HOW BRANDS & PEOPLE CREATEA VALUE EXCHANGEPresented by Edelman Significa
brandshareTM 2014 © Daniel J. Edelman, Inc .
A VALUE EXCHANGE STARTS WITH PEOPLE’S NEEDS
CONSUMER
NEEDS
2
People’s needs have changeddue to an increasingly complex and interconnected world.
brandshareTM 2014 © Daniel J. Edelman, Inc .
CONSUMER
NEEDS
MATCHED BY WAYS BRANDS CAN FULFILL THESE NEEDS
3
BRAND
BEHAVIORS
Actions brands can take to fulfill these new consumer needs.
brandshareTM 2014 © Daniel J. Edelman, Inc .
AND THE DELIVERY OF MUTUAL BENEFIT
BRAND
BEHAVIORS
CONSUMER
NEEDS
4
VALUE
EXCHANGEQuantifiable value exchange based on shared contribution and benefit.
brandshareTM 2014 © Daniel J. Edelman, Inc .
WE COMPARED CONSUMER NEEDS…
6
I can count on the
brand to deliver
consistent products
or services
1
The brand
delivers what
I need from a
product or
service
2
I want to be
associated with
the brand
The brand is an
essential part of
my life
I respect the
company’s
leaders
I feel good about
this company’s
commitment to its
community
I feel the brand
cares about
more than itself
1
2
3
4
5
I feel good buying
this company’s
products or services
6
7
I believe in the
brand’s purpose8
9
brandshareTM 2014 © Daniel J. Edelman, Inc .
TO WAYS BRANDS COULD FULFILL THESE NEEDS…
Shares company history and heritage openly
Openly shares its vision for the future
Is open about company performance and holds leaders accessible
Communicates transparently about how its products are sourced and manufactured
Takes a stand on issues of importance to individual consumers
Offers many ways for consumers to ask questions and share opinions
Is quick to respond to people’s concerns and complaints
Helps people achieve their personal goals
Invites consumers to participate in events and live experiences
Invites consumers to interact online
Invites consumers to represent products and services to their social networks
7
Acts with a clear mission and purpose at its core1
2
3
4
5
6
Invites consumer participation in product development7
8
9
14
13
Uses its resources to drive change in the world12
11
10
brandshareTM 2014 © Daniel J. Edelman, Inc .
AND EVALUATED HOW THEY COMBINE TO DELIVER BUSINESS OUTCOMES
8
Purchase
Recommend
Defend
1
2
3
Share Personal Information
Share Brand Content
4
5
brandshareTM 2014 © Daniel J. Edelman, Inc .
WE LEARNED THERE IS:
Little value for the consumer in the current value exchange
A new consumer need state that drives value
Value in meeting emotional needs in new ways
9
brandshareTM 2014 © Daniel J. Edelman, Inc .
LITTLE VALUE FOR THE CONSUMER IN THE CURRENT VALUE EXCHANGE
10
brandshareTM 2014 © Daniel J. Edelman, Inc .
PEOPLE CONTRIBUTE. BRANDS BENEFIT.THERE IS LITTLE VALUE EXCHANGE.
Shared relationshipOne-sided relationship
66% 34%
11
Q24: Overall, would you say that brands that ask you to share with them (i.e. personal information,
stories, etc.) successfully share with you in return, or is it more of a one sided relationship?
Q25: Do you think brands are motivated to share with you because they have a sincere commitment
to their customers, or because they have a self-centered desire to increase profits?
Sincere commitment to their customers
Brands have self-centered desire to increase profits
70% 30%
brandshareTM 2014 © Daniel J. Edelman, Inc .
PEOPLE CONTRIBUTE. BRANDS BENEFIT.THERE IS LITTLE VALUE EXCHANGE.
Shared relationshipOne-sided relationship
67% 33%
12
Q24: Overall, would you say that brands that ask you to share with them (i.e. personal information,
stories, etc.) successfully share with you in return, or is it more of a one sided relationship?
Q25: Do you think brands are motivated to share with you because they have a sincere commitment
to their customers, or because they have a self-centered desire to increase profits?
Sincere commitment to their customers
Brands have self-centered desire to increase profits
70% 30%
brandshareTM 2014 © Daniel J. Edelman, Inc .
PEOPLE WANT MORE VALUE FROM BRAND RELATIONSHIPS
Want more meaningful relationships with brands
87%
17%
Think brands deliver
13
Q9: You will be presented with things that a brand could do to build and maintain a connection with you or
customers like you. For each one tell us if you feel that the brands that you like are currently doing each of
these things too much, just right, or not enough? [% who selected JUST RIGHT or NOT ENOUGH]
Q11: Please select the statements that you feel apply to [BRAND]. You may select as many or as few as you feel apply. [Average % who stated sharing statements applied to [BRAND]}
brandshareTM 2014 © Daniel J. Edelman, Inc .
PEOPLE WANT MORE VALUE FROM BRAND RELATIONSHIPS
Want more meaningful relationships with brands
73%
21%
Think brands deliver
14
Q9: You will be presented with things that a brand could do to build and maintain a connection with you or
customers like you. For each one tell us if you feel that the brands that you like are currently doing each of
these things too much, just right, or not enough? [% who selected JUST RIGHT or NOT ENOUGH]
Q11: Please select the statements that you feel apply to [BRAND]. You may select as many or as few as you feel apply. [Average % who stated sharing statements applied to [BRAND]}
brandshareTM 2014 © Daniel J. Edelman, Inc .
Q5: You will be presented with things that a brand can do to build and maintain a connection with
you or customers like you. Thinking about brands that you like, how important is each of the
following to you? [5-Point Scale, Top 2 Box] Q11: Please select the statements that you feel apply
to [BRAND]. You may select as many or as few as you feel apply. [Average % who stated sharing
statements applied to [BRAND]
PEOPLE DEMAND GREATER RESPONSIVENESS…
78%
17%HOW THEY THINK BRANDS PERFORM
GAP
-61
PEOPLE SAY IT IS IMPORTANT
59%
18%
-41
Gives many ways to ask questions and give opinions
Respond quickly to people’s concerns and complaints
GAP
15
brandshareTM 2014 © Daniel J. Edelman, Inc .
Q5: You will be presented with things that a brand can do to build and maintain a connection with
you or customers like you. Thinking about brands that you like, how important is each of the
following to you? [5-Point Scale, Top 2 Box] Q11: Please select the statements that you feel apply
to [BRAND]. You may select as many or as few as you feel apply. [Average % who stated sharing
statements applied to [BRAND]
PEOPLE DEMAND GREATER RESPONSIVENESS…
87%
20%HOW THEY THINK BRANDS PERFORM
GAP
-67
PEOPLE SAY IT IS IMPORTANT
74%
-54
Gives many ways to ask questions and give opinions
Respond quickly to people’s concerns and complaints
GAP
16
brandshareTM 2014 © Daniel J. Edelman, Inc .
20%
MORE INVOLVEMENT…
Invites people to be a part of the development and refinement process
16%
52%
-36
Communicates openly and transparently about how products are sourced and made
15%
68%
-53
PEOPLE SAY IT IS IMPORTANT
GAP
GAP
17
brandshareTM 2014 © Daniel J. Edelman, Inc .
HOW THEY THINK BRANDS PERFORM
Q5: You will be presented with things that a brand can do to build and maintain a connection with
you or customers like you. Thinking about brands that you like, how important is each of the
following to you? [5-Point Scale, Top 2 Box] Q11: Please select the statements that you feel apply
to [BRAND]. You may select as many or as few as you feel apply. [Average % who stated sharing
statements applied to [BRAND]
MORE INVOLVEMENT…
Invites people to be a part of the development and refinement process
67%-48
Communicates openly and transparently about how products are sourced and made
21%
84%
-63
PEOPLE SAY IT IS IMPORTANT
GAP
GAP
18
brandshareTM 2014 © Daniel J. Edelman, Inc .
HOW THEY THINK BRANDS PERFORM 19%
Q5: You will be presented with things that a brand can do to build and maintain a connection with
you or customers like you. Thinking about brands that you like, how important is each of the
following to you? [5-Point Scale, Top 2 Box] Q11: Please select the statements that you feel apply
to [BRAND]. You may select as many or as few as you feel apply. [Average % who stated sharing
statements applied to [BRAND]
AND REAL CONVICTION FROM BRANDS
21%
58%-37
PEOPLE SAY IT IS IMPORTANT
15%
-37
52%
Uses its resources to drive change in the world
Has a clear mission and purpose at its core
GAP
GAP
19
brandshareTM 2014 © Daniel J. Edelman, Inc .
HOW THEY THINK BRANDS PERFORM
Q5: You will be presented with things that a brand can do to build and maintain a connection with
you or customers like you. Thinking about brands that you like, how important is each of the
following to you? [5-Point Scale, Top 2 Box] Q11: Please select the statements that you feel apply
to [BRAND]. You may select as many or as few as you feel apply. [Average % who stated sharing
statements applied to [BRAND]
AND REAL CONVICTION FROM BRANDS
25%
73%
-48
PEOPLE SAY IT IS IMPORTANT
18%
-53
71%
Uses its resources to drive change in the world
Has a clear mission and purpose at its core
GAPGAP
20
brandshareTM 2014 © Daniel J. Edelman, Inc .
HOW THEY THINK BRANDS PERFORM
Q5: You will be presented with things that a brand can do to build and maintain a connection with
you or customers like you. Thinking about brands that you like, how important is each of the
following to you? [5-Point Scale, Top 2 Box] Q11: Please select the statements that you feel apply
to [BRAND]. You may select as many or as few as you feel apply. [Average % who stated sharing
statements applied to [BRAND]
CONSUMERS ACROSS THE WORLD WANT MORE VALUABLE RELATIONSHIPSGAP BETWEEN IMPORTANCE AND BRAND PERFORMANCE
DEVELOPED DEVELOPING
-65 -53Respond quickly to people’s concerns and complaints
-54 -48Communicates openly and transparently about how products are sourced and made
-39 -45Gives many ways to ask questions and give opinions
-34 -43Invites people to be a part of the development and refinement process
-34 -41Has a clear mission and purpose at its core
-33 -38Uses its resources to drive change in the world
-32 -40Lets people know the company’s mission and vision for the future
-32 -46Takes a stand on the issues I care about most
21
brandshareTM 2014 © Daniel J. Edelman, Inc .
EVERY GENERATION DEMANDS MORE VALUE
MILLENNIALS GEN X BOOMER
-54 -62Respond quickly to people’s concerns and complaints -70
-49 -53Communicates openly and transparently about how products are sourced and made -57
-39 -42Gives many ways to ask questions and give opinions -41
-34 -37Invites people to be a part of the development and refinement process -38
-38 -38Has a clear mission and purpose at its core -34
-35 -38Uses its resources to drive change in the world -33
-32 -34Lets people know the company’s mission and vision for the future -34
-37 -38Takes a stand on the issues I care about most -33
22
GAP BETWEEN IMPORTANCE AND BRAND PERFORMANCE
brandshareTM 2014 © Daniel J. Edelman, Inc .
EMOTIONAL AND RATIONAL NEEDS ARE MERGING
23
brandshareTM 2014 © Daniel J. Edelman, Inc .
Rational needs were the reason to believe
MEETING EMOTIONAL NEEDS HAS BEEN ABOUT HOW BRANDS MAKE PEOPLE FEEL
24
brandshareTM 2014 © Daniel J. Edelman, Inc .
EMOTIONAL AND RATIONAL NEEDS ARE MERGING
.25 .3 .35 .4.2.15
RATIONAL EMOTIONAL
25
.3 .25 .2 .15.35.4
QUICKLY RESPONDS TO PEOPLE’S CONCERNS AND COMPLAINTS
ACTS WITH CLEAR MISSION AND PURPOSE AT ITS CORE
GIVES MANY WAYS TO ASK QUESTIONS AND GIVE OPINIONS
MOST IMPACT LEAST IMPACT MOST IMPACT
brandshareTM 2014 © Daniel J. Edelman, Inc .
EMOTIONAL AND RATIONAL NEEDS ARE MERGING
.25 .3 .35 .4.2.15
RATIONAL EMOTIONAL
26
.3 .25 .2 .15.35.4
ACTS WITH CLEAR MISSION AND PURPOSE AT ITS CORE
GIVES MANY WAYS TO ASK QUESTIONS AND GIVE OPINIONS
QUICKLY RESPONDS TO PEOPLE’S CONCERNS AND COMPLAINTS
MOST IMPACT LEAST IMPACT MOST IMPACT
brandshareTM 2014 © Daniel J. Edelman, Inc .
SHARE BRAND CONTENT
PURCHASE DEFENDRECOMMEND SHARE PERSONAL INFO
WILL NOT
BRAND BEHAVIORS THAT MEET EMOTIONAL AND RATIONAL NEEDS DELIVER GREATER PURCHASE, DEFENSE AND RECOMMENDATION
27
EMOTIONAL + RATIONAL
EMOTIONAL
RATIONAL
DEFINITELY WILL
brandshareTM 2014 © Daniel J. Edelman, Inc .
4
5
6
7
8
9
10
3
2
1
+9% +11%
+5%
SHARE BRAND CONTENT
PURCHASE DEFENDRECOMMEND SHARE PERSONAL INFO
WILL NOT
BRAND BEHAVIORS THAT MEET EMOTIONAL AND RATIONAL NEEDS DELIVER GREATER PURCHASE, DEFENSE AND RECOMMENDATION
28
EMOTIONAL + RATIONAL
EMOTIONAL
RATIONAL
DEFINITELY WILL
4
5
6
7
8
9
10
3
2
1
+9% +11%
+8%
brandshareTM 2014 © Daniel J. Edelman, Inc .
A NEW CONSUMER NEED STATE HAS EMERGED THAT DRIVES VALUE
29
brandshareTM 2014 © Daniel J. Edelman, Inc .
I feel good about this company’s commitment to its community
30
I feel the brand cares about things other than itself
I believe in the brand’s purpose
FULFILLING SOCIETAL NEEDS DRIVES BUSINESS OUTCOMES
brandshareTM 2014 © Daniel J. Edelman, Inc .
Q5: You will be presented with things that a brand can do to build and maintain a connection with you or
customers like you. Thinking about brands that you like, how important is it for brands to [communicate
openly and transparently about how products are sourced and made]? [5-Point Scale, Top 2 Box]
PEOPLE WANT INCREASED TRANSPARENCY
2013
54% 682014
%
31
Percentage of people who feel it is important for brands to communicate openly and transparently about how products are sourced and made
brandshareTM 2014 © Daniel J. Edelman, Inc .
Q5: You will be presented with things that a brand can do to build and maintain a
connection with you or customers like you. Thinking about brands that you like, how
important is it for brands to [communicate openly and transparently about how
products are sourced and made]? [5-Point Scale, Top 2 Box]
PEOPLE WANT INCREASED TRANSPARENCY
2013
73% 842014
%
32
Percentage of people who feel it is important for brands to communicate openly and transparently about how products are sourced and made
brandshareTM 2014 © Daniel J. Edelman, Inc .
Takes a stand on the issues I care about most
Uses its resources to drive change in the world
Invites people to be a part of the development and refinement process for products or services
Lets people know the company’s mission and vision for the future
SOCIETAL NEEDS EXTEND BEYOND TRADITIONAL DEFINITIONS OF CORPORATE RESPONSIBILITY AND SUSTAINABILITY
33
TOP FOUR BRAND BEHAVIORS THAT CORRELATE TO CONSUMERS’ SOCIETAL NEEDS
brandshareTM 2014 © Daniel J. Edelman, Inc .
Takes a stand on the issues I care about most
Uses its resources to drive change in the world
Invites people to help represent products and services to others
Invites people to be a part of the development and refinement process for products and services
SOCIETAL NEEDS EXTEND BEYOND TRADITIONAL DEFINITIONS OF CORPORATE RESPONSIBILITY AND SUSTAINABILITY
34
TOP TWO BRAND BEHAVIORS THAT CORRELATE TO CONSUMERS’ SOCIETAL NEEDS
brandshareTM 2014 © Daniel J. Edelman, Inc .
OTHER NON-TRADITIONAL BRAND BEHAVIORS THAT CORRELATE TO CONSUMERS’ SOCIETAL NEEDS
MEETING SOCIETAL NEEDS ACTIVATES SHARING PERSONAL INFO AND BRAND CONTENT
SHARE BRAND CONTENT
PURCHASE RECOMMEND DEFEND SHARE PERSONAL INFO
MOST IMPACT
NO IMPACT
35
SOCIETAL
0
.2
.25
.3
.35
.4
brandshareTM 2014 © Daniel J. Edelman, Inc .
MEETING SOCIETAL NEEDS ACTIVATES SHARING PERSONAL INFO AND BRAND CONTENT
SHARE BRAND CONTENT
PURCHASE RECOMMEND DEFEND SHARE PERSONAL INFO
MOST IMPACT
NO IMPACT
36
SOCIETAL
0
.2
.25
.3
.35
.4
brandshareTM 2014 © Daniel J. Edelman, Inc .
MEETING PEOPLE’S THREE NEEDS STATES COMPOUNDS BENEFIT TO BRANDS
PURCHASE+ 8%
DEFEND+10%
RECOMMEND+12%
SHARE PERSONAL INFO+11%
SHARE BRAND CONTENT+12%
37
RATIONAL
EMOTIONAL
SOCIETAL
brandshareTM 2014 © Daniel J. Edelman, Inc .
+
+
MEETING PEOPLE’S THREE NEEDS STATES COMPOUNDS BENEFIT TO BRANDS
PURCHASE+ 9%
DEFEND+12%
RECOMMEND+11%
SHARE PERSONAL INFO+12%
SHARE BRAND CONTENT+14%
38
RATIONAL
EMOTIONAL
SOCIETAL
brandshareTM 2014 © Daniel J. Edelman, Inc .
+
+
CREATING A VALUE EXCHANGE
39
brandshareTM 2014 © Daniel J. Edelman, Inc .
STORYTELLING &STORYSHARING
RECOGNIZE THAT PARTICIPATION COMES IN MANY FORMS
PROMOTE YOUR BRAND BY INVITING PEOPLE TO ACTIVELY PARTICIPATE IN WAYS THAT ARE MEANINGFUL TO THEM
40
OF RESPONDENTS THINK IT’S IMPORTANT TO INVITE PEOPLE TO BE A PART OF THE PRODUCT/SERVICE DEVELOPMENT AND REFINEMENT PROCESS2%5
brandshareTM 2014 © Daniel J. Edelman, Inc .
STORYTELLING &STORYSHARING
RECOGNIZE THAT PARTICIPATION COMES IN MANY FORMS
PROMOTE YOUR BRAND BY INVITING PEOPLE TO ACTIVELY PARTICIPATE IN WAYS THAT ARE MEANINGFUL TO THEM
41
OF RESPONDENTS THINK IT’S IMPORTANT TO INVITE PEOPLE TO BE A PART OF THE PRODUCT/SERVICE DEVELOPMENT AND REFINEMENT PROCESS%67
brandshareTM 2014 © Daniel J. Edelman, Inc .
ALIGN MARKETING AND CORPORATE COMMUNICATIONS EFFORTS TO ENSURE YOUR STORY IS HEARD AND SHARED
EVOLVE YOUR BRAND TO INCLUDE BOTH BRAND PROMISE AND BRAND PURPOSE
CONVICTION & COMMITMENT
OF CONSUMERS BELIEVEBRANDS MUST HAVE A CLEAR REASON OR PURPOSE80%
42
brandshareTM 2014 © Daniel J. Edelman, Inc .
ALIGN MARKETING AND CORPORATE COMMUNICATIONS EFFORTS TO ENSURE YOUR STORY IS HEARD AND SHARED
EVOLVE YOUR BRAND TO INCLUDE BOTH BRAND PROMISE AND BRAND PURPOSE
CONVICTION & COMMITMENT
OF CONSUMERS BELIEVEBRANDS MUST HAVE A CLEAR REASON OR PURPOSE80%
43
brandshareTM 2014 © Daniel J. Edelman, Inc .
LISTEN, LEARN AND ADAPT BASED ON WHAT PEOPLE TELL YOU ABOUT THEMSELVES AND YOUR BRAND
PROTECT YOUR BRAND BY INCORPORATING CUSTOMER SERVICE INTO YOUR MARKETING STRATEGY
ALWAYS ON & ALWAYS ADAPTING
OF RESPONDENTS FEEL THEY SHOULD BE ABLE TO COMMUNICATE AND INTERACT WITH BRANDS QUICKLY, IN REAL-TIME87%
44
brandshareTM 2014 © Daniel J. Edelman, Inc .
LISTEN, LEARN AND ADAPT BASED ON WHAT PEOPLE TELL YOU ABOUT THEMSELVES AND YOUR BRAND
PROTECT YOUR BRAND BY INCORPORATING CUSTOMER SERVICE INTO YOUR MARKETING STRATEGY
ALWAYS ON & ALWAYS ADAPTING
OF RESPONDENTS FEEL THEY SHOULD BE ABLE TO COMMUNICATE AND INTERACT WITH BRANDS QUICKLY, IN REAL-TIME87%
45
brandshareTM 2014 © Daniel J. Edelman, Inc .
CONSUMER ACTIONS
CONSUMER NEEDS
RECOMMEND
DEFEND
PURCHASE
46
BRANDBEHAVIORS
RATIONAL
EMOTIONAL
MOVING FROM A TRANSACTION-BASED VALUE EQUATION…
brandshareTM 2014 © Daniel J. Edelman, Inc .
CONSUMER ACTIONS
CONSUMER NEEDS
RECOMMEND
DEFEND
PURCHASE
47
BRANDBEHAVIORS
RATIONAL
EMOTIONAL
SHARE PURCHASE
INFO
SHARE BRAND
CONTENT
SOCIETAL
TO ONE THAT’S DYNAMIC AND MULTIDIMENSIONAL
brandshareTM 2014 © Daniel J. Edelman, Inc .
OBRIGADO
Copyright ©2014 Daniel J. Edelman, Inc. All rights reserved. All information contained herein is confidential and proprietary to Daniel J. Edelman, inc. (“Edelman”).
@EdelmanSig
www.edelmansignifica.com
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