Common features of top viewing facilities

During the period of the lockdown the UK’s market research viewing facilities have understandably had a tough time.

As we enter July 2020 it appears that the lockdown is easing and that face-to-face, qualitative market research may be able to recommence in earnest very soon.  That means focus groups, co-creation workshops, depth interviews, product clinics and everything in between!

Of course, there are excellent viewing facilities the length and breadth of the country, and comprehensive details of these can be found on the Viewing Facilities Association website (https://www.viewing.org.uk) and on the Association for Qualitative Research (AQR) website (https://www.aqr.org.uk).

Selecting the right facility on a project-by-project basis can definitely make the difference between a good research project and a great one.  That is why we update our list of preferred qualitative research viewing facilities on an annual basis, based on a number of factors including:

Membership of the MRS.  

Like Brandspeak, all the viewing facilities used by us must be MRS company partners, so we can be sure that they are committed to upholding the same research and data protection standards as we are.

Location

Obviously this is a key one.  

If the viewing facility is poorly situated, it can be difficult to recruit respondents who are willing to attend the research session in the first place, or for recruits to arrive punctually – particularly if their session starts close to rush hour.

For groups involving mothers and babies / toddlers, the physical location of the facility is an important consideration, particularly if they are going to be arriving with prams or buggies.  

Ease of access to the building is also a key consideration as flights of stairs can be stressful or even impossible for mums with pushchairs to negotiate.

Access is also an important issue for clients who may be attending.  If they have flown in from abroad, then the venue needs to be easily accessible from the airport (particularly as they may be arriving at rush hour, intending to go direct to the facility).

Space

The proportions of the venue are important for several reasons:

  • It is important that both the research and viewing rooms don’t feel cramped as this can have a negative impact on the mood in the room
  • If the research requires the use of physical stimulus material the dimensions of the research room need to be sufficient to accommodate and display this with ease
  • For longer groups and workshops, mid-session break-out areas are handy to give participants space to relax and catch up with their messages and calls.  Key to this is often a space that allows participants to remain separate from delegates attending other research sessions in the same facility

Service levels

Again, a bit of a no-brainer.  Excellent levels or cheerful service are a must because they:

  • Put the moderator, the respondents and the clients at ease.  Sometimes it doesn’t matter how well the research has gone – if the client has a poor experience at the facility, it can reflect poorly on the research agency   
  • Ensure that any issues are dealt with quickly and efficiently by the in-house team

Food preparation

Some facilities that advertise themselves as being suitable for food preparation / sampling actually have only limited kitchen facilities.

If required, its worth checking for:

  • The appropriate hygiene and food preparation certification
  • The availability of ovens or hobs in addition to microwaves
  • A sufficiently large food preparation area and surfaces where several food samples can be made ready simultaneously
  • A separate area for used plates, cutlery etc
  • The availability of trained facility staff to help out with preparation and serving

 

In-house tech

In-house audio and video recording is now taken as standard. 

However, what is likely to become even more important as facilities reopen is their ability to offer streaming services so that clients who are unable to attend can still view proceedings live.

Rather than investing in in-house streaming technology, many facilities prefer to make streaming available via specialist, 3rd party suppliers such as Stream Team (https://www.stream-team.net), that they will organise on behalf of the commissioning agency.

Costs

Facility hire costs can vary according to location, time of day, the size of the rooms booked and the length of the session(s).

For example, the basic cost of 2 x 2-hour, evening groups held in a Central London viewing facility with standard audio and video recording will be in the region of £950 excl VAT.  

This typically includes tea and coffee and nibbles for respondents – especially important for those who have come straight from work for an early evening group.  

More substantial refreshments for respondents and clients are available on request – and will push the price up.

Outside London and other major cities, facilities tend to offer similar packages at a c. 10% discount to London rates. 

If viewing facilities aren’t required, or are too expensive, then hotel conference rooms can be hired instead.  These cost c. £400 for 2 x 2-hour evening groups, albeit without audio or video recording (this can be arranged separately).

The best viewing facilities in the UK

So, which are the best viewing facilities in the UK?

London

Well, if you are a London research agency like Brandspeak, or simply looking to run focus groups in the capital then these are a few of our favourites:

Spectrum London – centrally located in W1 (just north of Marble Arch), the building houses 5 large studios.  In fact, the largest can accommodate up to 20 respondents and 25 clients! https://www.spectrumview.co.uk

i-view London – located in the Strand and winner of the Market Research Society’s Best Viewing Facility award in both 2018 and 2019. Great location and service and some well-appointed rooms. http://www.i-viewlondon.com

Schlesinger Group (formally The Research House) – another excellent, central location in Wigmore Street, W1.  Well-appointed rooms, great service and one of a handful of facilities to boast their own, in-house chef! https://www.schlesingergroup.com/en/locations/united-kingdom/london/

Bristol

Bristol is a great place to conduct qualitative market research because it tends to be overlooked by many agencies and clients. 

First Sight Studios is perfectly situated in the city centre, right at the end of the M32 and opposite Cabot Circus. 

Despite its central location there is plenty of low- cost, metered parking right next to the facility, which is great if the moderator has to cart around loads of stimulus material.

Manchester

If you are a research agency based in Manchester, or are heading that way to conduct qualitative research then we suggest:

The Talking Shop – a great location, just minutes from Manchester Victoria and Salford Central stations and a few minutes by taxi from Manchester Piccadilly.  

It’s another well-appointed facility with a friendly atmosphere and great levels of service. 

Their Magic Marker gizmo is great too.  It gives the moderator the ability to ‘mark’ any point of the discussion on the MP4 recording using a discretely-placed foot pedal.  

Whilst it shouldn’t be used instead of detailed analysis of the recording, it does give moderators the ability to locate specific parts of the conversation quickly and easily. 

Leeds

Roundhay Viewing – If you are heading to Leeds to conduct focus groups then our favourite viewing facility is Roundhay, situated in the Moortown area of the city.  It has provided consistent levels of excellent service over many years. 

Brandspeak is qualitative research agency that uses viewing facilities extensively, both in the UK and globally.  This is just a sample of our favourite, UK market research viewing facilities.

Please refer to the Viewing Facilities Association website (https://www.viewing.org.uk) or Association for Qualitative Research website (https://www.aqr.org.uk) for other options.

For more information about Brandspeak’s extensive, qualitative research capability please contact us at enquiries@brandspeak.co.uk or on +44 (0)203 858 0013.

Kantar has just launched its 2020 Creative Effectiveness Awards, listing its 2019 winners in several categories, as voted for by consumers.  

The winners have been selected from a large number of ads tested by Kantar during 2019 using Link, its advertising pre-testing tool .  They come from 13 different markets across Europe, North America, Latin America and Asia Pacific. 

Link determines each ad’s ability to contribute to brand equity in the long term and driving sales in the short term.

Short term sales likelihood is a validated probability that the ad drives short term sales based on its creative impact and the impressions it leaves behind about the brand.

Kantar describes long-term power as the measure of the ad’s potential to contribute to the brand’s long-term equity, based on on the ad’s creative impact and how strongly the ad positions the brand as being different in the consumer’s mind.

Digital ads

The ads in this category have the power to make people stop what they are doing on their device and pay attention to the ad, but also contributes to the brand in the short and long term.

On the basis of the above, the top 2 digital ads in this section were as follows:

00f6d87d-0da1-4e44-964c-09f49dc1b694 Kantar’s Creative Effectiveness Awards

Brand: Milka 

Ad Name: Milka Christmas: Give to Those Who Give The Most 

Agency: Wieden + Kennedy, Amsterdam 

Country: Germany 

Youtube: https://www.youtube.com/watch?v=o4M7tsEDhfA

24e7a910-245f-441c-b752-c35fa273164f Kantar’s Creative Effectiveness Awards

Agency: Wieden + Kennedy, Amsterdam 

Country: Germany 

Brand: Google App
Ad Name: Search the Lyrics With Google
Agency: Ambilhati Indonesia Country: Indonesia 

Youtube: https://www.youtube.com/watch?v=1KwVop6GlCw

Print and OOH winners

The ads in this category illustrate the power of creative to make a lasting brand impression in literally seconds

On the basis of the above, the top 2 ads in this section were as follows:

62ec349d-8e69-4a91-ba5e-ce21c6e2a971 Kantar’s Creative Effectiveness Awards

Brand: HSBC

Ad Name: No fixed address 

Agency: Wunderman Thompson 

Country: UK 

15dfda0f-3c82-4d81-94c3-6038b7fd228f Kantar’s Creative Effectiveness Awards

Brand: Estrella Damm 

Ad Name: Silja 

Agency: &Rosàs 

Country: UK 

TV winners

According to Kantar, the ads in this category demonstrate the continued sales-generating and brand-building ability of broadcast content.

e3aa0651-3f62-4a7c-8ea2-28706691477e Kantar’s Creative Effectiveness Awards

Brand: BP

Ad Name: Blind Date 

Agency: Ogilvy & Mather 

Country: Spain 

Youtube: https://www.youtube.com/watch?v=CGEVJvIppUc

ea8ec136-e3c0-4fa5-b75a-0a8e66f79e6a Kantar’s Creative Effectiveness Awards

Brand: Tim Hortons

Ad Name: Ask a Timbits Kid 

Agency: Zula Alpha Kilo 

Country: Canada 

Youtube: https://www.youtube.com/watch?v=iWJunFOw-ng&feature=youtu.be

https://www.kantar.com/campaigns/creative-effective?utm_source=Pardot&utm_medium=Email&utm_campaign=Creative-Effectiveness-Awards-2020

 

 

WPP and Kantar retail market research have just launched their 2020 BrandZ Most Valuable Global Retail Brands report, which identifies the world’s top 100 most valuable retail brands. The report is based on extensive insights from 3.9 million consumers worldwide combined with financial data from Bloomberg. It also reflects stock market performance through to mid-April 2020, in order to capture the impact of COVID-19 crisis. 

The rankings reflect brands that are pure retail, fast food, apparel and luxury.

Highlights from the report reveal that over the course of the preceding 12 months the value of the world’s top 75 retail brand has grown by 12% to $1.5 trillion.  To put this rise in context, Amazon alone grew its brand value by $415.9 billion and remains the world’s most valuable retail brand, commanding 27% of the top 75’s total brand value. 

The ranking provides an indication of the brands that are in the strongest position to withstand the impact of COVID-19, as they restructure their businesses to address the numerous challenges the virus presents.

The report emphasises the role of strong brand equity in enabling speedy brand recovery. It states that historical BrandZ data shows brands with strong equity recovered nine times more quickly following the financial crisis of 2008.

The report also asserts the importance of maintaining brand visibility in an appropriate manner during the crisis and details the activities being undertaken by some of the leading brands in this regard. For example; 

  • Amazon (positioned at No.1), has managed demand, reduced its speed of delivery and prioritised the delivery of essential products
  • Alibaba (No.2) has been using its AI expertise to help Chinese medics shorten coronavirus diagnosis time
  • JD (No. 13) has been using its distribution network to deliver essential medical supplies and food

Not surprisingly, the fastest category riser is pure retail, as grocery outlets benefit from consumer stockpiling. Digitally-oriented brands fared well with Amazon, JD and Alibaba up 32%, 24% and 16% respectively.  But stablished bricks and mortar brands fared well too, with Costco, Target and Walmart up 35%, 27% and 24% respectively. 

Other highlights:

  • McDonald’s (ranked No. 3 at $129 billion) remains the most valuable fast food brand globally, although other brands in the sector are experiencing rapid growth too as a result of delivery services and other innovations
  • Louis Vuitton (No. 5 with a brand value of 152.5 billion) is the world’s most popular luxury brand, with a new, flagship store in Seoul and creative partnerships with major artists
  • Nike (No. 6, $50 billion value) heads the Apparel category, as a result of collaborations, product customisation and e-commerce which have driven sales

The 2020 top 10 looks like this:

Rank 2020 Brand Brand Value ($ billion)
1 Amazon 415.9
2 Alibaba 152.5
3 McDonald’s 129.3
4 The Home Depot 57.6
5 Louis Vuitton 51.8
6 Nike 50
7 Starbucks 47.8
8 Walmart 45.8
9 Chanel 36.1
10 Hermes 33.0

Graham Staplehurst, Global Director for BrandZ at Kantar commented:

‘Brand value isn’t just determined by financial performance but also by reputation in the eyes of consumers.  How retailers behave now in terms of helping people through the crisis, as well as the way in which they treat their staff and whether they comply with government and health advice, will be important to their survival.  Those that have actively demonstrated their relevance and usefulness and continue to do so as consumers’ lives start to get back to normal, will be best-placed to strengthen customer relationships both in the recovery phase and the long-term’.

 

For more information on creating the equity required to protect and grow your brand call Brandspeak on 0203 8580052 or at enquiries@brandspeak.co.uk

The Public’s View on the Government-Imposed Lockdown and how it should be Relaxed

22nd April 2020

YouGov has just published the results of a survey conducted to assess the public’s view on the current lockdown and how and when the different measures should be relaxed or lifted.

Whilst a minority of the population are still flouting the Government-imposed rules, the survey results paint a picture of a population that is broadly in favour of the lockdown restrictions and the disruption they are causing –  even to the extent of wishing them to be extended.

For example, when asked about whether the Government should start loosening restrictions in c. 3 weeks as has been widely mooted, only 30% agreed it would be the right time,  whilst 26% felt that it would be the wrong time (i.e. it would be too early).  44% said they don’t know.

Regarding the criteria that the Government should use to determine whether or not the lockdown should be relaxed, the public again took a cautious view. 32% felt there has to be a ‘substantial’ fall in daily deaths beforehand, whilst 37% wished the Government to take a harder line and wait until no new cases are being reported.

The public was also clear about what the Government’s priorities should be, once it begins to lift the lockdown.

The reopening of schools and getting people back to work were regarded as the top priorities, whilst allowing people to travel to the UK from other countries and the holding of large events (such as sports or music festivals) were regarded as the lowest.

Finally, YouGov’s survey addressed a commonly-held view in the press that certain groups (e.g. those under 40) should have restrictions relaxed ahead of others. 

The survey revealed that 42% felt this would be wrong, with only 36% thinking this would be the right thing to do. 

On the other hand, 48% agreed that it would be right to both right and fair to loosen lockdown restrictions for NHS workers ahead of the general population.

Overall, YouGov’s survey paints a picture of a nervous public, that wishes to err on the side of caution at this present time.

Introduction

Over the coming months, the COVID-19 pandemic is going to make life very challenging for businesses as they attempt to deal with the economic downturn it is causing. 

However, this isn’t the first downturn most of us have experienced and it is just one of many that organisations have successfully navigated over the last 100 years – going right back to the time of the Great Depression!

There are some very simple, but very important actions that brands can take to protect themselves during recession.  If done well, some will even emerge stronger than they were before.

If in doubt, consider the words of Sam Walton, founder of Wal-Mart.  When he was asked about the recession of 1991 and its likely effect on his company he said:

 I’ve thought about it, and decided not to take part!

In the same year, Wal-Mart went on to become the world’s largest retailer with a net sale of $43.9 billion. 

Below we have identified the top 5 actions brands should consider during a downturn.

  1. Maintain or even increase advertising spend

Throughout previous recessions one truism has stood out consistently – those brands that cut advertising spend suffer more in the short term and take far longer to recover once the recession has abated.

Consider this excellent chart from Dentsu Aegis Network:

845e590e-671e-478e-8a3e-42ebcbf77a56 The 5 Things Brands must do to Survive COVID-19

It shows clearly that during the 1990/91 recession the sales of those companies that maintained advertising spending kept on rising and that, as the recession receded they rebounded quickly.  

On the other hand, those that cut spending remained static during the recessionary years and their recover was much weaker in the years that followed.

Marketing commentator Mark Ritson supports the view that advertising budgets should be maintained. He says:

The reason why you should maintain your advertising budget during a recession is that recessions are always ultimately short-lived.  It will leave you with a stronger share position for many years afterwards, once things settle down.  You should view recession as a tough time, but also as the ultimate time to build brands and grow market share. 

In support of the above, Kantar’s recent COVID-19 survey reveals that only 8% of global consumers feel that brands should stop advertising during the crisis.  

However, the survey results also make clear the extent to which consumers feel that during the downturn brands shouldn’t attempt to capitalise on events but should instead demonstrate a real sense of responsibility both to their employees and to the wider community.

Specifically, the survey revealed:

  • 45% of consumers want to see companies putting in place plans to protect the supply of services or products
  • 74% of consumers believed brands should not exploit the situation
  • 78% of consumers believed brands should help them in their daily lives 
  • 75% of consumers believed brands should inform people of what they are doing.  
  • Nearly 80% of consumers believed employee health should be treated as a priority 

These numbers suggest very clearly that consumers want and expect brands to step-up, rather than just ‘go dark’ and wait for the crisis to pass.

The emotive nature of these views also suggests that those brands that are seen to act accordingly will win customer favour that can benefit them in both the short and longer term. 

Consider this recent initiative by Scottish brewer Brewdog:

836b3d23-f520-4e6e-9c84-85bbaf7071aa The 5 Things Brands must do to Survive COVID-19

Brewdog has been using its distilleries to manufacture hand sanitiser which it has then been distributing free to charities and hospitals.  

At the same time, the brand has also launched virtual bars where consumers can share a beer online, whilst taking part in homebrew classes and virtual pub quizzes.  

Through these activities the brand has successfully demonstrated that it has a social conscience, supporting both the community and its customers during difficult times.

According to YouGov’s BrandIndex, two weeks after the initiatives were launched consumer perceptions of the brand were up by a statistically significant 4.6 points.

  • Focus on your most profitable brands – and be ruthless if necessary

During a downturn its vital to support your healthiest and most profitable brands – the ones that generate the income that will help your business survive.  

If necessary, this may mean that less profitable members of the portfolio need to be  suspended or even cut, in order to free up budget.  

The problem is that, like consumers, companies can become emotionally attached to the brands they own.  

Often, these are the legacy brands that are closely associated with the heritage of the company.  Not only can they soak up precious budget during a downturn whilst offering relatively little in return, they also absorb a disproportionate amount of management time and attention to keep them afloat.

  • Remind your core customers why they love you

Its much easier to re-activate existing customers after a downturn than it is to acquire new ones.  

After all, your existing customers know and trust you – they only hit the pause button because of the economic situation.  

Problem is, the longer they have done without your brand, the more they need to be reminded about it – and what made it their product or service of choice in the first place.

Consider a campaign that:

  • prioritises your most important segments and reasserts the brand’s core credentials.  This  will remind people what they have been missing
  • (re-)establishes emotional connection with your customers.   This helps to ensure that it gains System 1 stickiness and differentiates it from the competition
  • Reward your core customers for their loyalty

Re-establishing the (emotional) connection between consumer and brand is essential, but on its may not be enough, as your competitors will also be fighting hard for your customers’ attention.  

All customers want financial recognition and reward from the brands they buy – particularly the ones they have been loyal to, particularly as they are likely to be under considerable, financial pressure of their own.

Correctly positioned discounts, giveaways and loyalty benefits act both as a reward and an incentive to buy.

  • Review your brand positioning

Whilst we don’t advocate a knee-jerk reaction regarding brand strategy, conducting a review of your brand’s positioning is essential after a downturn.

This is because:

  • The downturn may have caused consumers’ own expectations and priorities to change, at least in the short term,  meaning that your brand may have considerably less relevance and meaning than it once did.  
  • Recession typically causes some brands to disappear and new ones to emerge.  Post-recession, the competitive landscape for your brand may well have changed.  This could be either an opportunity or a threat – but either way it needs to be recognised and addressed.

Moving forwards

Of course, there are many other steps that your brand will need to take as it re-establishes its momentum post-recession.    The question is, which steps do you need to undertake – and when?

Carefully constructed and executed market research is likely to be an essential part of this decision-making process.  For example, it can tell you:

  • Which consumers have deserted you, why and what you need to do to recapture them
  • Which competitors have prospered, why, and whether that has been at your brand’s expense
  • Whether your brand’s proposition is still valid, whether it has been undermined by events, if it needs tweaking and how to do so
  • If and how you need to rationalise your portfolio to give your fittest brands headroom
  • The campaign messages and offers that are likely to resonate most strongly with consumers 

Brandspeak can help. For an informal chat call us on 44 (0) 203 858 0052 or contact us at enquiries@brandspeak.co.uk

Introduction

There is obviously a lot of talk about a COVID-19 recession right now, with comparisons being drawn with the economic slumps of 2008/9 and even the 1930’s.  

With startling surveys about plummeting consumer confidence emerging daily, along with dire projections regarding the impact on business and the economy, it easy to understand why.

But just how serious is the situation for consumers, marketers and brands?

Sobering COVID-19 statistics

The emerging figures are certainly stark.

Marketing Week’s COVID 19 survey at the beginning of April suggested 69% of UK businesses had already started to see a drop the demand for their products and services during March.  The figures were even worse for SMEs, with 77% reporting a drop in business.  

Clearly, most sectors are already feeling the impact and will continue to do so over the course of 2020 – and beyond. 

For example, a report by GlobalData on 24th March suggested that UK retail sales are due to plummet by £12.6 billion over 2020 as a result of COVID-19, with the clothing and footwear sector alone predicted to fall by 20.6% to £11.1 billion. 

However, not all sectors are suffering equally in the short term.

Kantar reports that during March, UK supermarkets saw a 20% rise in sales overall, with corner shops actually recording a 30% sales spike during the same period.  

The organisation also confirms that during the week beginning 16th March, 88% of UK households made an average of 5 shopping trips between Monday – Thursday of that week – equivalent to an additional 42 million shopping trips for the country as whole.

The result was that consumer spend during the period amounted to an additional £10.8 billion, contributing to Q1 grocery market growth rate of 7.6% – the highest in more than a decade.

Other sectors have also found favour during the pandemic. For example, YouTube reported a massive increase in watch time throughout February 2020. 

Italy, for example, saw a 2,000% rise in the amount of online content viewed during February, with Germany seeing a 1,100% rise. Britain saw a more modest 650% rise during this period, largely due to its lockdown beginning slightly later than many other European countries.

Not surprisingly, the effects of the pandemic on the economy are forecast to be profound – in the short term.

Currently, the Office for Budget Responsibility (OBR) is forecasting a 35% drop in the UK’s economic output for the 2ndquarter of 2020, should the current lockdown remain in place for 3 months. 

The OBR also estimates that unemployment in the UK could rise to 2,000,000, or c. 10% of the working population in the short term, although this figure should ease later in the year.

However, whilst such forecasts are not unreasonable under the circumstances, the fact is that it is far too early to build economic models that can accurately paint a picture of the next 6-12 months. 

This is because so much depends on when lockdown can be relaxed and whether or not the UK then enters a phase of rolling lockdown that continues in to 2021.

Reasons for Cautious Optimism

And there are also some reasons for cautious optimism.  

For example, the 2008-9 recession was caused by a fundamental lack of liquidity.  This time it’s different, with many businesses having reasonable amounts of accessible cash on the balance sheet. 

Also, after 10 years of highly controversial austerity, the  balance sheet of UK PLC is also healthier than it was.  The country is therefore in a better place to offset the worst ravages of the pandemic, through subsidising wages, deferring taxes and undertaking additional borrowing.

In addition, even though the OBD is forecasting a contraction of up to 35% in the UK economy during the second quarter of 2020, it is also anticipated that with a gradual relaxation of the lockdown from May onwards,  the contraction is likely to be followed by a strong bounce in the quarter following.

Lastly, marketers learned a lot about surviving an economic downturn during the 2008-9 slump. The current crop of senior marketers are subsequently far better placed to navigate their brands through choppy waters this time around.

The Role of Market Research in a Downturn

Market research providers like Brandspeak have a significant role to play in helping B2C and B2B organisation’s navigate the downturn successfully .

  • We can do this by assessing all aspects of your brand within the context of the changing needs, attitudes and (financial) behaviours of its target audience to address key questions such as:
  • Does the existing customer segmentation model work during the downturn, or does the brand need to think afresh about who it should be targeting? If so, which are the ‘new’ priority targets and why?
  • Do the brand proposition and positioning still stack up – or does the brand strategy and architecture need to be amended to better reflect the changing market place. If so, where does it need amending, how, and why?
  • Is the pricing model still valid, should a new price point be adopted and / or should offers be implemented? If so, what would the new pricing regime look like?
  • Is there a need or an opportunity to undertake range extension by introducing a more basic product or service – one better suited to the budget of the both the consumer and the organisation during the period of the downturn? If so, what would the new offer look like and what impact would its introduction have?
  • Are the brand’s campaigns and marcoms still valid at the current time, or do they need adjusting to reflect a changing market place.

Please contact us at enquiries@brandspeak.co.uk for more information.

In the next COVID-19 Brand Snapshot we’ll focus on what else brands need to do to offset the damage that will otherwise be inflicted by COVID-19. 

Introduction

Perhaps you are relatively new to market research and find the research terms qualitative research and quantitative research totally unfamiliar (yet at the same time annoyingly similar).  If so, then this article is for you!

Or perhaps you are a seasoned marketer who makes frequent use of research but is occasionally unsure whether it is qualitative or quantitative data that would best suit your needs.  If so, then read on!

By the end of this article, you will not only know your qual from your quant, you’ll know what qual involves and when each is best applied. 

What is qualitative research?

Qualitative vs quantitative research definition

Whereas quantitative research focuses on measurement of the known, qualitative research typically involves the exploration of the unknown.

And whereas quantitative research is based on a pre-defined survey comprising mainly closed questions, qualitative research is conducted as a dialogue based on a discussion guide comprising a series of semi-structured, open questions posed by a moderator, 

The role of qualitative research

Due to its exploratory nature, qualitative research is perfect for use during the early stage development of brands, products, services and communications.  

On these occasions its role is typically to validate or enhance that development process, by identifying the relevant thoughts, needs, attitudes, motivations, expectations, beliefs and / or preferences of the target audience, as well as any actions or behaviours that these may give rise to.

Qualitative research examples

Qual may be used during early-stage development to:

  • Evaluate and refine a new brand proposition
  • Identify the defining attitudes and behaviours of the target audience 
  • Assess and refine new product or service prototypes
  • Assess a number of early stage advertising concepts 
  • Review and optimise a multi-channel customer experience 

Examples of relevant projects include:

  • Investigating the appeal of a proposed, new high street current account on behalf of a UK bank
  • Assessing the appeal of the features and benefits proposed for a new type of insurance product on behalf of a major car insurer
  • Reviewing changing attitudes and behaviours of Generation Z towards the consumption of meat and dairy products on behalf of a frozen food producer
  • Identifying the ‘must-have’, experiential elements of a high street, automotive store concept capable of acting as a viable alternative  to ‘traditional’, out-of-town showrooms for a major car marque
  • Exploring reactions to an online, medical proposition being designed as an alternative to the GP’s surgery on behalf of a new start-up
  • Evaluating the potential of a  global, forecourt promotion to increase the consumption of premium fuel for a leading petrol retailer
  • Exploring the attitudes and behaviours of business people to a new, online discussion forum aimed at the global business community

Qualitative vs quantitative research

Fine, but surely each the above examples could have been addressed using a variety of quantitative approaches instead?  Well, yes and no!  

All too often, organisations rush to quantify a subject before its parameters have been identified and understood.

When this happens, the quantitative results are likely to be incomplete.  At worst, they will be misleading.

Qualitative research methods and project sizes

Qualitative research is conducted face-to-face, by phone or online and the number of people involved is relatively small in comparison to the sample sizes typically involved in quantitative research.  

For example:

  • A ‘typical’ qualitative research project may involve 2-6 focus groups, each lasting up to  2 hours and comprising up to 8 respondents each (making 16-48 respondents in total).  
  • An online qualitative research exercise that utilises a bulletin board or community (MROC) may involve up to 30 respondents dipping in and out of the moderated e-discussion over a period of several days or weeks.  
  • A qualitative research project comprising 1-2-1, phone or face-to-face depths may comprise no more than 5-10 interviews.  

Ad-hoc versus continuous qualitative research 

Broadly, there are two types of qualitative research project.  

Firstly, an ad-hoc, qualitative research project.  This term is used to describe a single qualitative research exercise, undertaken to address specific research objectives in the form of a one-off study.

Secondly, a continuous or longitudinal qualitative research project.  These terms are used to describe a qualitative research study of two or more stages run over a period of weeks, months or even years, to understand if and how people’s attitudes and behaviours regarding a particular subject are changing over time.

Qualitative research approach

Whatever the approach, some form of unstructured or semi-structured discussion guide will be used to provide a framework for the conversation.  That guide will contain a variety of open questions designed to ensure that:

  • The discussion flows
  • Subject matter can be is explored in a structured manner
  • That exploration is conducted on both rational and emotional levels, using projective techniques to uncover unconscious sentiment.

Moderators may be free to diverge from the discussion guide and go ‘off-piste’, to explore individual comments, issues and ideas as they arise.

Qualitative research sessions are audio-recorded as standard (subject to necessary respondent permissions being obtained) and possibly video-recorded as well.  If the research is conducted in a bespoke research facility then clients may choose to watch and listen to proceedings from behind a one-way mirror.

The role of projective techniques in qualitative research

Any qual research project tasked with exploring the consumer’s reaction to a particular brand, concept or experience has to be capable of accessing the fundamental thoughts, feelings and associations of research respondents.

The challenge for the researcher is that the subject’s top-of-mind responses are likely to emanate from the System 1, conscious mind, meaning that they are also likely to be logical, superficial and potentially even misleading.

The insights that researchers require are typically buried deep within the respondents’ System 2, subconsciousmind and further obscured by the influence of cultural and social norms, heuristics and intuition.

Projective techniques are therefore used as a means of gaining access to the sub-conscious mind and the wealth of insights it holds for researchers.  

Such techniques have their origins in clinical psychology and have been adapted for use in marketing and market research, with both B2C and B2B research audiences 

The simplest example of a project technique is brand personification.   Brand personification enables moderators to probe the respondents’ brand perceptions indirectly, by asking them to consider that brand in human form.  

Questioning might go as follows:

Imagine that Brand X came to life as a person.  What sort of person would they be?

The moderator can then probe on physical characteristics such as gender and appearance, as well as emotion-led issues such as personality,  likes, dislikes, shortcomings and aspirations.

Depending on the degree to which respondents are able to work with this particular projective technique, respondents can also be asked to think even more laterally and comment on where the persona lives, the type of car they drive (this can also be the subject of a separate projective exercise) and the sort of friends that they have.

Projective techniques can also be visual in nature.  A common example of a visual projective is the mood board or collage, where respondents can be asked to express their thoughts and feelings regarding Brand X using different forms of visual imagery.  

Magazines are a great source of such imagery, and respondents can be directed spend time sifting through them identifying pictures, colours, words and icons that all reflect their impression of the brand in some way – even if they can’t think why.

Once complete, the collage becomes the subject of further discussion, whereby the moderator works with the respondents to understand  the significance of the different themes emerging.

Ultimately, the success of any such technique depends on the moderator’s ability to select the right projective in the first place, to introduce it appropriately and then analyse and understand the feedback received, separating that which is merely interesting but ultimately irrelevant, from that which truly adds to brand understanding and insight.

Data analysis in qualitative research

When analysing the research recordings they have made, many researchers will opt to have those recordings transcribed, whilst others will simply listen back to them, making notes on a ‘coding frame’ as they go.  

The purpose of the frame is to cluster responses by question or by theme, so that relevant comments from across the research sample can be quickly and easily isolated and analysed.

Whilst some researchers will then compile a debrief that faithfully reports on the feedback gained in relation to each question (whether it is significant or not), others adopt a more interpretive, consultative approach whereby they will discard feedback that they regard as insignificant, whilst interpreting and adding value to feedback that they regard as relevant and important.

Qualitative research – a final word

Ultimately, the insights delivered by qualitative research that is capable of going beyond the obvious can make the difference between commercial success and failure.  

Brandspeak specialises in providing qualitative research capable of identifying game-changing insights that can turn a so-so brand in to a sector-defining champion. 

More information

For further insights about qualitative research read Brandspeak’s article on The skills and attributes required to become a great qualitative researcher

Or read about Brandspeak’s qualitative research offer on our website.

Contact

For more information on Brandspeak’s qualitative research capabilities please email us at enquiries@brandspeak.co.uk or call us on +44 (0) 203 858 0052.

Brand Equity is a term that gets a lot of traction today. Frequently viewed as a holy grail – even a process shrouded in mystery – there is actually no secret elixir, backlink or password that guarantees entry to the world of brand equity. It’s an asset that every business can nurture and is an increasingly necessary tool for building positive relationships with consumers and influencing buying decisions.

Defining brand equity

The simplest way to sum up brand equity is the commercial value in a business that is created, not by products or services, but by the perception of the brand itself.

Brand equity is not marketing, although this certainly forms a part of the process. But while marketing is focused on specific campaigns and clear actions and objectives designed to sell, brand equity is more about building long-term value via beyond marketing experiences/events and strong relationships with consumers. Common perspectives on it include:

  • The value in having a well-known and loved brand name
  • A value premium where consumers believe a product is superior to a lesser known or generic brand simply because of the name attached
  • A promise to the customer about standards of quality, consistency, innovation, and even community
  • Perceived value attached to a brand established as a result of consumer view of, and experiences with, that brand

Brand equity – component parts

The general consensus is that brand equity is forged from four key component parts: brand awareness, brand associations, perceived brand quality and brand loyalty.

1. Brand awareness

This is the first stage in creating brand equity. It involves building up an awareness of the brand with consumers so that it is associated with a particular product, service or category.

Brand awareness starts to create a visibility for the brand that can lead onto familiarity and then to liking and loyalty. It provides a foundation on which other associations can be built.

2. Brand loyalty

The basis of brand loyalty is that, when given a choice, the consumer will consistently opt for one particular brand over others in the same category or offering the same product or service.

Securing brand loyalty is not only crucial for ensuring sales but can create an army of brand advocates who are an incredibly effective force when it comes to viral marketing.

3. Brand associations

This is essentially anything that a customer relates to the specific brand. An association is created where the customer has had an interaction with, or experience of, the brand.

It could be something as simple as the colours associated with it (e.g. red and yellow = McDonalds) or a feeling, tone of voice or certain type of advert. Associations are key tools for nurturing positive feelings towards a brand and ensuring that consumers develop intended attitudes.

Brand associations may be crucial when it comes to helping to convey information, as well as establishing the uniqueness of the brand as compared to competitors.

4. Perceived quality

Although perceived quality is often included under the umbrella of brand association, it’s important enough to stand alone.

One five year study at the National Quality Research Center at the University of Michigan, identified that perceived quality was a major driver of customer satisfaction, which in turn had a major impact on ROI.

Key to creating this element is having a deep understanding of what quality means to customer segments. It’s important to note that perceived quality may be quite different to actual product quality.

Factors such as a previous association with poor quality can mean that this subjective view is actually quite divorced from reality.

In addition to the above, brand equity may also include brand experience – i.e. the accumulation of interactions that the customer has had with the brand over time.

Why does brand equity matter?

  • Brand equity provides a safety net in troubled times. It can carry a business through difficult events, from product fails to security breaches. If it is strong enough it may ensure that a brand survives when others wouldn’t.
  • Creating a business asset. Whether brand equity is tangible or intangible has been the subject of many a debate. However, what everyone agrees on is that it’s a major asset for any business and can even be sold, licensed or leased just like others can.
  • The advantage of a price premium. Brands that have built up essential equity with consumers can charge more than those that have not. This applies regardless of whether actual superiority over competitors can be demonstrated – it’s all in the perception that consumers have.
  • Defending and increasing market share. Because of the role that brand loyalty has to play in brand equity, one positive consequence of creating it is an increased market share i.e. a larger number of consumers who will actively choose this brand over another.
  • Improving the chances of success of new lines and extensions. Where positive brand equity has been well established it’s much easier to successfully launch a new line or series of products, as the existing audience will be significantly more receptive. This can considerably reduce the risks of expansion and extension.
  • Improving reach and quality of influence. For example, where brand equity is strong it is easier to find collaborations and other brands to partner or ally with. Businesses rich in brand equity are able to attract the best and brightest talent and rarely struggle to recruit.

Examples of brands with strong brand equity

In 2019 the most valuable brands in the world, in financial terms, were named as Amazon, Apple, Google, Microsoft, and Visa. Apple in particular is an incredible example of brand equity in practice – it is estimated that Apple’s brand value is $154.1 billion, or nearly three times its total annual revenue. It is powerful evidence of the way that brand equity helps to deliver a premium.

iPhones, for example, have many features that are similar to other mobile devices. What really sets the product apart, creates such slavish brand loyalty and means that consumers will pay more to own one is the brand equity that the business has established.

This cult following also translates into profits – last year Apple overtook Microsoft as the world’s most-valuable public company (just).

Facebook is another prime example of a brand that has strong equity. The volume of scandals and negative press that have affected the social media giant in the last two years would have sunk many lesser brands.

However, Facebook remains the largest social network in the world and continues to grow. In April last year for example it reached 2.37 billion monthly active users, an increase of 55 million on the previous quarter and also posted a 26% year-over-year increase in revenue.

Quantifying brand equity

Monitoring brand equity provides options to define metrics for improvement. There are many different ways to do this including:

  • Identifying the component parts of a brand’s equity, for example via focus groups
  • Measuring brand awareness and then tracking it, via an annual survey
  • Using sales performance metrics. For example, customer lifetime value, price premium over competition and average transaction value.
  • Measuring the output of marketing activity, for example adoption of loyalty schemes or take up of promotions and discounts.
  • Metrics that relate to competitors, including market share, customer acquisition rate and ROI of acquisition channels.

Where next?

“If you can hit people in their hearts, that’s when you start to build brand equity”

Addidas Outdoor, Stuart Wells

this is a quote from head of global brand marketing for Adidas Outdoor, Stuart Wells.

Adidas Outdoor is a tiny part of the huge Adidas brand that is setting out to be more disruptive, ignoring industry norms and developing new ways to establish brand equity by engaging more fully with hearts and minds.

Crucial to this has been the role that storytelling has to play. Adidas Outdoor is taking the technical messaging of its products – which are designed for the outdoor industry, such as its new hiking boot – and wrapping these in creative narratives.

This strategy is designed more around relationship building (i.e. brand equity) than financial returns. While sales remain a metric for the success of this approach, Adidas Outdoor is diversifying, focusing more on awareness of its presence in the outdoor sector and using resources to get consumers to commit to a relationship with the brand, as opposed to a single purchase.

This is a crucial change in the battle for brand awareness and also a signpost for where many organisations will need to go next.

Building a basic awareness of a brand, ensuring customers know what the brand stands for and even shaping how customers think and feel about it is no longer going to be enough.

It’s building deeper bonds with consumers where the real work is going to be done and that will require a commitment to creative narratives that “hit people in their hearts,” no matter what you’re selling.

Brandspeak and brand equity

Brandspeak are experts in helping clients to identify, create and measure brand equity.

For more information contact us at enquiries@brandspeak.co.uk

 

American Author Jeffrey Gitomer is a loyalty expert. According to Gitomer

you don’t earn loyalty in a day. You earn loyalty day-by-day.

The crusade to convert one-time shoppers into a loyal customer base is one that every brand is necessarily committed to, for survival as well as growth. And it’s not something that happens overnight.

However, with 47% of UK consumers today believing it no longer pays to be loyal, is this a battle any brand can win? And could it really be as simple as setting up a loyalty scheme designed specifically for that purpose?

Loyalty schemes – a brief history

Tesco is the pioneer in this field, establishing the Clubcard and its ‘points for purchases’ model in 1995. This was quickly followed by:

  • Boots’ Advantage card (1997)
  • Sainsbury’s Nectar card (2002)
  • Amazon Prime (2007 – the first of the subscription loyalty models, which was replicated by retailers like ASOS, Selfridges and Next)
  • MyWaitrose (2011)
  • Morrison’s More (2014)
  • M&S Sparks (2015)

Notable exceptions: Asda, Aldi, Lidl and Primark.

Evolutionary times

Loyalty schemes certainly do have the power to influence customer buying choices.

According to a report released by Forrester Research and published in Forbes, 72% of customers online belong to at least one loyalty programme. 78% said loyalty programmes save them money and just under half said loyalty schemes influence what they buy.

There are three key ways in which customer buying choices can be influenced by a loyalty scheme:

  1. Offering opportunities to save money. More than half of consumers sign up to a loyalty scheme in order to save themselves money.
  2. An attractive set of rewards. 37.5% of consumers are motivated to join loyalty schemes because of the rewards.
  3. Improving engagement. Loyalty programmes open up a communication channel between consumers and brands that can be used to optimise engagement. 75% of consumers see loyalty programmes as part of their relationship with brands and 64% of brands identify a loyalty scheme as the best way to connect with consumers.

However, traditional models that rely on cards and vouchers don’t appear to be having quite the impact they used to if the changes taking place in the industry are anything to go by.

Tesco, for example, recently launched a subscription type model – Clubcard Plus costs £7.99 a month and delivers discounts on Tesco products, as well as banking and mobile phone services with a potential value of £400 a year.

Sainsbury’s too is revamping, relaunching as an app, which is also something that Boots has recently done with its Advantage card.

Why do brands invest in loyalty schemes?

  • Loyalty scheme customers are more valuable. For example, one survey found that loyalty scheme members spend 5-20% more on average than non-members and buy 5-20% more frequently.
  • Giving customers a reason to return. A brand like Apple (the most valuable brand in the world) may not need a loyalty scheme but for more commodified brands it could make a big difference. These are the brands to which consumers feel little natural loyalty. For example, 42% of consumers feel no loyalty to any fashion retailer and one in six consumers switch their main grocery store over the course of a year. Here, a loyalty scheme could influence the choice of one brand over another.
  • As a response to increased competition. In saturated markets where competitors are winning ground, a loyalty scheme that has the power to influence consumer preferences is an advantage. For example, according to the experts, Clubcard Plus should benefit Tesco’s larger stores, which have been the most adversely affected by the expansion of Aldi and Lidl.
  • Data. Technology fueled developments in data capture provide opportunities for brands to use loyalty schemes to learn more about their customers with more effectiveness than these programmes have ever had the potential for before.

How can a loyalty scheme influence where customers shop in future?

There are three key ways in which a loyalty scheme potentially gives a brand power today.

  1. By continuing to offer value. Traditional loyalty scheme models can influence where customers shop by offering a perk that brings customers over from competitors and ensures they continue to return. The key to this is – and will likely always be – value. Customers will be loyal when they feel that they are getting real value in return for loyalty and retailers lose sight of this at their own peril.
  2. Through innovation and engagement. Many brands today are beginning to evolve loyalty programmes to integrate other popular marketing tools, such as employing gamification, incentivising user generated content and offering the opportunity to redeem points for experiences, as opposed to just products or discounts.
  3. In effectively collecting and using data. Advances in technology have given loyalty scheme data even more relevance, making it faster and simpler to collect and analyse a much wider pool in a way that could never have been achieved in the early days of these programmes.

As a result, today a loyalty scheme can curate a level of customer insight that might previously have taken decades to collect. As Tesco’s chairman said of the new Clubcard Plus:

What scares me about this [loyalty program], is that you know more about my customers in three months than I know in 30 years!

This application of technology to loyalty scheme data has made these programmes a key channel for:

  • Generating actionable insights. Retailers now have unique opportunities to understand customers and engage them more intentionally, to identify customer needs and stay on top of these as they change.
  • Creating real relationships. A tech-enabled loyalty scheme can collect data that can be used to facilitate personalisation and customised experiences, drive positive communication and enable authentic relationship building.
  • Enabling segmentation and targeting. Loyalty scheme data can be fed into omni-channel, offline, and ecommerce segmentation, allowing brands to profile their best customers and personalise offerings to make them more effective.

The end result? In-depth customer connections that give a brand the power to influence how, and when, customers shop, increase brand commitment and drive up sales.

The traditional benefit of loyalty schemes – attracting customers through savings and rewards – still works, especially for those brands that tend towards greater commoditisation.

However, it is the potential for tech-enhanced data capture and what this provides in terms of insight into, and engagement with, a target audience that is potentially so important today.

In terms of brand benefit and influencing where consumers choose to shop, it may be in the tech-enabled collection and use of data where the true power of the loyalty scheme now lies.

What’s your favourite colour? Most of us won’t have been asked that question since our schooldays – unless you’ve recently had a particularly dull experience on a dating app. It’s a query rarely posed in research.

The answer might change on any given day or you might find it impossible to pick one, and yet the ‘Psychology of Colour’ is something that marketers frequently refer to.

According to Dr. Max Lüscher – inventor of the Lüscher colour test – our colour preferences are completely subjective. So, if asked to make a colour choice we all make different, individual decisions that are impossible to predict en masse.

However, Lüscher (and many others) believe that our sensory perception of colour is something universally shared by all. i.e. when we look at the same colour we all perceive it in largely the same way and have a similar response to it.

This can provide a direct conduit to consumer thoughts and feelings in a very simple way.

For example, if you showed five consumers five colours and the question was “choose one” it would be pretty impossible to predict who would pick what. However, if you displayed the same five colours to the same people and asked them “how do these colours make you feel?” it’s likely that you could predict the response all five consumers would have. So, in the context of more effective branding and marketing, it’s in the field of influencing perception where colour has an important role to play.

Does colour really make a difference?

In a word? Yes. There’s a vast swathe of research to back this up – for example Hubspot decided to test the effectiveness of two different colours on a call to action button.

By simply changing the colour of the button from green to red, Hubspot found that its effectiveness was increased by 21%. No other change was made – just the colour – and conversions jumped by almost a quarter.

That’s fairly significant stuff. The Psychology of Colour taps into the way that colour influences human behaviour and decision-making i.e. how the use of colour can cue up certain human responses.

This can potentially be harnessed in marketing terms for the purposes of brand recall, resonance and affinity, as well as driving consumers to take action. So, how does it actually work?

Colour and branding

Over time it’s possible for certain colours to become permanently associated with a specific brand. For example, red with the Coca Cola logo or red and yellow with McDonalds packaging.

The emotional and intellectual response that we have to specific colours then becomes part of the association we have with that brand too. We may also have certain reactions when seeing branding for the first time.

branding-colour-perception-1 How to use colour in branding
Courtesy: of The Logo Company

On the whole, all of us (with some exceptions) largely share the same (or a similar) sensory perception of colour. On that basis, colours can communicate in a way that either reinforces or undermines a brand message. For example:

Black

Black frequently speaks of luxury and power. In a brand context very few people would look at the use of black and consider it cheap or associate it with darkness, emptiness or sadness, which might be the connotations of choosing it in the colour test.

It’s a colour that can provide context to brighter colours and which is often used with white, especially by high street brands.

E.g. Nike, Chanel, Hugo Boss, Johnnie Walker Black

Brown

For obvious reasons this is a colour that we often associate with nature but also with earthiness, hard work and humble origins.

It’s viewed as a straightforward colour, rarely triggering suspicion and can also be associated with taste, as it’s the colour of chocolate and coffee.

E.g. UPS, Nespresso, M&Ms.

Red

Red is an incredibly emotive colour for humans. It tends to stimulate appetite, which is why it’s so frequently used in the fast food sector, and its association with urgency can make it useful in a sales context.

Red is synonymous with energy, excitement, power and passion but can sometimes also be associated with anger, danger or aggression.

E.g. Coca Cola, Netflix, Levi’s, Kellog’s, KFC.

Yellow

Stimulation is the primary purpose of shades of yellow, both in terms of mental processes and also the human nervous system.
It’s also strongly associated with creativity and happiness, as well as extroversion and warmth.

E.g. Shell, Yellow Pages, DHL, McDonalds, Ikea, Post-it

Green

The natural link to the environment and the outdoors makes green feel like a relaxing and calming colour.

We associate it with everything, from money to health, freshness, growth and prosperity. It has few negative associations other than envy.

Green is also the shade that humans have one of the most intuitive relationships with and we can distinguish between more shades of green than any other colour.

E.g. Starbucks, Android, BP, Land Rover.

Blue

This is a shade that doesn’t occur in nature and so it has been found to act as an appetite suppressant.

It is also considered the colour of logic and wisdom, reasoning, calm and security – trust, loyalty and dependability are all associated with blue. That might be why blue is used in over 75% of credit card brand logos and is by far the most popular choice for Fortune 500 companies.

E.g. Facebook, Ford, Visa, Nokia, PayPal, American Express.

Purple

There is a fine line to tread with the use of purple – while it’s considered superior, prestigious and sophisticated it can also signal decadence, excess and suppression.

It’s also a highly imaginative and spiritual colour that tends to have significantly more appeal to women than men.

E.g. Zoopla, Yahoo!, E4, Cadbury.

In addition to individual colours, this approach can be broken down in many other different ways.

For example, some groups of colours or shades of colours are considered ‘warm and bright’ (yellow, pink orange and red) whereas others are ‘cool and bright’ (silver, turquoise, lavender).

Violet, navy and dark green could be considered cold dark colours whereas brown, purple and gold are warm darks.

Colours in these groups can be used together to trigger specific responses, such as trust, engagement or stimulation.

Where can the use of colour be effective?

For most organisations, colour will have specific relevance in four key areas:

1. Logos/liveries

Research tells us that colour helps improve brand recognition by up to 80%, which can considerably strengthen the impact of a logo.

If the ultimate goal for a logo is instant engagement, colour not only helps to achieve this but can also trigger a flood of associations before the consumer has even seen it up close.

With the right colours an instant visual connection is established, not just to the brand itself but to its values, personality and mission.

When choosing colours for liveries and logos the key question will be what associations do you want people to make most about your brand and which colour choices will support this?

2. Packaging

Almost 85% of consumers cite colour as the primary reason they buy a particular product. Colour choices can switch consumers off, create notice-ability on the shelf, or entice a pick up to find out more.

In a physical environment, such as a store, colour choices could be the difference between consumers picking one product over an almost identical other.

Designing packaging for audience targeting also necessarily involves consideration of colour. Perhaps predictably, 57% of men like blue the most and green and black are also considered masculine shades.

Women also like blue but are more attracted to red and purple than black. For packaging targeting teens and under 30s, purple is often a first choice.

3. Marketing content (e.g. blogs, articles, whitepapers brochures, direct mail, social media posts)

According to the Institute for Colour Research, people make a judgment about your content in 90 seconds or less.

Up to 90% of the judgment made in that very small window is influenced by the colours they see. As a result, there are three key ways in which colour can be particularly useful in marketing content:

  1. Colour can have specific relevance when highlighting a call to action. If the colour choice is wrong that message might be easily ignored.
  2. The use of colour can direct the human eye towards what we want it to focus on. So, it can be used as a tool for ensuring that consumers see a priority message first.
  3. It can also be employed to ensure that content is legible or images are discernable. Colour can improve comprehension by 73% and reading by 40%.

4. Advertising (e.g. OOH advertising, magazine advertising, digital advertising)

Consumers today are saturated by advertising on a daily basis.

Strategic, careful use of colour can make messaging stand out. As mentioned, it’s also a key part of brand recognition – full-colour ads in magazines are recognised 26% more often than those in black and white.

Crucially, colour gives brands a way to exploit the tiny window of consumer attention in which an advert must take effect – colours communicate instantly, not just in terms of what is being sold and how we want consumers to feel about that but also who is doing the selling.

A note of caution

Although there are clear parallels in the way that many of us view colours and the responses that certain shades can trigger this is not entirely universal.

Factors such as gender, culture, age and experience can all change the accepted wisdom on how orange or red might make a consumer feel.

We all tend to have slightly different associations as a result of our life experiences with colourful objects and that means that we all understand the concept of ‘purple’ or ‘red’ slightly differently.

As a result, there is no magic colour that will ensure your CTA is always successful or that will get consumers to trust your brand. Context is everything – the context of your business and the context in which the colour will appear.

That’s why audience research and the process of testing colours on your target consumers will be essential.

The Psychology of Colour has the power to transform the impact of images and messaging in a branding and marketing context. It’s a tool that, when correctly used, can trigger brand recognition, stimulate engagement with ads or a logo, and embed key associations in the minds of the consumers you want to connect with.

It’s an investment that, once made, can continue to deliver over the long-term, ensuring that branding and marketing assets are being fully optimised and brand resonance is strong.

References

  • https://www.fastcompany.com/3028378/what-your-logos-color-says-about-your-company-infographic
  • https://blog.hubspot.com/marketing/psychology-of-color
  • https://coschedule.com/blog/color-psychology-marketing/
  • https://packhelp.co.uk/psychology-of-color-how-to-use-it-in-your-packaging-design/
  • https://www.canva.com/learn/color-psychology-the-logo-color-tricks-used-by-top-companies/
  • https://explorerresearch.com/importance-of-package-color/

London Fashion Week SS20 (12th – 17th September) was a thoroughly on-topic affair this season.

However, it wasn’t hemlines or textiles, slogan tees or embellishments that were trending but something altogether more urgent. Ironically, the bi-annual fashion carnival closed on an unseasonably warm day, which almost served to underline this alignment with what (other than Brexit) might be the issue of 2019: climate change.

Environmental concerns are dominating the headlines but the fashion industry has always been notoriously deaf on that front. However, this season it appeared that a saturation point had been reached in terms of awareness of the environmental consequences of unsustainable business practices.

Customers have made the connection between fast fashion/consumerism and a lack of sustainability – there is no going back now. And there is a distinct sense of unease surrounding the industry as a result. But do environmental issues really threaten to damage behemoth fashion brands so much that they might actually be forced to change?

The UK fashion industry today at a glance

  • In the UK we buy more clothes per person than any other European country, 26.7kg of fashion items per year, compared with 16.7kg in Germany and 12.6kg in Sweden.
  • Less than 1% of material used to produce clothing in the UK is recycled into new clothing.
  • The fashion industry is worth more than £32bn to the UK economy.
  • Brexit is creating a lot of uncertainty. 90% of UK fashion designers voted Remain and the industry is made up of a workforce that includes at least 10,000 European staff. According to the British Fashion Council Brexit could cost the industry £900 million in tariffs.

Why now?

sustainable-fashion-london-fashion-week-ss20-side Can Fashion Ignore the Sustainability Issue?
All pictures by Stefan Jakubowski for The Glass Pineapple

Earlier this year Extinction Rebellion called on the British Fashion Council to cancel fashion week. Although this may sound preposterous to anyone with even a tenuous link to the industry it’s actually not that much of a leap.

The Swedish Fashion Council, for example, cancelled Stockholm fashion week this year – why? Because they are looking to find more sustainable ways of promoting their industry and don’t consider a fashion week to be an environmentally friendly choice.

Although London Fashion Week went ahead as planned it was rife with protests – so dedicated were they that it was impossible for fashionistas to simply sweep past in this season’s Burberry and ignore them. Of course Extinction Rebellion was there – and this time people were listening, creating a general sense that the designer shades had fallen from everyone’s eyes, consumers and labels alike.

There is just too much awareness now of carbon footprints, energy consumption consequences, wasteful practices and pollution for all but the most willfully ignorant to continue things as they were before. This sea change was reflected on catwalks and in events surrounding the three fashion weeks of Europe (London, Paris and Milan).

  • For the first time we heard the phrase ‘deadstock’ – unsold clothes from past seasons – being bandied around backstage by some of the biggest designers.
  • It wasn’t just all about the new for this season – London based Slingshot PR, for example, promoted Portobello Green, which was a curated edit of vintage clothes.
  • Designer Roland Mouret revealed he is on a mission against the wastefulness of single-use clothes hangers – he refers to them as “the plastic straws of the fashion industry.” His collection also featured upcycled baseball caps by the Berlin milliners ReHats.
  • Suddenly it was all about designer rentals, retro looks from the attic and anything preloved.
  • In Milan this season Gucci staged an entirely carbon neutral show and the label promised to become an entirely carbon-neutral company. Its CEO, Marco Bizzarri, said the brand had considered rethinking fashion shows altogether, but felt technology was not yet sufficiently advanced to replace the practice.

The seeds for this may have been sown far earlier – for example, designer Vivienne Westwood staged a climate change rebellion last season and you can see members of Extinction Rebellion in the new Stella McCartney campaign.

Plus, this year the BFC announced the launch of the Institute of Positive Fashion, a sustainability initiative designed to establish industry standards that ‘encourage’ greener business models. But is this switch to sustainability a signpost of genuine change that the entire industry needs to follow or just a passing trend?

Power to the people..

In fashion, it is generally the designers and the labels that set the trends and smaller brands and consumers who slavishly follow. However, the current focus on sustainability and climate change awareness is travelling from the customers at the bottom of the food chain right up through the industry.

  • Research by sustainable clothing brand, Thought, found that a quarter of UK shoppers are intentionally reducing the amount of fast fashion they buy and around a third now proactively avoid garments they might only wear once
  • A report by Fashion Retail Academy earlier this year found that consumers are now 13% more likely to choose more expensive, longer-lasting clothes over cheaper items with a shorter lifespan
  • This is part of a wider move towards a more sustainable lifestyle – for example 56% are using less plastic and 38% walk or cycle instead of using a car.
  • Brands that focus on renting designer pieces or peer-to-peer fashion rental – such as MyWardrobe.com and Hurr Collective are thriving while many high street fashion brands announced losses in recent years.

In May last year a drop of 2.4% on a like-for-like basis year on year in the three months to 28 April was revealed for non-food retail sales in the UK across stores and online. This was the biggest decrease since March 2009.

There were many contributing factors here – and the statistic doesn’t just cover fashion – but the fall in sales was a shock. It may also have served to provide the motivation that some fashion brands required to start looking more closely at what consumers really want.

And, for many, that has meant taking a more environmentally friendly approach. For example, all the evidence suggests that fast-fashion brands like H&M are losing millennial customers and this has triggered a significant refocus at the retailer. Its most recent advert for the 2019 H&M Conscious Collection is out now and promotes ‘Fashion Made From Recycled PET Bottles.’ It’s rather a departure from the tools that the retailer has used to sell fashion in the past and instead focuses on reusing and recycling. It even features the words ‘wear it. And wear it again.’

Customers want brands to help them do more

Customers are increasingly mindful of sustainability and the supply chain of clothes manufacturing, and even the largest ships on the fashion sea are beginning to turn in the same direction in order to remain competitive. Why? Because there is now a very real danger of losing customers and market share if they don’t.

It’s not just about sustainability as a box ticking exercise anymore but a real and genuine way to make a difference. And this really matters to consumers. In fact 88% of consumers want brands to help them be more environmentally friendly and ethical in their daily life.

It’s no longer simply enough for a brand to talk about its values and commitment to social responsibility – consumers want to align themselves with brands that will proactively help them to live out their own values.

sustainable-fashion-london-fashion-week-ss20-1 Can Fashion Ignore the Sustainability Issue?

The numbers make sense too

Of course big names in fashion are unlikely to go in this direction purely out of the goodness of their own heart. Style sustainability is now also beginning to make financial sense too. For example, in the latest Nielsen report “How and Why Sustainability is Gaining Momentum with Customers” Nielsen found that products with sustainability claims generally outperformed the growth rate of total products in their respective categories. In short: consumers prefer sustainable brands.

But where does this leave the UK fashion industry, currently wallowing in its latest London Fashion Week hangover? One of the statistics so often bandied around is that fashion is the second most polluting industry after oil.

So, if sustainability considerations have forced their way to the top of the agenda then there must be a genuine sense that these issues are real and worth acting on. But can the sector really change?

Whether it’s because of the uncertainty being created by Brexit or the recent years of declining sales, suddenly the industry is listening to how much consumers want to align themselves with brands that enable them to live more sustainable lives.

Whether that means we’re about to see the kind of change that will leave cheaper, less sustainable, high volume brands as fashion roadkill, who knows. But those who plan to ignore the issue should be wary. In the words of activist Greta Thunberg:

change is coming whether they like it or not

( Images shot by Stefan Jakubowski for The Glass Pineapple )

Education is when you read the fine print. Experience is what you get if you don’t.

This quote from American folk singer and social activist Pete Seeger is broadly accepted wisdom when it comes to the importance of reading the subject matter thoroughly before signing on the dotted line.

And yet, so many of us don’t do it. In fact, according to our own research, 57% of UK consumers are ‘avoiders’ and actively unwilling to engage with the detail of the financial product they are taking out, whether a mortgage, home insurance or an investment.

Is that because we believe that “nothing in the fine print is ever good news” (Andy Rooney)? Or is there something else going on here in terms of the way we assimilate information.

And how much of the blame can be laid at the door of the documents themselves?

The issue

It’s impossible to navigate life these days without financial commitment – most of us will at some point be faced with online or printed material that ‘explains’ the product we are buying.

We know we should read it – there could be grave consequences if we don’t – and yet all too often we just file this kind of document in the nearest drawer “for later.”

A pertinent example of this data myopia is NameDrop – a fake social network set up as an experiment to see how much consumers really read T&Cs.

Students taking part in the research were asked to activate the “By Clicking Join,” button, agreeing to abide by NameDrop’s terms of service in doing so.

Paragraph 2.3.1 of the terms of service required them to hand over their future first-born child. 534 students took part in the experiment. Only a quarter actually “read” the T&Cs but all 534 still agreed to join, theoretically giving NameDrop ownership over their entire next generation.

A nation of avoiders

With regard to the 57% of UK consumers who are ‘avoiders’, the majority of us are reluctant to become involved in the process of making financial decisions and so focus purely on the core features and benefits of a product – and then only at the highest level.

Of course, these don’t reflect the entirety of the product, but rather act as ‘good news’ soundbites, enabling us to see and hear only what we wish to. As a result, we happily sign on the dotted line.

Problems can then arise when it’s time to make a claim or when there is a problem with the product. It’s at this point that we find out to our dismay that we don’t have the cover that we thought we did.

Of course, it’s often our own fault. So why do we do it?

Barriers to assimilation

According to consumers, the reasons are myriad and include:

  • What’s the point?” 74% of us don’t expect to understand a financial product so don’t bother trying
  • I’m pushed for time.” 43% of us only allow 20 minutes for the assimilation of information in a key document where £1,000’s or even £100’s of thousands may be at stake, whilst another 22% allow half that
  • I focused on the important sections.” 85% read financial communication in a highly selective manner. Hierarchy of information absorption starts with costs and key features. Risks and how the product actually works are much further down the list.

The fault isn’t just with the financial customer

Although consumer attitudes are certainly problematic, what about the influence of the way information is presented?

The Financial Conduct Authority’s (FCA) Treating Customers Fairly (TCF) initiative was set up to look into this. The initiative was designed to establish whether financial providers were treating customers fairly in terms of the way that products were being presented and sold.

This included looking at the architecture of the documentation that consumers were expected to assimilate when buying financial products. The idea being that making customer communications clearer and more understandable would make them fairer for consumers as a result.

Although the FCA never defined the concept of fairness we did our own research on this and found that, in the minds of consumers, fairness was tightly correlated with the notion of trust.

Simplicity, honest, transparency and putting the customer first formed the basis of what consumers identified as “fair” treatment.

Communications (by whatever channel) that are always clear, timely and succinct was one of 20 recurring fairness themes. However, when this standard was applied to many financial documents it often fell down – and still does today.

Some of the top reasons for this, identified by consumers, include:

  • Complex language. The use of jargon and technical phrases is problematic
  • Densely grouped text. 3% find this user-friendly but 97% of consumers see it as intimidating
  • Documents are too long. Research by Which? found that the small print used by some insurance companies runs to 38,000 words – that’s longer than the whole of Shakespeare’s Hamlet. As 43% are only willing to commit a maximum of 20 minutes to reading financial product documents, many are read selectively or just don’t get read at all
  • Vague or misleading language. “Might” or “could,” for example are identified by consumers as “weasel” words that are deliberately evasive. Many are also put off by vagueness, particularly when it comes to charges or commissions
  • Risks are difficult to digest. All too often this section of T&Cs is one of the longest and the risks are frequently presented without any relatable context.

Poorly written and laid out product communications remain a big issue for consumers and businesses too.

At Brandspeak we have developed a communications market research tool to identify the extent of this disconnect, right down to the level of:

  • Individual words and phrases that confuse or create suspicion
  • Sentences or paragraphs that are felt to be too long and therefore prevent easy understanding
  • Page layouts that make the content tiring to read or assimilate
  • Issues relating to indexes, headings and other navigation devices that don’t help consumers identify the content that they are looking for
  • Images and graphs that create more questions than answers!

The product was developed as a result of our early involvement with the TCF initiative. Today, we still use it for those purposes, but also to review:

  • Online, TV and print ads
  • Email and printed marketing communications

A wider issue

Of course, the barriers created by poor content and presentation aren’t just a problem in the financial services sector.

The same issues exist in every industry, whether B2C or B2B. For example, consider the following:

  • Holidays, hotels and flights – most of us are looking for the best deal on cost, not on T&Cs, and so we just don’t read them.
  • Price comparison websites – we’re happy to blindly buy energy or insurance online and hope that nothing goes wrong.
  • Signing up to “free” wifi – because we don’t read the T&Cs we often have no idea how much data we’re unwittingly handing over by making the connection.
  • Buying train tickets online. The purchase process includes accepting 36 pages of T&Cs, which most of us tick without any knowledge of details. For example, did you know that the T&Cs only entitle you to a seat if you’re a first-class passenger?
  • Click-to-agree contracts. Digital contracts that we click to sign online present a whole new set of issues. For example, we might be giving web-based services the right to sell our data or signing away essential rights, such as the option to go to court if it all goes wrong.
  • Trialing an online service. How often have you signed up for a “free trial period,” not read the T&Cs and then found yourself a regular subscriber?
  • Online shopping checkout. 91% of us don’t read the T&Cs during the checkout process when shopping online, hoping instead that if anything goes wrong we’ll be treated fairly.
  • Updating apps and software. The updates themselves take long enough so why waste time ploughing through the T&Cs too. For example, only 16% of people read the T&Cs when updating an online banking app, despite the access it provides to personal financial data.
  • Tenancy agreements. As these are often presented as non-negotiable documents, and there may be stiff competition for a property, few people go through the document line by line before signing.
  • Employment contracts. Do you know about the clause in your contract that entitles your employer to dismiss you if you don’t wear a long sleeved shirt? Of course, your contract probably doesn’t contain that but are you sure… few people familiarise themselves with all the details before taking the job.

What’s the solution?

stickynote-tool Why marketing communications fail

There are some high tech solutions on the table that could prove useful in future.

Aviva, for example, identifies AI as a possible option, using machine learning to generate answers to common questions to make T&Cs easier to assimilate.

However, the most obvious solution is a fundamental overhaul of the way that brands communicate with consumers, not just when it comes to contracts and T&Cs but in relation to any marketing communication that imparts information that is important to the consumer’s decision making process.

We believe that there is a way to establish trust and improve information assimilation – and that clear, concise communication is the way to do it.

https://brandspeak.co.uk/services/communications-market-research/