We keep hearing about the fact that the recession is the perfect time to be planning for an upturn, and that the future calls for an entirely different approach - to business, consumers and brands. Fair enough - but what exactly should this ‘different approach' look like? What foundations should brands be putting in place to ensure they meet the needs of a changed environment and, if the experts are to be believed, a drastically changed audience?
Back to basics
The answer to these questions lies, as it often does in marketing, with the consumer. The reason brands need to change is because the consumer has changed. The irresponsible, maverick and self-serving behaviour that led to the current economic meltdown has left consumers jaded and distrustful of corporate organisations. The resulting tough financial times have reminded people that it is possible to go without, and that material stuff is, well, just stuff. The high-flying bling culture of consumerism was brought down to earth with a sudden and abrupt bump, and its got people thinking. What is really valuable? What is really lasting? What is really trustworthy and worthwhile?
The answers people are coming up with bear some investigation. Repulsed by corporate and political greed, consumers now value generosity, transparency and honesty. This is a consumer who connects with brands and companies that understand the importance of give and take, of sharing and collaboration.
There is also an increased emphasis on sustainability. The financial crisis has reminded everyone that nothing and no one is invincible, and that everyone is accountable. Whether you're talking about the global warming of the planet, fair trade for local suppliers or giving back to communities, consumers are demanding that politicians, businesses and brands behave in a responsible way that takes into account the long-term effects of their actions on all stakeholders.
As Dion Chang of FluxTrends points out in Predictions for 2009, “The era of bling, disposable fashion and conspicuous consumption has made way for cradle-to-cradle design systems, recycling and timeless (read not wasteful) design.” In essence, what consumers want are simpler, more sustainable and less costly alternatives. Even those who are financially well-off have embraced the idea of simplifying and downsizing. What defines status appears to be evolving.
Being part of the solution
While corporates have been castigated for causing many of society's current problems, the opportunity also exists for them to be part of the solution. Those that embrace this opportunity early on will gain a competitive edge. But they need to show consumers that they understand that things have changed, and that they are ready to respond appropriately. And what better place to reflect this than in one's brand? This is as much about what we do as how we do it. Below are some of the things brands may want to consider to ensure they connect with the new consumer.
1. Be a generous brand.
This is not about special offers or giving consumers a free “something you don't really want”. Rather, it's about showing you care about all people and all things - no strings attached. Trend watching.com calls it “free love”.
To do it well you need to understand what your consumers really want and value. UK mobile phone network provider, Orange, offers rechargers in the back of black London cabs, for use by anyone, on any network. Innocent Drinks invites everyone to come to their free music festival, Fruitstock. The Apple Store in New York gives everyone unlimited free internet access, free training and software demos every day on their premises.
2. Be an authentic brand.
Consumers are more cynical than ever before. They (rightly) believe that corporations have got us into this mess and they're looking for brands that are transparent, open, honest and free of rubbish. Just as consumers have gone back to basics, brands need to get back to the basics of what they can honestly and credibly deliver.
This is really about walking the talk - and don't think you can trick anyone into thinking you are what you aren't. There is nowhere left to hide. The internet and the rise of consumer activism on social networking sites means everyone is connected, and has access to information, almost all of the time. The more scandalous the information, the more likely it is to rapidly make the rounds. Consumers are sharing more about themselves online and they expect brands to do the same.
So really deliver what you promise to deliver. And when you do make a mistake (we all do), admit to it - rather you break the news than a citizen journalist.
3. Be a brand that strives for sustainable innovation.
If innovation used to mean splurging, upgrading and gimmicks, sustainable innovation is about practical, efficient and responsible improvements that make sense and add value. Its about giving people something that will make a real difference to their lives, and not something that will give brand managers cause for an exciting presentation to the board at the annual planning session.
To do this, we need to stop thinking about more products and start thinking better products. Innovation planning and development needs to strike a better balance between social, environmental and economic factors for both short- and long-term performance.
