Prior to this crisis people didn't just buy because they NEEDED things.
They bought because they WANTED things. This difference is critical and is the basis of Branding.
And today it's going to become extremely important for those companies needing to kick start revenues, and compete against similar competitors.
Consumer hedonomics is a key part of my strategy process to help businesses become internally aligned on their 'Why' and something I have utilised with amazing success for over 15 years.
Without a doubt Consumer spend will become even more difficult to unlock due to ongoing uncertainty in the job market including substantial layoffs around the globe and a pending global recession.
So, when companies realise they can no longer afford all that resource they had before this crisis, brands that better understand the power of consumer hedonics are more likely to better align themselves and the external messaging with consumer than those that don't.
If you're a product led company e.g. you find the product and then promote it with fingers crossed then I strongly suggest you learn how to become a 'consumer' led company pretty quickly.
Consumer hedonomics is how we describe the key drivers that can influence a consumer to spend money with you over a competitor. A brand/business that better understand the key drivers around consumer behaviour will inevitably win out over companies that don't.
"hedonomics focuses on the relationships (a) between external outcomes and happiness, and (b) between decision and happiness".
At the start of this crisis and especially when your country informed you you about 'lockdown' my guess is you did what most people did which is to go and panic buy food from the supermarket. You would have done this based on your 'need'. Without a doubt some of those purchases will have been influenced by your favourite brands, but as finances became tighter your 'need' will have superseded your want.
I would also guess that very few of you went out and panic bought a car, a new suit, a pair of jeans etc because this is stuff you 'want', and not stuff you need?
Brand marketing when done in the right way creates 'want' in the consumers mind above 'need', this in turn creates the opportunity increase the perception of value which can lead to a better margin and more loyal customer.
•Moving from need to want in buying adds value/margin
•It erodes competitive threat, but doesn't remove it!
•It creates internal clarity boosting staff contribution
Pre-Covid most people purchased things because they 'wanted' something. Great brands work on emotions because 'people buy from people like themselves'. Unless they have no choice, or it’s a commodity.
Memorable brands create a personality, which requires clarity and consistency in dealing with people. Above all a great brand will earn TRUST, simply because you can't impose it on someone.
Customers today have to be led up a ladder of (increasingly emotional) benefits to maximise sales opportunities When buying customers are trying to satisfy emotional needs.
Most of these are at a high and subconscious level. The most obvious of these is the oft used word ‘TRUST”.
But simply stating a benefit that operates at a high emotional level risks either being ignored (you cannot tell people ‘Trust Me’ for example), or seeming too out of touch with the reality of their lives - an over promise and/or having too high a sense of aspiration for the customer.
As a company you have to have a strong sense of who you are appealing to if you are to build a sense of personality (brand) that starts customers on the road to buying from you.
Confused companies, confuse customers, who buy from someone else. Unless of course your products are so cheap and competitors so weak it does not matter.
I run a couple of workshops, and one of those workshops is designed to help business better understand how to stimulate and achieve growth by using consumer hedonomics which helps to better internally align the brand, this in turn helps to deliver an externally aligned brand strategy.
My tried and tested process is underpinned by asking leadership teams in businesses to look in the mirror and better understand 'why' the consumer is choosing to spend their money with a competitor over them.
The other workshop which goes hand i hand with the brand strategy one is designed to develop a 'social media' strategy.
It's aimed at companies who no longer have the media spend budgets or resource they once had, but for obvious reasons need to remain front of mind in order to deliver on revenue plans.
So, if you really want to kick start your business and the above makes sense, or you simply want to understand where this can be of relevance to you feel free to to drop me a note.
To maximize happiness, one could either improve desired external outcomes (e.g., wealth) or optimize the relationship between desired external outcome and happiness without improving the outcome per se. Economics focuses on the first method.