“Most marketers think that the best way to hold onto customers is through “engagement” — interacting as much as possible with them and building relationships. It turns out that that’s rarely true. In a study involving more than 7000 consumers, we found that companies often have dangerously wrong ideas about how best to engage with customers. Consider these three myths.
MYTH #1: MOST CONSUMERS WANT TO HAVE RELATIONSHIPS WITH YOUR BRAND.
Actually, they don’t. Only 23 per cent of the consumers in our study said they have a relationship with a brand. In the typical consumer’s view of the world, relationships are reserved for friends, family and colleagues. That’s why, when you ask the 77 per cent of consumers who don’t have relationships with brands to explain why, you get comments like “It’s just a brand, not a member of my family.” (What consumers really want when they interact with brands online is to get discounts).
How should you market differently?
First, understand which of your consumers are in the 23 per cent and which are in the 77 per cent. Who wants a relationship and who doesn’t? Then, apply different expectations to those two groups and market differently to them. Stop bombarding consumers who don’t want a relationship with your attempts to build one through endless emails or complex loyalty programs. Those efforts will be low ROI. Chances are there are higher returns to be had elsewhere in your marketing mix.
MYTH #2: INTERACTIONS BUILD RELATIONSHIPS.
No, they don’t. Shared values build relationships. A shared value is a belief that both the brand and consumer have about a brand’s higher purpose or broad philosophy. For example, Pedigree Dog Food’s shared value is a belief that every dog deserves a loving home. Southwest Airlines’ shared value revolves around the democratization of air travel.
Of the consumers in our study who said they have a brand relationship, 64 per cent cited shared values as the primary reason. That’s far and away the largest driver. Meanwhile, only 13 per cent cited frequent interactions with the brand as a reason for having a relationship.
How should you market differently?
Many brands have a demonstrable higher purpose baked into their missions, whether it’s Patagonia’s commitment to the environment or Harley Davidson’s goal “to fulfill dreams through the experience of motorcycling.” These feel authentic to consumers, and so provide a credible basis for shared values and relationship-building. To build relationships, start by clearly communicating your brand’s philosophy or higher purpose.
CEB has done extensive work on shared values, showcasing how brands like Mini, Pedigree and Southwest use them to engage with customers. You might also check into Jim Stengel’s examination of growth ideals and David Aaker’s latest work on brand relevance.
MYTH #3: THE MORE INTERACTION THE BETTER.
Wrong. There’s no correlation between interactions with a customer and the likelihood that he or she will be “sticky” (go through with an intended purchase, purchase again, and recommend). Yet, most marketers behave as if there is a continuous linear relationship between the number of interactions and share of wallet. That’s why, as the Wall Street Journal recently reported, you see well-established retailers like Neiman-Marcus, Land’s End and Toys R Us sending customers over 300 emails annually.
In reality, that linear relationship flattens much more quickly than most marketers think; soon, helpful interactions become an overwhelming torrent. Without realizing it, many marketers are only adding to the information bombardment consumers feel as they shop a category, reducing stickiness rather than enhancing it. (For more on consumers’ cognitive overload, see the sidebar “Too Much Information” in our recent HBR article.
How should you market differently?
Instead of relentlessly demanding more consumer attention, treat the attention you do win as precious. Then ask yourself a simple question of any new marketing efforts: is this campaign/email/microsite/print ad/etc. going to reduce the cognitive overload consumers feel as they shop my category? If the answer is “no” or “not sure,” go back to the drawing board. When it comes to interacting with your customers, more isn’t better.
Karen Freeman is a managing director with the Corporate Executive Board. Patrick Spenner is a managing director and Anna Bird is a senior researcher in CEB’s Sales, Marketing and Communications practice.
Harvard Business Review”
