Additional audience Q&As
Meaningful Brands – 13th September 2023
What are the metrics you’re using to measure meaning?
The Meaningful Brand survey covers a lot of metrics – a wide range of different outcomes and the pillar performance scores (for Functional, Personal and Collective). We also have a one number metric of Meaningfulness called the Meaningful Brand Index (MBI). 50% of this MBI score is made up of performance on the pillar attributes (Functional, Personal and Collective) and the other 50% of the score is made up of performance against three key brand equity KPIs (overall impression, purchase intent & advocacy). A lot of the work we do with MB is to subsequently diagnose why brands & categories achieve the scores they do on the Meaningful Brand Index by breaking it down into its constituent parts.
Do you think Collective doesn’t score well because it’s really a reason NOT to buy rather than to buy something (particularly outside of food and utility)?
Potentially, yes! Not agreeing with a brands ethics or practices could certainly be a barrier to purchase, especially given that we know people are holding brands to account more nowadays. Going back to the hierarchy of needs type model – it makes sense that brands will be purchased primarily because they deliver on the basic functional needs of product and service, so Collective will always be a lesser driver of a metric such as equity. But interestingly, we do find that, as with Personal, Collective is also a relatively strong driver of price premium suggesting that while it might not be the primary reason why people choose a brand to begin with, it does mean they are prepared to pay more for it if they are aligned with the brand’s principles.
The deck we presented also focused on the total adult population and as we mentioned there are some nuances by audience. We know sustainability is more important to younger audiences and also higher income audiences who may have the luxury of making more measured purchase decisions.
I’m interested why grocery is a high meaning category. It seems more akin to utilities than apparel in terms of consumer relationship. Could you give some insight?
We think it has to do with the frequency of interaction and also the ubiquitous nature of grocery brands. We also found that grocery brands did particularly well in our 2020 fieldwork, where supermarkets became the ‘hero’ of the COVID-19 period in terms of supporting consumers functional and personal needs and there may be a legacy effect of this. Based on the prior two points, brands in the grocery category score well on both Pillar performance and brand equity which explains why they score so well on overall meaningfulness.
With food inflation having been so high recently it will be interesting to see whether this impacts on meaningfulness of this category going forward.
How much does the data skew based on the demographic age groups? E.g. apparel feels heavily driven by Gen Z.
There are some nuances in the results by age group, depending on the category. In the example of apparel, at a topline level, this category does have slightly higher meaning among 18-34s vs. all adults, which could be put down to greater category engagement. But in reality, the difference isn’t huge, as the MBi score is only 2% higher among 18-34s. There’s a bigger uplift in Apparel scores for positive contribution to Quality of Life among 18-34s, where scores are 17% higher among the younger demographic vs. all adults. This can be attributed to the Apparel category delivering more strongly on personal benefits specifically for the younger audience (+10%).
Connected Commerce – 6th July 2023
How do you create brand distinction in the commerce journey while at the same time ensuring that the experience is frictionless?
The opportunity to test content creation for ecommerce sales is valuable from a social commerce perspective. Brands on platforms like TikTok, Instagram and Twitter have adapted their creative and communication strategies to cater to the unique differences of these platforms. This results in a more conversational and engaging experience for consumers, making the journey to sales more natural. This approach has allowed brands to adapt their creative and communication strategies to better engage with consumers and drive sales.
Gymshark is an example of a new brand creating modern communities through experience in retail. How can traditional, less nimble retailers learn from them?
The Gymshark example highlights the importance of using data to inform decisions, rather than blindly following it. Grounding inspiration is crucial in achieving this goal. For instance, a furniture retailer tried to close physical stores due to the data suggesting that online purchases were more popular. They closed a few stores in southeast England, leading to a drop in online sales. This shift in purchasing behavior was influenced by the fact that people were no longer buying online.
Instead of relying solely on retail data, supply data and customer data, the retailer delved deeper into customer experiences and realized that customers enjoyed visiting the store, experiencing the store, and making purchases online. This approach allowed the retailer to better understand and cater to their customers' preferences and preferences.
Over the last few years people have been talking about death of the high street - do we think this trend is reversing?
While it is true that the rise of e-commerce has presented significant challenges to traditional brick-and-mortar stores, it may be premature to declare the death of the high street. The true narrative is about evolution, not extinction. Digital platforms offer convenience and a vast selection, but they cannot replace the tactile and immersive experience offered by retail locations. Brands that can effectively combine the digital and physical worlds will be the most successful. Consider Warby Parker, an eyewear brand that originated online but has since expanded into brick-and-mortar retail, recognising the significance of providing customers with a place to try on their glasses in person. It is not a reversal of the decline of the high street, but rather a reinvention of what it can be.
Gymshark was mentioned earlier - who else is doing in-store experience well?
Brands have found ways to adapt to the changing needs of their customers post-COVID. By understanding their customers and tailoring their shopping experiences, retailers can create a more immersive and enjoyable shopping experience.
Many brands have adapted to provide multisensory experiences in their stores. Balenciaga stores often feature fur and smooth surfaces, which helps customers understand why they want to be next to a product. This approach allows potential customers to feel like they are experiencing the products and not just the store itself.
The COVID pandemic also exposed insights about the need for a more immersive shopping experience. Korea realised that some customers preferred shopping when there was no noise, so they created an experience between the hours of 1pm and 3pm where people could shop in silence.
Question for Stephan, do you see the surge in interests on TikTok aligning with an increase in sales of more “unique” products?
There has been a surge in unique products, such as Rosemary oil, which have become more common. This has led to a surge in product bundling, where creators and the community discuss the best combinations of products. This has been an effective way for sellers to increase their GMV (gross merchandise volume) on social platforms. The increase in unique products and the combination of products has led to a more diverse and original product experience for users.
Can you talk about Gen AI’s expected impact on retail?
Gen AI has the potential to revolutionise the retail industry. Utilising artificial intelligence to provide highly personalised purchasing experiences. Using data analytics, AI can assist in predicting individual customer behaviour, enabling retailers to curate and provide precisely what each consumer desires. This level of customization has numerous benefits for retailers, including increased customer satisfaction, customer loyalty, and sales. Netflix is a great example of AI's function in personalised retail. Their AI-powered recommendation engine has become a pillar of their success, as it provides users with personalised content recommendations, thereby boosting user engagement and satisfaction.
In addition, Gen AI will revolutionise how brands operate by introducing new methods for stock forecasting, enhancing analytic insights, and introducing numerous other innovations currently under development.
What are your thoughts on product sampling and the difficulty of measuring success from it?
Product sampling is a classic marketing tactic, but measuring its efficacy can be difficult. Historically, marketers may have focused solely on whether product sampling directly leads to a sale. However, in the interconnected world of today, this approach is inadequate. Instead, product sampling should be viewed as a long-term investment. Metrics such as customer engagement, customer feedback, social media mentions, and repeat purchase rates can provide a more comprehensive view of product sampling's efficacy. Consider Birchbox's subscription-based sampling model, which has effectively created a strong client base and brand loyalty. Sampling is about more than just immediate sales conversion; it is also about developing long-lasting customer relationships, enhancing brand image, and gathering consumer insights.
If you see your brand catering to both retail and DTC how do you establish which to give more attention to?
To optimize your business, follow data to understand where your money and lifetime value come from. CDPs and CRM data can help answer this question, as it helps identify customers who spend in both physical retail experiences and those who spend less but more frequently. Comparing these groups can help you make informed decisions and create a strategy based on the data. This approach aligns with the original point about focus, allowing you to make informed decisions and create a strategy based on the data.
What would your advice be to retailers if the customer journey starts online with the intention of finishing in store?
Build your experience around driving to the store. Customer service and UX on your website become crucial components of the customer journey. What does your website need to look like to convince a customer to speak to someone, whether that is online through a chat window or by booking an appointment virtually for an in-store visit? Once someone has booked an in-store visit, does a sales associate give them a courtesy phone call or send through a questionnaire so that when they get to the store, they have the best possible interactions with someone who already knows who they are and what they are looking for? Imagine walking into a shop where the person knows your name and what you’re interested in purchasing without you having to explain in detail. They have a number of items prepared for you to look at and try on that fit exactly as they have found the right size prior to your arrival.
From an e-commerce perspective, what do consumers value more, the content they see around the product or the proposed benefits attached to it?
Both content and proposed benefits are significant from an e-commerce standpoint and serve distinct functions. The narrative and context of a product are shaped by its surrounding content. It contributes to the development of the brand persona and creates a distinct value proposition for the product. However, the proposed benefits of a product are frequently what influences consumers' purchasing decisions. They want to know how the product will address their problems, improve their lives, or simply bring them pleasure. Apple is a brand that combines these two characteristics superbly. Apple's focus on innovative features and user-friendly interfaces ensures that its products are relevant and appealing to consumers, while its spectacular product visuals and engaging narrative content establish a strong brand persona.
Consumers wants and needs have shifted since covid. Do you think these changes are here to stay?
The market for a blended retail experience is expected to grow, as consumers increasingly seek physical, touchable, and personal experiences. However, consumer tolerance for friction, lack of relevance, and personalization is decreasing. Bridging the physical and online experience, both from a messaging and purchasing perspective is a permanent shift. It is crucial to drive brand equity and understand how people feel about a brand. Purchase decisions are often rational but also emotional, and meaningful brands connect with consumers through meaningful content. Understanding the blended experience is essential, but the marketing team must maintain the brand top of mind.