The search for deeper meaning and purpose is rising around a frame of values and beliefs. It is replacing the traditional role of religion. Fewer than half of Americans now identify with a church. (Contrast this with the increased concern and interest in socially responsible actions and behaviors on the part of brands and businesses).
  • The number of teens who say they see their friends on a regular basis has dropped by 50% since the 1970’s. While 31% of Gen Zers characterize their mental health as bad. Troubling development.

Source: Deloitte

Pervasive uncertainty caused by the Pandemic, war in Ukraine, mass shootings, dramatic climate change impacts, racial tensions and economic gaps widening between haves and have nots, has unleashed a burning desire for the twin anchors of true purpose and deeper meaning. Fear, risk and compromised views of the future are producing a void in search of greater fulfillment.

  • To say the least, what matters, motivates and occupies consumer time and attention is rapidly changing. Who will help them?

Never before in the history of modern business and marketing strategy have brands had a greater opportunity to earn a position as consumer coach, guide, mentor, knowledge broker and enabler on their life journey. Filling a vacuum left by declining relevance of institutions and larger social circles.  But only if business values and soul are tethered to a higher purpose, mission and belief system that puts the welfare of consumers ahead of self-interest; now table stakes for trust creation.

Dawn of a marketplace populated with subsegments and microsegments

The age of tribal shared values and interests is upon us, driven by technology that helps curate the flow of information, ideas, even community which more closely align with our own world views and lifestyle preferences. In this environment, brands will be more successful by narrowing and focusing their appeal to specific attitudinal segments than attempting to be all things to all people, in service of mass markets that, frankly, no longer exist.

Consider these active lifestyle tribes:

Sustainability WarriorsItinerant TravelersReal & Fantasy Sportsters
Culinary ArtistsFamily FansHome Improvers
Pet-life PalsMusic MainlinersSerial Daters
Fashion ForwardsKitchenistasVinophiles
Social ActivistsDining-Out DenizensTech Nerds
Micro media mavensOutdoor AdventurersWellness Wonks

Everyone is in search of community with like-minded people who share passions and interests, yet so few brands make a concerted, creative effort to doggedly court them with relevant content and experiences.

One glance around the food and beverage marketplace and you’ll notice a teeming landscape of niche brand market specialists who, enabled by the collapsing barriers of gigantic scale that at one time characterized the mass market paradigm, are carving ever more refined and single-minded voices that resonate with specific market subsegments. The call to action for larger CPGs is no less compelling to prune and narrow-in on the most engaged and potentially faithful audiences by casting your lot with the lifestyle clans most likely to believe.

Find brand traction by becoming an enabler

You want your brand to matter to an audience of devoted fans and evangelists. The opportunity to create this level of resonance escalates with strategic decisions to spotlight your voice and efforts as an enabler and educator on their specific lifestyle interests. People believe they are unique individuals, a market of one if you will, in search of brands that matter to their curated worldview and tuned belief system.

What human-relevant purpose should you be mining?

What activities and experiences will draw them in?

What images best express an affiliation with how thy see themselves?

What words will resonate?

What information do they seek to improve themselves?

How can you best mirror their wants and desires?

What stories should you be telling?

How do you cloak your brand in authenticity and genuine (relevant) values?

How can you demonstrate through actions that you care about their welfare?

Planning steps in response to these developments

It can feel counter-intuitive to narrow your voice and story on specific subsegments of engaged consumers. However, this is precisely the requirement to create relevance with consumers who now belong to a unique tribe.

The heavy user, the brand fan, the category evangelist, the knowledgeable player – these individuals offer the greatest chance at mattering. Broad appeals focused on “awareness” goals won’t serve the mattering imperative, and thus your brand can be commoditized over time and bought mostly on price because category options are seen as interchangeable.

Take for example the culinary artist…

There is a cohort of people, both male and female, who find the kitchen to be their favorite place in the home. Emotional connectivity abounds in their devotion to culinary exploration, cooking-as-emotional-outlet with self-esteem derived from tasty outcomes. They like celeb chef interactions in part because of the techniques they observe and their desire to replicate the same sophisticated flavor profiles. They buy higher quality knives.

How can you feed their need for kitchen exploration?

How can you double down to become a source of ideas and training?

What experiences can you arrange to engage their gustatory desires?

What constitutes moments of surprise and delight you enable to gain their faith?

Can you help them relax with foodie vacation ideas?

What new kitchen tech should they know about?

What voices can you bring they respect, love and admire (borrowed equity for your brand, too)?

How can you build a community of sharing and opportunities to showcase their food solutions with peers?

The list here is nearly endless. It constitutes a deep dive into their lives while serving as coach and guide. In doing so you earn their trust and loyalty. Your brand begins to matter to them and becomes integral to how they define themselves. Your brand can become celebrated, talked about and admired.

The path to this level of engagement is paved with self-less appreciation of who they are, manifested now in how you show up in their lives to make a tangible difference.

Don’t you want to do business this way? So much more is going on here than quarterly price promotions and end caps. Within your marketing team should be lifestyle and insight experts who deeply understand your customers’ interests, needs, wants, aspirations and to use that data to inform strategy on how the brand shows up in their day-to-day lives.

  • You no longer need to depend on banging people over the head relentlessly with self-promotional messaging they ultimately ignore. Now you’re firing on all of the relevance and resonance cylinders founded on constructing an authentic, true relationship.

This is the future of marketing in a micro-segment world. It’s not about aggregating eyeballs, rather about making certain customer cohorts are the center of your universe — and working backwards from there. To the degree you can inspire people, you earn a place in their lives that helps make your brand irreplaceable. Persuasion isn’t the game. Helping, leading, guiding is the new operating paradigm.

Go narrow. Go all in.

If you find this concept compelling and worth deeper exploration, use this link to start an informal conversation about mapping a better, more focused future for your brand and business.

Looking for more food for thought? Subscribe to the Emerging Trends Report.

Bob Wheatley is the CEO of Chicago-based Emergent, The Healthy Living Agency. Traditional brand marketing often sidesteps more human qualities that can help consumers form an emotional bond. Yet brands yearn for authentic engagement, trust and a lasting relationship with their customers. Emergent helps brands erase ineffective self-promotion and replace it with clarity, honesty and deeper meaning in their customer relationships and communication. For more information, contact [email protected] and follow on Twitter @BobWheatley.

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