Tuesday, June 29, 2010

Emotional connections lose out to functional messaging

A recent survey from the Association of National Advertisers (ANA) revealed that most marketers focus their customer connection on functional or rational messaging, despite their desired preference to build emotional links. The study of 80 marketers showed that functional/rational benefits are featured 62% of the time over emotional benefits, 38%.

The channels utilized to build emotional connection are websites (82%), channel partners/sales force (66%), customer relationship management [CRM] (64%) and call centers (52%). As for identifying the success of conveying emotional benefits, they cited ad tracking (75%), brand equity scores (75%) and copy testing (54%).

These seemingly innocuous results are very telling and somewhat scary for the future of marketing and advertising. The ANA is composed of most of the leading brand marketers in the US, and as an organization that stands firmly rooted in promoting and protecting brand marketing. So they are an important barometer of the state of marketing. Despite their best intentions and deeply held beliefs, most are acting directly opposite.
I should put out there that I am also a strong advocate of the power of brands and branding. Truly branded relationships, where the customer has an emotional investment and psychographic connection to a product or brand are so not common. They are precious, fragile and valuable, giving the brand great equity, power and opportunity. With that comes great responsibility to sustain the promise and trust that is inherent in a branded relationship. When customers begin to “own” the brand – Classic Coke, Motrin, Apple, etc. – marketers and the business enter a phase of mutually symbiotic, yet sometimes opposed relationships with customers.

So why this deep dichotomy between intent and action? Is it mere laziness or simplicity? Let’s face it, feature barking is a lot easier than truly creative and breakthrough marketing. Brand communications that reinforce the essence, AND convey superiority or innovation happen less often than we’d like. You know it when you see it. Sadly, we don’t see it enough.
I don’t believe it is merely a result of people following the easy path. So, let’s explore a few of the primary drivers:

- Technology/Web – The market has become pretty ‘pure’ in terms of the ability of buyers to comparison shop and research products. This reduces brand power and impact mightily.
- Economics – Many brands simply don’t have the budgets to invest in brand building as it historically has been defined. The pressure to create ROI and meet business case projections won’t sustain a lengthy investment period.
- Short Term / Dashboard Mentality – Leadership of US companies tends to have a strong finance or CFO orientation. Despite best efforts, it is hard to put ‘brand equity’ on the balance sheet. Success is measured in quarters, not years.
- Media explosion and fracture – The multitude of media choices and emphasis on ‘accountability’ have complicated the planning landscape. How do you balance buys that create emotional connection against drive to retail, promotion or click streams?
- Channel power – With a few key channel partners controlling huge volumes, they now exert great influence over the brands. Continued pressure to cut prices forces brand marketers to make difficult choices – retail volume vs. brand values

Where does this leave us? Honestly, I don’t foresee a dramatic change for some time. ANA and CMO’s will have to continue the fight to preserve the role and value of emotionally based, relationship marketing. When the economy recovers to a more normal level of demand and marketing activity, they will have to advocate for the resumption of brand communications.

To be successful, they will need to tell a truly compelling story – a marketing business case – in the language that the business understands. CMOs will have to be able to link themselves to P&L, otherwise risk being an unequal partner at the planning table.