Marketing News
Why customers now expect brands to do more than just deliver value
New research by the Chartered Institute of Marketing shows that customer expectations of brands are changing at speed, with a clear prioritisation of ‘convenience’, ‘value’ and ‘values’ at the heart of their decision-making process.
The survey, which explored the views of 500 UK in-house and agency marketing professionals, reveals that 59% of marketers are finding it harder to predict the fast-changing priorities of their customers.
In fact, 9 out of 10 marketers (91%) claim their brand and business model will need to evolve to keep pace and more than a quarter
(28%), believe that their brand is out of touch with the changing needs of their customers.
How and why are customer priorities changing?
The study shows that the pandemic and rising inflation have increased customers’ expectations of brands. They now want brands to deliver more than just value and believe that companies also need to actively engage with societal and political issues.
According to marketers, convenience is the #1 priority among customers right now (83%) with value for money and environmental impact are tied in 2nd place (78%) in terms of their fast-changing priorities.
This is followed by companies’ performance on diversity and inclusion (74%) and shopping locally (73%). However, having a physical store to visit was one of the least important needs of customers (38%) as the notable trend towards shopping online continues to grow.
Feeling that the companies they buy from are aligned to customer values (71%), is also important, according to marketers. That same figure applies when customers have the option to buy-now-pay-later (71%).
Access to new online ways to buy or interact with brands (67%) also needs to be taken into consideration, while brand loyalty (64%), and being able to speak to a human being rather than interacting online (62%), are also key factors.
What’s clear from the research is that it takes enormous skill to balance the evolving needs of customers that want convenience and value right now, while meeting business objectives and taking actions that address societal, political and environmental issues, that are important to many and not just the few.
How can marketers adapt?
Innovation will become central to any successful marketing strategy as brands seek to service customers’ changing needs in the current economic climate.
Marketers can lead the charge by investing time in getting to know their customers and carefully consider what matters to them the most. Understanding the importance of brand perception in evolving times and making a case for more provocative thinking to challenge complacency will be key.
More than three quarters (78%) of marketers believe it is their role to represent the customers within their business, and if professionals are to be able to adapt to complex operating environments that are changing at speed, then they will need to strike a balance between convenience, value and their corporate stance on a wide range of issues within their communications.
Leading brands
Marketers really need to demonstrate what value companies can add and consider the broader actions that sit behind campaigns to make a difference.
Some of Britain’s best-known brands often coast on the power of their name and performance while agile, younger, and tech-led companies are bucking that trend.
Ocado is known to many as a disruptor, the simplicity and the intuitive nature of its online platform makes it appealing to new customers as does its mission: ‘change the way the world shops for good; to harness the unlimited potential of technology for people and the planet’. Deliveroo quickly followed and now not only offers restaurant food delivered straight to the door for convenience, but it’s also now focussing on new markets such as grocery too.
The demand for immunity and gut health products has seen companies like Danone, Arla and Alpro change the tone of their marketing by focusing on the goodness within their plant-based products for protein lovers that don’t damage the environment through deforestation.
Whilst Yeo Valley encourages it customers to get on ‘Yeobikes’ to cut carbon footprints through its free giveaways. As well as offering intrinsically high-quality products, their marketing is designed to instil a feel-good factor.
And John Lewis Partnership’s transition from its popular ‘Never Knowingly Undersold’ to one that demonstrates ‘quality’ and ‘value’ is a direct response to customer needs given rising inflation.
Reading / Sources
The First Instalment of CIM’s Impact of Marketing 2022 Report Series CIM
