Brand advocates are the most important salesmen a product has.
Graphic courtesy of The Times & Bain
Personal recommendations ensure brand preference, even in the toughest of times.
A survey of 6000 shoppers by Bain reveals that consumers are more likely to “treat themselves” by spending more on premium and luxury brands during these tough economic times. Bain note that consumers recognise the there is an emotional pull by these brands, who are deriving reassurance of quality in their purchases.
In tough circumstances, consumers are cutting back on big ticket purchases (think Best Buy & Comet issues), are holidaying at home (BA reports another drop in passenger numbers) and in terms of homes, they are either holding on and not moving (stagnant housing market) or can’t get mortgages to get on the housing ladder and will continue (or even restart) to rent (today’s Grainger report indicates up to 50% of Brits will soon be renting).
While these are understandable indicators of such hard economic times, many consumers want to afford themselves to the occasional “treat”. When they do, in a surprisingly wide range of categories – including fragrances, restaurants and personal technology – they look to brand-influenced decisions. What is interesting in the Bain study, is the confirmation that
- advertising continues to diminish as an influence on 2st Century brand choice
- personal recommendations are the most important influence
- online activity is important but not as important as the massive shifts in marketing expenditure to internet expenditure suggests.
As Bain says ‘Companies overestimate the importance of online and are underestimating the importance of advocacy. A lot of companies have spent a lot of money on the internet but they should be spending more on getting people to be influenced by their friends and family”.
Brands can succeed next year despite the gloom and doom, by creating advocates, by listening to and creating dialogue with these consumers and by recognising that by doing so, consumers imbue these brands with quality associations, beyond the basic product attributes. Brands that do this understand the new customer journey has many touchpoints that require new thinking and smaller, consistent actions that reinforce the expectations of the brand promise.