Illustration of a large hand holding a red arrow pointing forward along side other light blue arrows pointing forward with tiny sized employees striving forward.
For 28 months the pandemic propelled brands to explore and embrace the parameters of purpose in their value propositions. In an environment that demanded kinder, gentler consumer engagement, pet brands sent sympathy flowers to bereaved dog owners, CPG brands diverted production lines to make germ killers and brick-and-mortar retailers transformed their parking lots into touch-free pick-up zones.
Many of these added services reaped the rewards of consumer affection and loyalty, but they came at a commensurate cost.
Now, as the dog days of summer 2022 subside and headlines increasingly tout an imminent recession, it’s natural for marketers to veer toward caution, opting to divert ad dollars into performance marketing over purpose-driven branding. As that instinct kicks in, does purpose get deprioritized? And at what risk—particularly since the world seems to be frozen in an unrelenting series of crises and geopolitical upheavals.
I’d argue that marketers who elect to pull back on values-oriented spending—whether that means flowers for dog owners or millions in investment in sustainable technology—may end up doing irreparable damage. Not only can chief marketing officers risk throwing away years of investments in building customer affinity, but they may inadvertently blunt short-term growth as well. Because if you trust the headlines, this recession, however it plays out, will be unlike any other before it.
For those who are in the position of weighing purpose with performance, I offer four thoughts to consider.
Purpose and performance are likely forever intertwined
While many consumers have faced economic slowdowns before, this will be new to GenZennials, two demographics that buy products based on purpose and who will be living through a period of belt tightening and corporate cutbacks for the first time as adult consumers.
Our industry has collected reams of research over the past few years showing how important brand principles are to these folks—and this data should inform any analysis of budget allocation toward performance vehicles. Members of this unique demographic, with $5 trillion in spending power, is unlikely to change how they make purchase decisions, even in a tight economy. Brands don’t want to gamble with their credibility and authenticity by sending a message that they care about certain things only when the going is good.
‘Brandformance’ is a thing
We continue to see more evidence that branding and performance are converging, and marketers are increasingly measuring the impact of aggregated spend across the funnel. In fact, over the last few years we’ve seen growing evidence that the purchase funnel is morphing as consumers’ buying patterns and decision making have become anything but linear.
This has forced marketers to rethink how to gauge return on ad spend and attributions. The more that brandformance becomes the norm, the more inseparable brand values are from performance advertising. Indeed, ideally, the most successful companies are using purpose-driven goals to amplify their performance—even during a downturn.
It’s tempting for decision-makers to look back at previous economic contractions and turn to a tried-and-true 18-month plan. But the past few years have taught us that every brand’s flowchart should be viewed as a living, breathing and highly malleable thing. Consider how dramatically and frequently market conditions have changed over the past two-plus years. Trying to make predictions or arrangements for three months out during an inflationary economy that is nothing like 2008 or 2020 is akin to tying weights around your ankles.
The good news is that most companies have learned to be agile and adaptable—the craziest days of 2020 taught us how quickly we can develop meaningful, successful marketing plans. There’s no need to overreact or overcorrect what’s been working, and companies that compromise might end up missing out on new opportunities.
That said, you can go too far
We’ve already seen some examples of the kind of backlash that can occur when companies go overboard focusing on altruism that isn’t grounded in who they are. Not every company’s purpose is to save the world. The key is figuring out an authentic and genuine middle ground that respects consumers and helps your company focus on its core business.
Regardless of what the next few months have in store for us, it’s essential for brands to maintain their purpose and continue to express it genuinely. The stakes are too high to shift gears dramatically; marketers can’t afford to go backward. True, these principles aren’t always easy to bake into classic marketing tactics or to measure in a spreadsheet. That’s when human judgment is key. If you’re the brand that sends its members flowers when their pets pass—don’t stop being who you are.
Source: adage.com
