Three things all of us probably need to spend more time thinking about:
- A burgeoning moral factor that is becoming more militant – brands are expected to behave ethically, responsibly and sustainably, and part of that moral exploration seems to be veering towards finding ways to supply goods at competitive prices in ways that do no harm … to anyone. For an economic system that has always depended on having winners and losers, that’s a huge swing.
- The commoditisation of loyalty (not just product) – the growth of world class and best of breed systems haven’t just encouraged sameness, they’ve also slashed the risk of shifting from one brand to another. If product, service and risk are basically the same, consumers have little or nothing to lose by changing allegiance. Consumers are not just disloyal in some sectors. They are becoming increasingly disloyal in every sector.
- Resentment of profit – as consumers have suffered through the GFC, their expectations for companies to deliver them more and more “value” have increased. Give “me” more, even if it kills “you”. Everyone wants full service. No-one expects to pay full price.
I’m confident that each of these dilemmas is addressable on their own.
The knots form in trying to tackle the collective and simultaneous effects of all three.
