The Strategy of Shift

Note: Shift - Decisions for a Net Zero World - primarily focuses on the transition that companies need to make towards a sustainable (net zero) future taking everyone along. The core of the discussion is about ESG adoption and how it needs to be integral to a companies core strategies. Below is a brief excerpt based on a few thoughts and comments in the book about truly aligning the company's marketing strategy with the brand purpose and the pitfalls of not doing so.

Are brands themselves contributing to the eroding customer trust?

Everything about our economy is based on trust. Trust is a contract of faith between two parties – the consumer shares information with the company and then receives access to information, products and services. The flow of information between the company and its customers and the company’s ability to use it implies a deep and fundamental relationship at work: the one of Trust. However, this Trust has been under severe attack and has been depleting over several years. The uncertain business environment, fall in media standards (fake news), compliance shocks, coupled with some of the company’s own actions have contributed to this major Trust deficit over the years.

Today, customers are way more informed and socially aware than a decade ago. Studies reveal that brand trust is one of the biggest considerations for these consumers while making purchase decisions. About 85 percent consumers say that the ability to trust a brand to do what is right can be a deciding factor or deal-breaker – yet consumer trust in brands has been dipping. According to another global survey, if 77 percent of all brands in the world ceased to exist, no one would really care! So, brands across categories, we can argue, must try every trick in the book to not be part of the that 77 percent. In response, one of the top ‘strategies’ deployed by brands is a relentless pursuit to find a ‘meaningful’ roles in their consumers’ lives and one of the biggest themes that has emerged in the past decade is that of ‘Brand Purpose’ to engage the new-age, informed consumer. Unfortunately, this ‘Brand Purpose’ narrative has begun to get conflated with tall and exaggerated claims of ‘saving the world’ and many marketers are unfortunately down a slippery slope.

Customers demand authenticity in communications and actions

Most customers, studies reveal, don’t really believe most of the brand advertisements they are exposed to or the claims made by brands unless they witness real, on-ground action as well. Consumers are increasingly suspicious of the brands’ lofty pledges to make the ‘world a better place’. Glamorous, over-the-top advertising, lip-service to feel-good, token causes are being called out for what they are: a playbook to win awards, get great PR and book celebrities! Mere lip-service and practices such as ‘greenwashing’, where changes are made at the surface level only without any real on-ground impact are no longer working and infact proving to be counter-productive. Several recent marketing and communications instances are littered with examples of brands hijacking ‘trending’ causes and social issues with superficial intent and then getting called out, hurting their reputation and the bottom-line in the process.

Brands need to course correct

Experts argue that if brands truly want to earn back trust, increase reputation and loyalty, they will have to ‘walk the talk’ rather than merely driving a purpose narrative or making promises. Companies will have to realise that creating ‘brands with purpose’ can never be an emotion-inducing advertisement campaigns or just tag-lines, it has to be something the brand actually truly believes in, invests and executes on-ground. It requires genuine interventions in people, community and markets. Brands will have to create genuine public awareness, mobilise people within the company as well as external partners/ suppliers by demonstrating on-ground action for the cause they truly believe in and the purpose they want to follow. In this journey, they will have to influence, engage and collaborate with communities, build public and government appetite for the mission.

In summary, brand will have to move from product attributes, just smart logos and great TV or digital advertisements to being more human, empathic, responsive and above all trustworthy. Such core values will have to also permeate marketing and communication departments as well.

Authentic communication and harnessing deep stakeholder relationships will be needed and critical to success. ?Only by proactively leading critical issues and helping address the same will strengthen the social contract between the business, society and the consumer at large. In this process, trust will be the new currency and equity the by-product. While customers understand that brands cannot solve many issues, there are others they can certainly influence and make a real difference. Responsible brands, responsible manufacturing and responsible strategies are now the need of the hour and has to be a core value that drive business.

The strategy of ‘Shift’

Brands will have to shift their thinking in a positive and strategic direction. Shift thinking will be all about mapping the change. Shift thinking will about truly defining the ambition. Shift thinking is not about bluster, it will be about paying attention to the details. Shift thinking will be about building and retaining this customer trust. Shift thinking will be about collaboration and partnerships that make a real difference. Shift thinking will be about taking everyone along. ?

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