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How Brands and People Create Value Exchange

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Information about How Brands and People Create Value Exchange
Business

Published on October 15, 2014

Author: EdelmanInsights

Source: slideshare.net

Description

Edelman’s second annual brandshare study revealed brands are failing to develop mutually beneficial relationships with consumers.
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2. A VALUE EXCHANGE STARTS WITH PEOPLE’S NEEDS CONSUMER NEEDS 2 People’s needs have changed due to an increasingly complex and interconnected world. brandshareTM 2014 © Daniel J. Edelman, Inc .

3. 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 .

4. AND THE DELIVERY OF MUTUAL BENEFIT BRAND BEHAVIORS CONSUMER NEEDS 4 VALUE Quantifiable value exchange EXCHANGE based on shared contribution and benefit. brandshareTM 2014 © Daniel J. Edelman, Inc .

5. PEOPLE General and influencer consumer populations who report at least a minimal level ofengagement* with brands 15,000 BRANDS 48 multi-national brands, plus approx. 15 “local” brands per country IN 12 COUNTRIES AUSTRALIABRAZIL CANADA CHINA FRANCE GERMANY INDIA JAPAN MEXICO TECH + ELECTRONICS TELECOMMUNICATIONS FOOD SOFT DRINKS + COFFEE BEER + SPIRITS CONSUMER HEALTH CPG/FMCG RETAIL FINANCIAL SERVICES ENERGY AUTOMOTIVE INDUSTRY SECTORS 30 MINUTE DURATION 199 ACROSS ELEVEN THROUGH ONE ONLINE SURVEY 5 SECOND ANNUAL BRANDSHARE STUDY NETHERLANDS UK USA brandshareTM2014© Daniel J. Edelman, Inc. *To participate in the survey, respondents had to report participating in a minimum of one brand engaging activity in the last 12 months. Brand engaging activities might include things like visiting a brand website, attending a brand sponsored event, following a brand on Twitter, wearing branded clothing, etc.

6. WE COMPARED CONSUMER NEEDS… 6 I can count on the brand to deliver consistent products or services 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 3 4 5 I feel good buying this company’s products or services 6 7 I believe in the 8 brand’s purpose 9 brandshareTM 2014 © Daniel J. Edelman, Inc .

7. 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 1 purpose at its core 2 3 4 5 6 Invites consumer participation in product development 7 8 9 14 13 Uses its resources to drive 12 change in the world 11 10 brandshareTM 2014 © Daniel J. Edelman, Inc .

8. AND EVALUATED HOW THEY COMBINE TO DELIVER BUSINESS OUTCOMES 8 Purchase Recommend Defend 1 2 3 Share Personal Information Share Brand Content 4 5 brandshareTM2014© Daniel J. Edelman, Inc.

9. WE LEARNED THERE IS: Little value for the consumer in the current value exchange Meeting societal needs delivers real business value Emotional and rational needs are merging 9 brandshareTM 2014 © Daniel J. Edelman, Inc .

10. LITTLE VALUE FOR THE CONSUMER IN THE CURRENT VALUE EXCHANGE 10 brandshareTM 2014 © Daniel J. Edelman, Inc .

11. PEOPLE CONTRIBUTE. BRANDS BENEFIT. THERE IS LITTLE VALUE EXCHANGE. One-sided relationship Shared 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 .

12. PEOPLE WANT MORE VALUE FROM BRAND RELATIONSHIPS Want more meaningful relationships with brands 87% 17% Think brands deliver 12 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 .

13. 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 13 brandshareTM2014© Daniel J. Edelman, Inc.

14. 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 16% 52% -36 Communicates openly and transparently about how products are sourced and made 15% 68% -53 PEOPLE SAY IT IS IMPORTANT GAP GAP 14 brandshareTM2014© Daniel J. Edelman, Inc. HOW THEY THINK BRANDS PERFORM

15. 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 15 brandshareTM2014© Daniel J. Edelman, Inc. HOW THEY THINK BRANDS PERFORM

16. CONSUMERS ACROSS THE WORLD WANT MORE VALUABLE RELATIONSHIPS GAP BETWEEN IMPORTANCE AND BRAND PERFORMANCE DEVELOPED DEVELOPING Respond quickly to people’s concerns and complaints -65 -53 Communicates openly and transparently about how products are sourced and made -54 -48 Gives many ways to ask questions and give opinions -39 -45 Invites people to be a part of the development and refinement process -34 -43 Has a clear mission and purpose at its core -34 -41 Uses its resources to drive change in the world -33 -38 Lets people know the company’s mission and vision for the future -32 -40 Takes a stand on the issues I care about most -32 -46 16 brandshareTM 2014 © Daniel J. Edelman, Inc .

17. EVERY GENERATION DEMANDS MORE VALUE MILLENNIALS GEN X BOOMER Respond quickly to people’s concerns and complaints -54 -62 -70 Communicates openly and transparently about how products are sourced and made -49 -53 -57 Gives many ways to ask questions and give opinions -39 -42 -41 Invites people to be a part of the development and refinement process -34 -37 -38 Has a clear mission and purpose at its core -38 -38 -34 Uses its resources to drive change in the world -35 -38 -33 Lets people know the company’s mission and vision for the future -32 -34 -34 Takes a stand on the issues I care about most -37 -38 -33 17 GAP BETWEEN IMPORTANCE AND BRAND PERFORMANCE brandshareTM 2014 © Daniel J. Edelman, Inc .

18. EMOTIONAL AND RATIONAL NEEDS ARE MERGING 18 brandshareTM 2014 © Daniel J. Edelman, Inc .

19. Rational needs were the reason to believe MEETING EMOTIONAL NEEDS HAS BEEN ABOUT HOW BRANDS MAKE PEOPLE FEEL 19 brandshareTM 2014 © Daniel J. Edelman, Inc .

20. EMOTIONAL AND RATIONAL NEEDS ARE MERGING .15 .2 .25 .3 .35 .4 RATIONAL EMOTIONAL 20 .4 .35 .3 .25 .2 .15 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 .

21. SHARE BRAND CONTENT PURCHASE RECOMMEND DEFEND SHARE PERSONAL INFO WILL NOT BRAND BEHAVIORS THAT MEET EMOTIONAL AND RATIONAL NEEDS DELIVER GREATER PURCHASE, DEFENSE AND RECOMMENDATION 21 EMOTIONAL + RATIONAL EMOTIONAL RATIONAL DEFINITELY WILL 4 5 6 7 8 9 10 3 2 1 +9% +11% +5% brandshareTM 2014 © Daniel J. Edelman, Inc .

22. MEETING SOCIETAL NEEDS DELIVERS REAL BUSINESS VALUE 22 brandshareTM 2014 © Daniel J. Edelman, Inc .

23. I feel good about this company’s commitment to its community 23 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 .

24. 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% 68 2014 % 24 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 .

25. Takes a stand on the issues I care about most Uses its resources to drive changein the world Invites people to be a part of the developmentand refinement processfor products or services Lets people know the company’s mission and visionfor the future SOCIETAL NEEDS EXTEND BEYOND TRADITIONAL DEFINITIONS OF CORPORATE RESPONSIBILITY AND SUSTAINABILITY 25 TOP FOUR BRAND BEHAVIORS THAT CORRELATE TO CONSUMERS’ SOCIETAL NEEDS brandshareTM2014© Daniel J. Edelman, Inc.

26. MEETING SOCIETAL NEEDS ACTIVATES SHARING PERSONAL INFO AND BRAND CONTENT SHARE BRAND CONTENT PURCHASE RECOMMEND DEFEND SHARE PERSONAL INFO MOST IMPACT NO IMPACT 26 SOCIETAL 0 .2 .25 .3 .35 .4 brandshareTM 2014 © Daniel J. Edelman, Inc .

27. MEETING PEOPLE’S THREE NEEDS STATES COMPOUNDS BENEFIT TO BRANDS + 8% PURCHASE +10% DEFEND +12% RECOMMEND +11% SHARE PERSONAL INFO +12% SHARE BRAND CONTENT 27 RATIONAL EMOTIONAL SOCIETAL brandshareTM 2014 © Daniel J. Edelman, Inc . + +

28. CREATING A VALUE EXCHANGE 28 brandshareTM 2014 © Daniel J. Edelman, Inc .

29. 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 29 OF RESPONDENTS THINK IT’S IMPORTANT TO INVITE PEOPLE TO BE A PART OF THE PRODUCT/SERVICE DEVELOPMENT AND REFINEMENT PROCESS 2% 5 brandshareTM 2014 © Daniel J. Edelman, Inc .

30. 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 BELIEVE BRANDS MUST HAVE A CLEAR REASON OR PURPOSE 80% 30 brandshareTM 2014 © Daniel J. Edelman, Inc .

31. 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-TIME 87% 31 brandshareTM 2014 © Daniel J. Edelman, Inc .

32. CONSUMER ACTIONS CONSUMER NEEDS RECOMMEND DEFEND PURCHASE 32 BRAND BEHAVIORS RATIONAL EMOTIONAL MOVING FROM A TRANSACTION-BASED VALUE EQUATION… brandshareTM 2014 © Daniel J. Edelman, Inc .

33. CONSUMER ACTIONS CONSUMER NEEDS RECOMMEND DEFEND PURCHASE 33 BRAND BEHAVIORS RATIONAL EMOTIONAL SHARE PURCHASE INFO SHARE BRAND CONTENT SOCIETAL TO ONE THAT’S DYNAMIC AND MULTIDIMENSIONAL brandshareTM 2014 © Daniel J. Edelman, Inc . + +

34. THANK YOU Copyright ©2014 Daniel J. Edelman, Inc. All rights reserved. All information contained herein is confidential and proprietary to Daniel J. Edelman, inc. (“Edelman”).

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