The overall strength of customers’ relationships with brands−and a likelihood to share information−is declining, according to a new report from Mindshare World.
In a section titled, “Brands in Crisis,” within its latest “Culture Vulture” report, Mindshare reveals that in 2013 less than half (47%) of respondents agreed with the following statement: “When I see or hear something interesting about a brand, I like to pass it on.”
That figure is down from 66% of consumers in 2010, 62% in 2011, and 53% in 2012. What’s more, 65% indicated they would now purchase a generic product that is on sale instead of the branded version of the product they normally use. That compares to 57% who felt that way prior to the recession.
According to the research, 59% of brands have seen a “bonding” decline in the past five years.
Mark Potts, Head of Insights for Mindshare, offered Loyalty360 four hypotheses for why consumers’ brand love is declining:
In the recession, many consumers switched to generic brands to save money and found them to be at least nearly as good as name brands. This may have eroded some of the strength of name brands
Advertisers cut back ad spend during the recession, which hasn’t returned to pre-recessionary levels. We’re investing less in brands which could have eroded their value
The consumer expectation set of products/services may have shifted due to Apple, Amazon, Google, etc. These companies have provided simple, highly useful, high quality, and convenient products/services/experiences far beyond what existed before. Other brands haven’t caught up with consumers’ heightened expectations
Online reviews may have reduced the need to use brands as a shortcut for quality. Having more access to others’ experiences with a product gives us more information than we previously had and, therefore, we may not need to use brand names to lower the risk of purchase.
The report also offered advice for brands to reconnect with customers:
Deliver experience: In product, at distribution, in media. Create experiences consumers want, not what you want them to have. Partner where necessary.
Exceed expectations: Go further than the competition in content, experiences, media. KPI on consumer ‘delight’. Measure and track expectations.
Clearly differentiate: Constantly identify white spaces. Create a structure that accepts and harnesses failure. Differentiate within content and media choices.
Create utility: Establish a goal to make consumers’ lives better. Create and act on deep understanding of consumer needs and behaviors. Build around the new tools (e.g. mobility).
Potts said that to build stronger brands, companies need to understand and meet consumers’ elevated expectations (like Google, Apple, Amazon, etc. have changed the consumer expectation set).
“Deliver simple, high quality, consistent experiences across marketing touch points,” Potts explained. “It’s what the brands that have seen their customer relationships strengthening are doing (think JetBlue). Seek uniqueness. We’re living in a more complex world where it’s harder to stand out.”