Why do entitled consumers rebel?

In our conversations with marketers and strategists, they often complain about consumers’ rising expectation levels. For many of them, calling consumers entitled is a pejorative term. We disagree. We think marketers need to change how they think AND how they behave to accomodate and engage with entitled consumers. Marketer behavior is so bad that we dedicate an entire chapter in Marketing to the Entitled Consumer to marketing overload.

There are lots of reasons – but for consumers, there are no excuses. Among the consumers we surveyed, 43% agree with the statement that, “Companies are lucky to get my attention and they should act like it.” And, for Fully Enittled consumers, that proportion rises to 59%.

Meanwhile, we bombard consumers with retargeted ads and assault their inboxes and mobile devices until they stop paying attention, and even seek out ways to block us from communicating with them. Marketing is not necessarily the enemy of a good customer experience, but unless it is carefully managed, it can be. When marketers are too focused on the bottom line and short-term results, they can go off course.

At their core, most marketers want to do the right thing. They want to make customers aware of products or services that will make them happier. The challenge has been to deliver on that promise in an efficient, and respectful way. That’s what Marketing to the Entitled Consumer is all about – how to stop bombarding your customers and to turn their unreasonable expectations into lasting relationships.

Use unsafe thinking to align with entitled consumers

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This is not a political post. For as long as it takes you to read this post, I’d ask you to put aside whether you think Nike was right or wrong to feature Colin Kaepernick in it’s “Just do it” ad, and acknowledge that it was a high-risk move.

Author, Jonah Sachs calls this type of move “unsafe thinking.” Sachs cites other examples like CVS deciding to stop the sales of cigarettes. When CVS began to consider the decision, the unsafe question that they asked was whether they could make more money by not selling tobacco – compared to the $2 billion in tobacco sales they were making at the time.  I’m not so sure that CVS was employing unsafe thinking though, as much as bowing to the pressures of a health care market, and a recognition of the hypocracy of selling billions of dollars worth of cigarettes while claiming a mission to deliver health to their community.

Nike, on the other hand, had to know that it would alienate a segment of its customer base. I wonder if they were surprised when people began to cut their swoosh of their socks, burn their shoes, and vow to never purchase from the brand again.

We have long advocated for aligning your company’s values with those of your consumers. But, what the Nike example shows is that your customers aren’t all aligned. So, you have to go a little deeper. Figure out which values are most important to the customers you want to keep. In Marketing to the Entitled Consumer we consider examples such as TOMS, Thrive Market, and Figs that pursue a buy-one-give-one model or how Danish pharma company, Nordisk supplies insulin at reduced prices in developing countries. These are values that are important to the company, but they are not particularly controversial.

Increasingly, however, we see the rise of activist commerce. Sleeping Giant, an anonymous watchdog organization, alerts brands when their advertising appears on extremist websites – with an inherent threat to boycott them if they don’t react. Consumers that want to take control can download buycott, whose barcode scanning app lets them vote with their wallet on all sorts of issues that might be individually important to them.

When it comes to aligning with consumers, companies that identify the causes their customers believe in and find creative ways to support those causes will create a way to differentiate themselves in the consumer’s mind. How controversial you want to be, is up to you. But, start by employing some unsafe thinking. And then, just do it.

Want to Be Customer Obsessed? Forrester Recommends Starting With Email

Shar VBCustomer Obsession is a theme that Forrester has spent the past few years researching and advocating. It’s not so different from consumer-first marketing. Both terms refer to the practice of allowing insights about consumer behavior to dictate brand behavior.

In a recent Forbes interview, analyst Shar VanBoskirk explained that many brands understand the idea of Customer Obsession, but get stuck when they try to implement it. In a big company, so many processes are already in place to push merchandise, run a sale, or send mass messages that personalizing interactions or communicating with individuals based on their needs is hard to prioritize.

Shar’s research shows that email is an affordable, effective tool that brands can use to become more customer obsessed. It makes sense. Most brands have email platforms, email experts and a lot of information about the consumers that receive their messages. The email team also usually has a reasonable amount of autonomy to direct their messaging strategy.

Rather than think of email as only a promotional tool, email should be used as a communication channel, where marketers interact with individuals. Email can be used for market research, for personalized updates based on past behavior, or just to create goodwill with heartwarming stories.

Shar cites Hilton as a good example. The company delivers a personalized “year in review” email that shows a customer everywhere they traveled, loyalty rewards, and how close they were to reaching the next level of loyalty status. This simple (and automated!) email then allows for Hilton to create ongoing customer-obsessed communication. For example, Hilton could easily send a follow-up that helps the customer achieve extra points to graduate from gold to platinum member status.

Email marketers can be customer obsessed without overhauling the marketing department. Hilton doesn’t need to know every single thing about a customer to send a personalized email, they just need to pull a year’s worth of sales activity into a standard template.  Many customer-obsessed email campaigns can be relatively straightforward, like reminding people what’s in their shopping cart before it expires. Or they can be really complicated. Netflix uses an algorithm to understand consumer’s preferences and recommend movies. Customer-obsessed email campaigns can also pull double-duty. Many personalized digital companies from Birch-Box to TheNest use survey emails to better understand customer preferences – and these messages get significant customer participation. Some companies like Spotify put little survey questions throughout their online experience to gather data when the consumer is most engaged.

Yet, even before data is gathered, the concept of thinking about the customer’s needs must become part of the planning. Someone at Hilton understood that customers react well to seeing a review of their past activity and that the personal touch will mean significantly more than another “Labor Day Weekend Sale” message.

This insight might be the best takeaway from Shar’s research – that email marketers have the power to think about what communication the customer might want, and then craft a campaign around that concept. A customer-obsessed email marketer would try to determine what makes those customers tick first and build around that, rather than blast them with “clever” but vanilla messages that focus only on extoling the products virtues, rather than truly connecting with the consumers’ needs.

 

What’s your whining channel of choice?

Screen Shot 2018-08-28 at 9.33.58 AMI was listening to a podcast this morning when the interviewee mentioned that his twitter account had just been verified. If you didn’t know, Twitter verifies “accounts of public interest” so that the public can know that each is an authentic account. The interviewer, who already has a verified account, quipped that the best thing about that was that the interviewee’s complaints would now be dealt with more quickly by companies.

I laughed, and then I realized the inherent message. Some communications channels are better than others for whining. And, I know I’m guilty too. I’ve shouted into the Twitter ether (tweether?) at Comcast, US Airways (now part of American), Avis, ProFlowers, Starwood Hotels, JetBlue, and countless others.

For sure, there’s something cathartic about firing off a tweet in the moment to bitch about some shoddy service or deplorable experience. But, there’s more to it than that. Generally, you’re far more likely to get a response via Twitter than calling a service center (many of which have caused the present consternation in the first place). The social teams at most brands are really quick to respond to questions and complaints on Twitter. Of course, it helps that they know that your followers, and their followers will see your tweet and their response.

Few social teams are empowered to resolve your concern, although I have had some success with teams helping route me to the right people to resolve an issue. But, the cynic in me would say that a major part of their role is to remove the conversation from the public view, and prevent the negative story from gaining traction.

Let me take the example of ProFlowers. In May, my wife received flowers from a friend which were dry and shrivelled when they arrived. My wife called the customer service team who sent a new bouquet. This happened three times. By now, they were sending free vases and had refunded my wife’s friend. I took to twitter after the third screw-up, and the ProFlowers team responded within 15 minutes. They were apologetic, and gave me an email address that I was expected to contact to come to a resolution. Since, I didn’t expect anything to change, I didn’t email them. But, they succeeded in making it look like they were concerned and responsive. However, I will never buy anything from ProFlowers. I will never recommend ProFlowers. I will be an active brand assassin every time I tell this story.

What ProFlowers, and most other companies, fail to realize is although they quashed the public conversation, they didn’t resolve my issue. They never followed up. They lost my trust. They showed that they are not consumer-first. And, they’ve earned a brand assassin as a result. It’s not enough to deal with and try to limit or hide the whining. Understand the customer’s real concern, and do everything you can to make it right. That’s consumer-first. And, it’s critical when seeking to engage and build relationships with entitled consumers.

Crocs and boors and friends, oh my!

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A couple of weeks ago, I bought my son a pair of crocs. Typically, I’d buy something like this from Amazon, but the size and color he wanted wasn’t available so I bought them directly from the Crocs website. Since then, I have received an email every single day from Crocs. The first one – apart from the order confirmation – was a welcome email thanking me for my support and promising to keep me posted on all their “best sales events, new product releases, unique discounts, and special offers.” I had no idea how diligently they would deliver on that promise to keep me posted. And, not that I buy crocs very often, but so far all they’ve done is train me that paying full price is a really stupid idea because I’m likely to get a 40 or 50% off email every day.

Except that I won’t get that email. I unsubscribed. I don’t want to get their lunch special, or to ‘stay connected and share the crocs love’, or even to ‘get comfortable with 50% off.’ Crocs has acted like what Nick, Josh, and I call a loudmouthed boor. We compare these boors to someone that comes to your house and won’t shut up –  talking about what’s important to him, without making any effort to understand what’s going on in your life. And, once a boor thinks he knows you, he’ll text you, email you, show up in your Facebook feed, and follow you all around town. If that sounds like your company’s approach, unfortunately, you’re not alone.

The alternative is to act like a friend – someone who considers what’s going on in your life and how they can help you. We interviewed Susan Fournier –  who next week will become the next dean of the Questrom School of Business – for Marketing to the Entitled Consumer. Together with Jill Avery of Harvard and John Wittenbraker of market research firm GfK, she penned a great HBR article that dives deep into the different types of friendships that people have with brands. We provide a synopsis in the boook, but the full article is well worth a read if you’re trying to shed your boorish ways.

The changing face of malls, and retail success

IndochinoI don’t go to malls very often. But I went yesterday with my wife and son to get some back-to-school gear for my son. I was struck by two things. First, there were very few empty spaces. I keep reading about how Amazon will lead to the death of retail and how malls are suffering. And, maybe they are. But, I expected a far more depressing experience than the one we had. And, yes, some of that might be related to my low expectations.

The bigger surprise for me though was the number of brands that I think of as online brands that had their own storefront – I noticed Casper, Untuckit, Peloton, and INDOCHINO. Maybe, I shouldn’t have been surprised. After all, we interviewed INDOCHINO CEO, Drew Green and featured the company’s success in Marketing to the Entitled Consumer. According to Drew, brands like INDOCHINO are opening physical stores because:

  • The aforementioned retail apocolypse makes real estate more affordable;
  • Employees, known as Style Guides at INDOCHINO, focus on helping the consumer get what they want – and not just selling whatever inventory is in stock at the time;
  • Style Guides also provide expert measurements to ensure customer’s clothes fit perfectly;
  • Retail is a marketing channel – it provides brand exposure, an opportunity to boost customer experience, and customers that start their relationship in a store go on to order more confidently online.

I don’t know if all of these reasons apply to the other brands that I saw – INDOCHINO is a great example of a Consumer-First business. But, there’s no doubt that these businesses are changing the face of malls. Who knows what they’ll look like the next time I visit if my record of once-every-few-years holds up!

How aligned are your values with your customers?

As part of our research for Marketing to the Entitled Consumer, we surveyed 7,000 consumers in six countries. From the survey data, we define four segments of consumer – three of which are entitled in some form – and define those that show both dimensions of entitlement as “Fully Entitled”. Of these Fully Entitled consumers, 34% told us that they “only shop from places that support the same causes that I do,” and we write in the book that one way to demonstrate reciprocal value with consumers is to align your company with your consumers’ values.

But, what happens when you change direction? I just came across a Washington Post article that highlights how customers of Bonobos, Moosejaw, and ModCloth stopped shopping from these retailers after they were acquired by Walmart. As one former Bonobos devotee comments in the article: “I don’t begrudge a company for selling itself, but there’s something particularly egregious about the Walmart deal. I don’t like the way they treat their employees or how they’ve put smaller retailers out of business. It’s not a company I want to support.” In other words, their values no longer align with mine.

Time will tell whether this is a smart move by Walmart to broaden its customer base by appealing to non-traditional Walmart buyers. But, I don’t think it will be enough ultimately to simply own those businesses and expect the customers to stay. Walmart will need to change some of its corporate values to retain them.

It’s too easy in this day and age for consumers to understand corporate structures, track corporate behavior, and assess whether their values align. And, consumers are more willing than ever to vote with their wallets. If you don’t know what your customers care about, it’s time to start finding out! You don’t have to slavishly succumb to every demand, but you shouldn’t be surprised when customers notice and act accordingly.