Posts tagged "Trust"

Why Trust Now Precedes All Brand Engagement

June 18th, 2019 Posted by brand marketing, Brand preference, brand strategy, consumer behavior, Consumer insight, Emotional relevance, Higher Purpose, Marketing Strategy, Pet food marketing, Transparency 0 comments on “Why Trust Now Precedes All Brand Engagement”

A storied call to embrace trust creation

Consumers continue to vote using their time, attention and spending to favor brands they trust while virtually ignoring the rest. Yet this important insight apparently hasn’t informed the daily barrage of product claim and assertion-style communication that dominates the food and beverage marketing landscape.

What’s needed is a fresh approach and new ideas that disrupt the old model of overt selling in favor of a more enlightened view of reciprocity — which works to form the proper foundation of any successful brand and consumer relationship. What’s changed? The ever-evolving consumer who shapes cultural norms and with it, expectations that impact what they find meaningful, relevant and purchase-worthy among the brands they consider.

Here’s the profound truth about what sits at the core of consumer behavior: Jerald Podair, Editor of The Rutledge History of the 20th Century United States said it succinctly, “we live in the age of disputed facts, disputed truth, personal truth, my truth and your truth.” The collective desire and yearning among people are simple – they want to know and believe they are in receipt of the truth about products and services they love.

This explains the rapid rise of transparency, product creation candor, and validation as a fundamental driver of what people require ahead of purchasing the brands that matter to them. See-for-yourself-marketing. Thus, food marketing best practices must move further away from gloss and artifice, and closer to embracing the plain-spoken credible voices of personal experience intertwined with respected expert guidance.

Survey data shows the extent of this important swing

At the recent Cannes festival celebrating the ad creative world, Edelman once again presented their annual Trust Barometer, a quantitative study focused on consumer attitudes about brands. The evidence reinforces the conclusion that trust is required for anything in marketing to function effectively.

Here’s the hard truth:

  • 73% of people actively work to avoid advertising. This is likely to increase with continued adoption of ad blocker software that makes it easy to do so.
  • 41% of people say of the marketing activity they do encounter that the communication is seldom seen as truthful.
  • 63% trust what outside third-party experts and influencers say more so than what a brand conveys on its own – what’s that tell you?

Lest this all appear to be an assault on brand communication, there’s another statistic in the report that bodes well for brands that put trust creation at the center of strategic planning.

  • 76% of consumers want and will pay attention to advertising from brands they trust. How come? Because they believe in and embrace the story as true.

The path forward: Emergent guidance

It’s important that we note the difference between trusted and not yet trusted. Brand believers want affirmation of their good decision. Believers enjoy and seek out (confirmation bias) a little positive drama and emotion connected with the community they’ve joined.

On the other hand, the unconverted require evidence and credible demonstration of the product creation backstory, disclosure of company beliefs and mission, and proof of visible actions that shine a light on the truth of what’s being conveyed.

Here are three simple steps to improved engagement and greater marketing success:

  1. What is the message?

Shameless brand self-promotion isn’t nearly as effective as aligning the brand with the consumer’s lifestyle interests and needs – and becoming an enabler of them. You have to earn trust first. Before you can sell your pet food for example, pet parents need to see how the brand helps enhance and contribute to the experiences and interests they have in their shared lifestyle and pet’s wellbeing.

  1. Who is the messenger?

For the yet-to-be-converted credibility matters. Social proof is a critical factor to help foster trust. People believe their family, friends and contemporaries first. How is the brand enabling the voices of fans to convey their experiences and to distribute content that tells their stories? Outside credible experts can also be enlisted to amplify the evidence underneath the product creation story about ingredient sourcing, standards of quality, safety and generally walking the walk.

  1. Intentionally following the path to trust

It’s important to note here this is easier said than done. It requires changing the mindset on why the company exists and what, in the larger, human, universal scope – and certainly beyond the balance sheet – is the company trying to contribute to the greater good. It requires everyone to care about the consumer’s welfare and to see the brand as contributing to their health and happiness. However, what you think and believe will inform every action. It’s hard to get away with messaging around this without addressing the company’s true higher purpose and at its foundation what it stands for.

People are very astute these days at recognizing the truthful from anything that isn’t. If your brand heart is in the right place and you’ve optimized strategies to make trust creation a top priority, there’s an opportunity to earn permission for a relationship that can drive sustainable growth.

What kind of conversation are you really having with your prospective consumers? Is trust creation a top priority around the strategic planning table?

Looking for more food for thought? Subscribe to our blog.

Bob Wheatley is the CEO of Chicago-based Emergent, the healthy living agency. Emergent provides integrated brand strategy, communications and insight solutions to national food, beverage, home and lifestyle companies. Emergent’s unique and proprietary transformation and growth focus helps organizations navigate, engage and leverage consumers’ desire for higher quality, healthier product or service experiences that mirror their desire for higher quality lifestyles. For more information, contact Bob@Emergent-Comm.com and follow on Twitter @BobWheatley.

 

 

 

 

 

 

 

 

 

Don't undercut investments in experienced marketing guidance

The Woeful Challenges of Marketing Inexperience

May 29th, 2019 Posted by brand marketing, brand strategy, CMO, Content Marketing, Digital marketing, Emerging brands, Marketing Strategy 0 comments on “The Woeful Challenges of Marketing Inexperience”

Building an emerging brand when you don’t know what you don’t know

If ever there were a time when new emerging food and beverage ideas have a chance at stardom, the golden age has arrived. Investment capital is flocking to the culturally relevant and unique, while new food ideas and innovations are popping up right and left. While the barriers to entry are lower than ever, the stakes and requirements for sound strategy are accelerating rapidly as more emerging brands compete for share of limited consumer attention and stomach. This, by the way, was the genesis idea underneath creating Emergent, the Healthy Living Agency.

Into the abyss entrepreneurs jump, entering the fray seeking to answer what looks to be a nearly insatiable appetite for new, higher quality, healthier and novel food and drink experiences. At the front door all appears promising in a world yearning for new and better.

Meatless meat, lab grown proteins, dairy milk without the cow, probiotic and prebiotic, keto kits, ancient grain snacks, pea protein-infused everything – and now in the developing pipeline – food-as-medicine. Whew. Yet many of these aspiring enterprises will encounter critical interruptions along the path; challenges to scaling the business that will relegate some to permanent small ball status and others to the heap of failed concepts.

Marketing plays a significant and important role in mitigating the challenges that exist in moving from very early adopters to scale-able mainstream audiences and wider distribution channels. More often than not, however, we encounter the misappropriation of marketing as essentially a social buzz-making proposition. Rather, it should be a disciplined strategic asset built on a foundation of sound consumer insight.

What’s lacking in the emerging brand zeitgeist is this: experienced marketing brains and early strategic, hands-on guidance – thus why Emergent is a partner in the Food Marketing Institute emerging brands “Mentor” program. There, we counsel that marketing is not just sending out a press release, filing content routinely in social channels or retaining an influencer with a foodie follower base. It is a strategic proposition that optimizes the entire go-to-market plan for growth, effectiveness, measurable outcomes and fewer mistakes.

The eight deadly sins of marketing myopia

Here in random order are eight mistakes that can impede growth and hold the emerging brand proposition back from a leading role in the evolving food and beverage industry:

  1. A form of business grade narcissism – business in love with itself to the exclusion of what’s relevant to the consumer’s passions and interests.
  2. Absence, then, of a continuous devotion to seeking consumer insight and putting the customer at the very center of business planning. One thing to say and another to do.
  3. An undernourished mission and higher purpose that should become the driver for everything the brand stands for and its ability to acquire deeper meaning and connection with consumers.
  4. Improper positioning most frequently manifested as no real discernable positioning. This should be created through careful exploration of how best to push uniqueness and differentiation.
  5. Scattered and less relevant messaging that is the outcome of not addressing the first four sins correctly, and the vanity of assuming consumers will resonate simply because it’s there (if you build it, they will come).
  6. And messaging’s twin sister, an absence of sound strategy in trade and consumer facing communication that mirrors their lifestyle aspirations and wants. This directly impacts any opportunity for engagement.
  7. A real show-stopper: a clunky packaging presentation that dilutes impact in any crowded retail setting at a time when consumers long to know more and care about the product creation backstory.
  8. Finally, failing to fully optimize the brand’s opportunity story in the context of real-world competitive advantage and own-able equity with existing and potential investors. Experienced brand and business storytellers know how to skillfully navigate this arena.

There’s simply no margin for error

No one gets a hall pass from doing the strategic heavy-lifting to refine the brand, its meaning, how it’s presented and what is conveyed. Experienced hands are needed for this work. It can be tempting for founders to think they know marketing even when their background, training and experience does not hail from this discipline.

After all, founders understand the product from the ground up, right? Yes – but, experienced marketing players grasp the consumer, the retail environment, and know the tools to refine how the entire concept is served up, and how best to make every communications dollar work like 10.

  • Emergent’s Brand Sustainability Analysis, for example, constitutes the kind of foundational work that creates a strategic anchor for a new brand to maximize its higher purpose, differentiate the concept and imbue the story with greater consumer relevance and deeper meaning.

Yet in many cases, none of this is done as new brands hire a designer for package graphics – call it “marketing” and then call it a day. Evidence of the oh-so-powerful axiom: you don’t know what you don’t know. Some of the more fully funded emerging businesses have witnessed faster acceleration because they understood the long-term importance of engaging the right marketing minds at the start.

For others it seems less of a priority because, again, owners believe they can do it themselves. The honest answer here is no. In varying degrees of involvement from guide to outsourced execution, it is wiser and better to get the marketing experience in the door early for the very reason – you never get a second chance to make a first impression.

The strength created today will, pay dividends for years to come and when you start out on the right foot good things tend to follow. Success is in the eyes of the beholder certainly. That said home runs will always be more satisfying than base hits.

Luck by the way has nothing to do with it. This is hard work that requires enough time in the saddle for those at the marketing helm who can quickly recognize, develop and separate the big ideas from anything less than that.

  • Owners create extraordinary products with a story to tell.
  • Investors invest capital to fuel the effort.
  • Marketers should shape the brand and go-to-market plan, and tell the story.

A word to founders: it’s hard to let go and it is also tempting to assume you can do anything if you put your mind to it. Engaging experienced, professional marketing talent is not a nice to have, it is essential to the future of the business because you won’t achieve jet engine results if you fuel the brand with regular, unleaded expertise.

Looking for more food for thought? Subscribe to our blog.

Bob Wheatley is the CEO of Chicago-based Emergent, the healthy living agency. Emergent provides integrated brand strategy, communications and insight solutions to national food, beverage, home and lifestyle companies. Emergent’s unique and proprietary transformation and growth focus helps organizations navigate, engage and leverage consumers’ desire for higher quality, healthier product or service experiences that mirror their desire for higher quality lifestyles. For more information, contact Bob@Emergent-Comm.com and follow on Twitter @BobWheatley.

 

 

 

How to Build a Trust Engine

April 18th, 2019 Posted by brand marketing, Brand preference, brand strategy, branded content, consumer behavior, Consumer insight, Content Marketing, Higher Purpose, Social media, Transparency 0 comments on “How to Build a Trust Engine”

Investing in Trust Can Deliver Marketing Efficiencies

For the last millennia, the currency of food, beverage and retail brand marketing has been awareness generation. More money has been spent in pursuit of the holy grail of being top-of-mind than any other single objective; for the oft claimed reason that awareness ideally is supposed to drive consideration and purchase. Or said another way, it’s based on the self-reverential belief that if the consumer sees a product message enough times they will buy because, after all, the product is so alluring and necessary.

What if this point of view were wrong-headed and spending dollars devoted solely to awareness creation tactics was akin to spraying water in the desert in the hopes that crops will magically manifest themselves? There may be some benefit to being continuously present for low involvement categories but even there, awareness doesn’t automatically ladder up to brand preference any longer.

Significant cultural shifts have reframed the paradigm on how brands are built that favors mattering and deeper meaning over spraying product claim messages everywhere. The focus should be on narrow-casting to an engaged audience rather than broadcasting in an effort to capture every eyeball. Mission, relevance and lifestyle connection are more important than being ubiquitous in today’s marketing best practices.

  • This brings us to banishing one myth at the start: you don’t need to appeal to everyone to be amazingly successful. In fact, the 80/20 rule prevails in many food and beverage categories — most of the revenue and profit will be derived from a relatively small cohort of committed users.

However, despite evidence that consumers tune out most of the overt marketing noise around them, we find ourselves at Emergent in the midst of frequent conversations about metrics and measurement that mostly calculates assessments of awareness building. Call it a hold-over from the Madison Avenue era, the enthusiasm for tactics in pursuit of that goal remains a dominant conversation in some annual strategic plans and spending priorities.

What if there were a better, more cost efficient and effective way to go to market?

Today, trust is the currency of successful marketing between consumers and product or retail brands. Trust cannot be ordered up from central casting. It must be earned through how the company and brand conducts itself and how its purpose is defined and brought to life.

Here is the simple truth: building trust is more cost efficient than chasing awareness. Yet companies typically outspend efforts to convert and retain customers by a 42 to 1 margin in favor of awareness building tactics. Hard to let go apparently.

What if your best customers ran your marketing?

Well of course the first push-back would be they don’t know what the company knows about the product, brand or retail deep background on features and benefits, and further they aren’t versed in the details and strategies of positioning and marketing messaging.

A moment then to pause and reflect. Feature and benefit type selling isn’t what it used to be. In a marketing environment filled to the brim with claims, assertions and hype, people increasingly find it hard to believe any of it. Additionally, consumers work overtime to avoid overt, interruption style marketing tactics. What they do understand is their own hopes, wants, dreams and aspirations.

When marketing works to align with what’s relevant to your best users, the effort takes on a whole new meaning. The goal of your strategic plan is to earn trust and that won’t happen when talking ‘at them’.

What does a trust creation engine look like?

Here are the fundamental tenets of customer-first marketing:

  1. You have to understand and care about their interests first, before yours. This requires some investment in insight research designed to better analyze what they care about. Assumptions in this area are often off the mark.
  2. Map ways your brand can make a real difference in their lives. Be intentional here.
  3. Effectiveness is achieved when your plans and messaging align the brand and business as an enabler of their hopes, needs and answers to their concerns.
  4. Be transparent and honest in your actions, business practices and communications. No more ivory tower thinking, which is now made of glass anyway.
  5. Extend transparency to openness about product creation, standards, supply chain and other aspects of how the business operates that your best customers will want to know more about.
  6. Create outreach programs around content that is relevant and meaningful to them. By definition this requires being less self-absorbed in what is conveyed. This will require a disciplined effort to refrain from the all-too-common trope of shameless self-promotion.
  7. Look to create and optimize the experiences and interactions consumers have with your brand to ensure they’re walking away with something of value (not money) to them beyond the transaction.
  8. To inform this effort, it is vital for the company and brand to build and understand its unique higher purpose and mission that transcends commerce — and creates a runway for communication around issues of meaning and importance to people and their values.
  9. Make doubly sure the company’s actions, policies and behaviors align with the mission. When ‘mission’ appears to be bolted on as a marketing maneuver and not an expression of true belief, it will fall flat.
  10. Want to have a more meaningful relationship with your best customers? Then imbue your brand with greater, deeper meaning.

No amount of marketing magic can save a soulless business or an unremarkable product. The goal of the business is to strive daily to be special, unique, memorable, useful and valuable. The foundation on which your customer relationship is built has to be about more than the product alone. That said the product is in many ways your true north so investing in quality at every point in the customer experience is now table stakes.

Without trust there is no possibility of a real relationship and the business will eventually become a commodity bought on price. Anchoring the marketing plan to trust creation is the path now to sustainable growth. It just also happens to be a less costly journey than chasing awareness for the very reason that focusing on the consumer’s needs and journey doesn’t require massive amounts of media to become sticky.

Looking for more food for thought? Subscribe to our blog.

Bob Wheatley is the CEO of Chicago-based Emergent, the healthy living agency. Emergent provides integrated brand strategy, communications and insight solutions to national food, beverage, home and lifestyle companies. Emergent’s unique and proprietary transformation and growth focus helps organizations navigate, engage and leverage consumers’ desire for higher quality, healthier product or service experiences that mirror their desire for higher quality lifestyles. For more information, contact Bob@Emergent-Comm.com and follow on Twitter @BobWheatley.

 

 

 

 

 

 

 

 

Verification and validation may be the strongest marketing strategies yet

March 6th, 2019 Posted by brand marketing, Brand preference, brand strategy, Emotional relevance, Higher Purpose, Insight, Transformation, Transparency, Uncategorized, Validation 0 comments on “Verification and validation may be the strongest marketing strategies yet”

Transparency advances to gold standard for successful brand building

The value proposition of verified truth and honesty is rapidly turning into the foundation of strong marketing strategy in an era where consumers, starved of trust and belief, impose change on how brand relationships are built.

We’ve lost the signals of credibility.

Some time ago we reported on the impact of digital conditions in the marketplace and instantaneous access to anything you want to know. This manifests as ‘anything that can be known will be known’ – hence every company now resides in a glass house. This is an outcome of pervasive social and digital communication and dramatically increased scrutiny of how brands and businesses operate. Daily we are confronted with outed fraudulent practices, misinformation and less than genuine product representations, mislabeling, omissions, recalls, investigations, misrepresentations of fact, even indictments — all while messaging perceived as self-reverential brand apple-polishing and brimming with marketing hyperbole falls increasingly on deaf ears.

Toss into this milieu, everyone with a device is now a content creator…and not all content creators (or their motives) are created equally. Today’s digital platforms foster an environment where opinions look like news to our always scanning eye. And those who opine may not be professionally trained, held to or bound by time-honored journalistic practices which have protected the word-consuming public. John Kass, columnist at the Chicago Tribune recently lamented the rush-to-support style of reporting in the Jussie Smollett debacle as evidence of how journalism standards remain vital. He urged reporters to revisit the old but wise axiom of “if your mother loves you, check it out.”

Brand trust heads south.

An outcome of fractures in belief and trust is a shift away from marketing’s traditional tactic of attempted ‘persuasion.’ In this environment, when assertion-based claims are deployed it can breed further contempt. People aren’t buying any of it.

The unintended consequence of always on 24/7 availability of everything about everyone is the rapid spread of information chronicling corporate misfires. The steady drumbeat of ‘caught in the act’ misdeeds subtracts from the consumer’s willingness to trust any voice driven by a profit motive.

  1. In a recent global research study of some 350,000 consumers HAVAS advertising found that consumers would not shed a tear if 77% of the world’s brands were to disappear. So much for the millions invested in building brand equity. If the brand becomes a less relevant commodity in the consumer’s eyes, there’s no deeper meaning or relationship there to be had.

 

  1. Further 58% of advertising and promotion for the world’s 1,800 leading brands is seen as irrelevant. If the communication isn’t constructed around what’s important to the consumer, and is more about the brand’s self-reverential promotion, the disconnect is already embedded in the communications strategy.

 

  1. Of note, brands that are considered truly meaningful to people soared over other businesses on overall impression, purchase intent, advocacy and justification for premium pricing. Meaning, values and purpose are fundamental to earning permission for a relationship. Does a brand have a soul? Apparently one is needed. Those without risk dying on the shelf.

The study concludes: usefulness and delivering on what you say you are may be more important than anything else. What does that tell you? Demonstratingcredibility and taking actions to earn trust are prerequisites to engagement. Transparency is an important path to proven authenticity and belief.

  • The value proposition for truth and honesty goes up daily in proportion to the growing weariness over evidence that some brands operate selfishly at best and dishonestly at worst. What consumers want are brands that listen; that make a priority of working overtime to be relevant and engaged in their lifestyle aspirations. Consumers are resonating to brands that have a soul, stand for something greater than themselves, and see the value of integrity standards and faithfulness to more human values.

There’s equity and opportunity in operating openly. What does the alchemy of advantage look like when the formerly powerful rules of brand command and control that once governed how to go to market no longer apply?

Credible proof in the form of verified and validated claims

Several years ago we were helping a client (Schuman Cheese) in the cheese industry to mitigate rampant fraud, adulteration and mislabeling in their category. A significant percentage of the Italian cheese business in the U.S. was adulterated with lesser ingredients to protect profit margins. To help solve the challenge, we developed and launched the first trust mark in the cheese industry. The True Cheese seal we created would appear on product packaging to signal the product inside meets or exceeds the standard of identify for the type of cheese, and that the ingredient label is indeed truthful.

Outside testing of products bearing the seal would be done randomly and unannounced by sampling retail products from store shelves – the same products consumers buy. Tests performed by a respected outside third-party laboratory confirmed adherence to the code of Federal regulation and findings were published.

When we launched it was a big media story – about fake Parmesan cheese – that went viral in 72 hours and got sufficient traction in popular culture to prompt the Late Show with Stephen Colbert to feature an entire segment on the adulterated Parmesan cheese development.

Important to note that retailers resonated to the verified trust approach and believed they were better off to stock the real thing than take chances with something that might not be.

What’s the story you’re telling?

Consumers want the truth but understandably are reticent to accept company assertions at face value. Hence the incredible surge of interest in Transparency.

Being transparent means you allow consumers to observe for themselves what goes on behind the corporate curtain in product creation and ingredient sourcing.

Trust marks and seals are shorthand for validation. Standards and testing organizations like NSF.org are gaining traction as companies in food, beverage and lifestyle categories increasingly look for ways to credibly prove the quality story embedded in their products.

Recently Organic Valley and Maple Hill jointly announced the “Certified Grass-Fed Organic Livestock Program” to address misleading labeling in the grass-fed dairy products marketplace. The program, unlike others in the organic category, requires a full supply chain verification before qualifying to use the mark.

The strategic linkage in these validation programs and others we predict will come, is recognition that trust is vital to consumers and that assertions aren’t good enough to secure belief. Transparency’s call for openness and clarity, for access and demonstration to be brought to life through various techniques aimed at letting consumers, experts and media in the tent to see for themselves what brands hope they will recognize as truth.

Blockchain to digitize honesty

Perhaps the most significant development to come in the quest for verifiable trust is the advancement of digital solutions that are essentially tamperproof. Blockchain’s great promise is digital ledgers and contracts supported by the deployment of sensors and scanners — and backed by algorithms that monitor and validate every step from the soil to the store. Truth tech that will prove the tomato’s organic and heirloom heritage, its cultivation and harvest, its safe handling and freshness from the ground to store shelf.

Imagine the marketing opportunity that awaits for digitally verified trust… Emergent is following the development of Blockchain technology and is studying its evolution as we seek to stay ahead of Transparency strategies for our clients.

Where are you on the curve to provide these proof points in your marketing strategy?

Looking for more food for thought? Subscribe to our blog.

Bob Wheatley is the CEO of Chicago-based Emergent, the healthy living agency. Emergent provides integrated brand strategy, communications and insight solutions to national food, beverage, home and lifestyle companies. Emergent’s unique and proprietary transformation and growth focus helps organizations navigate, engage and leverage consumers’ desire for higher quality, healthier product or service experiences that mirror their desire for higher quality lifestyles. For more information, contact Bob@Emergent-Comm.com and follow on Twitter @BobWheatley.

 

 

 

How to get the very best from your agency partners

April 27th, 2018 Posted by Agency Services, CMO, Emergent Column, Insight, storytelling, Transformation 0 comments on “How to get the very best from your agency partners”

What do good clients do?

Marketing isn’t easy. It’s tough and intellectually demanding. It requires an integrated understanding of product and brand strategy, coalesced with consumer insight and served in a warm basket of relevant creative, business-building solutions.

  • There’s really no way to do this well without both parties getting deeply involved in the work.

Unless of course, the goal is just to mark time and fill slots for a la carte communications tactics across a spectrum of expected “support tools” identified in a marketing plan.

On the other hand, if the goal of engaging an agency in the first place is transformative business results then the aforementioned collaborative effort is mission critical.

So what’s the alchemy that governs whether or not this kind of client/agency collaborative thinking occurs? What’s required in the relationship dynamic that makes for fertile ground in delivering out-sized outcomes?

Here it is, in a word: partnership. The truly successful agency and client relationships perform optimally because of aligned interests and goals. But what does that word partner really mean?

  • It begins as a unique way of thinking and behaving with your agency allies that springs from a foundation of trust and inclusion: “yes, we’re in this together.”

For context you can look at the flip side. The opposite of partner might be vendor: an outside supplier cost center to be managed and controlled; confined to a set of stay-in-your-lane guardrails and vertical silo thinking. A fulfillment cog in the marketing wheel to deliver a communications tactic, be it PR, advertising, social media, content or the like. Absence of genuine client/agency trust equates to “relationships” that are governed financially with one-sided agendas (spend as little as possible) and keeping agencies at a ‘do your job’ distance.

The true value of an agency partner

Good agencies are an amalgam of consultant and guide, business strategist, creative thinker, an outside resource devoted to marketing, strategy and communication across a spectrum of businesses and categories.

Better firms are also an elite think tank of communication insight experts. The best of them see a client’s business challenges holistically and not just as a place to apply artistic skill sets in creating engaging campaigns – as if the goal of the ad agency is just making another ad, or the PR firm slating another media interview – rather than their full engagement in creating a strategic solution to address the client’s need or problem in whatever form that might take.

But to really gain the most of a mutual investment, a relationship a true partnership must be symbiotic, with shared wins and benefits.

What do agencies want?

  • Clients that bring them all the way in and share every relevant detail of how their business operates and the challenges they face. Thus, providing enough visibility to information so an agency can truly serve as a trusted and entrusted advisor.
  • Clients should openly ask for counsel, both informative and challenging. Those who overtly say – “we want your best advice, your best ideas at all times. We want your honesty, too, when you think we’re not making a good decision.”
  • Clients who recognize that agencies are businesses too, and deserve to make a reasonable profit from the relationship. This manifests usually as a declaration from the client early in a new assignment: “we want our account to be a profitable one in your company and in return we ask for the very best of your experienced minds engaged to help meet our business goals and solve our problems.”
  • Clients who routinely ask their agencies to weigh in on challenging issues whether they be operational, R&D, cultural, financial or marketing; these are the very best clients because it’s so exceptional when it happens. These clients recognize the breadth, experience and value of agencies that often come equipped with prior experience where similar challenges have been solved successfully. Music to agency ears is the sweet song of trust and respect these requests imply.

Agency obligations

Superior athletes reach for the very best every time they take the field. So, too, agencies have to bring their “A” game everyday. There’s no way to do that unless you become invested in and are passionate about the client’s business. If the agency is operating with the client’s needs and best interests in mind, this will be evident in the daily effort, responsiveness and program outcomes.

  • If the agency sees client work simply as a financial management proposition, then the focus will be on deliverables within budgets, management of staff time to this agenda, and a quick move to ring the alarm bell if work goes out of scope. Nothing wrong with disciplined business management, but if the culture is primarily about managing for profit rather than adding value to the client relationship, the former will subtract from the latter.
  • So for agencies, the partnership begins with making the client’s business a continuing, ongoing study: evaluating and tracking the competitive environment, trade media, and other sources of business intelligence. The more you know the better this gets. It’s as if the client’s business is your own and thus worthy of the attention this priority will receive.
  • This ongoing commitment should be delivered in an envelope of respect for the superior knowledge clients possess of their own business. At times, in the name of leadership, agencies can get off track into “my way” land, based on we-know-best thinking. This form of arrogance usually ends in disintegration of trust and has no place in the mutual respect universe. Disagreement is ok and expected. Brinksmanship, though, is no way to build a mutually beneficial relationship.

Humanity – the glue that binds

When there’s belief that people from both camps are operating in mutual best interest, then agency and client combinations will work optimally. Whether we choose to acknowledge it or not, business decisions are made emotionally not rationally. It is the human condition.

We sense almost immediately when people are genuine, when we like each other, when we’re being honest and open. Life is short, and thus fit and chemistry matter. The kind of fit that occurs when people think highly of each other and actively work to see things from the other’s point of view.

So optimally, a good dose of values, integrity and empathy becomes the daily vitamin all involved in the client/agency partnership ingest to keep the mission focused on success all the way round.

Looking for more food for thought? Subscribe to our blog.

Bob Wheatley is the CEO of Chicago-based Emergent, the healthy living agency. Emergent provides integrated brand strategy, communications and insight solutions to national food, beverage, home and lifestyle companies.  Emergent’s unique and proprietary transformation and growth focus helps organizations navigate, engage and leverage consumers’ desire for higher quality, healthier product or service experiences that mirror their desire for higher quality lifestyles. For more information, contact Bob@Emergent-Comm.com and follow on Twitter @BobWheatley.

WILL SOCIAL CHANNEL SHIFTS DRIVE BRANDS TO GO DIRECT?

February 23rd, 2018 Posted by Agency Services, brand marketing, CMO, Content Marketing, Digital marketing, digital tools, food retail strategy, Food service, Social community, Social media, social media marketing 0 comments on “WILL SOCIAL CHANNEL SHIFTS DRIVE BRANDS TO GO DIRECT?”

Brands look to better manage their own destiny

As we’ve stated many times here at Emergent, the brand that gets closest to the customer wins. Yet a form of strategic separation now descending on the food marketing universe has made it more challenging for brands to manage how that consumer closeness is achieved. These same conditions help contribute to the collapse of traditional media marketing models (about scale and control) often deployed by legacy brands to build and maintain consumer relationships.

As a result, we believe what’s ahead for CPG food may well include a large helping of direct-to-consumer outreach efforts. E-commerce growth has already redefined the business landscape, giving consumers a comfort level with buying products from home.

Retail isn’t going away, online or off, but we think a measurable percentage of the business overall may indeed move to direct-to-consumer platforms.

Meantime escalating brand participation in the “walled garden” of rented audiences in major social channels, such as Facebook, YouTube, Instagram and Twitter, has also conveyed relationship control to these platform intermediaries. On any given day, the decisions made by these social media giants can be a good thing or bad as their policy changes impact what brands can and cannot do on their platforms.

  • Brands, now forced to reckon with the shift of business to e-commerce, are finding the complexity of cross channel marketing and online engagement has already worked to snuff out the last embers of mass media’s flame. Disappearing with mass media’s grip is the brand’s ability to efficiently leapfrog various forms of retail or other digital gatekeepers to capture consumer brand equity and preference.

Algorithm alarm bell – now what?

Food and beverage companies working to implement their brand-building strategies in social channels find themselves challenged once again, as the behemoth community aggregators like Facebook, Instagram and YouTube adjust algorithms and feed policies making it harder to organically scale audience attention and reach.

In January, the tide turned (the second time since 2016) as Facebook announced yet another round of changes that favor posts from friends and family while diminishing organic post distribution from brands and publishers. Larger, mega-influencers – who must use Pages rather than personal Facebook accounts – will face a similar audience squeeze.

More regulated content policies put greater pressure on brands in social channels to up their shareable post quality game. We believe though, these restrictive conditions will add more value to building direct consumer relationships. This means, thoughtfully reconsidering how best to connect with consumers and deploy tools that sit outside the control of social channel policy moves, through owned channels like Blogs and email (e-newsletter).

Consequently, we believe the model for food and beverage brand building may change in the next three to five years. Pepsico currently projects their annual e-commerce sales to be north of a $1 billion across direct, retailer-owned and pure play (Amazon) e-commerce channels.

Of note, many of the new and emerging brands now grabbing the marketing spotlight in food, got their start in the direct-to-consumer space, where they built a loyal fan following before venturing into retail channel distribution.

  • A classic example: in the personal care category, online brand Harry’s disrupted the legacy razor blade industry by answering consumer frustration over runaway price increases. They successfully constructed a direct-to-consumer subscription model that helped Harry’s deliver a more affordable, high-quality alternative. The new Harry’s brand story, alongside rival Dollar Shave Club, helped end Gillette’s dominance.

As consumer contentment with buying online continues to expand in adjacent businesses, Harry’s recently secured added equity investment to fund another bellwether expansion. This time into other personal care, household and baby products categories that may naturally fit into a subscription model.

Bottom line: selling directly allows the brand unfiltered and unfettered access to consumers. As such it enables a direct flow of conversation without the unexpected shifts that are occurring in third party social channels due to conflicting business interests and priorities.

Behavior changes occurring behind the curtain

We see the shift to e-commerce as an outcome of evolutionary progress – meaning anything that adds measurably to consumer convenience and satisfaction is going to get its day in the sun.

During the last decade consumers spent 12 percent less time shopping, according to Jared Koerten, senior food analyst with Euromonitor International. “Consumers are spending less time shopping (while) looking for efficiencies and ways to save time,” he said. The result is fewer conventional shopping trips while online ordering continues to accelerate.

E-commerce and the digital communications environment will continue to be a major focus of brand marketing strategies. Consumers see the value in reallocating their spare time from shopping trip to other passions and pursuits. Be that as it may, other changes are occurring in the digital universe that impact how closer consumer relationships are incubated.

Emergent’s guidance on optimizing social channel strategy:

  1. Social algorithm changes enhance the valuable role of smaller (nano) influencers and the content they create, while amplifying the need to ensure that influencer relationships are truly founded on aligned interests and subject matter relevance.
  2. Social channel policy changes that depress organic distribution and engagement will necessitate yet again, more pay-to-play activity to boost posts.
  3. There will be diversification of outreach strategies to include more investment in direct paths of communication through Blogs and email.
  4. Rise of User Generated Content as a key component of social media marketing strategy. This tactic helps sidestep the policy changes and hits the right notes on authenticity and value to brand community participants.
  5. In case you’re wondering what form of content ranks highest in shares on social channels: Infographics.

Social channel policy changes and the dynamics of e-commerce may favor a new look for brand marketing that leans in on going direct. With it comes great responsibility in how these interactions are managed – so it doesn’t appear to be just a transactional proposition.

Help over hype – always.

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Bob Wheatley is the CEO of Chicago-based Emergent, the healthy living agency. Emergent provides integrated brand strategy, communications and insight solutions to national food, beverage, home and lifestyle companies.  Emergent’s unique and proprietary transformation and growth focus helps organizations navigate, engage and leverage consumers’ desire for higher quality, healthier product or service experiences that mirror their desire for higher quality lifestyles. For more information, contact Bob@Emergent-Comm.com and follow on Twitter @BobWheatley.

 

 

 

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