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Consumer motivations: the 7 reasons we buy now

consumer motivations - why we buy now

John B. Watson, a key figure in the development of behaviourism, famously said that effective advertising revolved around three basic emotions: love, fear and rage. (Get the backstory on this here). It’s a nice meme. But is it still accurate?

After all, at the time that Watson set forth his hypothesis, advertising was built largely on a framework of persuasion and repetition and took place on set channels in set formats and within highly structured societal expectations. But as societal rules have relaxed, and marketing has evolved new expressions, has our consideration-set broadened and if so, what does it include now?

Depending on how broadly you interpret Watson’s concepts, they all still apply.

We still buy for reasons of love – loyalty, habit, prestige and attitude are all motivations that help us form powerful bonds with brands. We buy what feels good to us, what we know, what we agree with, what we feel we deserve, what the brands we associate with say about us and when brands express through statement, belief or action things that concur with our worldviews.

We still buy for reasons of fear – risk, danger and prevention all drive us to seek out brands that we believe will help us in a world that, at times, feels threatening and uncertain. We also don’t want to miss out – on a bargain, a discount, a perceived opportunity or a trend. More and more, people actually fear being out of the loop.

We still buy for reasons of rage – outcry, rebellion, justice, a wish for change and an undercurrent of impatience all push us towards different brands in different sectors because we refuse to accept something or we want to disrupt the status quo or we wish to condone a “champion” of what we see as right.

What’s fascinating though is the extent to which online, the upgrade culture and social collectiveness have combined to introduce new, often globally based, motivations that Watson might never have imagined. Today, we don’t just act for ourselves. We act alongside, and with a very powerful awareness of, others.

We now buy for reasons of collective excitement – as consumers, we are addicted to recency. We’re tuned into an “always on” world that moves at pace, where change and upgrades are standard and where everyone wants to feel that they have the newest and the best.

We buy successes because we want to associate with success – and increasingly that success isn’t just a personal perception (love), it’s a crowdbased, hashtagged and trending idea that gives brands authority and presence and makes them exciting (further fuelling our need to buy). Buy-in and participation grows and withers on the collective judgment of millions, and it happens in ever-shorter timeframes. It’s never been possible to be successful so quickly – or to disappear from view so fast.

We buy for reasons of connection – we are presented in so many fora with new ways of thinking, new contexts for consideration and revision of ideas, conjecture and nuance. The opportunities to talk things through and find new ways forward are greater than they have ever been. We buy the brands that emerge as conversation leaders through that haze of data and debate to inspire us, and we choose them for what we hear and what we learn from them.

And we are motivated by generosity. We consider brands for the actions they take to improve the world for us all and for what they say and are prepared to do for those around them. Debate continues as to whether acting this way actually drives an upsurge on the bottom line for brands, but there are plenty of examples to show that we are turned off by companies that we view as contributors to global social crises or that we see as acting badly.

To my mind, the quest to dominate the conversation around one or more of these seven motivations in your category should lie at the heart of every marketer’s thinking. Anything less, perhaps everything else, just becomes advertising wallpaper.

Love, fear or rage against that.

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Photo of “Let me buy a something for a someone” taken by Soumyadeep Paul, sourced from Flickr

10 reminders for market leaders (prompted by recent events at Blackberry)

Reminders for market leaders

  1. The distance between ubiquitous and anonymous is shortening. In 2009, Blackberry was named the fastest growing company by Fortune magazine. Four years later, it has less than 3% of the market.
  2. If you’re not driving the speed of innovation in a market, no matter how far in front you are right now, the market will overtake you.
  3. The first word is not the last word. Having an innovation doesn’t protect you from the next innovation, because, to quote Alex Goldfayn, “gravity pushes backwards”.
  4. If your innovations don’t align with where your key customers are heading, to reference Wayne Gretzsky, there’ll be no-one there who matters when the puck arrives.
  5. Every market leader thinks they can spot the disruptive change in an industry and that, once identified, they will then be able to quickly catch up and overtake the competitor. They seldom do.
  6. An extensive IP portfolio won’t save an ailing company because it only protects what you’ve developed. If what you’ve developed is now unwanted or unuseable, it’s practically worthless.
  7. Growing markets don’t always continue to grow where they have grown in the past. Blackberry totally missed the rise of the consumer as the champion of the smartphone, the power of apps to revolutionise devices and the shift of phones to personal hubs. In short, they were Black Swanned, big time.
  8. There’s no such thing as a quiet market leader. If you’re not talking to your customers and to the market, increasingly you are generating a void that others will fill.
  9. You’re only as innovative as the people who think you forward. As Mike Myatt wrote in this article in Forbes, “Businesses don’t fail – Leaders do”.
  10. Customers are responders not innovators. They can make you a market leader, but they can’t help you take or keep the lead. As Clay Christensen put it, “when the best firms succeeded, they did so because they listened responsively to their customers and invested aggressively in the technology, products, and manufacturing capabilities that satisfied their customers’ next-generation needs. But, paradoxically, when the best firms subsequently failed, it was for the same reasons — they listened responsively to their customers and invested aggressively in the technology, products, and manufacturing capabilities that satisfied their customers’ next-generation needs.”

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Photo of “01 (335)”, taken by Victor1558, sourced from Flickr

The irony of market research

The irony of market research

Every brand wants the insights that great research brings. And every consumer wants the relevance. They want products that fit with them, service that gels with them, ideas that excite them, attitudes that ring true … They want brands to read their minds, even though they themselves may not be clear as to why they make the decisions they do.

But no-one wants intrusion. And no-one wants the same questions and the same ratings system and the same format.

Perhaps it’s because they know that the researchers aren’t actually interested in them at all. It’s not personal, it’s research. The people asking the carefully formatted questions are just looking for data. They just want another answer to their questions coming out of another mouth in a format that they feel comfortable with.

It’s always hard to get people involved if they don’t believe that the feedback they give is going to make any difference. It’s even harder when they see brands then making changes that they don’t believe are in their interests as consumers or that go directly against their personal feedback.

The dilemma is that consumers want the right answers but they don’t want to play by the numbers – and they don’t want to feel like they are making up the numbers either.

The problem for most brands is that they don’t think they have any other way of monitoring and verifying – and very few, if any, of them seem to have found a way of feeding back to consumers in a meaningful and engaging way what they’ve learnt from all that data, all those focus groups, all those questions.

Someone needs to change their attitude and their approach if research is to work as effectively as it needs to in today’s complex world.

Now would you say the chances of knowing which party might need to do that were poor, fair to good, good to very good or excellent?

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“Survey” by Sean MacEntree, sourced from Flickr

Nailing customer behaviours: big data and little insights

nailing customer behaviour

Every time I step out of New Zealand and into a big economic region, the two things I notice are the crowds and the scale. Looking out over row after row of A380s parked on tarmacs, wrestling for room on a crowded street in a busy Asian city or seeing the world go about its business in a towering CBD, the immensity of humanity and the pace at which life operates is immediately apparent.

Recently I was struck by something else. Quite literally, at the other end of the scale. I was on a train travelling back into Kuala Lumpar from a meeting when I noticed that everybody around me had on headphones – everybody – and to a man, woman and teenager, they were wearing a look that said “Disconnected from the world”. (Of course that doesn’t just happen in Malaysia. I just happened to particularly notice it on this journey.)

And I remember thinking at the time – I wonder why that is? Were they looking to keep the rest of the world away, or were they in fact taking advantage of the opportunity to lock in some time to themselves? Perhaps both. Perhaps neither. It’s strange isn’t it how we are now at a point where technology allows us to be private in public and then public in private within minutes of each other? And the fact that we might want to do both, and feel quite at home doing so, defies simplistic logic.

Which is exactly the point. We’re not logical – and that leads me, in a lateral way, to Walker Smith’s recent article about Big Data. The numbers we derive from big data don’t lie, but our readings as marketers of what that data really means can be seriously misleading. As Walker says, the presumption is that more data means better marketing. Where we go wrong is what we do with the information we receive. “Humans have a hardwired, built-in propensity for seeing patterns … We are still inclined to see patterns or connections where none exist, a problem that is particularly perilous when we are working with large datasets to make important policy or business decisions.”

Absolutely. Big data delivers big patterns, but of course the patterns that make sense to each of us as individual consumers are much more mercurial. Big data matters for the big picture, but it’s a dangerous predicate on which to encourage individual action.

I read an interview with a screenwriter once in which he said that his greatest challenge was to find ways and reasons for his characters to behave in ways that were out of character. It was in those moments that they did things that defied logic and pattern, he said, that he was able to inject depth, dimension and humanity. It was the actions that didn’t make sense that made the character make sense as a person to the audience.

Branders need to be doing more of that. Stop making sense. One of the great challenges we face is appealing to the unleashed side of consumers, the instinctual aspect. It’s not easy getting to grips with the fact that they won’t always behave in the ways we think they should, that they will do the unexpected, the unpatterned, the illogical, the unprecedented and the unresearchable – and that they are all the more exciting and interesting as people because of that. Tapping consumers’ wish for whimsy and their expression of freedom in appealing ways is what separates the greats from the also-brands.

That’s not happening – or at least, not as much as it should. Back to Walker’s article. Research he quotes reveals only 23 percent of all marketing professionals say they are “highly effective” at building value through new insights and only 32 percent feel that they are highly effective at engaging individual customers. “Big Data alone won’t improve any of this. Indeed, more data will make all of it worse if brand marketers put it to use unscientifically,” he observes.

No-one wants to be marketed to as a demographic, a trend or a generalisation. Big data reveals the big currents that move whole societies. But brands must focus on the unsaid motivations that push “me” to act in “my world”. We are not starlings. We live in a big context – but we act in increasingly individual ways.

And that points to a fantastic opportunity for those looking for another level of value advantage. Developing brands, products and ideas that hand customers disruptive influence – the ability to inject personality, privacy and even rebellion, their way, within their world. Whether it makes sense to anyone else at all – or not.

There’s no shortcut to achieving this. It requires observation – up close, specific, patient, unobtrusive examination of the “human condition” at work.

Ever watched, really watched, people standing in a queue?

It’s just about waiting, right?

Actually, no. Depends where they are. Depends what they’re waiting for.

This fascinating article observes how the queue has changed as a phenomenon in Britain, a country renowned for queuing. The queue has, at various times, been a symbol of nationalism, poverty, opportunism, urbanisation, duty, injustice, patience and tradition. And what a queue is, and how a queue works remains variable to this day. Observes Dr Michael Sinclair, “The people who push to get on a bus are the same people who wait patiently in other queues … The difference is the bus queue people have to enforce the rules themselves. This is when the system can break down. We all want things to be done the way we’d like, the problem is people have different ideas of what that should be.”

It’s a system? … Really? No amount of data will explain that.

And to Walker’s point, you can’t second-guess that. But once you know that, you can do things with that understanding that others can’t or won’t. Say, for example, your brand experience involves some element of queuing. Knowing that X people will wait X minutes, based on a study of a million queues, is useful as data, but understanding, at a human level, how individuals are feeling as they wait is critical to doing something about it (before, during or after) that works for the customers not just your operations.

What great brands do is they find their way to those little insights. The solutions that follow may not make sense logically but they absolutely win people over emotionally. They work from a behavioural perspective. They affect people personally, not just collectively.

So when someone tells you about the next big thing happening in your sector based on all the data, take note of course. But then, I suggest, ask yourself the companion question: what’s the next little thing? Because knowing that will reveal what your customers will react to.

Photo of “Queue” taken by perCorell, sourced from Flickr

Inspiration: Step 2 in building a purposeful culture

Inspiring a culture to set high goals

An amazing thing happens when you ask people to imagine their current workplace working to its potential. First, they smile. Then they hesitate. Then they want to talk about everything that’s wrong and why a better workplace is not real or practical or feasible.

If you’re patient though and you persist, slowly, very slowly, they start talking about what’s possible. And once that happens, before long, there are diagrams and dreams and the volume in the room rises from a gentle murmur to an excited buzz.

It’s hard to get people to quantify the possibilities. All their disappointments and concerns quickly crowd in to stifle the magic. But if you ask them patiently to put that aside and form a vision of what work should be like, aspiration slowly gets the better of them.

This isn’t about creating a dream kingdom. In fact, what works best I’ve found is getting people to forecast what a “better us” looks like – and a key component to achieving that is asking them to find proof for what’s possible in what they have already done; to envisage a better future on the basis of what’s already happened, rather than just a pipedream. Can-do is more easily achieved, even in the most cynical culture, when it’s based and built on a do that people ‘own’.

So often, we hear talk of embedding values and storylines in an organisational culture – telling people what is expected of them. But I’ve found that if you change the order so that the narrative is the story that the culture tells itself about what it can achieve, and the values become the behaviours that all agree are required to get there together, it stimulates initiative and conversation. People look forward together – rather than sideways at each other. And they do so because they are motivated by a basic human inclination. They want to feel great.

Transpose this observation about the power of imagining the “impossible” from the classroom to the workplace and a clear rationale for Inspiration emerges. “For most people, the question, “What is your dream?” never comes up. We do what is expected of us from day to day, and get on with the business of living our lives. For most of us, dreams are just that; fantasies, relegated to sleep, idle daydreaming, and Disney movies … What recent research is telling us … is that dreams inspire learning – not the sort of rote, superficial learning that will help students pass state standardized tests … but real learning that inspires deep, meaningful, life-changing mastery and purpose. Learning that inspires positive change both for the individual and their community.”

People learn new ways to problem solve and they teach themselves to confront new problems – issues that they might once have seen as none of their business. Given a vision of what their culture could be, people will invest amazing energy into resolving the barriers that stand between today’s reality and that dream. As Alli Polin has written, “Leaders that tap into the hopes, dreams and strengths of the team create a magical culture that hums with possibility.”

The most powerful strategy any culture can devise, especially for itself, is one that its people have ownership of and that it is in their best interests to execute.

Ask these kinds of questions:

What could happen at work that would make people here clap their hands in joy?
What are we not telling ourselves that we need to be telling ourselves in order for that to happen?
When was the last time you were truly proud of us?
What did that prove about us?

Acknowledgements
Photo CSM002210, taken by j9sk9s, sourced from Flickr

Further reading
Agitation: Step 1 in building a purposeful culture

How would you like your brand story to end?

Every brand story has an ending

Bill Taylor has said that if your customers can live without you, eventually they will. Conversely, I’m fascinated by how so many industries will stick to business-as-usual for as long as they can before they have to change. In each case, the rules of supply and demand will at some point over-ride the sentiment of legacy. The more people who do what you do, the more easily you can be replaced, and the less noticed your absence will remain.

Everyone nods at this point. But …

That realisation actually spurs a fundamental question that businesses and brands should be asking themselves. And it’s a very uncomfortable question to confront. How would you like your brand to come to an end? To reference TS Eliot, with a bang or a whimper?

Your answer will drive your strategy. Or rather it will drive the mindset behind your strategy.

You can ride your current train of thought all the way to silence – do what you do for as long as you can until the margins become unbearable and then call it a day. Many companies who close do this: fight the “adverse” market until the adverse market wins. It doesn’t have to be a financial disaster – providing you have very clear exit criteria and you’re prepared to act on them.

Or you can steer the course that feels ridiculously risky at the time – beach and burn the ships and step onto a new and unfamiliar land. Sometimes that works. Or it brings death forward. If it does work, you’re no longer the brand you were, but it was you who killed your history. This approach gets lots of airing in the bookstands and lots of bravado nodding at the strategy retreat, but seldom happens. Too often, it plays out as re-arranging the deckchairs on the Lusitania.

There is a third option. You wait for the industry as a whole to adapt – which is actually, the first option, but with a hurray of collective hope in the middle that temporarily jolts everyone awake. Industries often call this leadership. It’s not. It’s herdship. The same industry with shared next-generation technology is, in reality, a new era of lack of differentiation. But it brings comfort in the numbers – and it delays the inevitable. There are any number of previously-analogue industries trying to do this. Resetting the standards so that they can tell customers what they’re now prepared to do for them.

The thing is every brand has a lifespan – because every customer has an attention span.

And every story has an ending. What’s yours?

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Photo of “END” taken by E. Dronkert, sourced from Flickr

Brands in a no-attention economy

Brands in a no-attention economy

I’ve said for some time that brands seem to be taking more and more of their prompts from the fashion industry – in how they act and how they think. Not surprising, given that the upgrade economy now demands that brands refresh and update their products with increasing frequency. Indeed as Matt Baxter-Reynolds points out in this article on the likelihood of an Apple iWatch, “over the past dozen or so years Apple behaves more Louis Vuitton and Prada than Microsoft or Samsung.”

That being the case, it’s interesting to look at fashion journalist Suzy Menkes’ recent observations on the pace at which the fashion industry itself is now forced to work, and to ask whether we can expect the same behaviours across the wider brand spectrum.

Once, says Menkes, a handful of fashion houses produced four seasonal collections. But today, with thousands of designers in the marketplace, promotional shows in Asia, Dubai and Brazil and between-season showings, the industry has 138 fashion weeks worldwide, and schedules that pack in up to 264 shows over five days. That’s an ongoing blur of collections – shown, noted and then forgotten as everyone moves onto the next thing.

The world today is, as Bite Global describes it, “always-on”. And that constant need for connection, interaction and conversation requires ongoing subject matter – an investment that is rewarded, cruelly, with less and less attention, as tweets and posts are made, read, applauded or disregarded. Paul Adams’ observation that “audiences are building relationships with brands in the same way they build relationships with their friends – through many, lightweight interactions over time” rings alarmingly true.

Which is ironical isn’t it, because on the one hand, research from Edelman and others clearly shows that consumers want their brands to be meaningful and ethical and yet, at the same time, they want to be able to pay them only passing attention. Mean something in a moment – consumers seem to be increasingly saying – and mean something we next visit you. But don’t expect ongoing interest by way of reward.

We’ve had the attention economy. Is this the no-attention economy? Always on. But seldom there. An economy dominated by authentic moments, played out against a long game. Because if that’s the case then, as the people at Bite have rightly observed, that shift brings with it profound changes in how brands need to plan their storylines. “The age of ‘the big idea’ has been replaced by the value of the ‘long idea’ … Implementing Long Ideas over time in an increasingly visual world demands storytelling expertise, agility, creativity and technological skill”

True. But I’m not so sure it’s either the big idea or The Long Idea. I suspect it’s increasingly “and”.

To keep any semblance of top-of-mind in a no-attention economy, brands with Long Ideas will need to sparkle as well as to span. Brands will need to be explosive in the moment – to appear with a hiss and a roar, and preferably a good talking point – but do so against storylines that are patiently strategised and carefully nurtured to maturation.

Menkes’ main concern for the fashion designers seems to be one of pace – the sheer velocity of creativity. I think it’s more complex than that for brands generally. Because if The Long Idea holds true, then brands will increasingly play out against two polarised timeframes – the Big Bang, or rather a series of Big Bangs, and the Long Idea.

If that becomes the case, then the real challenge will be to nail each single “moment” (experience, show, release) for all its worth whilst remaining absolutely single-minded (to the purpose, in the culture, to your values) to what the brand must mean and be worth over time.

Acknowledgements
Photo of “Texting” taken by Kamyar Adl, sourced from Flickr

What’s the plural of sale?

the plural of sale

How successful is a sale when everyone else is in sale too? I wondered about this as I walked through a mall yesterday.

Everyone was looking to shift what they could, however they could. Which struck me as an extraordinary contradiction. Because surely the whole point of being in sale is to be in a position where you are offering goods at a price that is unmatched by those around you – so that you can either make way for more goods and/or move on what you have and recoup something.

When everyone goes into sale however, the dynamics change one of two ways.

Either, everyone goes into a feeding frenzy, grabs everything they can and it’s all over in no time.

Or the opposite occurs. It’s much harder to move goods because even your lowered price is not an active incentive. And you’re not going to recoup because in order to be seen to be in sale in a market where everyone’s in sale, you’ll probably have to keep dipping, below cost even – which is as good as handing out dollars at the door.

The plural of sale is not sales. The plural of sale is new norm. What would have been seen as a bargain yesterday is now today’s market price. The market has relevelled. At least temporarily.

And that in turn changes the nature of customers. They suspend buying, and begin doing what capitalism expects in a volatile market – speculating. Is this as low as the price can go? How far can it drop before they close their doors (and we get a clearance sale)? How long before everyone puts their price back up?

A sale sign on its own is something of an invitation. Sale signs in abundance are nothing but shark bait.

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Photo of “Sale Shop window night”, taken by PRodriguez, sourced from Flickr

Not for what? Why the NGO sector needs to rethink its branding

Rethinking philanthropy

No sector in its right mind should define itself by what it’s not. So why do non-government organisations (NGOs) and not-for-profits (NFPs) do exactly that: define themselves so proudly by what doesn’t get done rather than what they do?

No is not a brand. Car manufacturers aren’t in the non-bike business. Food manufacturers aren’t in the non-hunger business. Phone companies are not in the anti-isolation business. So, excuse the pun, but what gives?

Both the NGO and NFP labels, it strikes me, are useless ways of positioning those intend on delivering on a strong altruistic intention. First of all because the terms themselves carry no meaning. (Not being part of government doesn’t actually make anyone part of anything.) Secondly, because to be perfectly frank, every organisation is interested in making money – it’s just what they do with it that differs. And thirdly, and most importantly, because the NFP/NGO label doesn’t talk about the one thing that really motivates those who are being asked to support and donate: the difference that their support actually makes.

That is increasingly important in my view as organisations move into service provision in order to broaden their income streams and dilute their dependence on grants and donations. Now that they are making money in order to fund their good works, describing their purpose rather than the entity itself seems to me to be a much more robust basis for branding the sector as a whole.

Let’s look at this from a customer perspective for a moment. What do people want to give to or support? More particularly, what do they want to believe in? The feedback I get in my work across this area is unanimous. Supporters want to see change. They want to see justice. They want to see the right thing being done. They want to contribute to a solution.

And that sentiment, surely, should form the basis for a description of the wider sector. In the spirit of positive suggestions, let me make one: the impact sector. The part of the economy that addresses what needs to change in the world. And perhaps a further segmentation: communal impact (locally focused); and global impact (big picture).

If you’re thinking that this seems like a lot of fuss over just a label, let me explain why I think renaming the NGO/NFP sector is important. The power of a name lies in what it signals, not just what it says. Changing the name of this part of the economy to the “impact sector” signals a change in the conversation – from how entities want to describe themselves to what recipients, supporters and benefactors want to see them achieving. It makes the sector bigger and more important than its tax status, which of course it is. And it implies a dramatic shift in the accountabilities from actions taken to achievements gained – and that, as specialists in this space like Jay Goulart remind us, is the real make or break in credibility.

Feel free to disagree – or to suggest.

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Photo of “I can make a difference” by Omar Reyes, sourced from Flickr

Truth in advertising

Should brand advertising tell the truth: information vs inspiration?

A number of years ago, Stephen Dubner asked which industry makes the most misleading ads? His personal opinion was the companies that advertise closets. As he says, they always seem to be pieces of furniture that are bathed in sunlight, and that are owned by people who have three pairs of identical and very clean pants or skirts, but never anything unshapely like an accordion, or hockey stick. Read More