Most marketers have questions about navigating social values: Is the growing chorus in favor of brand activism a signal or a mere word? How should the brand respond? To answer this question, we have developed an analytical model to identify value-driven consumers.
Social values enter into consumer-brand conversations, but they do not always shape consumer action.
Today, like never before, a new social consciousness is spreading in the trade. Consumers are vocal about their social status, and they firmly pledge to stand behind companies that do the right thing and threaten to punish those who do not. The trade press is full of examples of consumers demanding brand activism in the areas of environment, racial justice, gender equality and much more. A significant part of the purchase decision and brand relationship, it would appear, is predicted on social price alignment.
But the bugbear of that old research of consumers will seldom do what they say will drive those who are trying to measure the impact of the consciousness of these new social values.
Data that support consumers ‘intent to be socially-value-based is irresistible, but evidence to support consumers’ willingness to take action in support of these social values is often missing. The purpose of action falls short. Consumers are 10 times more likely to rank quality and value as the most important brand feature than brand influence on the community. More than 90% of consumers claim that they will reward or punish brands based on how they treat workers during an epidemic; Only 9% of those who changed brands during this period did so based on how their employees were treated (in contrast, 42% did so based on product availability).
We estimate the real market effect by focusing on it Value-driven consumers
The difficulty in assessing the impact of social values on brand choice is that one often has to rely on behavioral data that are not related to behavior or from anecdotal evidence from high-profile examples that are significant but not representative. To address this deficit, we have launched a two-year project to analyze consumer data associated with social values and brand preferences. We first tested our estimates using the 2020 data and then verified our results using the 2021 Forrester Analytics Consumer Technographics® Media and Marketing Recontact Survey, 2021.
In our analysis, we identified and isolated a group of consumers within the U.S. purchasing population who Not only claiming to be price-driven but Law On this claim. We call this group Value-driven consumer. Inspiration (from Latin origin Move) Suggests movement, and our goal is to look past those who only claim that values are important to find those who manage to work on these values. In other words, these consumers put their money where their mouths are.
Our analysis shows that price-driven consumers make up 18% of the U.S. purchasing population.
This number may strike you as less than the hullabaloo advice of the media. This is not surprising, however, as we snatched the blaster and focused only on the intentions displayed. That said, 18% is still a significant slice that should catch the eye of any marketer. Our profiling analysis further shows (and will probably surprise many) that value-driven consumers significantly outperform the average U.S. online adult in terms of gender, income, and educational attainment. However, there is a complete demographic difference: age – young consumers are much more motivated by social values. For example, one in 10 Baby Boomers is an inspired consumer, compared to one in four millennia. This has significant implications for brands, as younger customers will obviously displace older ones over time.
Even for value-driven consumers, you can’t ignore the key principles of a good brand experience
Value-driven consumers care about social values, but they also care a lot about the basics of offering a product or service, and much more; Issues such as product quality and price are more important to them than environmental and communal factors Don’t be fooled into believing that they will give you a lot of leeway if your brand fails to deliver on its core promise of value and usefulness.
How motivated are your customers?
Use the 18% data point as a starting point, then customize the analysis to your department’s purchasing driver, competitive intensity, availability of options, and more. But also don’t forget that there are broad social trends that are changing the outlook step by step. If you read my work on race and gender, you will find that the conscience of the near future looks very different from today. The projected population trends from our analysis support the forecast for the continued growth of a socially motivated brand-consumer relationship. Make your division for today, but also plan to stay relevant for the future.
Read the report to take a deeper dive into value-driven consumers.
If you are a Forrester client, you can read the report to get a rich picture of who the value-driven consumers are in terms of population, outlook and brand and media preferences. You’ll also find recommendations on how to integrate our results into your brand and marketing strategy. The report can be found here: Value-driven consumers – how social values shape brand choice and engagement among U.S. consumers.
… And join me in CX North America
I will dive deeper into this topic at CX North America, which will take place June 7-9, 2022, online and in person in Nashville. I look forward to seeing you there!