The indifference apocalypse
It’s an era of indifference. Consumers are increasingly brand-agnostic and expect brands to break their promises. In times like this, what becomes of brand equity? Uberbrand’s Dan Ratner explains why responsibility and differentiation are key to rebuilding trust.
The data breaches, PR disasters and never ending tirade of disappointing brand behaviour in 2022 has pushed brand equity off the cliff. It’s no wonder consumers have become lethargic and indifferent as companies have relied on category norms – and not true differentiation to lead their strategies.
Traditionally, brand equity has been defined as the sum of all the experiences a person has with you over time. The more positive they are, the more the consumer can draw on them when things go wrong and the more trust they have.
But when consumers are already suffering from severe brand inertia and a lack of belief, it’s becoming harder to build genuine brand equity.
How did we get to this point? How did we get to a world where customers are saying: ‘sure, Optus has failed us. But who’s to say that Vodafone or Telstra is going to be any different?’
Part of the problem stems from the homogenous positioning of many brands within each category – especially within the big players. Category seems to be taking the place of differentiation, which is why we don’t really perceive any difference between the top four banks, telcos, energy providers or insurers.
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Customers are no longer willing to be ‘sold the sizzle’. They are brand agnostic, and it can give them both the impetus to shop around, or more likely now – the apathy to stay put.
And herein lies the opportunity. We’ve been given an open door for brands to state in simple terms what they can do for their customers and how, when the audience needs you, you’re going to show up. In the age of apathy, if you make a promise, you must deliver on it.
Good brand owners recognise the need to own distinctive territory when it comes to competitiveness. Unless you can truly differentiate your brand, you can expect that other factors such as price and chance are more likely key factors when a customer decides to choose you.
It seems now the differentiation we are looking for is responsibility. Brands need to consider carefully how they turn up for their audiences. Because, where the real migration between brands happens is based on how a brand responds to crises. Consumers are increasingly judging brands on the way they hold themselves accountable and the level of responsibility they project. A show of capability, transparency and ultimately – when laid bare – accountability. It’s honesty we’re craving as consumers.
Responsibility permeates so many levels, making it hard for marketers to consider all its dimensions. However, in the context of service or product delivery, it’s about the old ‘moments of truth.’ It’s about products that are genuinely a cut above the rest, rather than products that simply rely on marketing that merely claims they’re better.
Now is not the time to ponder what your brand purpose is. It’s not the time for yet another hollow tagline, logo update or inane collaboration with a celebrity influencer. It’s time to come up with the goods. It’s time to lay bare what your brand is made of, how responsible you are and how you’ll back not just your brand, but your customers when the inevitable shit hits the fan.
Dan Ratner, CEO @ Uberbrand.
I’d be keen to hear your thoughts on how “brands” can differentiate themselves in a “real” manner.
Everyone claims to be the best at something, or the most responsible but realistically, can a brand truly demonstrate a point of difference to its competitors? Furthermore, are these points of interest to a customer, old or new – did anyone ask the customer?
Taking the energy sector as an example, I looked at them all the same until I got a call from my existing supplier that wanted to advise we were on a higher rate than necessary & offered us a discounted rate & partial refund…no catches…just a genuine audit & cost reduction for our household.
I don’t disagree that Brands would be wise to ensure they are trying to be transparent, real & everything else…but…consumers can say one thing & do another. Take the Milk pricing crisis a few years back. The Australian public was, according to the media, 100% supportive of the Dairy Farming community’s push for fair pricing. But this support didn’t stop them from buying their $2 milk from Coles & Woolies did it?