Consumer Marketing Insights

Trend to Watch: Consumers Paying Retailers to Go Green

Monday, August 8, 2011 by

carrotmobConsumers are turning the tables on marketers. Sure, social networking has given buyers a bigger voice. But I’m talking about a new phenomenon specific to the green marketing space.

It’s a cross between a flash mob and the good old carrot vs stick method to promote behavior change. It’s called Carrotmob and it’s literally sprouting up around the world.

The brainchild of Stanford grad Brent Schulkin, the first Carrotmob event was staged in 2008. Schulkin invited two dozen mom & pop convenience stores in San Francisco to compete for the added customers that Schulkin promised he could deliver in one day. To win the competition, the stores had to name a percentage of earnings they would commit to sustainable upgrades to their stores.  The winning retailer threw down a 22% bid. Hundreds of Carrotmobbers descended on the store spending over $9,000. The storeowners – true to their promise -- spent nearly $2,000 to greenify their store and, as an added benefit, they’ve been replacing their standard packaged goods with healthier alternatives to keep their new customers coming back.

So what’s the Big Idea here? Is it that groups of activists – from Canberra to Freiburg from Tunisia to Saskatoon -- are staging “buycotts?” Yes, but its longer term, more mainstream potential is so much more.

The big idea is that consumers, fueled by social media and inspired to use their buying clout in inventive ways, will call more shots. Not by protesting but by revolutionizing the idea of “market demand.” Think about it. At Red Kite, we certainly are. A focus for us is helping clients tap into the female consumer market. Knowing that women are more prolific shoppers, more environmentally active, more active on social media, and better at word-of-mouth, we think they will be the mainstream mobbers of the future.

Will you be ready?

Why Guys Are More Resistant Green Consumers and What to Do About It

Monday, August 1, 2011 by

If we look at green behavior along gender lines, women consumers win the day. There’s plenty of research to back this – from LOHAS studies to countless others. Among the latest is a report released by Ogilvyearth, which adds a whole new reason why.

 

In it, 1,800 American adults were asked “do you think the green movement is more masculine or more feminine.” 82% said more feminine.

 

Okay. Wow! So sometime between the emergence of the modern environmental movement with its initial crises (burning rivers, nearnuclear melt-downs and oil slicks) and the emergence of present-day laundrylists of practical consumer actions, the average Joe gave up the cause and the average Jane picked up the daily duties. What the heck does this stat even mean?

 

Our best advice is to remember that, when it comes to consumer perception, rationalism doesn’t always prevail. What’s important for you, as a marketer, is to absorb the information and determine what it means -- for your company.

 

Here’s a good place to start:  if your current primary consumer market is dominantly female, then acknowledge, encourage and reward her green behaviors: recycling, re-using, conserving, preferring sustainable products, and making healthy safe choices for her family. Make sure you educate and continually inform her of your company’s sustainable actions. Tell her your story and motivate her, again through the media channels she uses, to tell her friends and family. Inspire her to be your brand ambassador.

 

If your current primary consumer is dominantly male, you have a bit more work to do. You need to dispel the “feminine mystique” before you can hope to change their behavior. A good place to start is by doing some research on your own customer or prospect base. Who are the most amenable and who are the most resistant consumers? Look at a generational segmentation of your data to find your most likely prospects.

 

Focus groups can certainly help you put a face to it. Consider sessions with those who are most open as well as those who are most closed in order to understand the depth of the resistance. This will offer your marketing team and agency some great options for communications strategies.

 

You can certainly go levels deeper into the psychology behind these perceptions, preferences, barriers and worldviews to truly overcome the obstacles. In our opinion, this is truly the voyage you need to take to build a comprehensive marketing approach. Red Kite can help you plum those depths and come up with a solid “what to do about it” strategy. 

 
Want to learn more? Tune into the podcast  recorded live at the LOHAS Forum with Red Kite principal Margaret McAllister and interviewer Carolyn Parrs.

 

Who Wears the Green Pants in Your Family?

Tuesday, June 14, 2011 by

Green pantsWhen it comes to greening up the household, there’s a bit of a Green Gender Gap in America.  According to our consumer research colleagues Amy Hebard and Wendy Cobrda, formerly of Earthsense, more women (81%) than men (76%) believe that an individual can make a difference when it comes to the environment. But more men (36%) than women (29%) think they personally are doing enough. So when you take those few bits of data and put them into one living environment, what do you get? A recent piece by our video insights friends at Snippies in New York may help bring it to light.

 

An entry in the Snippies-sponsored “Families Struggling to Go Green” video contest shows a typical American family (mom, dad, two kids) and what they’re doing to reuse, recycle, renew, conserve and consciously consume. What it reveals is a difference in attitude and behavior between husband and wife. Both recognize the enormity of the problem. But he is less convinced that their family’s efforts will make much difference in the overall scheme of things and tends to do less. She, on the other hand, tends to do more. Three things keep her motivated: 1) a desire to make a difference, 2) a desire to instill sustainable behaviors in their children, and 3) good old-fashioned guilt. She, for example, is loathe to let gallons of water run down the drain while waiting for the shower to warm up, while he “turns on the shower, walks away and goes and does who knows what.”

 

Let’s look at this from another angle. The unique psychometric research being done by John Marshall Roberts indicates that business women in the sustainability arena may well be the most effective change agents going forward.  Of equal note, Roberts’ preliminary consumer research, segmented by gender, also supports the notion that mainstream women may be the more effective change agents in buying green.

 

So, what’s the take-away from these findings? Whether you’re a manufacturer or marketer with sustainable consumer products to sell or an ad agency advising your clients, you need to:

 

1)     Recognize the potential of women consumers to boost your products’ market share.

2)     Convert her environmental emotions into buying action. She who recycles is more likely to be she who buys green.

3)     Provide honest, accurate, meaningful and accessible product information. It’s a deal-breaker if you don’t.

4)     Understand and eliminate the barriers to purchase that stand in her way.

5)     Give her authentic reasons to trust your brand. If she feels you are disingenuous or negligent about the safety, health and well-being of her family, she will go elsewhere.

6)     Hire more women! You won’t find a better gauge of female receptivity to your product development, labeling, merchandising, marketing and advertising.

 

I’ll just bet if you do your research and dig down into the minds of your customers, you’ll find a green gender gap and a storehouse of environmental emotions you can tap. And if you can’t find them, we can. 

Five Ways to Improve Your Marketing

Monday, June 13, 2011 by
If your marketing plan for 2011 looks like last year’s model, you may want to step back and take a bigger look at where your business needs to go in the coming years. We all get myopic especially when we haven’t seen a business climate or consumer marketplace like this – ever! Four game-changing trends followed by five plan-changing ideas:

 

Demographics Are Gross   Lumping people together according to their age, household income, or education level was fine in the heyday of mass marketing. But demographics aren’t a fine-enough filter in our multi-channel media-saturated world. It’s not enough to know, in the broadest of terms, who your target audience is. Now you need to know how they are and, most importantly, why they buy. And if you don’t know, you may be watching your competitors eat your market share for lunch.

 

Technology Converged    Personal computer plus Internet plus social networks plus mobile phones equals a convergence of technologies into one massive, uncontrolled, 24/7, global communications platform. At least two things happened: it empowered consumers to talk (or talk back) to brands. And it created new inter-connected means for brands and consumers to connect.  Five years ago, we didn’t have to consider how our big branding ad was going to play out as a streamed Internet video linking to a geo-targeted 2-fer coupon accessible via smart phone! The accelerating number of possibilities is enough to keep any savvy marketer awake nights.

 

Mad Men Meet Joe YouTube   You gotta love Don Draper. After a night of drinking, smoking and fooling around, he can show up for a major campaign presentation, pull a single concept out of his fedora, and have the client eating out of his hand. From the 60s to the 90s, big splashy ad campaigns reigned. Did they work? Sure, many did, especially when advertisers threw a ton of money behind them. Especially the funny ones. But then along came YouTube. Now any bloke with a slightly warped sense of humor, a flip camera and a log-in can generate as much buzz as a multi-million dollar Super Bowl ad. That can give marketers heartburn as they re-think how to allocate their budgets.

 

Consumers Rule   Marketing used to be easier. You created a product, you advertised, it you sold it. Back then, it didn’t matter much who bought it as long as enough bought it. It didn’t matter how it was made as long as it didn’t break before it got home. It didn’t matter if the means to the end were sustainable as long as the bottom line was. But in today’s world, consumers’ peer-to-peer influence on your top line is unprecedented.  What they don’t like, they don’t buy and they don’t hesitate to yelp their reasons why. And, by the way, most of those consumers controlling the cash are women. Well, three-quarters of it anyway, even when spending is down.

 

What Now?

The future is now and you can’t afford to wait. Visionary companies are searching for new ways to step up their marketing and engage new consumers using new technology. Here are five things you should consider.    

 

Consumer Centricity   Make your business revolve around the consumer not the other way around. Your product is not the centerpiece of your brand. Your customer using your product is.

 

Know Your Consumer Inside and Out   To build your marketing around your consumers, you need reliable, actionable intel. Research tools like Roberts Worldview Assessment, for example, provide psychological insights into various consumers’ values and behaviors and direction on how to engage them.

 

Total Consumer Engagement   Every consumer touch point becomes part of the brand. From the product itself to the ways the consumer can learn about it and interact with it to the retail or etail service experience.  Your internal and external support teams need to understand that entire experience and make sure every part of it delivers your brand effectively.

 

Brand Response    Before the Internet, tracking results was a bit sketchy. But with online analytics, the guessing is over. That’s why all advertising roads need to lead to the Internet. We call it Brand Response, the blend of brand ads to get attention, direct response to drive the action and online interactivity to make the sale. Great advertising and accountability ARE possible.

 

Change the House Rules   Look at your corporate culture. Are there any fresh marketing ideas being generated? If not, a more holistic process and a less silo’d organization can help. Sharing best practices to engage consumers should be a full team effort.