As the perfect storm rages of price hikes, rising interest rates and stagnating wages, brands are being urged to re-evaluate their messaging or risk alienating vast swathes of the population for good.
So says a new report by Ogilvy Consulting, designed to help brands chart a course through the current crisis.
The report says that, with the UK experiencing its worst inflation in 40 years, large brands are often perceived to benefit from inflation, or even drive it. Meanwhile consumers see corporate net margins rise to record highs, creating frustration among the public, leading to an “us versus them” mentality.
During times of crisis, brands generally rely on empathetic messaging, but this tactic is losing its appeal, the study warns, especially as some are getting it very wrong. It cites Ovo Energy’s recent ad which suggested consumers snuggle their pets more closely to stay warm as a classic case of what not to do.
Brands are failing to recognise that many UK consumers are in a period of unprecedented uncertainty – especially those with young families – and this requires new kinds of customer insight and response.
Increasingly brands that have come out of the pandemic seem to know their customers less well than they did before, despite a wealth of observed marketing, browsing and purchase data, the report reckons.
Ogilvy Consulting managing director Paul English said: “Today’s consumer plight needs to be seen through new lenses, with the application of natural language analysis, and cognitive segmentation, marketers can understand the human drivers behind the data.
“Most important is to understand the palpable sense of dread consumers are feeling about the future, feeling antagonised by the ‘we’re all in it together’ messaging and triggered by half-hearted price promotions.”
At lower income levels, behavioural insights are critical to understanding what consumers really need, the report argues, as in these audiences there is a greater belief in fate and high sensitivity to the idea of things being “out of control”. There is also more resistance to new experiences and a prevailing prevention-focused mindset with the fear of loss.
But data analysis does not provide consumer empathy points if there is no understanding of the drivers of human behaviour. The key to creating these initiatives lays in the intersection of empathy, genuinely understand the needs and behaviour of consumers; action, inspiring the consumer to do something they perceive as doable and beneficial to them; and brand promise, a brand must create an evergreen experience rooted in genuine value to the consumer to create trust.
The report concludes: “The brands that come through this tough period with their integrity and customer bases intact will be those who have been seen to make a material difference to consumers.
“And it’s by moving beyond traditional promotions and messaging strategies to embrace value-based innovation that brands will deliver meaningful and authentic impact for their consumers.”
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