Posts tagged "brand trust"

Brand trust is earned

User Endorsements Punch Harder on Brand Trust

July 8th, 2022 Posted by Behavioral psychology, brand advocacy, brand marketing, Brand preference, Brand trust, Earned media, Emotional relevance, Influencers, Integrated Communications, resonance, Social media, Social proof, User Generated Content 0 comments on “User Endorsements Punch Harder on Brand Trust”

Paid influencers might be a problem

When a key marketing ‘best practices’ principle continues to be validated time and again, you start to regard it as fundamental and credible guidance. Once again, we’re seeing new evidence that consumers question the veracity of brand content created by paid influencers, while simultaneously embracing the comments and experiences of real-world users.

How can this be? It’s simply a matter of trust. Those motivated by a profit agenda are viewed as less objective and trustworthy than those without underlying financial self-interest. Career endorsers are often seen as paid shills or at least they have the appearance of same to consumers.

What is the litmus test for trusted communication?

Communication that comes from sources:

  1. Without any hidden or potentially compromising (paid hustler) agenda
  2. Whose behavior is informed by simple honesty and factual integrity
  3. From voices that put the concerns and needs of others ahead of their own self-interest

In a recent Marketing Daily report a new consumer study, “The State of User Generated Content” from EnTribe, reinforces the credibility gap between trusted sources and paid influencers.

  • 64% of consumers say they follow their preferred brands in social channels.
  • 63% of consumers complain about the frequent appearance of influencer content in brand social posts.
  • 85% of consumers believe influencers are inauthentic or unrelatable.
  • 85% say they prefer to see content from citizen users.
  • 84% believe user generated content drives brand trust.
  • 77% of shoppers say user content makes them more likely to buy.
  • 65% say user content makes them more loyal.

Never underestimate the power of trust

Let’s face it, consumers find it difficult to believe the claims and assertions made by brands. Why? Because true or not they believe companies will inevitably put their self-interest and profit motives ahead of their own welfare. In the consumer’s mind paid influencers suffer from a similar compromise of ‘never bite the hand that feeds you.’

Who do consumers believe or at least accept more readily as truthful and honest assessors of brand integrity and performance?

Each other – consumers will believe their peers before they embrace the brand’s own statements. That said, when trust breaks out it may also benefit the genuine acceptance levels of what a brand conveys on its own.

Editorial, non-paid media – say what you will about fake news, for the most part people continue to think that journalists are objective observers who attempt to unearth facts and evidence to confirm or deny what brands claim.

Credentialed experts with science, medical or academic backgrounds – individuals whose professional reputations are built on a hallowed ground of objective evaluation are perceived to have skin in the game and something important to lose should their recommendations turn out to be a fabrication.

Of course, just like restaurant reviews can be skewed because of a bad night in the kitchen, there is no such thing as unassailable, 100 percent bank-able opinions from any quarter. That said, the body of evidence weighed in sum will tip the scale one way or the other.

Why is trust so important to belief?

The always-on Internet and 24/7 reporting cycle have put every brand in every category inside a glass house. Anything than can be known, will be known – sooner or later. Too many trips into bad behavior land and trust fractures from half-truths or outright misinformation have caused a societal-level sense of caution and skepticism about what companies convey.

Here’s the antidote to trust fractures:

Actions speak louder than words. What a brand does – the actions it takes – can serve as evidence of its integrity and corporate soulfulness.

A brand’s devotion to a higher purpose and evidence of this belief system tend to project an aura of honesty and values-driven code about how the business is run and what the leadership team prioritizes.

Want to be trusted and believed? Then operate that way by putting the consumer’s welfare, wellbeing, priorities and needs ahead of company self-promotion interests. Selflessness is seen as an admirable trait in human behavior and when brands act this way (and are even willing to openly admit when they make a mistake) it helps cement consumer trust.

What do we know…?

  • That trust is the fundamental grist underneath any real relationship that works. It is true in life and in human relationships as much as it is in the give and take between people and the brands that matter to them.

Without trust you have an intractable problem. With embedded trust you have an opportunity to secure belief and engagement. Trust is never claimed. It is always earned. User generated content supplies the verification.

Trust is a strategic and organization-level consideration that should be baked into the foundation of any business and marketing plan. Should guidance on brand trust-building best practices be of help to you, and how to translate that into compelling communication, use this link to start an informal conversation about 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 Bob@Emergent-Comm.com and follow on Twitter @BobWheatley.

Human behavior and marketing

Mapping the Intersection of Psychology and Brand Communication

June 6th, 2022 Posted by Behavioral psychology, brand advocacy, brand marketing, brand messaging, Brand preference, Brand trust, engagement, Social proof, storytelling 0 comments on “Mapping the Intersection of Psychology and Brand Communication”

Don’t overlook the human in front of you

We’re going to peel the onion on how people think and operate. We’ll show you how this impacts optimizing brand communications strategy to vastly improve engagement and results from your investments in consumer and stakeholder outreach.

But first, the state of the state

It seems inevitable, like a law of physics gone bad, that the majority of CPG and retail marketing is inwardly focused on the brand or product specifics. Communication strategies spin around self-promotion, and a belief that brands must “prove” their value with analytical arguments. As such, marketers are fixated on what has been invented, added or stirred in to the product to “deserve” the purchase or shop. This approach is founded on a view that the hard evidence, pushed even harder at the audience, makes the product or retailer more desirable.

But this is a mistake. Like lies by omission, this approach glosses over the profound truths we know about how people think and behave. Doesn’t it make more sense to design brand communication that resolves the inherent barriers to change people raise, rather than pushing proof points to an audience that begins each day with risk aversion sewn into their DNA?

Neophobia is everywhere

“Fear of anything new” lives in varying degrees with most people. We are, after all, creatures of habit for the very reason people abhor the discomfort of perceived risk in making bad decisions. Staying the course with the tried-and-true takes burning any mental calories out of the equation through default to the familiar.

However, for any brand or business, launching new products, services, ideas are fundamental to generating incremental growth. With resistance baked into human behavior change, it only makes sense to work backwards from how people think to acknowledge the human in front of us in our story.

The driving force behind decisions is…

People are on a constant scan of their surroundings for information that affirms their own point of view. We call this confirmation bias. People see what they expect to see and conclude what they expect to conclude. Try asking a Coke drinker to switch to Pepsi – not likely and a sampling will simply confirm their bias about taste expectations. The importance of insight research to better understand what people already believe can’t be overstated. Confirmation bias is foundational to the human condition and needs to be weighed on the path to optimal strategy.

How do marketers answer risk and bias?

Changing minds and hearts is an invitation to trust creation. Important to note here that trust is a feeling and not a rational experience. It emerges when we sense the brand is driven by values and beliefs, similar to our own, that transcend self-gain. This is the essence of our longing for reciprocity, honesty and integrity – qualities people resonate to and respect.

Specific considerations from human behavior insight come to play in the strategic plan.

Narrow your targeted consumer cohorts to those whose beliefs are closer to the desired opinion or viewpoint you are trying to secure. There is a temptation especially at a launch to go wide and attempt to appeal to everyone. That is a riskier approach. Better to identify the audience closest to your proposition, those most likely to embrace your offer because it is seen as a pain killer. A pain killer is a product your refined audience needs to have now, right now, rather than a nice to have maybe someday.

But what about those consumers who are further afield and more difficult to draw in? Here are three principles to consider when you have a steeper hill to climb.

  • Shorten/reduce the ask – how can you create a stepping-stone approach of a slower, steady path to change that comes at people in chunks and stages. Meatless Monday is a great example of modifying the ask. You don’t need to convert to a plant-based diet entirely, just one day a week opens the door to trial and experience without trying to force wholesale lifestyle change.
  • Switching the field – look for places where like-mindedness already exists, where your brand values and beliefs align. This “unsticking point” can help move your audience closer to you by riding the wave of shared view and aspiration. People are more comfortable with what is familiar to them.
  • Adoption psychology – how easy and frictionless can you make trial? How can you reduce the costs of trial? How do you remove any sense of risk in taking a bite-size swing at what’s on offer? Ease of returns maybe. Years ago, Zappos as an early player in e-commerce created free shipping and free returns as a path to making shoe purchases acceptable and desirable when customers couldn’t try a pair before buying. Now we take that free ship offer for granted, but in its day, that big move raised business results literally overnight.

Here are rules to observe in risk reduction:

Rule of Similarity

We will believe “people like me” before accepting the assertions and claims made by brands. The opportunities for engagement increase substantially when people are in communities of like-minded souls who share the same needs and concerns.

Curate your social channels to identify audiences most likely to resonate and share similar points of view with each other. This narrowcasting approach is more powerful than ‘all things to all people’.

Rule of Validation

The more risky the ask, the more verification will be required. The use of multiple outside third party, credible voices can help make your communication convincing and validating. We did this for a financial services company whose primary customers were banks – a conservative, risk averse audience if there ever was one. We created a video covering key issues of concern on the path to acceptance. We did this through candid, unscripted interviews with 10 existing banker customers from varying markets and business models. These executives affirmed through their own experiences what we wanted potential bank prospects to believe. The sheer number of voices, the similarity of backgrounds and values, the humanization and unscripted tone made the entire communication more credible, powerful. The outcome was astounding to quicky step bank decision makers beyond perceived risk and resistance.

Rule of Concentration

We often get asked, which is better – a heavy-up concentration of media activity over a smaller geographic area vs. a broader but lighter outreach over a larger distribution territory? The answer is concentration is always best to help confront the desired audience with multiple messages from multiple sources. This generates a bandwagon effect that suggests to the audience, “wow, this might be important” and thus worthy of further investigation. It may take longer to address a larger geographic launch this way, but it will also be more effective.

We often convey to clients that Emergent is in the brand storytelling business. That’s certainly true. But if we step back and look at the integration of strategy to story and what we know about behavior, it might be more accurate to say we’re in the risk removal business.

We utilize our knowledge of psychology and neuroscience to help create interest, change and trial by getting past the elaborate risk barriers every human manifests. We reduce risk by mining our client brands’ higher purpose and values alignment (trust) — while delivering credible evidence and authoritative guidance that gives consumers permission to buy.

If you would like to talk in greater detail about how risk aversion impacts your business, use this link to start an informal get-acquainted 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 Bob@Emergent-Comm.com and follow on Twitter @BobWheatley.

Founders personify brand purpose

Is Your Brand’s Soul Strategy Your Sole Strategy?

May 11th, 2022 Posted by Behavioral psychology, Brand Design, brand marketing, brand messaging, brand strategy, Brand trust, Higher Purpose, Insight, storytelling 0 comments on “Is Your Brand’s Soul Strategy Your Sole Strategy?”

Without careful nurturing, the deeper meaning you started with will disappear

Truth is people care more about your *why* than they care about your brand’s how or what. While they aren’t necessarily enamored with your competitive specs and formulation wizardry, what they will resonate to is *why* you do it. Your purpose – your deeper effort to do something more meaningful – a mission that transcends commerce. These are the beliefs and values that draw people in, anchor their advocacy, and make them want to be members of your brand community rather than merely users.

Yet over and over again, we observe organizations failing to see the importance of these principles and in doing so, lose the magic that resonates and attracts people to the extraordinary promise that heralded the company’s genesis.

Your *Why* matters.

The why of every organization starts in the past, informed by the life experiences and aspirations of the founder(s) –people who were motivated to do something bigger than themselves. The foundational concept becomes the secret sauce that drives brands forward. It is, however, elusive, and can disappear over time if the cultural legacy and beliefs that lifted the organization to its initial success are lost. Future management teams may believe efficiency, cost control and improved processes constitute the levers of brand affinity and business growth. Not so.

Iconic brands are not immune to this almost inevitable and corrosive condition!

Charles Lubin, a Chicago baker, established the Kitchens of Sara Lee in 1949, naming it after his nine-year old daughter and launched his first successful product, a cream cheesecake. But it was a retailer in Texas who wanted to stock Sara Lee desserts that prompted him to reformulate so it could be successfully frozen and shipped long distances. Lubin invented the frozen baked goods category. He sparked innovations in production (foil pans) and flash freezing that fueled national distribution of his “Nobody Doesn’t Like Sara Lee” brand.

He retired from the business in 1968, then owned by Consolidated Foods (later renamed Sara Lee Corporation). As is often the case when the visionary moves on, if the deeper purpose, beliefs and meaning he brought with him are relegated to historical record, the heart of the enterprise’s belief system can get usurped by process, operations and balance sheet considerations. By the early 1990’s without nourishment of the Sara Lee brand soul, inevitable decline had set in. The parent company, now called Sara Lee Corporation, began to contemplate divesting its corporate namesake baked goods business. Tough to do.

The Wheatley Blair agency was retained on a rescue mission. Could we turn the business around? It would require radical moves, marketing finesse, a complete restage and especially, soul regeneration. Our strategy: unlike so many other food brands with made-up names, there really is a Sara Lee. Could we reinstall some of the magic and meaning by bringing her in to be the face and voice of the brand?

Soon we found ourselves sitting in Sara Lee’s upper east side apartment in Manhattan talking about her dad’s legacy and how much the business needed her help. Reluctantly she agreed to get involved and so we mapped a three-year strategy to revitalize the brand around her as spokesperson and personification of a new era at Sara Lee.

What happened next was truly remarkable. To launch a new line of baked goods with a lighter formulation, we created the first International Symposia on Dessert in Vienna, Austria – the world capital of dessert and pastry.

We flew 56 top North American food media to Vienna for three days of 24/7 dessert-centric experiences, seminars and tasting events. There, for the first time we introduced the world to Sara Lee the real, living human namesake. The media were smitten. The brand garnered more media attention than it had received in its entire history. This brought a refreshing injection of tangible humanity into a brand that had lost its anchor. Within a year the business started its upward trajectory and Sara Lee Corporation credited the strategy with turning the Sara Lee brand around at its annual shareholder meeting.

“What will it profit a man if he gains the whole world yet forfeits his soul?”

Steve Jobs understood this and saw it unfold in real time.

“Something happens to companies when they get to be a few billion dollars, they sort of turn into vanilla companies. They add a lot of layers of management. They get really into process rather than results, rather than products. Their soul goes away. And that’s the biggest thing that John Scully and myself will get measured on five years from now, six years … Were we able to grow into a $10 billion company that didn’t lose its soul?” – said Steve Jobs, circa 1984, in a Rolling Stone magazine interview.

Of course, Jobs was pushed out of his own company in 1985 and we know the Scully years were not necessarily a huge win for Apple. Until, the corporate “soul” in the form of Steve Jobs returned in 1997 to reinstall a refreshed ‘change the world’ vision and “Think Different” higher purpose. That purpose has remained with Tim Cook and the company continues to follow its inspiration and celebration of creativity and empowering individuals to change the world around them.

“I want to put a ding in the universe” – Steve Jobs

Apple doesn’t sell machines. Never has. Apple Macintosh was the first personal computer to offer a “graphical user interface” and mouse. Did anyone yearn for this tech? No. It was the point and click simplicity that elevated the experience. The story around enabling creative citizen communication and putting the power of publishing in the hands of any human was a dramatic departure from everything that came before it. The emotion-driven purpose that so resonated was: Empowering Creativity. Anyone’s creativity. Everyone’s creativity. No matter what the expression of that creativity was, you were now empowered to – borrowing from another – Just Do It.

Coffee culture and experience

Howard Schultz was struck by the coffee culture he observed in business trips through Italy. The sense of community and conversation that was part of the cultural vibe around the experience of enjoying elevated and refined coffee beverages. In its earliest days Starbucks was about bean religion and ingredient provenance stories for the vast improvement they brought over the current miserable state of coffee beverages sold in America.

He created the ‘third place’ as a personification of coffeehouse culture that turned Starbucks into a destination of enjoyment around subtle European sophistication cues. In those days coffee would be served in ceramic cups. People were encouraged to stay. It was a cultural immersion. There was deeper meaning, values and lore around coffee beverages, a veritable world tour of taste sensations (now taken for granted). When Schultz left the company some of its soul went with him. In his subsequent returns some of that magic came back with him trailing like the visible tail of a comet.

  • The biggest challenge any brand will face over time is how the organization continues to grow and prosper without diluting its soul. And if that happens, how to reacquire it by looking backwards, not forwards to the story and formative beliefs and values that drove the concept from day one.

Money is not a purpose, it is an outcome

Why is *why* so important?

Because it inspires trust. It reaches the heart. It is always heart over mind you know!

Nothing can be more important in the digital age when ‘anything that can be known, will be known,’ craters so many corporate and individual reputations. When the words used to describe what a company does are unrelated to price, quality, services and features, you have a clear indicator that the *why* has blossomed.

When Schultz departed Starbucks and subsequent management focused on what and how over why, the soul eroded and commoditization challenges took root.

Here is the essence of it…

When a brand clearly, resolutely communicates its *why* – its beliefs and values – consumers believe what the organization believes. People will go to great lengths to include brands with a soul in their lives. Not because of any analytical evaluation of product features, but because people hold up those brand values and beliefs as markers and signals of who they are, what they care about. Apple is a flag for creative expression. Starbucks was a statement of sophistication. Costco is not a store, it is a treasure hunt.

People form communities to be around others with shared values and aspirations. Companies can help foster those communities when the story they tell is grounded in higher purpose rather than product slogans, features and benefits.

When a company doesn’t offer anything beyond rational, analytical arguments about its product, it is attempting to force less than inspiring decisions on a purchase – and commoditizing itself in the process. The only games left to play at that point are attempts at manipulation through conventional interruption media and incentives.

  • People want to belong to something bigger than themselves. Can you provide that? People aren’t buying what you do, they are buying why you do it.

If you need help and guidance in reasserting your why, or creating the higher purpose for your brand, use this link to start a conversation with a team that understands how to elevate purpose as core strategy and a business anchoring system.

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 Bob@Emergent-Comm.com and follow on Twitter @BobWheatley.

Technology has leveled the competitive advantage playing field

The million-dollar barrier to great marketing has vanished!

March 8th, 2022 Posted by brand marketing, Brand preference, brand strategy, Brand trust, branded content, CMO, Differentiation, Emotional relevance, engagement, Higher Purpose, storytelling, Strategic Planning 0 comments on “The million-dollar barrier to great marketing has vanished!”

A massive leveling has commoditized advantages

Once there was a time when world-class marketing, by definition, was expensive. Bigger brands enjoyed advantages by way of larger marketing and media budgets that smaller players just couldn’t muster. A price of entry existed for superior production values and more cinematic forms of storytelling.

Those barriers have disappeared. What do you do when anyone, anywhere can compete with you on the quality of communication? What happens when the budgetary obstacles to outreach evaporate and anyone from anywhere can distribute high quality, engaging content? What unfolds when the importance of reaching mass audiences served by mass (expensive) media vanish because markets have bifurcated into smaller tribes of consumers who elect and select the brands they care about “joining?”

Read on to understand the shift in competitive advantage and where to go when a bigger budget doesn’t necessarily author any marketplace leverage.

Seth Godin marked the change beautifully in a recent post:

“To make an album of music good enough to make it to the Top 40, it used to cost a million dollars. Now you can do it in your bedroom.

To make a commercial for network TV, a minute of footage cost about a million dollars…

And that same million was what it would cost to create an email engine for permission-based marketing in 1996.

And you needed a million dollars to build a website that could hold up under a lot of traffic, or to build a social media presence that would reach a million people.

All of these things are now incredibly cheap.”

Remarkably, many brands and businesses still operate as if these big wallet advantages exist – assuming the consumer marketplace will absorb their content before, above, beyond and more often than anyone else’s (as if repetition helps in an avoidance-enabled market). Just. Not. True.

A seed funded CPG food start-up or small footprint retailer is capable of producing a more impactful, useful and engaging web site than a large cap CPG brand or 1,000-door retail banner. Of note, capable is just that – there’s no inherent win from being small and new either. Same with video content. Same with social channel engagement. The entire competitive advantage paradigm has shifted from the few Goliaths to the many Davids.

What happens when technology and culture conflates the company size and budget advantages?

The big strategic question that must be factored into planning: what are the new rules of strategic advantage when everyone can compete with anyone?

  • The stakes on uniqueness and differentiation are amped and marginal distinctions constitute nearly zero brand leverage.
  • The requirement for deeper meaning, mission, higher purpose and values – your “why” – form the foundation of any strategic advantage. Based on our surveys, this foundation is more than likely under-served.
  • Putting the consumer at the center of brand narrative and communication strategy is now table-stakes to any hope of engagement.
  • The humanization of your brand proposition and marketplace behaviors is a prerequisite to achieving relevance and resonance.
  • Your digital footprint must revolve around “romance” of the consumer’s lifestyle aspirations, needs and wants before any relationship can be successfully secured.
  • Larger brands don’t own any advantages here. Smaller brands don’t get a hall pass for being “nimble” (no one owns speed) or conceptually more authentic because output looks raw and amateur-ish.

The requirement for trust is universal and bigger brands don’t inherit that quality

“We’ve been here for 40 years” does not mandate trust. Reciting reasons intended to convince people you’re trustworthy doesn’t work because trust is not achieved through data or facts.

Bigger may reduce the perceptions of any risk in purchase as a business moves to the late stages on the adoption curve. That said it can also be a slippery slope to irrelevance, too.

Importantly, any “risk” attached to what is new and innovative can be managed with the right trust-building strategies and performances.

Over the last few weeks, we’ve seen close-up exciting new product concepts and nuances of evolutionary innovation that could potentially disrupt existing food and beverage categories. Yet the truth of the matter – there are also emerging brand communication efforts that are neither emotionally resonant nor fully dialed into consumer relevance.

  • We have ample proof that while a level playing field exists, guidance and sound strategy are needed no matter the size of the business from $1 million in trailing revenue to $1 billion.

The large brand paradox

Larger brands have greater challenges due to hide-bound traditions and inertia that moves against change.

“We’re too big to fail”

“We’ve always done it this way”

“Our growth is aligned with the category performance”

“We can’t (won’t) change the foundational aspects of what authored our original success”

“Wall Street won’t like it if we do anything radically different”

“We have significant costs sunk in our supply chain infrastructure”

“We already have high levels of brand recognition and awareness”

“What if we (read: I) fail”

Trust must be won daily. Brand equity dilution, decline and commoditization challenges are like laws of gravity and cannot be side-stepped. Ceding category territory to smaller creations may not feel like a contest initially because many leaders believe you can “buy” your way in. Yet we recognize that post-acquisition there will be risks of diluting the golden goose’s brand magic.

The new rules of engagement

Anyone, anywhere can outflank and beat well-funded competition on message relevance and quality communication. That means emotionally on-point, consumer-centric communication is fundamental no matter who you are, big or small.

  • Higher purpose, mission and values are the foundational elements of trust creation and any player in a category is either served or hampered by this requirement.
  • You have to get out of your own way.
  • Size is not insulation and creates other significant challenges that operate in favor of reinvention and renewal – when change is often resisted.
  • Disruption and differentiation are required when sameness is rampant everywhere and traditional category behaviors can dumb-down any perceived uniqueness.
  • There are far too many bigger brands that lack humanity in how their story is packaged and presented.

The beauty of a level playing field

For larger brands, this means potential repositioning and savings on the marketing budget line because throwing “money at it” doesn’t really get you there. This forces the importance of innovation, relevance, meaning and values that are the hallmarks of competitive advantage in the relationship economy era.

For smaller brands, you are not at an automatic disadvantage based on size. You can compete. Effectively. However, the requirement for world-class storytelling and engagement strategies remains as the price of entry. Are you prepared for it?

In the famous Pixar movie about a culinary genius rat named Ratatouille, we learn the story arc’s basic premise, “anyone can cook” – provided the right inspiration, effort, energy, focus and desire to learn exist. So, too, in the era of relationship-based marketing. We can return to focusing on the consumer and our storytelling chops, knowing that we can make a difference, and we can win in the marketplace for all the right reasons!

If this story stimulates some thinking that you would like to share with like-minded brand builders who can add value to your internal strategic conversations, use this link to start 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 Bob@Emergent-Comm.com and follow on Twitter @BobWheatley.

The psychology of risk

Is the Psychology of Risk Factored Into Your Marketing?

February 3rd, 2022 Posted by Behavioral psychology, brand advocacy, Brand Design, brand marketing, brand messaging, Brand preference, brand strategy, Brand trust, consumer behavior, Consumer insight, Higher Purpose, storytelling, Strategic Planning 0 comments on “Is the Psychology of Risk Factored Into Your Marketing?”

Your customers are not analytical decision-making machines

When consumers approach a purchase decision, are they focused on the merits and benefits of what you’re offering? Research on human behavior confirms that other issues are dominating their judgements. Read on to find out what’s really happening.

  • You might agree marketing and business strategy that is informed with a clear understanding of the human being you want to reach is going to be massively more effective than efforts that don’t take into consideration what we now know about how people make choices.

Ground-breaking behavioral research conducted over decades by renowned psychologists Amos Tversky and Danny Kahneman on their Theory of Regret, forever altered the false assumption that humans are rational and analytical – making decisions based on objective consideration of the facts.

Today we will unravel the mysteries of how people behave to provide you with clear guidance on what the customer is actually thinking and doing.

People will pay a premium to avoid – wait for it – regret

According to scientific research, consumers’ 99.99999 percent of the time are working to sidestep making bad choices. Tversky and Kahneman’s analysis of choice decisions demonstrated that people focus on minimizing risk in order to reduce the chances of any regret. Said another way, people are not seeking to maximize benefits, instead they are trying to prevent or duck an unfavorable outcome. Boom.

  • Most marketing activity is based on presenting gains, wins, benefits to an audience pre-occupied with trying to determine if what’s on offer is a gamble (path to potential regret) or a sure thing.

Kahneman expressed regret theory in real-world terms this way: The nearer you get to achievement, the greater the regret people encounter if you fail to achieve it. The more control you believe you have over a gamble, the greater the regret experienced if it turns out badly.

People reflexively face regret for:

  • What they have chosen
  • What they wish they hadn’t chosen
  • What they should have chosen

What’s truly operating on the path to a purchase decision can be observed in any hesitation or reluctance (abandoned cart) to take an action. How the consumer is looking at the options before them follows their attempt to determine –

  • What is a sure thing
  • What is a probable gain
  • What is actually a gamble in order to secure a gain

When choosing between a sure thing and a perceived gamble, a person’s desire to elude loss exceeds the desire to secure a gain!!

Not surprising, people will pay handsomely for certainty. They will take the sure thing over the perceived dice roll every time. Thus, the power and impact of a well-defined brand with deep equity, trust and a strong value proposition.

So what exactly is this loss people seek to avoid?

A loss occurs when a person believes they’ve ended up worse off than their reference point. A reference point is a state of mind based on the status quo, or a standard defined from where they started. Please note, a gain or loss will always be connected to how a problem is presented. Changing the description of a situation can make a gain seem like a loss and vice versa.

Implications to marketing planning and strategy

A consumer world balanced on the pin of regret avoidance is a cry for certainty, surety, belief, trust and confidence.

  • What risk reduction tools are you using to erase loss while canceling potential regret?

It’s important to proactively manage the conditions, language and perceptions that influence consumer belief.  You want to erase uncertainty and the possibility of a bad outcome.

Where to start?

Descriptions – Language matters, how a problem or situation is framed can help or hinder the assessment a customer is inevitably making about certainty and risk avoidance.

Social proof – Consumers find claims of performance and outcome made by companies to be less trustworthy. They will believe their peers before they will believe you. Thus, social channels that behave more like communities where sharing is encouraged, perform the valuable service of offering assurance that what is promised is indeed consistently delivered.

Familiarity – If you’re working on the next great leap in food technology beware of pushing the science wizardry too hard instead of focusing on the more familiar, comfortable and assurance-building principles of food, nutrition and culinary cred for a product consumers will put in their bodies. People are wary of anything that appears to be too far away from the familiar territory of foods they understand and believe are real, safe as well as satisfying (taste).

Transparency – The more you disclose about how you do what you do, the more comfortable people get. This feeds the certainty of knowing exactly what’s in the product you make and where ingredients came from, while also speaking to integrity and honesty – two qualities people believe are sorely lacking in business behaviors.

Third party validation – Most product categories have identifiable subject matter experts and influential voices that bring credibility and cachet to the messaging table. If you turn them into promotional shills, their value is lost. Let the expert voices make independent evaluations of what you do and how you do it. Give them room to report on their observations and let the credibility flow from a respected voice that isn’t your own.

Verifiable assurance – For a cheese client experiencing a high degree of adulteration and food fraud in their category, we created a trust mark backed by one of the most respected food labs in the nation. They were given free rein to acquire products at retail independently and submit them to a battery of tests that verified the veracity of how the products were made when compared to the Federal standard of identity. It was proof the products were genuine, authentic, real and what was represented on the label was indeed accurate and truthful. Trust marks and third-party validation can bring another level of consumer confidence to the story being told.

Now you are aware that this universal human trait of risk avoidance is a dominant consideration for people on the path to purchase. Your objective, then, is to work accordingly to secure confidence, trust and belief in a manner that reduces or eliminates any perception of risk or uncertainty that might fuel consumer regret.

  • Do this, and you will answer what most often lies at the foundation of a disconnect for people who are unwilling to try your new product or store. Why? Because they see risk of a bad outcome if they don’t like it or concern it won’t deliver on their reference standard expectations.

Is it time to audit your marketing plans and messaging strategies to ensure the psychology of risk is fully addressed? If so, use this link to invite an informal conversation with a team of experts who understand the anatomy of trust creation.

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 Bob@Emergent-Comm.com and follow on Twitter @BobWheatley.

Trust drives consumer engagement

40,000 Respondents Confirm Values Matter More Than Product

January 20th, 2022 Posted by brand marketing, brand messaging, Brand trust, CMO, Consumer insight, Higher Purpose, Human behavior, Social media, Social proof, storytelling, Transformation, Validation 0 comments on “40,000 Respondents Confirm Values Matter More Than Product”

Trust in advertising report spotlights the true path to consumer engagement…

Is it possible what your brand stands for will be more important than the product you make?

Yes. Read on.

Nielsen’s latest Global Trust in Advertising Report confirms a cultural sea change has taken place. The comprehensive survey advances new guidance that brands and retailers should reconsider their traditional single-minded devotion to product-centric communications strategies. The report signals emergence of a different roadmap to credibly and effectively secure consumer attention. A more enlightened path that is paved with higher purpose, mission and values ahead of glossy product features and benefits.

The rise of interest in more human-centric values reflects consumers’ need for trust in a marketing environment they believe lacks credibility and validation.

Don’t underestimate the importance of cultivating trust to brand communication effectiveness

For five years, Emergent has tracked the steady decline in brand and corporate trust alongside the parallel rise in why businesses must put the consumer and their requirement for trusted relationships at the center of strategic planning. Is this a feature in your marketing plan?

  • A recent sustainability trends report published by Mintel concluded one of the greatest barriers businesses face in getting credit for sustainability readiness is the consumer’s dramatic shortage of trust in their claims of performance. People find it harder to believe assertions made by companies on their commitment to sustainability standards and mitigation policies. (Hence the need for credible validation).

Nielsen’s study verified that consumers are placing greater importance on values, beliefs, inspiration, deeper meaning, humor and family. According to Cathy Heeley, Nielsen Media Analytics Lead, “People are much more interested in how a brand is going to help the world, not just what benefits a product has to offer. Consumers are looking at what brand values actually mean, what they stand for and their practical application.” Actions always speak louder and more believably than words alone.

Leaders across the globe should be asking: how do we propel and harness the power of our brand as a force for purpose that creates deeper meaning and societal benefit?

  • Brands should declare a clear point of view and create inclusive spaces of belonging.
  • They should also provide an opportunity for people to make a difference, while securing the greatest opportunity to generate impactful meaning in the world.
  • This commitment acts to galvanize both users and employees.
  • Now more than ever, leaders and decision-makers should cultivate a workforce while serving consumers in a way that requires the brand to stand for more than just profit.

The oldest millennials are entering their 40s, while Gen Z is carving its own unique space in the working population. The traditional hierarchical structures – two-week vacation policies and in-office incentives that are linked to growth – are no longer motivating enough to join an organization. The new generation of workers values higher purpose before profit.

Why are brand mission and values rising in importance to people?

Cultural change sits at the foundation of how these changes manifest and how consumers think – an important consideration when deciding how best to frame marketing strategy and communications effectiveness.

We are witnessing a cultural evolution. It first started in the early aughts following 9/11 when the disruptive shock to the nation caused people to re-evaluate their priorities and focus on relationships, family and values over other lifestyle and career considerations. Simultaneously control in the brand-to-consumer relationship was shifting entirely away from companies.

The Internet served as a fantastic enabler of consumer awareness and learning that also exposed the weaknesses of conspicuous consumption.

Dawn of the relationship economy

Underneath these cultural moves came a transformational change in the brand to consumer relationship, now taking on the characteristics of what we treasure in our human relationships – trust, meaning, reciprocity, values, investment, care and consideration for others.

Simply said, people want to be part of something greater than themselves. The search for deeper meaning was fully underway and with it came the initial priority placed on health and wellness and how choices will impact their quality of life.

Brands today must act as guide, coach, trusted advisor and enabler to consumers on their life journey. Yet more often than not, we find marketing strategies still anchored in self-promotion of product feature to benefit, embedding the brand communication with a systemic disconnect due to the weakness in consumer relevance.

The next evolution coming in 2022 – societal change and sustainability

Meanwhile trust in government as a catalyst for societal change has also diminished. Consumers now believe that companies are in a unique and better position – and have an inherent responsibility – to enact positive societal improvement.

Chief among these concerns is the hyper-focus on sustainability that has morphed into more specific questions about how companies source materials, ingredients and how they operate in a way that mitigates carbon footprint rather than contributing to the emerging chaos of climate change.

What should you do?

  1. First and foremost, refine and optimize your brand’s higher purpose platform. Profit is not a purpose. A human relevant and meaningful purpose is a purpose. This isn’t a call for philanthropy. Instead, it is about anchoring the business in a mission reflected through how the entire organization operates that is centered on the consumer and the changing world around us.
  2. Insight research will be required to better understand the specific details of what your best users care about, what areas of sustainable performance matter most, what needs they prioritize on their life journey and what barriers stand in the way of their success and achievement.
  3. Operationalize your policies, sourcing, behaviors, standards and commitments to achieve alignment with your stated mission and your commitments to sustainability readiness.
  4. Reconsider the entire brand message map to optimize the focus on your consumers’ needs, their desires, how you can help and support them, ahead of a linear trip into feature/benefit selling. The product message can be woven into the narrative. But it should be crafted within the coaching and guidance paradigm rather than straight self-promotion.
  5. Bring social channel strategies into clear alignment with this strategic approach. Social is exactly that – an area for users to share experiences, ideas, concerns and success stories. Too often we find social treated as a monologue of outbound product selling rather than a community founded on conversation. Your social content platform should be built around engagement not just selling. This is harder to do than it appears.
  6. Looking ahead, recognize the significance and importance of cultural change and the related dynamics of consumer attitude shifts that will be reflected in behavior changes. Things are evolving at a faster pace now and staying on top of this is vital. There is no such thing as resting on your laurels.

Evolution. Change. Transformation. Speed and Humanity should all be held close.

What do you think 2022 will bring in changes and shifts to strategy? Use this link to share your views. We will publish the observations and comments in an upcoming post on 2022 marketing best practices, as envisioned by you, our valued readers.

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 Bob@Emergent-Comm.com and follow on Twitter @BobWheatley.

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