Category Archives: Consumer Behavior

Consumer Behavior

The confluence of technological innovation and economic circumstance is resulting in the greatest shift in consumer behavior in decades. Smart brands do more than recognize the changes; smart brands embrace them.

posted by Apprentices

Apr 27, 2011 @ 9:44am

Marketing Trends: La Vida Local

There are people who go to farmer’s markets. I am one of them. I go because local food really does taste better. I go because, to me, a Saturday morning trip to the farmer’s market is an event, while a normal grocery store trip is a chore. But most importantly, I go because I believe firmly in supporting my local neighbors. And I’m not the only one.

In fact, I’m just one among millions of New Economy Consumers whose values—particularly consumer values—have shifted significantly since the Recession. In the early days of the Recession, people reined in their wallets, and with their wallets, their reach. Consumers rediscovered the beauty and resources of their local world. With this rediscovery, came a commitment to sustainability, responsibility, and neighbors.

Artist Joe Seppi advocates the eat local movement.

The power of the local movement hasn’t been lost on marketers. In fact, “local” is beginning to appear more frequently in product advertising these days. Is “local” the new “green?” It’s hard to tell yet, but we know two things: 1) the local movement is growing steadily and 2) like the green movement, it relies on authenticity to succeed. Of course, this is great news for small businesses, who are perfectly positioned to capitalize on this new economy trend.

But what does it mean if you’re not a small business? Perhaps there’s nothing “local” about your organization at all – and that distinction is core to your brand. Consider what it is about “local” that appeals to consumers. At its most basic, local really means “familiar,” “connection,” and “home.”  When a company understands this, they’re no longer limited by zip code to tap into the power of local.

For example, American Express sponsored Small Business Saturday last year, a national initiative that encouraged shoppers to support local businesses in their towns on the day after Black Friday. Wal-Mart – a super corporation – is also embracing the local movement as part of its new sustainability efforts. Their commitment to sourcing some of their produce locally (within the state) means that Wal-Mart shoppers in South Carolina can purchase SC sweet potatoes and Wal-Mart shoppers in Alabama can purchase AL tomatoes.

Large or small, organizations who want to reach these valuable New Economy Consumers need to emphasize personal connection and the familiar in their marketing efforts.

–Kathryn White

 

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posted by Kevin

Apr 11, 2011 @ 5:42pm

Lonely Days are Virtually Over

A recent Pew Research Center study found that 1 in 3 Americans doesn’t know his neighbors.

As suburbs sprawled, front porches disappeared and screened porches morphed into Florida rooms. Sidewalk parking — heck, sidewalks in general — disappeared, as carports became three-car garages. It’s today’s reality: In our communication-starved society, there’s little hope of neighborly dialogue between the garage and the kitchen’s granite topped island.

Enter the great reboot of the American dream. For the first time since 1950 (when the average size home was a mere 983 square feet), houses are getting smaller. Many people now prefer to rent rather than own. Security has replaced more as the American ideal. So how has this impacted marketing?

Facebook is the current decade’s front porch.

Put simply, people are starved for human connection. On Facebook, people can see you sitting right there, just watching the world go by and waiting for a friendly visit. Human connection via IM, but connection nonetheless.

You can see it playing out on TV as well. Lay’s potato chips wants us to “know the farmers.”

A far cry conceptually from “No one can eat just one.”

California Milk and Cheese is adopting a similar strategy.

Again, the shift is pronounced. “Got milk,” the dairy association’s legendary campaign, focused on the consumer. Now the focus is on the integrity of the product.

What’s key is realizing that relevance is no longer enough. Now there must be value and values – even for a potato chip. Sustainability, community investment and charity aren’t ancillary messages anymore. And the perfect place to parade them is right in front of today’s virtual front porch.

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posted by Apprentices

Mar 22, 2011 @ 11:30am

The Real Deal: Marketing Authenticity

Let’s talk about Levi’s. After all, they’re the original. Their label says so. Or, we could chat about Ray-Bans—genuine since 1937. Being the original can be powerful positioning for a brand because “original” implies the first and the best—the real deal. Consumers connect with these iconic brands because they feel authentic.

In our new economy, consumers prize authenticity more than ever before—which explains why iconic American brands like Levi’s have experienced a resurge in popularity. Levi’s are cool again, thanks to some smart strategy that taps the power of their history as the authentic American denim. As part of that strategy, Levi’s launched Pioneer Sessions: The Revival Recordings last year, a campaign that paired some of today’s freshest musical artists who “embody the brand’s pioneering spirit” with an opportunity to cover classic songs.

Your brand might not have years of history, and your brand might not be the original in your market—but learn from Levi: maximize what makes you authentic. Joseph Pine, a writer and consultant, believes that organizations should understand how to deliver authenticity on two different levels:

  • Inner-directed authenticity: remaining true to your brand’s core promise and heritage and making company decisions that are guided by these values.
  • Outer-directed authenticity: remaining true to consumers in brand positioning and messaging, delivering what you promise.

New economy consumers want to be part of something real. Align your brand messaging with your brand’s heritage and core values to create authentic experiences that will be meaningful for your audience.

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posted by Kevin

Jan 04, 2011 @ 6:00pm

Rainy Day Ads

The long New Year’s weekend included the luxury of a cold, rainy Saturday, one that offered some guilt-free lounging in front of the television. Some observations:

  1. Lots of people have a structured settlement and need cash now.
  2. Everything is on sale.
  3. A dozen or more spokespeople used to wear huge pants.

OK, so numbers two and three are seasonal, but commercials across the board seemed way out of step with prevailing sentiment.

In their book, Spend Shift, John Gerzema and Michael D’Antonio discuss the radical realignment of sentiment and behavior following the Great Recession. Here are some things to keep in mind:

55% of Americans have adjusted their lives to seek greater balance and fulfillment

36% are Southerners

78% are happier with a more “down to basics” lifestyle

The values-led movement cuts across socio-economic and generational lines. What unites them is “a common sense of optimism and newfound purpose.” Not sales, markdowns or the size of a spokesperson’s old pants, but optimism.

It’s time to focus marketing messages on what’s meaningful to the majority of Americans. Let’s begin this year by understanding the need for more fair weather messaging.

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posted by Cathy

Dec 13, 2010 @ 10:11pm

Move Over, Citizen Kane.

The world looks nothing like it did in 1941. That one’s obvious. But it also looks nothing like it did in 2008—thanks to the recession, large-scale natural disasters, and complicated politics. A new study released by Edelman confirms what we already knew: people think (and buy) differently now. Welcome to the era of Citizen Consumer.

According to the Edelman study, a solid 87 percent of Americans expect companies to consider societal interests equal to business interests. Our nation’s collective social consciousness has been awakened. Are you out of bed yet?

Here are a few bracing sips of reality:

1. Our voices will only get louder.

In April 2010, nearly half of Americans age 12 or older were members of at least one social network. Social media’s growth has exploded, changing the way we think, buy, give, respond, and experience. Need proof? Consider the role social media played in the aftermath of the Haiti earthquake — raising eight million dollars for relief in less than a week. Or, try this one: If a customer has a bad experience or a complaint, they’re probably going to tweet about it. In February, Hollywood director Kevin Smith (a Twitter user with 1.6 million followers) launched a barrage of angry tweets against Southwest Airlines, after he was asked to deboard the plane when the captain deemed his obesity a “safety risk.”

Social media isn’t going anywhere. Growth can only continue to rise. This means that millions of ordinary consumers now have a voice, and they understand that strength lies in numbers. If Americans are passionate about something, you can be sure you’ll hear it.

2. We’re all connected.

The Edelman study points out that, “2010 produced a string of events that propelled our social consciousness into collective overdrive.” Social networks were in place, allowing us to experienced and respond to these events as a nation. In hard times, people bond. Events like the earthquake in Haiti or the BP oil spill in the gulf reminded us that we’re all in this together. We live in a different world, and we’re interested in making it better. 2010 opened our eyes to the power of collaboration, and today, studies show that 74 percent of citizens believe brands and consumers could do more by working together.

3. We’ll switch to your brand if it makes the world better (or makes us look better).

Consumers — particularly millennial generation consumers — now expect companies to do more than provide a product or a service. Edelman reports that two-thirds of consumers would switch to another brand of similar quality if it supported a good cause.

There’s another dimension to this willingness to change brands: if we are buying stuff that makes the world better, we look better. Consider the success of TOMS shoes: Founded in 2006, the company is structured around a “one for one” business model. For every pair of shoes sold, the company gives a pair away to a shoeless child in a Third World country. The company has donated over one million pairs of shoes to date, and become one of the most popular brands of shoes in the meantime. Wearing TOMS isn’t just a fashion statement—it’s a lifestyle statement. Consumers are motivated to become “brand enthusiasts” for those companies that merge social good with profit pursuit.

4. People are going to buy things.

Not everyone is a fan of cause-oriented companies. The Buy Less Crap campaign, a response to the Product (RED) campaign, insists that “shopping is not a solution” and encourages consumers to skip the purchases and give directly. But here’s the simple truth: people are going to buy things. What we buy and whom we buy from is power — we might as well improve the world with the purchases we’re going to make.

Consumers are raising their voices to make the world a better place. The companies that are listening — and working to effect social good — are the companies that will resonate in this changed world.

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posted by Cathy

Nov 29, 2010 @ 5:03pm

Lessons from Black Friday Shopping

I write this post at the end of long holiday weekend. I’ve made a road trip to visit my parents, cooked Thanksgiving dinner, attended a state playoff football game, practiced church choir Christmas music, hung wreaths on the windows, loaded the holiday playlist on the iPod, decked the living room mantel, and — in the interest of full disclosure — watched Lifetime Television For Women. (Note to all who are looking for love: Rush to your local preschool and volunteer to direct the Christmas play.)

Outlet Sunrise on Black Friday (2010)

And I shopped. Beginning at 12:01 a.m. on Black Friday, my daughter, sister-in-law and I fully experienced the “What do you mean it’s only 40 percent off?” crazies with the hundreds of thousands of other bargain shoppers who braved ridiculous crowds and overloaded parking lots for super-duper bargains. Whether consciously or not, we expected to be richly rewarded for bringing our wallets and our Christmas lists to the stores of Prime Outlets in St. Augustine, Florida.

As I moved with the hordes from store to store, I realized there were some valuable lessons for smart brands in this ultimate retail experience:

1. Keep your promises.

I was surprised at the level of customer service offered at many of the stores, even with deep discounts and large crowds. For the most part dressing rooms were monitored, store shelves were straightened and re-straightened, there were plenty of cheerful workers on the floor helping customers find just what they were looking for. Not only did this make me feel valued and appreciated, but it made the merchandise seem more valuable, as well. Smart, smart, smart.

2. Simple is better.

Isn’t it frustrating to not understand a complicated offer? Instead, several retailers offered consistent savings storewide, which they reinforced with signage AND greeters at the front door. If everything in the store was half price, it was nice to know from the moment I walked in.

3. Do something extra.

One high-end retailer offered storewide savings plus an extra 20% off one item, but only until 2 a.m. People swarmed.

4. Say thank you.

As I made it through the checkout line at one store, the cashier looked me in the eye when handing me my receipt and said, “We appreciate you coming out and shopping with us tonight, Mrs. Monetti.” It took 5 seconds, but the impression it made will last a long, long time.

Authentic brands make meaningful promises, and they keep them — even when there’s a good excuse not to. It’s a lesson we would all do well to remember.

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posted by Kevin

Oct 18, 2010 @ 10:00pm

Do the Right Thing

I’m the first to admit that market research can sometimes mislead us. When polled, people are routinely more eco-friendly, more philanthropic, more tolerant of diversity and frankly, more the way they wish to be than the way they actually are. Still, I was struck by Cone’s newly released 2010 Cause Evolution Study. Consumers are giving more than mere lip service to cause-conscious products and companies, they are breaking out their wallets for them.

There has been a two-fold increase in products purchased that benefit a cause since 1993. That this behavioral shift is occurring, and at an ever increasing pace, despite persistently high unemployment lends credence to the following indicators:

  • 83% of consumers want more products, services retailers that benefit causes.
  • 80% said cause marketing would make them likely to switch brands.

While this is no doubt great news for the Ethos Water’s of the world, it’s a trend that is clearly underleveraged by most marketers.

Take healthcare organizations’ messaging for example. Such and such hospital ranked in the top 10% nationally, compared to its cross-town rival with a four-star rating from Healthgrades. Our hospital has an affiliation with a national flagship hospital. I’d argue that it is time for a dialogue shift.

Few hospitals have ever shone a light on the level of charity care they provide. I understand that no organization wants to be synonymous with indigent care. Still, a history of care, regardless of one’s ability to pay, may well go a long way when healthcare reform enables more universal insurance coverage.

At the same time, you don’t have to be saving lives to stand for something meaningful. Our clients at Moe’s Southwest Grill have seen double-digit growth in same store sales at many of their locations this year. A major difference between this and last year has been continual reporting on Facebook and Twitter about the tremendous number of children’s charities and schools supported by the franchisee group. In this case, customer loyalty is a welcome byproduct of giving back.

Community service feels great, and you might not do it for the recognition. That’s admirable, but recognize your customers do care, and they are watching.

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posted by Kevin

Jul 26, 2010 @ 1:36pm

It’s time to take your time

A recent article by Brent Bouchez found on Media Post inspired me. Bouchez identifies a misconception held among many marketers about baby boomers: that they want to be 30 again. Interestingly, while the 50+ year old may feel 30, they aren’t interested in acting 30.

Nielsen’s SVP of research and development, Doug Anderson, touts: “There is practically no segment or category out there where Boomers aren’t a significant audience.” They represent nearly 39% of all consumer-packaged goods spending, yet equate for only 5% of current ad spending.

That boomers are an ideal target, and an underserved one, is hardly news. Bouchez’s insight is that marketers too often miss the mark when it comes to resonate messaging to boomers. Specifically, he points out that while people in their 20′s, 30′s and 40′s equate happiness with excitement, their 50+ peers find happiness synonymous with peacefulness — practically polar opposite emotions.

Meanwhile, boomer-intensive marketers like hospitals continue to position themselves as large, hi-tech, even fast-paced. Likewise, many destination marketing organizations catering to the 50+ crowd offer something for everyone, action packed getaways. There’s an astonishing lack of peaceful positioning and calm messaging.

The economy has made the message architects speed up. Volume is king. The core positioning strategy in 2010 seems to be, be everything to everyone all the time. This is merely a flight to safety that guarantees poor performance. We’re rushing past relevant communications that showcase what people want.

Working with clients on Hilton Head Island, I’m struck by how the pace slows when I arrive on Island. The hotel staff does something remarkable. They slow down. They take their time. It’s not slow, it’s attentive.

In an economy that has everything in fast forward mode, there’s nothing more meaningful than demonstrating that your consumer is worth your time. It’s time to take your time, and find some peace of marketing.

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posted by Kevin

Jun 14, 2010 @ 10:25am

Three Lessons to Learn from GM

The fact that we might be able to learn a thing or two from GM is proof that even dreadfully dire situations can be salvaged. Sure, $50 billion in government loans helped a little, but a retooled marketing strategy has hastily pulled the company out of the ditch during this not-so-sound phase of modest economic recovery. Here’s what I’ve learned:

1.     Step back, assess and edit.

Or in GM’s case, truncate. Through its family of brands, GM had something to offer everyone. The problem was, cars like Saturn and Pontiac found themselves in a very crowded middle market. GM cut back to the core, pruning underperforming products and refocusing where they knew they could succeed.

2.     Focus on your product.

GM had a stable of products that had not been updated in more than a half dozen years. Yes, they’re still making the Impala. New design sells. It was time to reinvent and revive the old as well as introduce some new.

3.     Speak plainly.

Break Through. Life, Liberty and the Pursuit. Art and Science. Mark of Leadership.

Cadillac alone has had all four of these taglines, and all in about as many years. The above lines were developed when the Cadillac line didn’t leave marketers anything tangible to promote. In the absence of performance, awards or technical innovations, GM’s agencies gravitated to emotional fluff the cars themselves could support. New leadership favors a more direct, rational approach. GM is in the process of shifting the discussion to one about, well, cars.

The new economy consumer is a mix of cautious, rational and skeptical. He demands proof of product excellence and the justification needed to part with his dollar. It’s nice to see GM begin to meet his standard.

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posted by Kevin

May 10, 2010 @ 1:46pm

Work Hard. Fly Right. Speak the Truth.

I’ve spoken before about the need for products to align with a real human need. The beleaguered airline industry has, in response to a volatile and highly competitive business climate, grown further and further away from the business of human needs. The needs for legroom, beverages, carry-on baggage, even bathroom privileges during long waits on the tarmac, have all been eroded.

In terms of a broken system, the airline industry’s only rival is healthcare. In both cases, screw-ups can be deadly. Further, both currently suffer from a near complete lack of message credibility.

Last week’s announcement of the proposed merger of United and Continental got me thinking. Would two of the biggest make one of the best? Doubtful. Historically, mergers are the highways to commoditized products and poorly differentiated brands.

It hasn’t always been this way. Fallon’s “Gershwin” campaign for United is one of my favorite examples of brand strategy. United didn’t just get you there, they served up life-defining moments.

Meanwhile, Continental’s “Work Hard. Fly Right.” Campaign, a more no-nonsense approach that even eschewed photography, has helped it gain and maintain marketshare among business travelers since 1998.

For marketing street smarts, it’s always inspiring to look at the up and comers. Today’s New York Times contains an article about Jet Blue’s new digital experience campaign.

Human need + demonstrated experience + customer (not company) endorsement.

Clearly a winning formula making good use of the type of brand discussion that only digital can generate. It’s the traditional testimonial all grown up and made relevant for today’s consumer. Healthcare organizations take note.

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