Posts tagged "brand building"

behavioral science helps us understand how people make purchase decisions

Let’s Unpack the New Alchemy of Brand Growth

July 22nd, 2020 Posted by brand marketing, brand messaging, Brand preference, brand strategy, consumer behavior, Consumer insight, Emotional relevance, engagement, Growth, Marketing Strategy, Navigation 0 comments on “Let’s Unpack the New Alchemy of Brand Growth”

Sustainable sales tied to behavioral science

Early 20th-century Philadelphia department store magnate John Wanamaker was famously quoted, “Half the money I spend in advertising is wasted; trouble is, I don’t know which half.” His expressed exasperation has stood the test of time and remains relevant today. Are you confident your marketing investments are firing on all cylinders? Are you sure the levels of engagement you expect are being achieved, especially in an era of extreme uncertainty when consumer attitudes and behaviors are shifting?

What Wanamaker didn’t have access to in his day were the significant achievements in insight into consumer mindset, an outcome of modern behavioral science. Now, we have a litmus test and series of steps that can be applied to design marketing programs that help erase the sense of gambling that can accompany consumer outreach investments.

  • In this article we will map the journey to more effective marketing communication, a path that helps resolve Wanamaker’s dilemma.

The trouble begins at the front door of strategy when brands focus their messaging and tactics on themselves, their product features and benefits – and not on the aspirations, needs and wants of the consumer. Moreover, unless understanding of how people operate is factored in, the entire effort becomes more ‘luck of the draw’ than an informed, assured path to sustainable business growth.

The most important insight to consumer behavior that drives business results

Recent studies, including a report from Google on mastering consumer engagement, can be summarized in one over-arching conclusion that impacts how strategy is best formulated: Human beings consistently function on a predictable track to reduce or avoid taxing their brains. Researchers call this “releasing cognitive burden,” meaning people sidestep messaging that is perceived as complicated or too risky.

Marketing that is designed to help consumers with their DNA-driven efforts to make decisions easier and friction-free will lift the doubt – and help bring assured victory to outreach efforts. This is especially meaningful at a time when every single dollar spent on consumer outreach needs to perform like 10.

Understanding this path of least resistance, helps explain why emotion is more powerful than analytical storytelling to motivate outcomes and purchase behaviors. The remarkable processing that goes on underneath our cognitive radar is a form of editing that helps us preserve mental energy. The sub-conscious brain has greater influence over purchase decisions than we give it credit.

The recipe for engagement and improved outcomes

Three primary strategic components should be considered in planning, and three tools can be applied to ‘load the deck’ in your brand’s favor.

  1. Message simplicity and clarity

What is the consumer-relevant problem you solve and how do you solve it? Consumers prefer brands that help them, that provide utility and are useful. The caveat here is a tendency for brands to complicate this communication with lengthy explanations of technology and formulation advantages. On the one hand it might be presented as reasons to believe but in reality, this just stresses the consumer’s brain so they ignore it.

Moreover, this approach puts the brand in the role of story hero, which embeds an immediate disconnect for the consumer. People see themselves as the hero of their life journey and the brand’s role should be positioned as their guide and coach.  This consumer perspective needs to be respected alongside the requirement to keep communication simple and crystal clear.

2. Power of social proof

Trust is an essential element of creating a relationship with consumers and moving from consideration to purchase. How trust is created has changed as consumers grow increasingly skeptical of promises and claims made by businesses. In sum, people believe other people first.

Social channel conversations and reviews are a primary driver of trust. This is why consumers will research product reviews and examine social channels to measure the veracity of what brands claim about their product attributes and benefits. The confidence they acquire from the endorsement of others works to simplify decision-making.

3. Authority bias

Alongside the importance assigned to consumer voices in social channels are the words and opinions of respected experts and influencers. Note the word respected here is extremely important. We have ample evidence that certain classes of influencer have grown less effective when they perform more like paid endorsements rather than authentic, independent guidance.

Editorial media, physicians, chefs/food experts, health and wellness gurus and others of similar credential can be enlisted to help educate consumers on the guardrails of how to define excellence and reliability. These views and opinions work as a form of believable shorthand to help remove risk and create comfort in moving consumers along the funnel.

Tactical tools to deploy alongside the strategic components

Behavioral research also confirms that human beings resonate to a small collection of tools that can work to help close the sale.

  • Scarcity – we are hardwired for preference of anything that is in short supply and acquires greater perceived value because it is not abundant.
  • Speed – a newly minted desire borne of the Internet age is our requirement to have needs satisfied quickly. If you can move from transaction to front door fast, that advantage helps close the deal.
  • FREE – this is still a magic word. Engrained in our cultural heritage is respect for the concept of free. If you can include a bonus with purchase or some other value can be attached to the transaction at no cost – such that the word FREE is in the offering, it’s a compelling incentive.

The new age we are in and role of beliefs, values and mission

Another important strategic consideration is the emergence of shared values and mission as a component of preference. Research also confirms that consumers want their purchases to be a symbolic “flag” of their beliefs and what they think is important.

Higher purpose matters. Your ability to weave deeper meaning and a belief system into your brand promise and presentation is vital to sustainable growth. This is an evolutionary change that has been underway in earnest for more than five years. The pandemic has pushed the momentum under this cultural shift even further.

Prestige, wealth and other more materialistic attributes have fallen away while people now believe that brands have a role to play in making the world a better place. At a more personal level, they want to know how brands are acting in their best interests and helping them in tangible ways to achieve their life goals.

The rise of the “B” Corp is evidence of how this can play out when companies design their business to operate in service of others around issues of importance such as hunger, poverty and the environment.

Having a great product is table stakes now. Imbuing your brand and business with a higher purpose is a defining characteristic and quality consumers want. It is another piece of evidence that the company has a moral center, high standards, a value system, and thus can be trusted.

  • All of these strategies and characteristics at a very human level operate as trust creators to ease the buying decision and dilute risk. This matters because human beings don’t want to burn mental calories with heavy analysis of information in order to get to a reliable decision to buy.

Your ability to remove risk and create trust is job one to build business. If you would benefit from guidance on how to bring these tools together for optimal impact and effect, please use this link to start a conversation about how we can help you do that.

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.

Pandemic unleashes cultural changes

Context is Your Marketing Super Power

June 28th, 2020 Posted by brand marketing, brand messaging, Brand preference, brand strategy, consumer behavior, Consumer insight, Emotional relevance, Healthy lifestyle, Healthy Living, Higher Purpose, Human behavior, Navigation, Social community 0 comments on “Context is Your Marketing Super Power”

How are you deploying it?

The incredible disruption spawned by the global pandemic is creating an important opportunity to reframe the marketing conversation around your brand. During difficult times people are more receptive to brands making bolder moves. Uncertainty provides the latitude to experiment, in the context of answering cultural changes that are having a profound impact on how people view the world around them and what they care about in times of change.

Necessity is the Mother of Invention

Cultural shifts create influential moments when consumers are open to new ideas. Behavior change, which is hard to accomplish, becomes more attainable. What we know about people is the role that perceived risk has in their decisions. When a change is adopted by many, it can quickly become the default choice for the very reason human beings are a copying species. Popularity provides reassurance.

Permission operates in the same way. Witness what is happening now with work at home. Companies, especially in the tech sector, are making this a permanent adaptation and by virtue of doing so signaling a new acceptable default for how business will operate. If it were merely served up as an optional choice (as it has been for years!) the adoption curve falls immediately because of the perceived risks of not being in the office and any stigma that might accompany that perception. Companies that offer unlimited vacation see the same outcome as people don’t suddenly leave for extended periods for the same reasons – fear their career will be compromised and so the “choice” isn’t activated. Averting negative experiences is a highly motivating and universally common behavioral trait among consumers.

Human beings are hard-wired to avoid personal risk

The over-arching impact of COVID-19 on the value proposition of health and wellness moves the interest in healthy lifestyle from aspirational to practical to necessity. As we’ve said previously, Health is the New Wealth, essentially means there are life-maintaining, risk-mitigating reasons to shore up the immune system. This is having an impact on food and beverage brand growth in the coming year. The default for health and wellness has now changed – it’s visceral and existential. This also helps sponsor an emotionally charged marketing environment.

It’s important to note that humans are not governed by algorithms. We do not make decisions based on rational thus predictable assessments of facts. If we did, 1 + 1 = 2 could be applied to marketing activity with assured outcomes. Instead – we are feeling creatures who think and not thinking creatures who feel. Yet for some reason right alongside the birth of digital marketing platforms and the ability to amass data, we have become too preoccupied with marketing plumbing at the expense of paying closer attention to the (human behavior) water inside.

Psychological insights are simply more powerful and unilaterally effective than any form of technological or engineering advantage in products and service marketing. Said another way, a terrific well-designed product with subpar marketing behind it can fail – while a lesser product with better and more humanly relevant marketing strategies in support will win the race. How can this be? …Because now we can create high levels of satisfaction by knowing what truly ”floats the consumer’s boat,” more so than any advantage created by a less emotionally-compelling ingredient innovation or product feature.

Marketing is not a form of cosmetic surgery to apply a thin layer of magic fairy dust on the top of a product that succeeds on its own merits just because it is well crafted. Dyson vacuum was renowned as an engineering marvel, yet its suction power wasn’t really the big leap forward over other conventional models. Its sexy design created perceptions of new and modern (visual cue), while the ability to actually see dirt in a clear cup provided enormous levels of personal accomplishment and emotional satisfaction to people who could observe the outcome of their floor-cleaning efforts for the first time. The marketing behind Dyson was masterful in elevating the value of having one in the house as a symbol of being progressive and innovative while embracing the fashion of an edgy, differentiated design.

The most important move to make on the successful marketing path is….

Our job (and yours) is to identify the single most powerful motivation driving customer behavior in a client’s category. Armed with this understanding we place the consumer at the center of planning, working to apply our understanding of context, perceptions and emotions that are tied to their behaviors. We translate that insight into more effective communication.

Everyday people show their peculiarities, whims and irrational behaviors, wishes and fears. Armed with this knowledge we’re able to blaze new trails for brands that want to and can be more relevant to consumer needs. This happens because the brand’s deeper meaning and values now operate in sync with what people believe and care about.

In this unprecedented marketing environment, here are some questions to consider:

  • How can your brand contribute to the cultural conversation going on right now?
  • What are your users’ shifting attitudes about themselves?
  • What higher purpose can your brand fulfill that matches the beliefs consumers value the most?
  • With health and wellness now more important than ever to people, how does this play out in your strategic plan?

You have permission now to experiment outside the rational comfort zone, offering new reasons-to-believe that are tied to deeper meaning and values that transcend the product itself. A small example of the human emotional condition at work here: why is it that consumers perceive a car drives and performs better when it is clean? Not really rational is it!

We work to change the way people see your brand

Our role as creative communicators is to pay attention to the consumer who buys our clients’ product or service. Perception often leads reality and our job is to manage those perceptions, knowing that the reality is never far away in a digital world where anything that can be known, will be known.

The four horsemen of an effective strategic marketing plan are:

  • Context (in which it is consumed)
  • Environment (in which it is sold)
  • Cultural setting (that drives surrounding beliefs)
  • Who says it (the voice employed to build trust)

Harkening back to our earlier point about risk aversion and disaster avoidance, trust might be the most important consideration to directly address in the strategic plan. Trust drives purchase behavior. It can also disappear quickly if not managed with great care.

This explains why social media is such an important channel to deploy strategically. For the very reason the voices involved are consumers and not the company. People believe other people long before they’ll accept what a business claims about its product. Social proof serves as verification and validation of what you want people to understand and accept about your brand.

In a tough marketing environment, trusted brands will succeed and it doesn’t happen organically. Trust is acquired and earned over time. This is perhaps the most powerful argument for investing in brand building. Consumers trust those they know and believe. They also trust the wisdom of crowds and translate socially accepted choice as ‘vetted and approved’.

Now is the time to step beyond your comfort zone and consider bolder moves. If logic were the only defining path-to-purchase then every brand in a category would be on equal footing. However, that isn’t the case because logic doesn’t respect what we know about people and how they behave.

Your super power is the ability to embed context and relevance in brand communication. Emergent can help you navigate and design more engaging brand outreach and active social communities. Let us know if you’re interested in finding a fresh perspective.

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.

It’s About Storytelling – Not Story-YELLING

May 24th, 2020 Posted by brand marketing, brand messaging, brand strategy, branded content, Consumer insight, Content Marketing, Digital marketing, Emotional relevance, Growth, Higher Purpose, Marketing Strategy, Public Relations, Social media, social media marketing, storytelling, Transformation 0 comments on “It’s About Storytelling – Not Story-YELLING”

The five essential guideposts to successful brand communication

In a recent article about the COVID-19 disruption of conventional marketing strategies, an industry contemporary weighed in to say change is here. He opined that the latest digital media platforms must be deployed as relevant vessels to convey the product sales-building message. The story was a remarkable resurfacing of a fundamental mistake now driving an unnecessary (and unwanted) wedge between many brands and their users.

You can no longer game your way into someone’s heart and head. When every media form or channel is viewed as a pipeline for pushing messages designed to interrupt and snare people who are trying to consume useful content, the product messaging gambit represents a form of marketing denial about how brand relationships are created.

  • A classic (but now worn) example of this is the misuse and abuse of social channels, treating them as yet another promotion broadcast medium with some begrudging two-way conversation sprinkled in.

We simply can’t look at marketing outreach as “persuasion” any longer, a type of digital bullhorn to broadcast product features, dressed up to look like a more educational piece of publishing. People see right through it. Moreover, they won’t stand for it, sit for it, hear it, consume it or engage with it.

When marketing dollars become precious and every one of them needs to perform more powerfully, it only stands to reason that dialing into cultural context to enhance message effectiveness is important.

Brands must become trusted sources and resources

The relationship brands build with consumers must evolve.

Consider how real, human friendships are created and nurtured. And how real friends communicate with each other. There’s a difference between telling and yelling in both conversational context and messaging construction.

The great brand storytellers know who the hero must be – it’s the consumer and not the brand. Yellers see things from the polar opposite angle, casting the brand and product as hero of every message. The brand’s role should be depicted as trusted guide and expert that operates in service of improving the consumer’s life.

Impactful stories show how the brand fits into an idealized narrative around the consumer’s aspirational lifestyle. As we conveyed in an earlier article, Health is the New Wealth.

Five guideposts to effective brand communication

  1. Relevance

Effective stories always follow a basic element of human truth. If brand relationships must operate more like human friendships, then what people fundamentally need should be factored into the communications messaging platform. People want to:

  • Feel safe
  • Be loved
  • Be valued
  • Inspire others
  • Be successful

Stories should address what’s relevant to user needs and desires.

  1. Social influence

Leveraging trends is important. People follow them, talk about them, share with others and through this process ‘collective wisdom’ forms to validate the acceptability and popularity of cultural developments. Whether that’s adopting new tech platforms like Zoom, TV programs such as the runaway success of Tiger King, use of e-commerce channels to shop, or a surge in home baking, emergence of new trends is not to be overlooked in content calendars.

Stay-at-home is one of the most compelling, dynamic and influential trends of all-time. It presents a treasure trove of opportunity for guidance and conversation on topics ranging from how to re-set the home for work and learning, to spending more time with the kids, to exercising culinary muscles.

  1. Reciprocity

People are hard-wired to recognize, appreciate and reciprocate when experiencing self-less, useful and helpful behaviors. When brands stop looking at customers as walking transactions and see them as real people who need support, the entire dynamic of the consumer-to-brand relationship starts to change.

  • Unselfishness is an admired human characteristic that when added to the brand voice and outreach, paves the way for a respected and trusted relationship.

Educational experiences that help improve expertise and knowledge can be a wonderful way to hone the brand’s role as expert guide and coach.

  1. Emotional intelligence

A lot has been written lately about the value of Artificial Intelligence (AI) and no doubt there are areas where data can be applied to improve decision-making. Targeted media selection would be a prime example. But it can also be a false god. The brand’s goal isn’t to be the one that measures but rather the one that matters.

Imbuing your brand with deeper meaning and higher purpose is the on-ramp to emotional forms of communication. When emotional connections take root between a consumer and brand – the relationship crosses a chasm from habit to ritual. Jasmine Bina, respected brand strategist and noted author recently published on the topic, saying “it only makes sense that when our daily habits are prevented, we hold on even tighter to the rituals that define us.”

Deeper meaning is a matter of perspective. Pet food brands transform when they understand they are not in the pet food making business. Instead they are selling an instrument of love for furry family members and a perception of elevated health, wellness and longevity. Bina quotes noted neurologist Donald Calne: “The essential difference between emotion and reason is that emotion leads to action while reason leads to conclusions.”

What are the emotional catalysts in your business that will cause people to pause, feel emotionally involved and act?

  1. Authenticity

People yearn for the real and more authentic brand voices that are less formulaic and more credible – in part because the brand communication is human and conversational. People want to believe. To do so, though, they need to trust first and it’s harder for people to trust companies over the experiences and opinions of other consumers.

This may be the most important endorsement there is for social community building. It is when the voices of outside, third parties are enlisted that the requirement for authenticity is really served.

Authenticity and trust are siblings. Authentic means real, true and is less about false prophets, theater, artifice and magic. If the consumer were with us when we build stories they would say, “just talk to me like a person and remember it’s about me, my life and search for meaning and purpose, and not about you and your secret sauce and technical prowess.”

The obvious question then is how the brand comes to play. Messaging must be framed around consideration of the brand’s values, positioning and purpose. Which begs the question, what is the brand’s deeper meaning and higher purpose? Once that is correctly defined, the right messaging flows because it’s embedded with authentic, trustworthy, human characteristics.

So, my friend…examine your brand messaging strategy.  Is your brand supportive and telling – or self-involved and yelling?  Which friend would you rather have?

When this process is dialed in correctly, the outcomes can be transformational for engagement levels that lead to sustainable business growth.

Emergent stands ready to help you create powerful, meaningful and relevant brand stories. Use this link to let us know if you would like to discuss further.

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.

Emergent’s Pandemic Brand Marketing Checklist

May 4th, 2020 Posted by brand marketing, brand messaging, brand strategy, branded content, change, Content Marketing, Digital marketing, Higher Purpose, Human behavior, Insight, Marketing Strategy, Navigation 0 comments on “Emergent’s Pandemic Brand Marketing Checklist”

World has changed, now what?

Marketing and communication will not be the same as lock down conditions begin to abate.  Consumer confidence is in need of triage and should be foremost on your radar as you make plans to re-energize the business.

  • Confidence in their own safety.
  • Confidence in your businesses’ on-premise and product safety protocols.
  • Confidence in how and where they shop for food, whether that be from grocery or restaurant delivery.
  • Confidence your brand has their best interests and welfare at heart.

This checklist is intended to help inform your thinking and strategy in light of the transformational lifestyle shift consumers have experienced.

You might agree that any marketing plan must be founded on respect for the consumer’s mindset and behaviors. Families have endured one of the most harrowing, precedent-setting and impactful changes in their world, ever.

What we know about the COVID-19 impact:

  • Health and safety are the top priority for people.
  • At home is safe, out of home is not safe.
  • Invisible threats exist that can impact your health or take your life.
  • These events have disrupted every aspect of living and society.
  • People cannot control these conditions and are forced to adapt based on self-diagnosis of their own needs and preferences.
  • What consumers value changes when life is literally upside-down.

The key changes:

  • At home: time and space have become more fluid, less regimented.
  • Blurring of home and work separation.
  • Desire for guidance on home-focused activities from exercise, to gardening to cleaning/decluttering to baking/culinary.
  • Digital experience now a necessity for art, music and escape.
  • Content consumption is nearly 24/7 as average weekly screen times skyrocket.

Top priority for people:

  • Physical, mental and emotional health.
  • Staying well.
  • Boredom, anxiety and uncertainty meet desire to be distracted/inspired/entertained, productive and composed.

What we know about people:

  • Human beings are feeling creatures who think – not thinking creatures who feel. Emotion governs behaviors, decisions and actions.
  • How brand relationships are cultivated and built must adjust to be respectful of where people find themselves, emotionally, now.

Marketing and communication priorities

Insight:

Every brand is unique; what do your core users care about, need, want, desire?

Diagnostic:

Is the brand correctly positioned for shifting lifestyle relevance and empathy?

Strategy:

Holistic solutions that answer, tangibly, how you can help improve your core users’ lives.

Media:

Digital first and emotionally relevant content is king.

Social:             

Now more than ever social community building is embedded in the desire for conversation and interaction. Witness Zoom is a verb and people long for regular contact and interaction. Social channels have acquired an entirely new and uplifted value proposition.

Tactics:

  • Overwhelming importance of shared purpose, meaning and values in messaging.
  • Emotional communication vital to engagement.
  • People believe other people before they believe companies – who is speaking?
  • Health is the new wealth – your brand is the guide, expert and coach.
  • Storytelling vs. story-yelling – days of shameless brand self-promotion are over.
  • Consumers feel out of control, how can you give it back to them?
  • Trust creation as core brand platform – earn belief through higher purpose.
  • Be careful, data can be a false god – algorithms don’t dream.

Secret sauce to success:

Put your consumer at the center of planning, decide relevance matters most and work backwards from there.

To help you navigate these unprecedented changes and chart a course to sustainable growth Emergent can provide deep CPG and retail marketing experience, insight to consumer behavior, health and wellness lifestyle expertise and transformational ideas. Use this link to let us know if you’re ready to explore new solutions.

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.

Mining Emotion Fuels Business Results

April 29th, 2020 Posted by brand marketing, brand messaging, brand strategy, CMO, consumer behavior, Consumer insight, Emotional relevance, Growth, Higher Purpose, Insight, Marketing Strategy, Social media 0 comments on “Mining Emotion Fuels Business Results”

Emotional connections can drive consistent growth

Your consumer is not an analytical, fact-based decision-making machine. Ironically, however, most brand marketing and communication automatically presumes people lean into logic to rationally assess the prevailing evidence of superiority or product benefits companies provide.

The Pandemic has added an exclamation point to this intel as consumers increasingly want brands to be authentically rooted in shared values, beliefs and a higher purpose. Understanding how the DNA of successful brand/consumer relationships has changed is vital to gaining business traction. As you’ll see in the Harvard Business Review case study we review later,  evidence is piling up that mining emotional connectivity is simply a far better business-building decision leading to increased sales and market share over time.

We now have data that confirms brand relationships tethered to emotion are far more effective in delivering the engagement and business results you seek. Here’s the headline: all people are emotionally-driven creatures whose decisions are governed by how they feel about your brand.

Like a lightbulb to a lamp, brand growth is powered by its relevance with consumers who show the highest propensity to engage. Emotion and engagement are uniquely bonded in a vital marriage that will stand the test of time, weathering adversity and continuing to grow deeper, richer like fine wine in the cellar.

How important is this discovery about emotion-led marketing to your business?

Motista conducted a study of 100,000 consumers across 100 different brands and learned that emotionally-connected consumers are more valuable to the balance sheet than the ‘highly-satisfied’ customers you may covet. The former spends, on average, two-times more with retailers they prefer and have a 306% greater lifetime value to the business. Emotionally-invested consumers even recommend favored brands at a much higher rate than those who claim to be super satisfied – 30.2% vs. 7.6%.

Motista concluded emotional connectivity is the most valuable, predictable and enduring strategy you can deploy to build a business that routinely surpasses category growth rates.

Insight Informs Your Strategic Platform

  1. Emotional connectivity happens when your brand reflects back to the consumer values, desires and aspirations consistent with their own. If you want a deeper relationship with your users, then imbue your brand with deeper meaning.

 

  1. Knowing your customer on an intimate level is necessary to provide the understanding and ability to secure three important qualities of like, know and trust. This will require an ongoing investment in consumer insight research designed to unearth details of what they care about and who they are.

 

  1. All purchases today are largely symbolic gestures designed to flag to the rest of the world around us what people value and who they are. It isn’t possible to achieve this kind of relevance without knowing what your best users desire.

 

  1. Which leads to this key question: is the relevant lifestyle symbolism people look for embedded everywhere your customer is likely to encounter the brand online and off? Said more succinctly, is the entire customer journey infused with the insights that feed emotional communication?

Harvard Business Review case study offers proof

HBR published an intriguing report to fully test the hypothesis that emotional connectivity leads to out-sized financial results. You can read the report here. Their conclusion, when brands are able to successfully build emotional connections, the payoff is significant.

The journey begins with correctly assessing emotional motivators that are relevant to your brand. An example: “I am inspired by a desire to…”

  • Enjoy a sense of well-being.
  • Have confidence in the future.
  • Become the person I aspire to be.
  • Experience fulfillment and purpose.
  • Feel secure in the midst of uncertainty.
  • Experience a sense of freedom.

HBR reported on a fashion retailer who participated in the project. Appropriately, the company identified a “propensity to engage” segment they characterized as Fashion Flourishers. The segment represented 22% of the customer base but accounted for 37% of sales. This enthusiast customer group spent $468 a year on average vs. $235 for traditional shoppers, and 46% visited the stores at least once a month over 21% for everyone else.

Initial analysis showed this cohort was less price-sensitive and remained a loyal customer over a longer period of time. The goal was to initiate direct investments in forming emotional connections with this group.

To start, the company conducted discovery research around emotional motivators for the segment and found three distinct attributes:

  • Makes me feel more creative.
  • Makes me feel a sense of belonging.
  • Makes me feel a sense of freedom.

Marketing programs were created around the insight. For example, to leverage the sense of belonging motivator, the retailer invited customers to submit selfies wearing their favorite outfits which were then posted as slide shows on video walls inside the stores.

Further the company weighed into emotionally-relevant media and experiences such as social channels and enhanced store design to marry the shopping experience to the emotional traits. Similarly, an email campaign was created around messaging that nurtured the ‘makes me feel creative’ attribute.

Outcomes confirmed the hypothesis

As a result of investing in emotional connections, stores optimized to reflect the emotional interests of Fashion Flourishers averaged 3.5% annual sales growth vs 1.0 percent for other stores in the chain. Inventory turns improved by 25% and customer advocacy scores grew by 20% year over year.

Key to success

Emotional motivators will vary across brands and audience segments, which underscores why the insight research component is so important to achieving results.

Bottomline, brand communications focused on building emotional connection is the secret sauce to consistently strong business results. Emotional connectivity works because it is respectful of what we now know about how people operate and how they make decisions (not analytically).

Thus, it is important to marry the emotional-driven strategy to every touch point and contact opportunity consumers may have with the brand. COVID-19 and the cultural disruption it is creating will change the face of marketing. The emotional-led strategy is aligned with these shifts and can help improve the future business results for brands that are wise enough to pursue it.

We can help you develop the strategic plan and execute the appropriate research for building emotional connections with your consumers, as well as bringing it to life with creative communications tools. Let us know if you would like to discuss informally.

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.

How to Create Growth When the Future is Uncertain

April 21st, 2020 Posted by brand marketing, brand messaging, brand strategy, CMO, Content Marketing, Growth, Insight, Marketing Strategy, storytelling 1 comment on “How to Create Growth When the Future is Uncertain”

Keys to address now – preventing paralysis while accelerating engagement

Businesses and brands don’t like uncertainty. The pandemic has delivered a heaping pile of vagueness on what the future looks like. However, a modest number of companies will avoid the creeping advance of paralysis and will position themselves for industry-leading growth when the pandemic begins to subside. Here’s how to recognize the presence of business-defeating thinking and strategies, while making the right investments that will turn the current batch of potential business lemons into lemonade.

“Fear is like a mall cop who thinks he’s a Navy SEAL” – Elizabeth Gilbert, Big Magic.

This is a challenging time for nearly every business in food, beverage and lifestyle categories. Competing theories exist on where business will go in the next six months, compounded by conflicting forecasts of what business results will look like and what the future holds generally.

In the face of uncertainty many organizations are sorely tempted to retreat, to pause, to pursue a defensive rather than offensive style strategy. The theory at work is to wait out the storm before attempting to map a more progressive future. That said, some studies suggest the defensive approach can infect the business in the wrong way, and inadvertently set a course for handing over leadership to other brands that determined they would not succumb to a holding pattern during these uncertain times.

What’s really happening here anyway?

Fear begins to replace optimism and some businesses subsequently stop working to create a better reality. Elizabeth Gilbert in her book Big Magic, Creative Living Beyond Fear, poignantly describes the condition: uncertainty breeds fear. “Fear is programmed by evolution to be hyper-vigilant and insanely over-protective,” she reports. Fear believes that any uncertain outcome is already foretold to end in failure and disappointment. Fear’s job is to induce in varying degrees, a form of panic whenever an organization is about to embark on a path that is less than certain.

Historical evidence points to the right path

Harvard Business Review (HBR) in 2010 published a comprehensive report following the Great Recession of 2008/09, to help diagnose what conditions contribute to growth and what strategies set an organization up for unsatisfactory outcomes. The study looked backward at previous recessions and found common ground on approaches that either contributed to losing momentum or acquiring it.

Some organizations look at uncertainty and focus on what could be described as a ‘loss minimizing’ or siege mentality that can put the business into survival mode. Prevention strategies are founded mostly on cost cutting. However, the data shows firms that cut costs faster and deeper than rivals don’t necessarily flourish.

In fact, the HBR report revealed those engaged in loss minimizing have the ‘lowest probability’ of pulling ahead of the competition as economic conditions turn around. The prevention mindset is founded primarily on safety, security, avoiding losses and minimizing risks. This defensive approach also tends to trigger a form of pessimism internally that spreads like wildfire as strict controls and rumors of impending cuts put people in the organization into survival-style behaviors.

  • HBR’s study of 4,700 companies found that 56% of prevention-oriented businesses cut their head count, while only 23% of progressive companies laid off staff and in far fewer numbers. This begs the question, what is a progressive company?

A progressive approach is essentially a balanced strategy that focuses cost controls primarily on identifying operational efficiencies (rather than head count), combined with continued investments in marketing and innovation. The report found that 37% of organizations taking this more aggressive approach were more likely to emerge as leaders later.

For executives working to build the optimal plan it’s important to recognize the barriers to progressive thinking. This can include a mélange of challenges if failure isn’t respected in the organization as the ultimate teaching and learning moment. Additionally, when personal self-worth can’t abide any form of failure, the uncertain conditions often leads to retreat.

Why is marketing investment so important?

Gordon Leavitt, the former Dean of Marketing at Harvard Business School wrote a book called The Marketing Imagination, a profound and enlightened view of marketing’s role in how an organization wins in the marketplace. In it he states, “the purpose of business is to get and keep a customer, therefore every department, every executive, every decision is in fact tied to marketing.” Leavitt believed that everyone is involved in marketing whether their job description says so or not. For the very reason that marketing is not a department, it is the organization’s collective behavior to get and keep the customer.

Granted much has changed since he wrote the book and “purpose” is now a much deeper construct than just commerce. However, his point remains essential in looking at why investments here matter even in the presence of uncertainty. Customer-focused thinking and behaviors prove over and over as a viable path to growth in the midst of adversity.

Ideas and inspiration are required to navigate uncertainty

Ultimately it is ideas that will power growth, especially in the face of doubt. What can get in the way of inspiration that informs great ideas? Most often it is drama, anxiety, distractions, insecurities and fear that can draw the horns inward. These characteristics, corporate or individual, are not receptive to inspiration.

In fact, ideas can be banished with a single word: NO.  In some instances, businesses are culturally organized to say no, no, no and no.

Instead businesses should focus on the essential principles that support creativity including:

Courage

Enchantment

Permission

Persistence

Trust

What are the characteristics needed to promote an atmosphere that invites inspiration, creativity and ideas? Executive leadership that is diligently focused on the customer and their journey, and is driven by attitudes founded on faith, belief, courage and devotion to respecting and caring for the health, wellbeing and welfare of the brand’s users.

It is the ultimate expression of putting their needs at the top of the priority ladder and working backwards from there to identify ways to bring that commitment to life. It is a form of fearlessness that manifests in rallying the organization’s focus to the customer rather than myopic devotion to self-preservation.

When fear is eliminated there is an opportunity to cooperate fully, joyfully and humbly with inspiration, entering into a contract of sorts with it that “we are required to fulfill,” says Gilbert.

Purposeful marketing

Translation of ideas and inspiration into world-class marketing solutions is best seen in the creation of deeper meaning and higher purpose in the brand voice.

According to Kantar Research, successful brand marketing focused on building higher purpose for the business, exhibits three principles:

  1. The organization has an established history supporting a purposeful positioning.
  2. The brand partners with credible third parties who are also passionate about that positioning.
  3. The company is committed to providing tangible solutions that help reassure and guide consumers to a better future.

It should be noted here that the ultimate expression of higher purpose is in the storytelling conducted by brands, their customers and stakeholders. Our brains rely on stories to make sense of the world around us. Yet storytelling has been largely missing from marketing for the last 30 years, as businesses have focused primarily on conveying product features and benefits.

A bright future ahead

Now is the time for an improved story based on a higher purpose delivered fearlessly, creatively by a brand devoted entirely to its customers’ welfare. Erasing self-doubt and self-protection behaviors, the brand can get on the path to future leadership, while successfully navigating the challenge of today’s uncertainty.

Brands that invest now will reap the benefits later in improved strength and growth in their respective categories.

Let us know your questions and challenges, we’re happy to help build your strategic plan, create messaging and content to tell your story.

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.

Archives

Categories