Why Consumer Centric Branding Leads To Brand Equity
Post Created By Eric Burton | Updated On December 18, 2023
Each year comes with a different challenge. Last year, it was about recovering from a damaged economy. This year, it’s about sustaining business in a relatively confusing market in which growth is not promised even for commercial companies. The truth is, that challenges like these are around every turn. Since there’s no longer a straightforward path to success, at least not one as quantitative for companies as it had been decades ago, there’s still hope. Businesses are still finding their purpose by leading strategically with visual and verbal messaging. In that way, they are leading themselves towards having a more consumer centric brand.
Now, that’s not to say studying your company’s market, sales trends, and consumer buying habits aren’t all good tools, because they are. Just remember, that’s one side of the coin, and are responses a company makes to maximize profit. On the other side of the coin is brand equity.
The truth is that consumers also care about a lot more than the quality and the lifetime of a product. According to the 2021 Edelman Trust Barometer, “86% of people expect the CEOs of companies to speak out on controversial and trending issues.” In fact, seeing a company respond to certain cultural topics has become one of the fundamental ways in which consumers are measuring the length of their wallets when it comes to exchanging money for goods.
If you have not been hiding under a rock for the last decade or so, then you already know that the idea of inclusive marketing is not a new concept. And it is no longer a mystery that companies are not just their products or services, and it is less likely consumers will be willing to trade money for goods without trust-forming tactics.
"People trust brands with a purpose, so therefore experiential and emotional relevance has also become the intangible currency to solidify customer loyalty."
Does My Company Need Branding If I Have A Logo?
If new and blooming brands realize topics like diversity, equality, religion, politics, and more controversial topics like gender and sex, play a more substantial role in building brand equity, they’ll be far more likely to gain and retain consumer trust.
The reasoning behind this involves consumer-to-consumer communication, (word of mouth) and the channels for which their opinions live and acknowledge their favorite brands. For one, just consider how much of an impact technology and social media have on the involvement of brand-to-consumer relationships. Most modern companies will have built a presence on social media from the very start. And if they are participating in online conversations, they’re well aware of how much their audience holds certain ownership over their brands. If not, then they are probably far less connected to consumers than they believe themselves to be and need to be more empathetic towards their audience.
"The typical consumer on social media is far more responsive to brands that interact with relevant topics or relate to the basic premise of their life experiences. In turn, consumers feel a level of connectedness, because their favorite brand has shown them that they are socially responsible."
What Happens When Brands Take On Controversial Topics?
Albeit, smaller businesses are more prone to backlash or attacks from voicing their opinion on such topics, having a purpose is the single most important attribute that differentiates a company from its competitors. In order to see growth by revealing a stance on topics, a company should create an ecosystem within its brand whether than having a one-off argument. Bridging your company’s values with those of your consumers shows that your purpose is both a commitment and a solution.
Religion, politics, and diversity are all very provocative ways in which a brand’s values can feel more side-forming than being the expression of values, morals, or a purpose. Remember, as culture grows, the objectives for reaching consumers stay the same. For a long time, larger commercial brands did not have to walk the same mile as modern brands. They did not have to join in on the conversations and could take a more conservative stance without the risk of profit loss.
When it comes to topics on the political spectrum. Technology has changed all of that. As consumers are creating a diaspora for how they also use platforms to give opinions on brands, which is why taking on controversy, and truly stepping forward and aligning with culture on some of these topics are worth looking at in the frame of building equity and forming a more colorful personality for your brand.
Believe it or not, consumers are more likely to buy from and seek out brands that already align more with their own morals and values. Learning about the lives of your consumers has proven to be an asset towards delivering products and services and providing an experience that mirrors their needs.
Photo by Om Kamath on Unsplash
For example, in 2019, Adidas and Pharrell Williams launched the Now Is Her Time collection and marketing campaign aimed at female empowerment through representation and bold voices. At its core, Now Is Her Time is a collection of unisex shoes and apparel for adults, juniors, kids, and infants. The campaign amplified the voices of female activists, models, community organizers, and artists to acknowledge issues on race, sexuality, gender, race, and equality.
According to Adidas’ 2019 Annual Report, part of its brand strategy faced the acknowledgment that the consumer is at the heart of everything that the brand does. They hope to build trust and loyalty with consumers by refining its strategic direction to foster a culture of consumer obsession across its entire organization.
Adidas planned to target key consumer groups and influencers to create brand desirability, believing these influencers focused on what’s new and what’s next. I guess the point here is that the 2019 annual report also recognizes that, “putting the consumer’s voice as a centerpiece of their decision-making process has higher levels of success in creating brand advocacy.”
Conclusion
Taking on these topics is more about the experiences a brand creates with its consumers. It strengthens the relationship between consumer and business when the markets of products and services can be otherwise convoluted. It seems that by gaining moral ground, a business is effectively showing that they are willing to facilitate cultural change through a moral lens relative to its audience. Taking on these responsibilities is a way to connect to society and consumers on a deeper level and helps to gain traction from a brand equity point of view rather than a sales point of view.