Tag Archive for: public relations

Create an Edge with Powerful Purpose Driven Public Relations

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Why Purpose-Driven Public Relations Have an Edge 

It’s easy to see why some companies are skeptical of shifting to a “purpose-driven” business model. Doing so requires companies to take a position on important, potentially controversial issues like environmental protection, workers’ rights, racial and gender discrimination, income inequality, that have social impact.

Is Taking a Stand the New Social Media in Public Relations?

Taking a stand can generate a swift backlash from the community and consumers. For an example, look no further than the reaction from many fans of the National Football League when several players, most notably San Francisco 49ers quarterback Colin Kaepernick, knelt during the national anthem as a protest against police violence.

The NFL is one of the few monolithic institutions left in American life, and the response from its fans would seem to discourage other brands from getting involved in political and social issues. Even President Donald Trump got involved by putting pressure on team owners and league officials. And yet, the NFL’s handling of its players’ police violence protests offers an instructive example of why brands should lean into social causes instead of avoiding them.

After all, what was the ultimate outcome for Kaepernick? The NFL caved on player protests and is allowing social justice messages in the end zones this year. Kaepernick partnered with Nike on their “Dream Crazy” ad, which helped spread his message to a much wider audience. Though the ad was criticized in some quarters, most people responded positively to it. Younger audiences, one of Nike’s key demographics, responded especially well.

Making that ad was a risk for Nike, but it’s a risk that clearly paid off. By being aware of social trends — particularly among some of its core customers — and partnering with someone who had legitimate social justice credentials, Nike scored a public relations coup and rode the wave to increased sales.

Jumping into the realm of social activism is new for Nike, but other brands have engaged in social, political, and environmental causes for many years now. The clothing company Patagonia, for instance, supports many social causes, especially groups focused on the protection and preservation of public lands in the United States. They’ve also imposed a “1% for the Planet” tax on themselves, in which they spend 1 percent of their sales (not just their profits) on environmental activism while encouraging other companies to do the same.

Another brand that’s making headway in terms of changing the way business is done is King Arthur Baking Company. Unlike many larger bakeries, King Arthur is a private company that is owned by its employees and is a benefit corporation. This means that having a positive impact on the world is built into the company’s corporate structure. In an article for the New York Times, Ralph Carlton, one of King Arthur’s chief executives, said “Being accountable to our employee-owners means we have to take them into account. We don’t believe in growth for growth’s sake.” The company’s message is clearly resonating with consumers; according to the Times article, King Arthur’s sales tripled this past spring when many people went into quarantine and started baking their own bread and other goods.

Is a Purpose Driven Public Relations Strategy for Everyone?

These examples and additional research illustrate the gains to be had for brands that embrace social causes. For instance, the research firm Accenture found in 2018 that 63 percent of consumers prefer to support brands that share their values and beliefs. In that same study, Accenture also found that 62 percent of consumers want brands to take a position on social and political causes, and 65 of consumers said their buying decisions are influenced by the values, actions, and words of a company’s leaders.

As we saw with Nike, these trends are even more pronounced among younger audiences and consumers. Other researchers have found that 54 percent of teens age 16-19 boycotted or bought from a brand because of its ethics. Furthermore, 63 percent of teens say they are more likely to buy from brands that back charities or other causes they believe in.

These figures provide more evidence that consumers are eager to buy from brands they perceive as having strong morals and values. However, brand trust is a precious commodity that companies should not take for granted. About 37 percent of teens surveyed in the study mentioned above said they didn’t trust the claims brands make about the causes they support, and 69 percent of teens in the survey said brands overstate how much they support the causes they supposedly champion.

That last point is critical. It’s not enough for companies to say they want to make the world a better place, they have to back it up with their actions and policies. If you tell consumers you’re moving to a purpose-driven business philosophy, you need to give them proof.

Once again, we can look at Nike for an example of this theory in action. Regardless of other criticisms the company has faced in the past, making Kaepernick the centerpiece of a campaign took courage, as he was a pariah in many circles and hadn’t been a star player for several years. But because Kaepernick had sacrificed his career and his reputation for his beliefs, Nike benefitted from his social justice bona rides.

As more consumers push for brands to become more socially and politically engaged, companies that have already adopted a purpose-driven approach or are willing to make a good-faith effort have a tremendous advantage in the marketplace. If you can show consumers that your brand shares their values, they’ll flock to your business.

How to Celebrate a Purpose-Driven Public Relations

 

Of course, getting your message in front of consumers is easier said than done. You need a public relations firm that understands the challenges purpose-driven brands face and the benefits they can provide consumers. Fortunately, PR for purpose-driven brands is what we do at Avaans Media, and we can help show the world what makes your company special.

It’s important not to be too bold or too generic when it comes to PR for purpose-driven brands. You need to be specific about what you’re doing and how it’s generating the kind of positive change you’re striving for. We’ll create a campaign that’s tailored to your company’s specific strengths and goals, and we’ll show consumers that you’re serious about achieving those goals.

This kind of campaign is something we already have experience doing. One of our biggest successes came from helping a nonprofit create content to help parents who were non-native English speakers improve their children’s early education outcomes. We listened to what they wanted to achieve and created streamlined, easy-to-understand social media content for parents to share with each other and their children. Furthermore, we helped the nonprofit lobby the state legislature to fund early education programs for pre-kindergarten students.

Our campaign was a tremendous success, generating over 401,000 impressions over six months among our target audience, with an engagement rate of over 50 percent. The state legislature also saw the extensive community support for the program and funded more early education programs, providing an even greater benefit to the community.

Our organization has the tools and talent to bring this kind of success to your purpose-driven brand. To learn more, visit our contact page to schedule a call with one of our offices. You can also find us locally in New York, Los Angeles, Honolulu, Phoenix, Denver, and San Diego.

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Why Brand Values Matter to Consumers, Now More Than Ever

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Why Brand Values Matter to Consumers, Now More Than Ever

The proof is in the numbers

It’s more and more competitive to capture consumer attention, that’s why brand values matter to consumers more than ever. It’s getting harder and harder for brands to create positive impressions in the minds of consumers. Negative impressions tend to linger longer in our minds, and unfortunately for brands who try to make a positive impact on the world, there are innumerable examples of companies doing the exact opposite. From wanton environmental degradation and exploiting workers to harvesting users’ personal data without permission and companies bending to the will of authoritarian regimes abroad, we’re awash in stories about bad corporate actors.

 

This is all the more frustrating for companies who are trying to set good examples of what socially and environmentally responsible entrepreneurship looks like. When you’re trying to do the right thing and your message is drowned out by a sea of reckless and irresponsible businesses, it can feel hopeless.

 

Don’t worry, consumers will take note of your brand values efforts

 

However, companies who are truly committed to building a better world can take solace in one powerful fact: Consumers are on their side. As more and more stories about corporations behaving badly surface, consumers are increasingly looking for alternatives. These more environmentally and socially conscious consumers want to know that their purchases are going toward a good cause, and they want to see companies take a stand on social, environmental, and political issues.

 

When you consider the current political and social environment, together with increasing evidence of climate change, this change in consumer preferences becomes even more obvious. People don’t want to contribute to the destruction of our planet, and they want to support companies that are working to disrupt or improve the current status quo. Why wouldn’t they choose to buy from purpose driven-brands?

 

The proof is in the numbers

 

There’s plenty of research to back up these claims. Take this 2018 study from Accenture. They surveyed nearly 30,000 consumers from around the world about their purchasing decisions and the brands they support. Accenture found that 63 percent of the consumers they surveyed preferred to support brands that reflect their values and beliefs.

 

There’s more: Accenture also found:

  • 65 percent of consumers prefer to support companies treat their employees well,
  • 62 percent of those surveyed preferred to buy from companies that try to reduce their use of plastics and want to improve the environment.
  • 62 percent of those surveyed also wanted the brands they support to take a stand on the social, cultural, environmental, and political issues that they care about.

 

Accenture is not alone in their findings. A 2018 study from the research agency Edelman found that 64 percent of consumers will either buy from or boycott a brand based solely on the brand’s stances on social or political issues, which highlights the challenge for brands. This is why a brand-friendly PR firm is so important, we can help you navigate the risks and opportunities that optimize purpose-driven communication. The survey included over 8,000 people in eight different markets worldwide, and the researchers also found that 53 percent of those surveyed believed that brands could do more to inspire social change than governments can. Regardless of whether brands really have that power, consumers increasingly believe that they do and are basing their-decision deciding accordingly.

 

These trends in buying habits are particularly pronounced among one key demographic: Teenagers. A 2018 report from MediaCom found several important statistics related to teenagers’ buying habits and the brands they support. The survey found that 54 percent of teens age 16-19 had deliberately bought or stopped buying from brands because of the brands’ ethics. The research also found that 63 percent of teens are more likely to buy from brands that support causes or charities they believe in. However, skepticism among teens concerning brands is still rampant, as 37 percent of those surveyed were doubtful of brands’ claims regarding the causes they support and 69 percent believe brands overstate their level of support for their chosen causes.

 

Taken together, these data points represent a massive swing in consumer decision-making habits. In the past, many companies stayed away from social or political causes out of fear or because they didn’t want to risk a backlash from consumers. But the data show that if brands take a stand on social issues and can demonstrate their authenticity, consumers will respond positively and adjust their buying habits.

 

We can already see how major organizations are taking this data and incorporating it into their marketing efforts. The shoe company Toms has donated one pair of shoes for every pair sold since its founding 13 years ago, making it an exemplar for other businesses to follow. Additionally, Toms has become a certified B-Corp, meaning they meet strict standards for accountability, transparency, and social and environmental impact. Finally, Toms has also pledged to spend at least one-third of its annual net profits on charitable causes, which is much more than most other corporations can say.

 

So, where does this leave your brand if you’re dedicated to making the world a better place? It’s simple really: You need to get that message out to consumers, and you need to do so in a way that’s genuine. That may be a challenge for some companies and some PR agencies, but not for Avaans PR. Helping purpose-driven brands get their message across is what we do, and we can create a campaign for you that plays to your unique strengths.

 

How Avaans PR Can Help with Brand Values

 

We’ve already helped a number of brands do exactly this. In one case, we worked with a nonprofit organization focused on helping pre-Kindergarten students from economically disadvantaged families become better students. We had to create compelling content aimed at two very different audiences: The families who needed help and state legislators considering funding more early education problems.

 

We kept the design of our content simple, using visuals wherever we could, and maintaining a supportive tone throughout. This encouraged families to share content with one another and avoided coming across as paternalistic or lecturing, which also helped to avoid alienating decision-makers at the state level. And the campaign worked: The state legislature funded the early education problems, and we generated over 401,000 impressions among our targeted audience during the length of our six-month campaign.

 

If your brand is seeking to expand its reach and you’re not sure where to begin, we want to help. You can set up a call with our team by visiting our contact page, or you can find us locally in New York, Los Angeles, San Diego, Denver, Honolulu, and Phoenix. We look forward to hearing from you.

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5 Pre-Announcement Reputation Management and Public Relations Tips

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5 Pre-Announcement PR Tips for Reputation Management

 

If you’re ready for a product launch, a funding round, or an executive announcement, now is a good time to look at how other people will see your company when they do more research.

 

Brush up your social profiles pre-announcement. 

No matter what your brand or your industry you always want to present the best first impression, your social media are part of that first impression. Ask yourself whether they’d be OK with you lifting a quote from your Facebook or LinkedIn and using it in an article about your business?

If the answer is no, check the privacy settings and do some cleanup. While we’re at it, check your photos and see if there’s anything there that’s off-putting or off-brand.

If you’re not sure whether your first impression is on-brand, ask others you trust in business. Ask yourself if you’re believable and trustworthy to a stranger and to your target audience? What would you think of your business if you just stumbled upon it on Linkedin or another social profile? Please consider these tips as a starting checklist.

 

Reputation Management: Google Your Executives & Your Company

While we’re at it, when was the last time you Google’d your executives and your business? Do your search while using Chrome’s “Incognito” feature and you’ll get a view of what others see about you first. Don’t forget to do an image search too. When you raise awareness of your company Google searches by the public and the press are fair game.

If you’re not happy with what you see, you can do some reputation management blocking and tackling, which will take some time. So be sure to do this well in advance of any major announcements.

 

Public Relations: Define Your Key Messages

What are you trying to say and to whom? What truly makes you special and why should anyone care. Remember, when you’re trying to attract press, you need a STORY, something newsworthy. Unfortunately, due to the sheer number, a product launch is rarely newsworthy, that’s not to say NEVER, but usually, there has to be a story to tell along with the launch.

Make sure you’re so prepared with your key messages that no one can distract you from your message, which is wrapped nicely in the context of your business story.

And while you’re at it, make sure that the press you’re sending your story is important to the readers of the publication or outlet your pitching.

Public Relations: Consider Media Training

If you’ve never done press before, it might be more nerve-wracking than you expect. Yes, journalists are people too, but it’s not their job to make you look good, that’s your job.

The journalist’s job is to write a story people will be interested in reading.

Sure, some publications will be very friendly, but all will appreciate your extra level of professionalism.

Spending at least a day preparing by recording yourself in front of a camera with some best practices for PR will pay for itself a million times over, because inevitably, there will be a question you didn’t expect, and having the tools at your disposal to help you keep your cool will give you confidence.

 

Content: A MUST: Good Photos 

Great headshots and product pictures are not a “nice to have,” they are a requirement. Don’t even think about sending a selfie. Make sure the images are high-resolution enough for print. If you have the budget, get a video too since you’ll use it over and over for all sorts of purposes.

You can have some photos done that showcase your  business personality, but definitely get basic headshots and product pictures on white and black backdrops.

You’ll be bummed out if you get the press of a lifetime but there aren’t any product shots or pictures of you and your team because they were low-quality or low-resolution.

 

Managing your online and media reputation is critical to your business, particularly if you’re a new brand, a relatively unknown brand, or your doubling down on an initiative like fundraising or an IPO. It’s shocking how few brands keep up with their own reputation. The thing about your reputation is that when it’s hurting you, you’ll never know because you can’t measure what’s not there. So be proactive about your reputation at all times and it will pay for itself.

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PR Insights from the Eaze Cannabis Report

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The 3 Most Surprising PR Insights from the Eaze Cannabis Report

[3 minute reading time]
For cannabis brands, 2020 was an eye-opener. This week Eaze released their year in review for cannabis 2020 that offers PR insights for cannabis brands. As a delivery service, Eaze can pick up on some fascinating stats from a year that was (hopefully) like none other. Unsurprisingly to those in the industry, high anxiety levels fueled cannabis consumption to new heights in 2020; order volume was up by 15% on the Eaze platform even though dispensaries are considered essential businesses in many states, including California, which is 2X the combined size of the four states (AZ, JN, MT, MD) that legalized in 2020. The question is always “will this be the same or better in 2021?” While stats from years past are always fascinating, especially if they are an anomaly, when we looked at it, we see important PR insights from the Eaze Cannabis Report.

 

#1 Vapes Held Their Own Across All Ages

Even after the 2019 vape crisis, cannabis users continued to choose vapes consistently. While edibles were the #1 category of 2020, for GenZ they remained first choice. Apparently, GenZ isn’t concerned in the slightest about the vapes and continues to trust that cannabis brands will continue to earn their trust. Vapes were second only to edibles for Millenials and GenX. These two generations are very familiar with vapes, so there’s no surprise there and plenty of vape brands squarely target these demographics.

Boomers also chose vapes, they came third behind edibles and flower. Perhaps because of the covid-lung concerns, Boomer vape purchases declined in 2020, but vapes still outperformed topicals and prerolls for Boomers, which is fascinating given their appeal to the age group. The fact that Boomers choose flower second only to edibles isn’t much of a surprise considering the nostalgia that flower holds for that generation. If you’re a flower company, that’s definitely something to tap into in your cannabis public relations, branding, and advertising. PR Insights from the Eaze Cannabis Report offer cannabis brands important opportunities for 2021 too.

 

#2 Purpose Driven Cannabis Brands See Big Gains

Within cannabis, the number #1 purpose-driven theme is social equity, which has been important since legalization started. 2020 heightened social equity awareness for all consumers and cannabis buyers especially responded. According to Eaze, 9.5% of all customers bought social equity brands. What’s surprising in the cannabis stats for cannabis brands is customers over 30 were more likely purchase from social equity brands than younger customers. Men, in particular, were more likely to buy from social equity brands than women. These two statistics are surprising because they aren’t consistent with typical purpose-driven brand buyers   which typically skew female and younger.

 

#3 420 NOT the Biggest Cannabis Holiday in 2020

Green Wednesday, the Wednesday before Thanksgiving topped the purchase charts in 2020, up from second place in 2019. What’s also interesting is the other big seller nights: last night of Hanukkah, New Year’s Eve and Christmas Eve. None of these last 4 “cannabis holidays even broke into the top 5 in 2019, so their appearance provides overlooked cannabis public relations and advertising opportunities in 2021. Be on the lookout for other lifestyle holidays your customers might pair with cannabis because 2021 will continue to be disruptive in terms of large-scale events and large gatherings which typically dominated big sales days outside of 420 in previous years. The 2020 cannabis brand insights report by Eaze lists some outstanding examples of big sales days driven by current events or lifestyle.

Overall, like others, we expect 2021 to be a very good year for cannabis sales, but since consumer habits are changing, it will be ever more important for cannabis brands to watch their own data closely so they can engage and expect their customers’ next move.

The Eaze 2020 State of Cannabis Report

 

This article originally appeared on our sister site Primo PR

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5 PR Trends CMOs Need to Watch in 2022

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5 PR Trends CMOs Need to Watch for 2022

[6 minute reading time]
There’s no shortage of uncertainty in marketing and PR planning for 2021. But there are some trends happening that are sure to impact PR and Marketing in 2021. At Avaans PR, CMO’s love us because we know consumer trends impact where our target audience will be, the frame of mind they’ll be in and what journalists will write about.  On a tactical level, trends impact our content creation, journalist relationships, and campaign recommendations we’re making now and in the next year. We’re ready for 2021 to require agility, but we’ve found that even agility requires forward-looking and yes, some planning. These are 5 of the marketing and PR trends for 2021 we’re watching on behalf of our consumer-forward brands.

PR Trend #1: Techlash Continues

From a PR trend perspective, this has a tremendous impact. Now is the time to reimagine how you’ll use social and digital media in 2022, from both a marketing and PR perspective.

The sting of social media won’t soon to be forgotten by consumers, regardless of political affiliation. During 2020, in particular, during the pandemic, social media took on outsized importance, but also affected consumers in new ways, and not all of them positive.

Yes, consumers continue to spend time and even buy on social media, but they are spending more and more time in micro-groups of their own on platforms like Slack or Messenger, or in like-minded platforms. This means brands will have to be extremely smart about their placements and presence in 2021. The separation also requires brands to be exceptionally clear about who their customers really are.

Further, the coveted 25-55 college-educated, earning $100,000 or more per year are using social media for customer service. This coveted group will not support companies who don’t support customer care. If 2020 was the year of pandemic-related customer acquisition for your brand, 2021 will most definitely need to be about keeping them happy and engaged. Part of that will most definitely be a branding effort to existing customers, ensuring your values align with theirs (more on purpose-driven initiatives below).

But it’s not just customer service affecting social media in 2021.  e-Marketer reported:

We have increased our forecast on mobile messaging and now believe time spent by US adults will grow by 4 minutes in 2020, to 24 minutes per day, not only due to the pandemic but also data showing strong engagement on messaging services like Facebook Messenger, WhatsApp, and Apple iMessage.

 

PR Trend #2: Work With Media in New Ways

Whether it’s TV, programmatic, or print, all media outlets are bracing for reduced advertising revenue in 2021. This will have very real implications for public relations initiatives.

First, according to Edelman, trust in media actually increased in 2020. This means you should absolutely be leveraging the trust of other outlets, particularly in lieu of the distrust around social media. However, you should do so with earned media and branded content.

Expect to see more “branded content,” in 2021. Well done branded content can be very effective in both PR and branding, so consider these options carefully. Branded content is better received than traditional ads, in fact, Second Street Lab reported in June that branded content through premium publishers sees a 50% brand lift.

Further, outlets will need to keep eyeballs on their content, to help drive ad revenue, brands with media relations campaigns should be looking at ways to support outlets who support them. At Avaans PR we are actively doing this for our clients already and seeing great brand lift and also enhanced journalist relations.

 

PR Trend #3: Purpose-Driven Buyers

Trusted brands saw huge increases during the pandemic, up to 50% growth, according to McKinsey. This is due to an unprecedented shift in brand loyalty during the pandemic.

Even pre-pandemic, affinity for brands who take a stand and align with consumer’s values were seeing real ROI on purpose-driven initiatives. As Americans slog through the pandemic, they are consistently re-evaluating priorities, this is especially true for Millenials and GenZ.

PR trends for 2021, include self-love and body positivity will be a purpose for many buyers, especially those who emerge from isolation hibernation with a few extra pounds. GenZ is feeling stressed. While some are still below the age of 18, they remember the great recession. Right now, self-care and home comfort are top of their list. Pre-pandemic, GenZ was actually returning to malls, but the pandemic has left this generation feeling a bit powerless and reconsidering purchasing behavior, at least for now. But 51% of GenZ’ers say they will return to in-store shopping. But when GenZ returns to stores, according to Retail Dive, they’ll do so with the expectation of safety and a frictionless environment that mirrors the ease of online shopping.   GenZ is also moving towards “thoughtful consumption,” especially those brands with responsible sourcing, environmentally friendly policies or support social issues. Local businesses and minority-owned businesses are also on their radar in a whole new way.

As for Millenials, the eldest of whom are in their 40’s already, are leading the way, followed by the often forgotten GenX, to continue online shopping across almost all verticals from essentials to alcohol, according to McKinsey.

Plus, record low-interest rates have created a whole host of new home buyers. In September 2020, 60% of U.S. homebuyers were Millenials, they’re likely to spend an increasing amount of time at home, items that allow them to spend more quality time with friends and family will be attractive, so delivery and home-based products will take a new focus for that generation.

PR Trend #5: The New Corporation

The media loves cultural changes and the radical changes to corporate America as a result of the COVID pandemic are monumental. From new work structures resulting from work from home to updated DEI hiring practices, diverse executives, and the great resignation, the media is covering companies through a very different lens today.

Technology is a considerable sub-topic here. If your brand is using technology or inventing technology to address these radical changes, there are considerable thought leadership opportunities for you.

From a spokesperson perspective, the media is also being more proactive about gathering a multitude of diverse perspectives on almost any topic. If you’re hiring corporate spokespersons or brand representatives, be clear on your objectives, and your audience. Not all spokespersons are useful in PR, and that doesn’t mean they aren’t perfectly good spokespersons for things like ads or social media, but they might not get a lot of lift in PR.

Trust is no longer a trend – it’s an imperative. From a public relations standpoint, you’ll want to be thinking about how your brand will differentiate itself in the media and marketing activities. With trust and security taking new precedence, brands will need to think about how they will reinforce those messages in a brand-consistent way.  Now is the time to explore partnerships and the potential activations, which will create the memorable moments consumers are craving.

From tourism to retail to direct-to-consumer products, brands will need to be thinking about how they will be relevant at the right moment.

From content to media relations to events, now is the time to plan, but bake in flexibility. For example, secure your video producers now, and create three original scripts, secure the time and the talent now, so you can move faster than everyone else when the moment is right.

PR Trend #5: Cross Collaboration

This is the year where everything needs alignment. If you haven’t already, tear down the silos between PR, Marketing, and Branding. Get those people together now so they can be more effective together in 2022. Think about how each department can align on digital and in-person initiatives. Think about initiatives that are word-of-mouth worthy, there will be plenty of industry and even national coverage for brands that are thoughtful about how they align.

A unified, personal experience will be an expectation in 2021. So ensure your messaging, your purpose, and your plans are operating together, not just in tandem, but together.

Use your owned, earned, and paid media together in new ways and your brand can benefit from the realignment of brand loyalty happening right now.

 

If you’re ready to use these and other marketing & PR trends for 2021 in a more customized way, let’s talk. 

This article has been updated

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Post-COVID: 10 Marketing Statistics & Strategies to Thrive in 2020 Recession

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There are TWO keywords for your post-COVID marketing strategy: Trust and Retention

2020 won’t be a year any of us forgets anytime soon. Social distancing brought us personal and economic uncertainty that’s sure to last through the remainder of the year. We won’t fully appreciate the full impact on this global pandemic for a very long time. Now IS the time to think about your post-COVID marketing strategies though.

Right now, businesses are having to make decisions that will determine whether they’re company survives or even thrives in a post-COVID-19 world.

Let’s face it, post-COVID marketing and PR will be very needed. It’s not a question of “if,” it’s a question of “what” and “how.”

From past recessions, we know customers steer towards familiarity during times of uncertainty. With this in mind, it’s important for brands to cherish their customers, keep in touch with their customers and tap into and enhance brand loyalty.

Even in a recession, consumers will still splurge, they will STILL treat themselves, but emotional triggers take on outsized importance because consumers actually DO want to feel good about their purchases and when consumers are watching their expenses closely, they have more to lose from a lousy brand (product, customer service, communication) experience. When consumers are watching their pennies, they aren’t taking as many risks with their money.

Get Emotional With Your Customer Retention

Now is a great time to reinforce the brand relationship with existing customers. Think about customer loyalty programs and branding & PR initiatives that strike right to the heart of your existing customers. Discounts and sales are easy, but do nothing for loyalty, so look at reinforcing customer loyalty right now. Now, understand, no consumer says “I want a relationship with a brand,” instead the relationship resides in their subconscious. Our work with Captivation Motivations means we deeply understand how consumers act, even when they don’t understand why they act.

Not only does post-COVID marketing to existing customers cost less than acquiring new customers, but it also pads the bottom line for years to come:

1) Customers with an emotional relationship with a brand have a 306% higher lifetime value and will recommend the company at a rate of 71%, rather than the average rate of 45%. (Motista)

2) Emotionally connected customers stay with a brand an average of 5.1 years vs. 3.4 years (Motista)

3) Emotionally connected customers recommend brands at much higher rates: 30.2% vs. 7.6% (Motista)

Grab Share of Voice While It’s Available

Brands who maintain or even increase ad spends are able to thrive in the years after recessions, the same will be true for post-COVID marketing. There are several reasons for this, first is branding confidence.

While the Edelman Trust Barometer of 2020 addresses the lack of trust in advertising, the strategy behind advertising isn’t trust itself, it’s exposure which leads to familiarity, which leads to increased trust. Also, the ROI will improve because fewer competitors will be advertising so your message will come across more strongly.

Plus, consumers know that marketing decreases during recessions, so by advertising you’re sending a message of your own confidence and strength to both customers and competition.

That said, expect PR, specifically earned media, to take an outsized influence as earned media leads in trust. Brands using PR to refine and focus their commitment to their existing customers will score extra bonus points in customer retention.

4) Companies who maintained or increase ad spend during a recession saw a 256% increase in sales over those who cut back (Innovating Through a Recession: Professor Andrew J. Razeghi Kellogg School of Management)

5) 92% of consumers say they trust earned media over purely promotional content. (PR Daily)

6) 70% of consumers prefer getting to know a company via articles rather than ads (Content Marketing Institute)

Maximize Happy Customers


Celebrate your existing customers, because customer retention is the name of the game. But go the extra mile too, ask for and encourage your customers to give you reviews and feedback AND show that you appreciate their willingness to do so. The reason for this is simple, the more engaged a customer, the more likely they are to be in the habit of referring you to others.

For the last decade, we’ve witnessed one of the most incredible consumer shifts in marketing: the traceability of consumer referrals. We now know that for certain that when a friend recommends a product or service, that product or service immediately benefits from a trust boost. This trend will be on supercharge throughout 2020.

During the boom economy, you probably spent the majority of your marketing budget on the acquisition of new customers. In the post-COVID marketing world, now it’s time to turn your funding away from acquisition funnels and into emotional connections and reinforcing trust with your existing customers, pivoting your marketing budget towards this strategy will increase revenues (yes, even during a recession).

7) Happy American customers will share their positive experiences with and refer about 11 people. (American Express)

8) It’s 5-25X more expensive to acquire a new customer than it is to retain an existing customer. (HBR)

9) A 5% increase in customer retention can increase company revenue by 25-95%. (HBR)

10) 80% of an organization’s future revenue will come from just 20 percent of your existing customers (InsightSquared)

 

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