What if my customers say they don’t care?

21 07 2009

  Whatever you can do or dream you can, begin it. Boldness has genius, power and magic in it.”  

                             – Johann Wolfgang von Goethe

 

“What if my customers say they don’t care?”  

This may be the number one question many companies are wrestling with regarding social responsibility and sustainability strategies.  And is central to the debate of whether it is possible to achive brand differentiation by infusing sustainable practices into messages directed to customers.

It is easy to appreciate how many companies over the past couple of decades have made significant investments to “stay close” to their customers. Brand attribute ratings.  Research departments rebranded as “consumer insights” groups. Tracking studies. Endless focus groups and telephone and on-line surveys.  Trend analysis and more.  Information is good and many sound business strategy decisions have been based on input on the wants and needs of the customer.  But too much information can also lead to an unhealthy paralysis.

So when the research points to data saying that customers don’t care about sustainability—corporate leaders have decisions to make.  This is especially true when we are still buffeted by an uncertain economic climate when many people are struggling financially and not in the position to make the sophie’s choice between being able to afford something they need vs. an alternative that may offer a higher degree of sustainability.  We acknowledge the cold reality that the economy may be holding back customers’ demanding sustainable behaviors, but beware the “sling shot effect” of how quickly this could change when the economic pressures ease.

This is the inflection point that is the very essence of what it means to be socially responsible.  Our way of thinking is that if you can achieve more responsible and sustainable practices (and we acknowledge the practices are not sustainable unless they are profit neutral), you have a moral obligation to do it whether or not your customer says they care.  And we further believe it is a social responsiblity to communicate what you are doing in an effort to educate and inspire your customers to not only appreciate what you are doing, but show them how they should alter their own behaviors for everyone’s benefit.

The next level of consumer insights then is to get deeper into the potential of the responsible and healthy relationship between a company and its customers. True innovation, creativity and positive social change rarely relies on permission.  It insists on the courage to do what is right and transformative and then to communicate the benefits of the innovation to the audience.

I draw the analogy to our society’s history of struggling with the knowledge that smoking tobacco has devasting health consequences.  After the Surgeon General first informed the public of the health hazards of smoking in 1964, it took decades to achieve the broad based awareness, acceptance and change of behaviors (in part because of the addictive nature of the habit).  But “responsible steps” were taken: public service campaigns, packaging warning labels, bans of advertising, bans of sale to minors, bans in public venues, legal action and consequently—millions of smokers quit and millions of non-smokers never started.  Today, some people still make the choice to smoke and to ignore the health consequences, but they are certainly aware of them.  And there is a social stigma that deeply influences healthy behavior for individuals as well as society at large.  None of this would have happened without leaders who were willing to stand up and embrace change as the right thing to do.

Fast forward to today. Even if your customers say they don’t care about sustainability, it is your responsibility to drive to achieve necessary sustainable behaviors into your organization because of your knowledge that it is the right thing to do whether or not your customer will applaud you for it.  The health and social consequences of NOT doing this is no less dramatic than pretending smoking is good for you.  And because it is the right thing to do, it is also imporant to inform your customer of what you are doing and why.  Public education is also a social responsibility.

Imagine if all the tools of today’s instantaneous communication – the internet, digital media, global connectivity, social networks – were available in 1964 when the public first learned about the dangers of smoking tobacco. How much more quickly would have behavior change been accelerated? How many millions of lives might have been improved?  How much suffering might have been avoided?  

We call on all companies to use all the tools and innovation at their disposal to drive sustainable change and communicate the efforts to their customers. Persuade your customers to care, persuade them to take care of themselves and their community.  This is how we will achieve necessary change when the clock is ticking.

There are many examples:  we are inspired by companies like Wal-mart, Tesco and Kingfisher who are driving meaningful sustainable behaviors into their organizations and then boldly yet honestly communicating what they are doing to their customers and how they should get involved.  Don’t wait for permission.





Play to Stop Europe For Climate

15 07 2009

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We love the work MTV Europe is doing in partnership with the European Union announced today, kicking off a six month campaign to raise awareness and action among young people in Europe regarding climate change leading up to the Climate Conference in Copenhagen in December.  Stunningly, research from Europe indicates only a little more than half of people aged 15-24 have taken action to fight climate change, the lowest proportion of any age group.  The campaign is designed to give a voice to the age group to be most affected by climate change.  

“Events like this are vital, because young people are a tremendously important pressure group. They will be most affected by climate change — so their voices are the most important,” Environment Commissioner Stavros Dimas said in a statement.

Moby will perform in Stockholm on August 20, with other artists taking to the stage in Budapest and Copenhagen in the coming months. Each concert will take place alongside a major climate change event in the respective cities.

The six-month campaign, to be held in the run-up to international climate talks in Copenhagen in December, will run in 11 EU countries and include TV spots, webcasts and games. MTV will provide editorial content on tackling climate change.

Watch the hilarious MTV Play to Stop Promo

 

 

“Events like this are vital, because young people are a tremendously important pressure group. They will be most affected by climate change — so their voices are the most important,” Environment Commissioner Stavros Dimas said in a statement.
Moby will perform in Stockholm on August 20, with other artists taking to the stage in Budapest and Copenhagen in the coming months. Each concert will take place alongside a major climate change event in the respective cities.
The six-month campaign, to be held in the run-up to international climate talks in Copenhagen in December, will run in 11 EU countries and include TV spots, webcasts and games. MTV will provide editorial content on tackling climate change.




The Conference Board: New Report on Citizenship and Sustainability

6 07 2009

“The drivers behind sustainable activities — enhanced productivity, morale and reputation — are even more imperative in troubled times. Furthermore, products and services that improve efficiency and reduce carbon footprints should enjoy increasing demand, lending a new twist to the maxim that companies can do well by doing good.”  – The Conference Board

The data continues to pour in.  18+ months into the Great Recession and organization after organization is monitoring the public sentiment toward business, brands, and the economy at large.  Today, the highly respected Conference Board issued its latest report on Citizenship and Sustainability.  Like so many other recent data points, their report demonstrates again that people are ‘done’ with the past and fully intend to hold companies to higher standards of moral and ethical responsibility moving forward.

Of course, we call this Sustainable Branding.

Learn more from The Conference Board





Trust Gap: A New Landmark Study

25 06 2009

“Actions speak louder than words.  If the public believes that an organization’s first priority is profit maximization, it will be difficult, if not impossible, to build public trust.” – Business Roundtable Institute for Corporate Ethics, Arthur Page Society

A landmark special report was issued today that underscores the deep loss of trust between the public and business.

Read the report 

The topline strategic recommendations provide guidelines to business leaders on the requirements to gain renewed trust with the public.  At is essence, we believe all of these strategies can be summed up as “the golden rule:  treat others as you would like to be treated”.  A timeless axiom that seems to have been forgotten by the leadership of many companies recently.  Hopefully this report will help companies get back to the fundamentals of having a trusting relationship with the public.





Wall Street Journal Report: For companies operating in developing countries, it pays to commit to improving social and environmental conditions.

25 06 2009

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“Here’s a lesson many executives have yet to learn: A commitment to improving social and environmental conditions in the developing countries where a company operates is the key to maximizing the profits and growth of those operations.” – Wall Street Journal

Research reported in the Wall Street Journal indicates those companies that make a commitment to sustainable business practices in developing countries enjoy six key competitive advantages.

  • A sterling reputation.
  • Better employees.
  • More efficient production.
  • A smoother relationship with authorities.
  • Better coordination, internally and with suppliers.
  • Suppliers that are more reliable and flexible.

But importantly, not only is operating in a sustainable and responsible fashion key in developing countries, so is making your customers aware of that commitment.  Increasingly consumers are examining companies social and environmental track records before deciding what products they plan to buy.

Read the WSJ Report





Aberdeen Research: Executives Making Sustainability A Top Priority

25 06 2009

“Research demonstrates that leading companies have made a resoundingly strong business case for the adoption and expansion of genuine, sustainability strategies and initiatives. ” – Aberdeen Group

In a newly released survey of more than 1600 business executives in 700 companies worldwide, sustainability is identified as one of the top 5 corporate priorities in 2009.  The promising report highlights several key insights into current trends, including:

  • The sustainability efforts are being championed by C-suite executives.
  • Budgets are being either maintained or increased.
  • The vast majority of companies already have executive leadership in place to oversee sustainability.
  • Top performing organizations are already achieving strong business benefits —from cost reductions to enhanced brand value.
  • Across all sectors and geographies, responsibility framed strategies have grown in importance, despite the economy.

The research highlights our beliefs that many, many companies have embraced sustainability and social responsibility and are beginning to see positive return on investment for such efforts.  But few organizations have taken advantage of the opportunity to turn these business practices into differentiated marketing assets and brand equities.  Alignment of sustainability actions and brand messaging and experience remains a huge opportunity to enhance corporate reputation and turn customers into engaged brand ambassadors.

Read the Aberdeen Group Press Release





Frontline World On Digital Dumping

24 06 2009

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Watch Frontline World’s story on digital dumping

A moving and powerful investigation of what happens to all of those digital devices once they leave your life, even with your good intentions to have them recycled.  Learn how they can not only harm the environment, but encourage exploitative and inhumane working conditions in the developing world and lead to data fraud at the hands of criminals in far away lands.





Good News: Marketers Waking Up To The Value Of Sustainable Branding

24 06 2009

In a very encouraging research survey sponsored by the American Marketing Association and Fleishman Hillard, nearly 60% of marketing and communications professionals believe their organizations will be placing increased emphasis on sustainability issues over the next 2-3 years than in the past.

Read the AMA Fleishman-Hillard Research Study

It is an exciting time to be involved in sustainable branding because more and more companies are recognizing that sustainability can not only be a profitable business practice, but a powerful competitive differentiator.

But in one of the odd contradictions of the survey, while 73% believe corporate reputation will be a driver of adopting sustainability practices, only 60% believe marketing considerations will drive sustainability.  We believe corporate reputation and marketing strategies should be incredibly inter-twined and that communicating and providing ways for people to experience a company’s commitment to sustainability is going to be a brand marketing imperative moving forward.

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The truth is that corporate reputation management moving forward requires orchestration of all elements of the organization.  It is critical the internal silos be broken down so corporate social responsibility actions, sustainability initiatives, and brand communication (plus promotion, sponsorship, events, CRM etc) all be choreographed as a part of the overall brand experience.  The customer doesn’t compartmentalize the impressions they take away from a company or a brand so it is important that the organization does not do it either. Now more than ever when it comes to brand reputation management, the right hand and the left hand not only need to know what each are doing—but both hands should be on the wheel!





Trust Matters – The Edelman Trust Barometer’s Scary 2009 Report

23 06 2009

 

“I’m not upset that you lied to me, I’m upset that from now on I can’t believe you”
 Friedrich Nietzsche quotes

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I’m not upset that you lied to me, I’m upset that from now on I can’t believe you”  – Friedrich Nietzsche

Kudos to the Edelman Trust Barometer and their 2009 report citing the state of trust worldwide.  It dramatically underscores there is nothing short of a pandemic of lack of trust between people and companies, the media, CEOs, and experts.

Building sustainable brands will require regaining public trust and Edelman’s study reported only 38% of people 35-54 years old in the United States trusted U.S. businesses.  The report also showed that in the past year 77% of 25-to-64 year olds around the world refused to buy a product or service from a distrusted company.  

There is now a huge trust gap to overcome but those companies who aggressively recognize and embrace this new reality will be the ones that emerge from the recession with momentum and a long term competitive advantage.  

But now is the critical time to create and align sustainable and socially responsbile business practices with branding and communication programs to help your company stand apart and be among the winners in this new world where actions resonate and words alone will be ignored.





Coming soon – Ana’s Playground

22 06 2009

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Coming soon to a big screen film festival near you soon is a new short film labor of love entitled Ana’s Playground.  You can learn about this moving live action motion picture and the story behind the production at anasplayground.com.

Watch the Ana’s Playground Trailer.

Having been fortunate to have the good fortune of seeing a preview screening, I promise the film will change the way you look at things and in particular, at how you look at children as the victims of armed conflict and war.  The mission of the film is to use the proceeds and the public interest it generates to donate funds and assistance to non-profit organizations committed to assist kids struggling with armed conflict.

Conceived by Minneapolis based Writer/Director Eric Howell, Ana’s Playground has already won the 2006 best film screenplay at the L.A. Short Film Festival.  Eric was joined on the production team by producers Marsha Trainer and Jillian Nodland and a host of talented Twin Cities film makers.  Their passion for this production is evident in a nail biting, edge of your chair cinematic experience with a performance by gifted young actors who will take your breath away.

I’m happy to be able to provide some help to have Ana’s Playground achieve the critical acclaim and broad based audience this amazing film—and the children it is created to serve—richly deserve.  We will soon be seeking enlightened companies and media outlets to be sponsors of Ana’s Playground to join the movement to help children in armed conflict.  Contact us if you are interested in learning more.

Listen to a great interview about Ana’s Playground with its creator and supporters.





Don’t call them consumers.

22 06 2009

Originally I wrote this post at duffypov.com when I was still with Duffy & Partners more than a year ago.  But it feels more right than ever before as all of us and society at large have been forced by the recession to consider exactly what it means to consume.  And where it fits in each person’s values set.

 

 

“Consumers are statistics.  Customers are people.”  – Stanley Marcus, Neiman & Marcus

Wikipedia defines a consumer as “a person who uses any product or service. Typically when business people and economists talk of consumers they are talking about person as consumer, an aggregated commodity item with little individuality other than that expressed in the buy/not-buy decision.”

Ok, it’s a new day. The term “consumer” must be purged from any organizational lexicon.  Shame on marketers who insist on putting such an arbitrary generalized term on the people they are trying to attract. As if “consumers” live in some petri dish to be probed, prodded and tested.

The term consumer presumes people are put on this earth solely to buy stuff.  How disrespectful to only think of “consumers” in a way that would suggest what they will do for me economically, not what we can do for them.

We are people.  With laughs and tears, dreams and hopes, and a desire to express our individuality in the context of having positive relationships with others and the world around us.

Consumers?  How about people?  The best brands recognize the difference.  In a world increasingly focused on sustainability, brands that respect people as people first will be the ones that are rewarded with—yes purchases—but importantly loyal customers.