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www.SustainableBrands.com

Customer Demand and Behavior: New Insights - Dec 2014

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Page 1: Customer Demand and Behavior: New Insights - Dec 2014

www.SustainableBrands.com

Page 2: Customer Demand and Behavior: New Insights - Dec 2014

www.SustainableBrands.com

Page 3: Customer Demand and Behavior: New Insights - Dec 2014

www.SustainableBrands.com

Page 4: Customer Demand and Behavior: New Insights - Dec 2014
Page 5: Customer Demand and Behavior: New Insights - Dec 2014

• HELP drive sales for more sustainable

products, services and business models

• Help you achieve your consumer use-based

sustainability goals

Page 6: Customer Demand and Behavior: New Insights - Dec 2014

• Four Updates on developing movements (and

how people are tapping into them)

• Six more potentially under-tapped secrets

Page 7: Customer Demand and Behavior: New Insights - Dec 2014

1. Rise of the Aspirationals

2. Rise of the crowd

3. Rise of creative social activism

4. Rise of observed behavior & quantified self

Page 8: Customer Demand and Behavior: New Insights - Dec 2014

Source: BBMG & GlobeScan

• Manifesto: Give them something to believe in

• Badge: Give them a community to belong to

• Megaphone: Amplify their voice & creativity

• Currency: Give them share-worthy status

• Rally: Give them a platform for impact

Page 9: Customer Demand and Behavior: New Insights - Dec 2014

Source: Heineken

“Dance More, Drink

Slowly”

4.3 million views on

Youtube to date

More Status/Fun,

Healthier, More

Sustainable Living

Page 10: Customer Demand and Behavior: New Insights - Dec 2014

Source: [Jeremiah Owyang]

• The crowd is becoming like a company –

bypassing inefficiency, decoupling growth from

resource use

• Brands can use these same tools to enable

change, drive revenue

Page 11: Customer Demand and Behavior: New Insights - Dec 2014

Source: [SB]

TaskRabbit traffic

increases visits and

revenue for Walgreens

Walgreens, in turn,

provides predictable

work for TaskRabbits

Walgreens partners with

TaskRabbit for home

deliveries

Page 12: Customer Demand and Behavior: New Insights - Dec 2014

Source: Ty Montague

• Have a story

• Imbue your story with purpose beyond

commercial aspiration

• Identify an unsustainable enemy

• Compliment your story with action

• (Make it iconic, transformative action)

• Help customers participate in the story

Page 13: Customer Demand and Behavior: New Insights - Dec 2014

Source: [Intermarché]

+ 300% of brand

mentions on social

media

+ 24% overall store

traffic

1200 kg per store sold in

2 days

Page 14: Customer Demand and Behavior: New Insights - Dec 2014

Sources: [CVS 1], [ CVS 2], [CVS 3]

“The sale of tobacco products is inconsistent with

our purpose”

“The CVS Effect”

218 million print and broadcast impressions and

200,000 social media impressions

Revenue jumped 9.7% in latest quarter from the

same period a year ago

Page 15: Customer Demand and Behavior: New Insights - Dec 2014

Source: [SB]

“People were systematically underestimating their

calories in food items. So when they saw the

information on the board, they were surprised and

then reacted accordingly”

“Consumers can and will use this information if it’s

useful to them”

Purchased calories fell by 6% on average, and

changes in behavior stuck with people

Page 16: Customer Demand and Behavior: New Insights - Dec 2014

1. Willingness to pay more may be increasing globally

2. Does transparency build trust? If so, it’s still a

differentiator

3. It starts with a conversation: are we talking enough?

4. Generation Z brings its own support – uniquely

5. The continuing power of brands lead

6. How to spread an infection: our employees?

Page 17: Customer Demand and Behavior: New Insights - Dec 2014

Source: [GlobeScan & National Geographic]

“It is worth paying more

for locally or organically

produced foods”

Page 18: Customer Demand and Behavior: New Insights - Dec 2014

Source: [HowGood]

Sales impact after HowGood

implementation at grocery stores

(average monthly difference)

Page 20: Customer Demand and Behavior: New Insights - Dec 2014

Source: [Nielsen]

55% of global

consumers are willing to

spend more money for

socially responsible

products

Page 21: Customer Demand and Behavior: New Insights - Dec 2014

Source: [Nielsen]

Millennials are the

driving force behind key

current trends

Page 22: Customer Demand and Behavior: New Insights - Dec 2014

74% of Americans want

brands to explain how

purchases impact the

environment; 84% want

brands to label GMO

Trustworthy companies

have produced an 83%

stock return since

August 2012, vs. the

S&P’s 42%

Trust is the most

sought-after, yet elusive

pillar for long-term

commercial advantage

Sources: [Cone], [Trust Across America], [Havas & Accenture]

Page 23: Customer Demand and Behavior: New Insights - Dec 2014

Of 195 brands belonging to the 15

biggest global FMCGs, only 74 use

Facebook to communicate sustainability

Source: [Sustainly]

Page 24: Customer Demand and Behavior: New Insights - Dec 2014

Source: [Salt]

Brands should be unapologetic about making a

profit while making the world a better place

Generation Z do NOT trust social media – but DO

trust journalists and packaging (Go figure!)

“I would go out of my way to buy products and

services from businesses that I know are helping

to create a better world”

Page 25: Customer Demand and Behavior: New Insights - Dec 2014

Source: [Dragon Rouge & Ellen MacArthur Foundation]

New products and services based on circular

economy models are more trusted if they are

brought to people by the voices of familiar brands

“When I no longer own a BMW, but rent or share

instead, do I still think of myself as a BMW guy?”

(Hint: Many still feel that way, yes)

Page 26: Customer Demand and Behavior: New Insights - Dec 2014

Source: [Dragon Rouge & Ellen MacArthur Foundation]

• SB Corporate Member companies have a

combined employee base of 4.3 million

• What if we fully leveraged their combined

power as consumers and influencers?!

Page 27: Customer Demand and Behavior: New Insights - Dec 2014