May 8, 2009
BrainTrust Query: Should brands do more to ‘befriend’ consumers in difficult times?
By Joel
Rubinson, chief research officer, The Advertising Research Foundation
We can make the case that there will be "no normal" to return to,
once the recession is over. People’s heightened search for value and economizing
have changed brand choices and shopping patterns. However, the news is not
grim for all national brands. Brands that have become permanent casualties
(like Circuit City and Pontiac) "free up" share points for remaining
brands to gobble up. There will be winners (and not just the private
label brands) coming out of the recession.
What can you do to be
one of the winners? Create momentum by starting to build the right
kinds of relationships now.
1 – Understand how people feel
and befriend them. At
the ARF annual conference, Professor
Zaltman showed results from his
ZMET method
that dramatized the pain; people see the economy metaphorically as a
malevolent force of nature like a tornado/avalanche/tsunami…one that
is destroying the American Dream, making them feel insecure about their
future, and helpless.
My recommendation… your
brands need to befriend people. Hyundai’s sales were up five percent
in Jan/Feb as they offered to take over car payments if someone lost their
job. Jos. A. Bank offered to take back the suit. Value brands and
value offerings (Wal-Mart, Miller High Life, Bounty) have been reported
to be doing well. Some brands become psychological "comfort food" by
stressing family values; Shredded Wheat cereal is talking about putting
the
"no" in "innovation". Still others are stressing sustainability.
Marketers should try
to befriend people; sooth them, simplify their choices, help them make
ends meet, and give them back a measure of control and dignity. This recommendation
goes beyond the ad and the brand positioning; to fully build this type
of relationship, marketers should find ways to create more conversation
via social media and communities centered around the challenges and joys
that people want to talk about.
2 – Increase advertising spend. Brands
that increase their advertising support while their competitors are cutting
back come out of the recession in stronger market share positions. In
other words, this is the time to ramp up! This was the conclusion by Prof.
Gerry Tellis from a re-analysis of 40 studies on marketing in a recession.
Burger King and Procter are two companies that are reported to be buying
more, not fewer impressions, and they are doing it at very attractive rates.
However, referring to point one, you might want to find a message that
is timely rather than continuing pre-recession messaging.
3 – Be bold and imaginative. I know it’s hard to take risks
in this environment, but once you accept that there is no normalcy to return
to, it becomes easier. For example, the coffee wars just heated up
with McDonald’s announcing a $100MM ad campaign for the launch of McCafe
and Starbucks simultaneously announcing an aggressive defense of their
product superiority. Harley-Davidson is now reaching out to different demo
groups (females, minorities) in a bold attempt to expand their base of
brand enthusiasts…a risky move, but "playing it safe" is perhaps
the riskiest strategy of all.
I think it’s time to
reverse the marketing mindset about the directionality of loyalty; stop
asking consumers to be loyal to your brand and start demonstrating that
your brand is loyal to them! Create advertising, conversations, and
programs that show you care.
Discussion Questions:
Do you agree that brands are not doing enough to "befriend" consumers
in these difficult times? What’s the right and wrong way to take on this
approach? Can you come up with any examples?
BrainTrust
Recent Discussions
Discussion Questions
Poll
While every point in this article is valuable and useful, let’s try to remember that businesses that succeed through all types of economic climates do so because they don’t wait till hard times to implement these practices.
Regretfully for most, once the till starts a ringin’, customer service starts a leavin’. We’ve seen this happen after the recessions in ’82 and in the early ’90s.
But let’s not blame the retailers. People’s natural sense of greed and vanity always dictate purchasing habits when they can afford to allow it.
I’m on board with Joel Rubinson’s perspectives about how brands need to be treating the recession. Show the consumer you care. Don’t stop advertising. And yes, be inspired and creative.
Here are some additional suggestions:
1. Seize the moment. Let your competitors cut back, slow down, and hide in the sand. You have an opportunity to win over new consumers for keeps, long after the recession.
2. Advertising and public relations are a tremendous value right now. By being one of the fewer advertisers your message stands out more than ever and at a much lower cost.
3. Keep in mind that most consumers do indeed still have jobs, most are working, and most are still consuming.
4. Many consumer products, even premium and higher priced items, are actually replacing other more expensive types of solutions, especially in OTC, health care, and HBC. Take full advantage by promoting your brand.
In my opinion a lot of retailers and manufacturers are not approaching the recession in the right way. Many are using a sledge hammer instead of a scalpel.
The Donald is renowned for saying “It’s not personal, it’s business!” In contrast we have the concept of establishing a personal connection between supplier and consumer–a “befriending” to use the author’s word. One principle that I don’t think will ever change is that ‘people do business with people’. We try to make them do business with machines and soul-less entities but it doesn’t work for long. Business IS personal. Rubinson is right on target.
I love Joel’s twist on loyalty: that it’s time for brands to show their loyalty to consumers. Am I the only one old enough to remember the movie Mr. Mom? Terri Garr sets up Schooner Tuna for success when she suggests the president go on TV and talk about how they’re not going to raise prices because they understand the dilemma “mom” is in. The more things change….
I’d add to the list: remember the end-to-end customer experience. Marc’s comment is spot on: it’s too easy in a recession to put a brave face forward and cut “invisible” costs but every piece of research we do at Forrester shows that trust and customer experience build long term loyalty. If you want to show loyalty to your customers show them in every interaction that you’ve anticipated their needs, that you want to hear from them and that you’re ready to fix problems when things go wrong. That’s where social media can help or hurt you tremendously. Use it to listen, to respond to and to embrace your customers–don’t panic when they complain: learn what you’re doing wrong and what you’re doing right and how to do it better.
Joel’s twist is exactly right. Brands must show loyalty to the consumers, in fact they must open both doors and windows to let consumers in to their “brand homes” and be a part of the brand’s future. Only brands that are willing to do so will get the HUGE impact from the ever-expanding mighty community of consumers who engage in and believe in the power of the peer network. Get close to consumers and stay there, listening, learning and letting them carry your message in a way that you as a marketer no longer can.
Great comments! Schooner Tuna! Perfect example, sad that it’s fictional.
Customers don’t need to be “befriended,” they need better service! A retailer may make a friend along the way, but if we could just get back to a decent level of old-fashioned customer service (“let me get that for you” or “thank you” or “let me walk you to the restroom” or “can I help you carry that?”), retailers would make a lot more “friends” than understanding someone’s ‘pain’.
Starbucks has always done a great job at customer service, to the point where you feel like you “know” your Starbucks person (how many times have you said, “my Starbucks guy”?). But the relationship is purely business: you’re a customer and they’re servicing you–but it’s enjoyable and both parties win. Let’s have more of that!
The idea of brands befriending customers is the essence of loyalty marketing: creating relationships (i.e., which when evolved equal friendships)between brands and customers.
Joel’s concept, and Lisa’s comments above, reflect the brand paying it forward in the relationship, which is always going to be more effective than the reverse.
Last, like any good friendship, there must be a basis for it along with listening and learning. These latter activities, however, can only be accomplished by furthering marketing efforts beyond advertising and PR, into direct channels, social media, and other customer contact points.
I don’t see brands becoming my friend but I do appreciate friendly, personalized brands. When I’ve shopped at Nordstrom on the West Coast, the person who helped me never fails to send a personalized thank-you note that includes a personal observation or wish that demonstrates that they were listening and paying attention. They certainly could have looked at my Arkansas address and thought “why bother?” As it is, I make it a point to shop there each month when I’m out on business. The fact that they do this in good times and bad gives them authenticity points in my book.
Mr. Rubinson’s suggestions are sound and I’m particularly supportive of #2 (increasing advertising spend). We have been telling our clients, “Just as many people are listening but fewer are talking!”
I agree with Carol. I’m not looking for brands to be my friends. I do however want them to listen to the feedback that their customers are providing and find ways to turn those messages into actions. Perhaps it’s semantics but often marketers describe “befriending” customers in terms of Social Media channels and their approach is often heavy on pitching and light on listening.
I wouldn’t call Hyundai’s successful campaign an example of befriending. To me it’s an example of “Sense & Respond”. They saw a change in the marketplace, analyzed the impact of that change, and formulated a successful response that resonated with customers.
Part of the answer is that the current economic conditions are very atypical (at least we hope they will prove to be atypical) over the past 6 months or so. Some companies have incorporated that fact into special offers for consumers. Publix lowered prices on some essentials. Saks increased special offers for their best customers. Local restaurants increased twilight and BOGO specials. Some baseball teams actually lowered ticket prices. All of these actions say “we feel your pain.”
One company that I’m normally a big fan of, Costco, has done nothing in this area, at least that I’ve noticed. While it’s normally a given that they have great everyday prices, it would be nice to see them acknowledge the economic travails of many of their customers and offer something extra. Maybe as little as a free hot dog or frozen yogurt with a $100 purchase. Just something to say “we care.”
I have a problem with the word “befriend.” It suggests that there is a relationship with a customer that transcends business. The reality is Hyundai offered to take over car payments if someone lost their jobs was to sell more cars. Be assured that the offer was made with a very, very diligent analysis of the possible results. Be assured that the Hyundai analysis indicated that even with the most extraordinary loss of jobs that they would still have a very reasonable ROI. The same for JoS. A. Banks.
I do not mean to take credit away from such efforts because they are creative. But, they are basic business. There are many connections that marketers can make with their customers, but they must be related to the business objectives. An economic downturn should not change how a company approaches their business. If it does, there was something amiss before the downturn.
The Harley-Davidson example is exactly what marketers should not do. Talk about courting disaster. Harley is for serious bikers (men, women or minorities, suits or not). How does HD’s core customer view THEIR brand if they see their brand courting other demos? This is the ultimate in denigration of the meaning of a brand. If other demos were a legitimate target, they should have been targeting them long before the economy turned down.
Retailers are always urged to “think like the customer,” but half the time I think that if retailers knew what customers were really thinking, they’d be horrified. The store experience can be frustrating–out of stocks, unmanned registers, a lack of carts to assist moms who have wriggly babies. Retail executives should replace some of those walk-through visits with actual shopping trips….
Brands should befriend shoppers, spend more on advertising (logically, the best way to befriend), and be bold and imaginative. Yet another regurgitation of principles we’re all historically aware of under the guise of new revelation.
In terms of “doing enough,” how much is enough? The answer, of course, is that it’s never enough because we’re never sure when we’ve succeeded. Sony, for instance, has no way of knowing that = with the exception of computers = I wouldn’t buy any other electronic brand. If other brands move in front in terms of innovation, I can wait until Sony catches up. My conversion happened in the 80s (I think) with a Sony ad campaign showing a meeting in a Japanese competitor’s boardroom in which they were frustrated when examining a superior Sony product. “It’s a Sony,” expressed in frustration with a Japanese accent, was the tagline. Somehow, I was “befriended” forever.
So that’s the thing, brands never know when they’ve succeeded in the befriendship bidness. And that’s why they’ve got to keep trying. Just as Sony brand advertising is wasted on me (I like the product ads, though), each one of us has bought into various brands whose future ads are wasted on us (in a good way). But, they have no way of knowing that the only truck you’d ever consider is a Chevy.
Yes! Yes! Yes! I have been speaking, writing and encouraging retailers for the last 9 months to get out there and be understanding and responsive to the challenges the customer is facing and do something for them like a friend would. So much retail advice is given as to what a store should do TO their mix, their layout, their promotional planning and TO the customer, but so little of what retailers should do FOR the customer. Yesterday’s questions about the retailer that hands out scanners for the customers to use to add up their purchases before they reach the checkout is the kind of thing that helps customers stay on budget without embarrassment.
The only thing that I question in the author’s advice is the need to continue ad spending. That is agency-think. Retailers should spend money that they can afford to reach the customer where they are; bulk discounts, public relations, special shopping times for seniors, moms and moms-to-be, teachers, and advertising, but only if that is what the local market wants.
I agree with Phil, I am not sure that Brands will ever be my “friends,” but I do appreciate those who use all means at their disposal to engage me in a dialogue and create an interaction that allows me to actively participate. Those who innovate, truly listen to their customers, and create a pro-active dialogue with their customers / end-users will be the ones that come out of this recession in much better shape. We are also seeing those (Bass Pro Shops, P&G, etc.) who are spending more in more mediums to engage all of their customers. These are the ones whose sales are going up, not down. The value of the interaction has shifted to the customer and every one needs to be cognizant of that.
More Discussions
As Boomers ‘Age Out of Peak Purchasing,’ How Can National Brands Retain Interest With Gen Z?
According to a recent First Insight study titled “Is Gen Z Still Choosing Your Brand,” while…Is Supply Chain Volatility Here To Stay?
Can we expect an ongoing volatility to remain in terms of retail supply chain?Has Same-Day Delivery Become an Expectation Across Retail?
Are expectations around retail delivery speed in flux?
While every point in this article is valuable and useful, let’s try to remember that businesses that succeed through all types of economic climates do so because they don’t wait till hard times to implement these practices.
Regretfully for most, once the till starts a ringin’, customer service starts a leavin’. We’ve seen this happen after the recessions in ’82 and in the early ’90s.
But let’s not blame the retailers. People’s natural sense of greed and vanity always dictate purchasing habits when they can afford to allow it.
I’m on board with Joel Rubinson’s perspectives about how brands need to be treating the recession. Show the consumer you care. Don’t stop advertising. And yes, be inspired and creative.
Here are some additional suggestions:
1. Seize the moment. Let your competitors cut back, slow down, and hide in the sand. You have an opportunity to win over new consumers for keeps, long after the recession.
2. Advertising and public relations are a tremendous value right now. By being one of the fewer advertisers your message stands out more than ever and at a much lower cost.
3. Keep in mind that most consumers do indeed still have jobs, most are working, and most are still consuming.
4. Many consumer products, even premium and higher priced items, are actually replacing other more expensive types of solutions, especially in OTC, health care, and HBC. Take full advantage by promoting your brand.
In my opinion a lot of retailers and manufacturers are not approaching the recession in the right way. Many are using a sledge hammer instead of a scalpel.
The Donald is renowned for saying “It’s not personal, it’s business!” In contrast we have the concept of establishing a personal connection between supplier and consumer–a “befriending” to use the author’s word. One principle that I don’t think will ever change is that ‘people do business with people’. We try to make them do business with machines and soul-less entities but it doesn’t work for long. Business IS personal. Rubinson is right on target.
I love Joel’s twist on loyalty: that it’s time for brands to show their loyalty to consumers. Am I the only one old enough to remember the movie Mr. Mom? Terri Garr sets up Schooner Tuna for success when she suggests the president go on TV and talk about how they’re not going to raise prices because they understand the dilemma “mom” is in. The more things change….
I’d add to the list: remember the end-to-end customer experience. Marc’s comment is spot on: it’s too easy in a recession to put a brave face forward and cut “invisible” costs but every piece of research we do at Forrester shows that trust and customer experience build long term loyalty. If you want to show loyalty to your customers show them in every interaction that you’ve anticipated their needs, that you want to hear from them and that you’re ready to fix problems when things go wrong. That’s where social media can help or hurt you tremendously. Use it to listen, to respond to and to embrace your customers–don’t panic when they complain: learn what you’re doing wrong and what you’re doing right and how to do it better.
Joel’s twist is exactly right. Brands must show loyalty to the consumers, in fact they must open both doors and windows to let consumers in to their “brand homes” and be a part of the brand’s future. Only brands that are willing to do so will get the HUGE impact from the ever-expanding mighty community of consumers who engage in and believe in the power of the peer network. Get close to consumers and stay there, listening, learning and letting them carry your message in a way that you as a marketer no longer can.
Great comments! Schooner Tuna! Perfect example, sad that it’s fictional.
Customers don’t need to be “befriended,” they need better service! A retailer may make a friend along the way, but if we could just get back to a decent level of old-fashioned customer service (“let me get that for you” or “thank you” or “let me walk you to the restroom” or “can I help you carry that?”), retailers would make a lot more “friends” than understanding someone’s ‘pain’.
Starbucks has always done a great job at customer service, to the point where you feel like you “know” your Starbucks person (how many times have you said, “my Starbucks guy”?). But the relationship is purely business: you’re a customer and they’re servicing you–but it’s enjoyable and both parties win. Let’s have more of that!
The idea of brands befriending customers is the essence of loyalty marketing: creating relationships (i.e., which when evolved equal friendships)between brands and customers.
Joel’s concept, and Lisa’s comments above, reflect the brand paying it forward in the relationship, which is always going to be more effective than the reverse.
Last, like any good friendship, there must be a basis for it along with listening and learning. These latter activities, however, can only be accomplished by furthering marketing efforts beyond advertising and PR, into direct channels, social media, and other customer contact points.
I don’t see brands becoming my friend but I do appreciate friendly, personalized brands. When I’ve shopped at Nordstrom on the West Coast, the person who helped me never fails to send a personalized thank-you note that includes a personal observation or wish that demonstrates that they were listening and paying attention. They certainly could have looked at my Arkansas address and thought “why bother?” As it is, I make it a point to shop there each month when I’m out on business. The fact that they do this in good times and bad gives them authenticity points in my book.
Mr. Rubinson’s suggestions are sound and I’m particularly supportive of #2 (increasing advertising spend). We have been telling our clients, “Just as many people are listening but fewer are talking!”
I agree with Carol. I’m not looking for brands to be my friends. I do however want them to listen to the feedback that their customers are providing and find ways to turn those messages into actions. Perhaps it’s semantics but often marketers describe “befriending” customers in terms of Social Media channels and their approach is often heavy on pitching and light on listening.
I wouldn’t call Hyundai’s successful campaign an example of befriending. To me it’s an example of “Sense & Respond”. They saw a change in the marketplace, analyzed the impact of that change, and formulated a successful response that resonated with customers.
Part of the answer is that the current economic conditions are very atypical (at least we hope they will prove to be atypical) over the past 6 months or so. Some companies have incorporated that fact into special offers for consumers. Publix lowered prices on some essentials. Saks increased special offers for their best customers. Local restaurants increased twilight and BOGO specials. Some baseball teams actually lowered ticket prices. All of these actions say “we feel your pain.”
One company that I’m normally a big fan of, Costco, has done nothing in this area, at least that I’ve noticed. While it’s normally a given that they have great everyday prices, it would be nice to see them acknowledge the economic travails of many of their customers and offer something extra. Maybe as little as a free hot dog or frozen yogurt with a $100 purchase. Just something to say “we care.”
I have a problem with the word “befriend.” It suggests that there is a relationship with a customer that transcends business. The reality is Hyundai offered to take over car payments if someone lost their jobs was to sell more cars. Be assured that the offer was made with a very, very diligent analysis of the possible results. Be assured that the Hyundai analysis indicated that even with the most extraordinary loss of jobs that they would still have a very reasonable ROI. The same for JoS. A. Banks.
I do not mean to take credit away from such efforts because they are creative. But, they are basic business. There are many connections that marketers can make with their customers, but they must be related to the business objectives. An economic downturn should not change how a company approaches their business. If it does, there was something amiss before the downturn.
The Harley-Davidson example is exactly what marketers should not do. Talk about courting disaster. Harley is for serious bikers (men, women or minorities, suits or not). How does HD’s core customer view THEIR brand if they see their brand courting other demos? This is the ultimate in denigration of the meaning of a brand. If other demos were a legitimate target, they should have been targeting them long before the economy turned down.
Retailers are always urged to “think like the customer,” but half the time I think that if retailers knew what customers were really thinking, they’d be horrified. The store experience can be frustrating–out of stocks, unmanned registers, a lack of carts to assist moms who have wriggly babies. Retail executives should replace some of those walk-through visits with actual shopping trips….
Brands should befriend shoppers, spend more on advertising (logically, the best way to befriend), and be bold and imaginative. Yet another regurgitation of principles we’re all historically aware of under the guise of new revelation.
In terms of “doing enough,” how much is enough? The answer, of course, is that it’s never enough because we’re never sure when we’ve succeeded. Sony, for instance, has no way of knowing that = with the exception of computers = I wouldn’t buy any other electronic brand. If other brands move in front in terms of innovation, I can wait until Sony catches up. My conversion happened in the 80s (I think) with a Sony ad campaign showing a meeting in a Japanese competitor’s boardroom in which they were frustrated when examining a superior Sony product. “It’s a Sony,” expressed in frustration with a Japanese accent, was the tagline. Somehow, I was “befriended” forever.
So that’s the thing, brands never know when they’ve succeeded in the befriendship bidness. And that’s why they’ve got to keep trying. Just as Sony brand advertising is wasted on me (I like the product ads, though), each one of us has bought into various brands whose future ads are wasted on us (in a good way). But, they have no way of knowing that the only truck you’d ever consider is a Chevy.
Yes! Yes! Yes! I have been speaking, writing and encouraging retailers for the last 9 months to get out there and be understanding and responsive to the challenges the customer is facing and do something for them like a friend would. So much retail advice is given as to what a store should do TO their mix, their layout, their promotional planning and TO the customer, but so little of what retailers should do FOR the customer. Yesterday’s questions about the retailer that hands out scanners for the customers to use to add up their purchases before they reach the checkout is the kind of thing that helps customers stay on budget without embarrassment.
The only thing that I question in the author’s advice is the need to continue ad spending. That is agency-think. Retailers should spend money that they can afford to reach the customer where they are; bulk discounts, public relations, special shopping times for seniors, moms and moms-to-be, teachers, and advertising, but only if that is what the local market wants.
I agree with Phil, I am not sure that Brands will ever be my “friends,” but I do appreciate those who use all means at their disposal to engage me in a dialogue and create an interaction that allows me to actively participate. Those who innovate, truly listen to their customers, and create a pro-active dialogue with their customers / end-users will be the ones that come out of this recession in much better shape. We are also seeing those (Bass Pro Shops, P&G, etc.) who are spending more in more mediums to engage all of their customers. These are the ones whose sales are going up, not down. The value of the interaction has shifted to the customer and every one needs to be cognizant of that.