Tue, 19 Oct 2021 13:15:42 GMT
A new global study from Iris has revealed that brand’s failure to connect emotionally with consumers has caused a steep spike in brand apathy and distrust, which is having a significantly negative impact on their bottom line.
The study reveals that indifference towards brands has doubled since 2018, with 8 out of 10 brands not being thought about regularly thanks to the rapid shift towards adblocking and video on demand. 82% of consumers admitted they are not excited by brands, with 4 out of 5 brands failing to connect emotionally across a range of key measures such as excitement, intrigue and love. Meanwhile, there is an equally significant decline in brand trust (77% consumers do not trust brands) and a big warning sign for brands looking to use first-party data to survive in a post-cookie world – with the percentage of consumers who feel comfortable sharing their data decreasing by 33%.
The ‘Participation Brand Index’, now in its fourth edition, surveyed and analysed data from 7,000 consumers across 150 B2B and B2C brands in the US, Europe and Asia. The study uses 25 different levers of participation to demonstrate the impact each has in driving both brand and business performance. Ultimately the study aims to distinguish which brands are setting new benchmarks for consumer expectations and how people are responding to them.
The Index was conducted in 2021 as a result of emerging global trends, exacerbated by a pandemic that has caused people to become more digitally hyperconnected than ever before. Global social media users now surpass 3.8 billion causing a profound shift from the old world of persuasion via mass media to a new world of participation via micro-networks. The increasing frequency of rapidly growing global movements such as Black Lives Matter, Time’s Up, Fridays for Future and even Wall Street Bets show the extent to which cultural power is being placed in people’s hands and how quickly and easily information, ideas and influence can spread in a radically democratized way.
While marketing strategies built for the broadcast age aren’t working as hard as they used to, the study also demonstrates that brands that harness the power of participation; listening and responding to people’s wants, needs and voices, are outperforming their competition at every stage of the funnel. These brands are executing strategies that relate to participation, ranging from building purposeful brand platforms to insight-led customer experiences and people-powered influencer programmes.
The study also reveals that brands that invest in participation create deeper, stickier relationships with their customers that can better withstand economic and social turbulence. A three-year investment in the top 10 global brands in the Participation Brand Index would have earned a return almost 2.5 times that of the bottom 10 brands. Additionally, an investment in the top 10 brands in the Index would have produced a return 4.5 times that of the S&P 500 over the same three years.
Key findings include:
Ben Essen, chief strategy officer, Iris commented; “For a decade we have researched the disruption of ‘top down’ advertising by digital connectivity - but the shift is now more profound than ever. Customers are in control and every brand is a step away from being cancelled. The Participation Brand Index proves that unless brands embrace participation, by adding authentic and innovative value to their customers lives, they will increasingly struggle to drive commercial returns.”
Take a look at the Global Top 25 and B2B Top 25:
Iris started charting the emergence of a new model of brand building that uses participation rather than persuasion over a decade ago. Since then, Iris has conducted four Participation Brand Index studies.
The 2021 ‘Participation Brand Index’ surveyed and analysed data from 7,000 consumers across 150 B2B and B2C brands in the US, Europe and Asia. The study uses 25 different levers of participation to demonstrate the impact each has in driving both brand and business performance. Levers include ‘makes me feel part of a community of like-minded people’ and ‘would share data with’.
Ultimately the study aims to distinguish which brands are setting new benchmarks for consumer expectations and how people are responding to them.
As part of the Participation Brand Index, Iris has established the 5 pillars of a successful Participation Brand.
Passionate purpose: Creating a brand that has a genuine and visible desire to participate positively in its customers’ lives
Experience innovating: Creating a brand that meets and exceeds its customers’ expectations in every interaction
Culture shaping: Creating a brand that plays a credible role in supporting or shaping people’s passions, lifestyles and conversations
People power: Creating a brand that feels like a community shaped and influenced by its customers
Distinctive character: Creating a brand that is consistently clear, vibrant and instantly recognisable in every moment of participationview more - Trends and InsightIris, Tue, 19 Oct 2021 13:15:42 GMT