The Times Australia
Small Business News

.
The Times Real Estate

.

Brands Struggle to Meet Consumer Expectations

  • Written by Len Stein


Soaring customer expectations are creating an increasingly challenging environment for products and services seeking brand engagement, according to Brand Keys, Inc. 22nd annual 2017 Customer Loyalty Engagement Index
© (CLEI), conducted by the New York-based brand engagement and customer loyalty research consultancy (brandkeys.com).

Brand Engagement = Category Leadership

“’Brand engagement’ is a measure of how well a brand meets expectations consumers hold for the path-to-purchase drivers in a given category,” said Robert Passikoff, president of Brand Keys. "Those drivers and expectations can be measured against a Category Ideal (100%) with brands best meeting consumers’ expectations generating greater loyalty and profits. Brands that cannot meet expectations lose customers and market share.”

Where Consumer Expectations Grew Most

This year, the Brand Keys CLEI examined 83 categories and 740 brands – from Automotive and OTC Allergy Medications to Computers, Fast-Casual Dining, Retail, Smartphones, and Alcoholic Beverages. Brand engagement leadership shifted dramatically in 49 of the 83 categories. On a cross-category basis, expectations have increased 23% over 2016 while brands have improved by only 4%, leaving an enormous gap between what consumers want and what brands are seen able to deliver.

For 2017, the top 5 sectors where expectations grew the most:

1. Online: Social Networking and Entertainment (+35%)
2. Technology (+32%)
3. B2B: Services and Equipment (+30%)
4. Cosmetics (+28%)
5. Personal Products & CPG (+26)

“Interestingly, there was only one category where expectations virtually stood still,” noted Passikoff. “Non-alcoholic beverages were up 9%, the lowest expectation growth in years. Perhaps that’s why selling soft drinks has become so problematic.”

Which Brands Engaged Best? Perennials, Newcomers and New Categories

“Of the 740 brands included in the 2017 CLEI,” noted Passikoff, “We saw some perennial engagement experts rise to the tops of their categories again.” This year the best of the engagement best included: Avis, JetBlue, Hyundai and Ford, Dunkin’ and Starbucks, Apple, Discover and American Express, GEICO, Konica-Minolta, Amazon, Domino’s, Facebook, Google, Chanel and AT&T.

“Smart brands are learning that engagement is the best route to profitability,” said Passikoff, “And among well-established categories, 2017 revealed some newcomers at the top of their categories.” Brands showing up for the first time as engagement champions included: Allegra, JPMorgan Chase, Coors, 5 Guys Burgers & Fries, L’Oréal and Kiehl’s, Sabercat, Magnum Ice Cream, Hyatt, State Farm, Major League Baseball (MLB), Trader Joe’s, Zara, Nordstrom, Johnnie Walker and Fidelity.com.

For 2017 Brand Keys added 11 categories, including: Energy Drinks, Snack brands, Toys, Yogurt, and AM/PM Cable News. First-time engagement winners included: Red Bull, Doritos, Fritos, Planters, FOX News, LEGOS, Chobani and Yoplait.

Why Consumers Expect More

“The concept of brand engagement is pretty straightforward,” said Passikoff. “Consumers have an Ideal for every product and service; it’s the yardstick they use to measure brands. Defining your category's Ideal is where it gets tricky as the process is more emotionally-based than rational. So defining the Ideal, and identifying what consumers expect from their Ideal, has to be more penetrating and subtle than a typical 10-point scale survey,” noted Passikoff.

“Below-the-radar, psychological metrics are required,” said Passikoff, “Because today's consumer does not behave as he/she says, does not say what he/she really thinks, and does not think what he/she feels. Consumers talk among themselves before they talk to brands, with social networking super-charging expectations. The result – massive gaps between what people want and what brands deliver. And much confusion among marketers about what actually drives engagement,” noted Passikoff.

The Ideal. One For Each Category

The Ideal describes the precise path-to-purchase drivers, how the consumer will view the category, compare brands and how they will engage with the brand, buy, and remain loyal. “Most marketers look at the world through a brand lens,” noted Passikoff. “It’s their brand, after all. The consumer, on the other hand, looks through a category-lens and that dichotomy can create problems when marketers try to engage consumers.”

Drivers are category-specific since consumers don’t buy smartphones in the same way they buy cosmetics or pizza and don’t decide upon which bank to use or which online broker to invest with.

The four path-to-purchase drivers for the Smartphone category, for example, are:

1) Brand Design, 2) Platform For All My Needs, 3) Personal Connectivity, and 4) Brand Support

The Pizza category looks like this:

1) Made-to-Order Taste, 2) Customizable Extras, 3) Brand Image/Value, and 4) Connected Delivery

“Brands that can best fill the expectation gap win,” said Passikoff, “That paradigm resulted in a leadership shift in 58% of the categories tracked. And, as these metrics are predictive of consumer behavior, results will show up in market share and profits in the new year.”

Methodology

For the 2017 CLEI survey, 49,168 consumers, 16 to 65 years of age from the nine US Census Regions, self-selected the categories in which they are consumers and the brands for which they are customers. Seventy (70%) percent were interviewed by phone, twenty-five (25%) percent via face-to-face interviews (to identify and include cell phone-only households), and 5% online.

Brand Keys uses an independently validated research methodology that fuses emotional and rational aspects of the categories, identifies the four behavioral drivers for the category-specific ‘Ideal,’ and identifies the values that form the components of each driver. This year Brand Keys added 11 new categories, including: Energy Drinks, Snack Brands, Toys, and Yoghurt, resulting in engagement evaluations of 740 brands.

The assessments measure how well brands meet expectations that consumers hold for each path-to-purchase driver that comprises the Ideal for a specific category. The research technique is a combination of psychological inquiry and statistical analyses, has a test/re-test reliability of 0.93, and produces results generalizable at the 95% confidence level. It has been successfully used in B2B and B2C categories in 35 countries.
cid:T25saW5lLmpwZw$4804820$633918@visibilitypr

cid:Q29zbWV0aWNzLmpwZw$4804820$230027@visibilitypr


cid:QjJCLmpwZw$4804820$186117@visibilitypr

SME Business News

Top 20 SEO and Guest Post Services in Wyoming Helping Brands Expand Their Reach

Today’s business needs to have strong online visibility to grow and reach more customers. Guest post services and SEO services make it easier for the brand to rank higher on their search engine...

Everything You Need to Know About PLR Digital Products to Resell for Maximum Passive Income

In the ever-evolving digital product world, the concept of Private Label Rights (PLR) has emerged as a lucrative opportunity for entrepreneurs who aim to generate passive income. PLR digital prod...

2024 Retail Insights: What Consumer Trends and Sales Data Forecast for 2025

Holiday Consumer Spending Habits: Key Takeaways for Retail Strategy The period from November through January has consistently been pivotal for retailers, and 2024 has been no exception. This...

The Importance of SEO for Security Service Companies

In today's digital age, businesses must adapt to a constantly evolving online landscape, and SEO for Security Companies are no exception. Whether you offer private security, cybersecurity, or cor...

Property Times

Property Hotspots for Australia in 2025

Introduction As we move into a new era of property investment, understanding the concept of property hotspots becomes essential for investors looking to maximize their returns. A property hotspot is typically defined as a location where property p...

Building Inspections on the Gold Coast: Protecting Your Investment

The Gold Coast is a beautiful place to own property, but its unique environment demands extra care and attention.  On the surface, a Gold Coast property might appear pristine. The paint looks fresh, the structure seems solid and everything feels p...

From Classroom to Property Mogul: Lloyd Edge Shares His Journey and His Blueprint for Property Success

Lloyd Edge’s career trajectory is far from conventional. A former high school teacher, he’s now one of Australia’s leading property experts. But the transition from educator to property mogul didn’t happen overnight. It was a result of hard work...

Positive signs in new home construction but still a long way to go

In the first three months of the National Housing Accord, Australia commenced construction on 43,247 new homes according to the Australian Bureau of Statistics. This is 4.6 per cent higher than the June 2024 quarter and 13.9 per cent higher than t...

Food & Dining

Fresh Ideas for Celebrating the Year of the Snake

The Lunar New Year is here, and with it comes the Year of the Snake—a time for fresh beginnings, family connections, and, of course, delicious food. As celebrations kick off, Australian families are turning to summer’s bounty of fresh produce to ...

Drop of Sunshine | The perfect gift for that special someone this Valentine’s day

Drop of Sunshine: A Toast to Women, Our Connections & The Stories That Bring Us Together Treasury Wine Estates (TWE), one of the world’s leading wine companies, has launched a new line of premium wines,  Drop of Sunshine, in partnership wit...

Delicious and Healthy Vitamix Recipes for Optimal Nutrition

🍏🥦 Enjoy tasty Vitamix recipes packed with nutrients for optimum health. Healthy eating 🥕🍓 made fun & delicious! 💪🍹 #Nutrition #VitamixRecipes Healthy Eating and Optimal NutritionRenowned for its versatility and unparalleled blending capabilitie...

Lauren’s Journey to a Healthier Life: How Being a Busy Mum and Supportive Wife Helped Her To Lose 51kg with The Lady Shake

For Lauren, the road to better health began with a small and simple but significant decision. As a busy wife and mother, she noticed her husband skipping breakfast and decided to purchase The Man Shake to ensure he was starting his day right. W...

The Times Features

Why Roof Replacement Is the Best Solution for Roofs with Major Leaks

When your roof is leaking extensively, the situation can be both frustrating and worrying. The constant drip-drip-drip of water, the potential for structural damage, and the risi...

Why Your Tennis Game Isn’t Improving (And How to Fix It)

Tennis is a sport that demands precision, endurance, strategy, and mental toughness. Whether you play casually or competitively, you may reach a frustrating point where your prog...

Can you get sunburnt or UV skin damage through car or home windows?

When you’re in a car, train or bus, do you choose a seat to avoid being in the sun or do you like the sunny side? You can definitely feel the sun’s heat through a window. Bu...

Want your loved ones to inherit your super? Here’s why you can’t afford to skip this one step

What happens to our super when we die? Most Australians have superannuation accounts but about one in five[1] of us die before we can retire and actually enjoy that money. I...

Home Safety 101: What You Shouldn’t Ignore

Overloaded outlets, unattended cooking, and faulty smoke alarms are common fire hazards that many homeowners overlook. Poorly maintained appliances, including electrical cords...

Here's How to Pick the Best Hair Loss Treatment for Your Needs

Hair loss can be frustrating, probably an emotional experience, and only with appropriate types of treatments is one able to restore one's confidence level, showing results that ...

Business Times

Top 20 SEO and Guest Post Services in Wyoming Helping Brands Expa…

Today’s business needs to have strong online visibility to grow and reach more customers. Guest post services and SEO servi...

Everything You Need to Know About PLR Digital Products to Resell …

In the ever-evolving digital product world, the concept of Private Label Rights (PLR) has emerged as a lucrative opportunity ...

2024 Retail Insights: What Consumer Trends and Sales Data Forecas…

Holiday Consumer Spending Habits: Key Takeaways for Retail Strategy The period from November through January has consist...

LayBy Shopping