All posts filed under: Consumers

Brand truth: fascinating insights into what holds true for consumers

We don’t always mean what we say in social situations – nor, it appears, in research. That seems to be the key take-out from recent research (delicious irony!) by Chip Walker and the Y&R research team. In their recently released study, Secrets and Lies, (thanks Hilton for the reference and for the introduction to Chip) the team concludes that consumers’ conscious motivations differ markedly from their true deep drivers. In fact, they’re often the opposite of what they say. Those conscious-unconscious biases are also reflected in the brands that people say they like versus those they actually like. Consider this: “The top 10 conscious brands are Amazon, Google, Apple, Target, Whole Foods, Starbucks, McDonald’s, Facebook, AT&T and Prius. That contrasts with the order of the top 10 brands consumers favor unconsciously: Target, Amazon, Facebook, Whole Foods, National Enquirer, Exxon, McDonald’s, Apple, Starbucks and AT&T.” While it’s important to recognise that, for the purposes of the study, people were asked to rank a finite list of brands not to nominate those brands from scratch, the contrast …

The brand dilemma: recognition vs excitement

One of the intriguing aspects of understanding brands is that one must be prepared not just to balance but to actively address the contradictions that humans happily live with. Blogger Daniel Walsch sums up those inconsistencies beautifully: “We want to be alone. We want to be part of groups. We are benevolent. We are selfish. We want to be independent. We want guidelines. We are self serving. We are generous. We stick to the truth. We shade the truth. We have violent tendencies. We desire peace. And on and on it goes.” Brands mirror that humanity in the pace at which they are increasingly asked to compete. And that pace is simultaneously handbrake and accelerator. Handbrake – in that customers want consistency. They want brands they can recognise, that they feel they know, that make sense to them, that they can depend on. They want brands that they can just reach for, without giving them a second thought. They want brands that feel like part of their normal, ordinary lives. Customers look to recognition and …

5 reasons why cultures don’t change willingly

Here’s some great insights for anyone involved in making change programmes or new ideas work. The key to successfully transforming organisations doesn’t lie in explaining what’s required. It actually lies in better understanding what people feel threatened by. In this article in Reuters from some time back, David Rock takes the view that “People are not rational, they are social”. According to him, what we’re told is not the fundamental driver for acceptance. The key issue is that we are intuitively programmed to respond positively to social rewards, and are instinctually committed to minimising social threats. Perceived threats to our senses of status, certainty, autonomy, relatedness, and fairness (a model Rock refers to as SCARF) will cause us to act defensively towards an event or an idea. Such threats cause people to close off the energy being passed through the prefrontal cortex, the home of conscious thinking in the bank. Change might make sense. It may even be responsible. But when information about change is conveyed to us in this manner, people react emotionally, productivity …

Customer loyalty: 3 ways to win if you’re a retailer

These findings from research of the ways we go about our lives have confirmed people are nowhere near as random as previously thought. In point of fact, after tracking more than 100,000 mobile phone users over a period of six months, the clear conclusion from this research if you’re a brand is that people mostly visit a limited number of locations time and time again. Customer loyalty pays. Literally. What’s interesting to note, given that we live in this much heralded era of mobility, is that most people also move around over very small distances – five to ten kilometres. No surprise then that this infographic by FlowingData shows a pizza-chain within a 10-mile radius across the United States. Some people, of course, range much further, but even then, they stick to remarkably similar patterns, once again tending to return to the same places over and over again. So customer loyalty is also limited. For the most part, it operates within finite parameters. But a recent study of grocery buying habits also reveals something stranger, …

Consumer motivations: the 7 reasons 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 …

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 …

Nailing customer behaviours: big data and little insights

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 …

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

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. …

Whose buying – and whose purchasing?

At first the question appears nonsensical. But only if you assume that buying and purchasing are synonyms. Most financial systems treat them as exactly that because, from their perspective, the result is the same. Income. But there is a difference – and being able to define and quantify that difference is important. Semantics doesn’t just split hairs. It splits customers. It isolates loyalties and behaviours. And in so doing, it potentially defines different actions. But it only does so for those prepared to look for the nuances. As big data hands marketers and decision makers more and more detail, the ability to read between the lines and find the nuances of behaviour in the numbers will be more important than ever. In this case, being able to tell the difference between your buyers (“the people who actively choose to buy from us”) and your purchasers (“the people who happen to have bought from us”) reveals two very different parties in terms of inclination. The first will be back. The second may not. Things become a …

Familiarity 2.0 will bring brands amazing opportunities and new challenges

By Mark Di Somma It’s easy to underestimate the huge changes that have taken place in the dynamics of the brand-customer relationship in recent years. Brands and consumers are now engaged at whole new levels of familiarity. Facebook, Twitter, LinkedIn et al haven’t just brought people closer, they have enabled entirely new types of brand community to evolve and develop. But as we shall see, they have also expanded expectations in terms of responsiveness. I’ve dubbed this heightened connection Familiarity 2.0 (because to me it really does equate to a new era of acquaintance). Research shows consumers increasingly valuing brands that they feel fundamentally understand them and that interact with them as human beings. According to the Brandfog CEO, Social Media and Leadership Survey 2012, customers now expect to have direct access to brands and brand leaders. What’s more, the survey shows, there is a direct connection between social media participation, purchase intent and increased brand loyalty. The days of the brand being on one side of the counter and the customer being on the …