Discovering your brand hookConsumers buy on autopilot. What doesthis mean for your brand?Consumers, their habits and the B...
This presentation is about how consumerslives are driven by habit, how they act onautopilot and what this means for brands.
There are four things to take out of this presentation:Our behaviour is ritualistic
Your consumers buy on habit
Consumer immersion = wisdom
A new framework for brand building
Let‟s start with daily rituals. 70% of us agreethat we have morning rituals. 63% of menhave a morning ritual and 43% agree...
8Discovering yourbrand hook8A year ofobservationOver the course of 2012, BrandHook has spokenwith, observed and developed ...
There are four main parts to this keynote. The firstthing to know is that repetition is central to everydaylife. Imagine h...
of consumers daily lives is driven by rituals and routines.
Why do we have such strongdaily patterns?46% of people‟s behaviours are repeated almost daily andusually in the same conte...
BrandHook Rituals Study December 2012
75% of people agreed thatroutines exist to make life runas smoothly as it can.BrandHook Rituals Study December 2012
Actually our study has toldus that 68% of mothers felttheir life was in fact incontrol.BrandHook Rituals Study December 2012
15Discovering yourbrand hook15Mothers arethe mostritualisticwith 62%creatingroutines inlife.Mornings75%TV Programs74%Meal ...
We actively create routines so we can move to autopilot.A part of the brain, the basal ganglia, is responsible for “chunki...
Bob Cooper, the survival expert, sells survival kits thatinclude a tea bag. Making a cup of tea puts people onautopilot an...
The Power of Habit, byCharles Duhigg, talks abouthow habits are made up ofCue – Routine – RewardTo change or reinforcehabi...
Discovering yourbrand hookThe HabitLoopCueRewardRoutineCueRoutineThe critical elements to PROMOTE in habitFORMATION or STR...
Not only do we form habits to help ussave time, make our lives easier ...we also think that these habits &routines are bet...
This video illustrates how a habit (taking the escalator)can be disrupted by changing the cue (making the stairsmore fun).
Introducing a cue, such as the “out of date” stamp onTontine pillows, forms a habit of replacing old pillows.Tontine‟s mar...
Febreze was originally targeted at smokers and pet owners – butas they could not smell their own odours, there was limited...
Buying Apple products is a habit for many. Originally, the reward wasthinking creatively. Now, we just need the cue of kno...
Consumers‟ buying habits, especially for mundane products like soap andtrash bags, are habitual and involve no complex dec...
Rituals vary as a result of life stage. Younger people may relaxtheir routines on weekends. Mothers embrace rituals the mo...
Even longer-term decisions tend to be routine for us – as seen inthe 2008 and 2012 US election results.
Repetition is key for brand success. Repetition strengthens thehabits we have with a particular brand.
29Discovering yourbrand hookRepetition iskey for brandsuccess⑊ Repeated behaviours relating topurchases and consumption ar...
The old model of marketing isredundantWhen consumers are in a habit with a brand, they believe theirchoice is the best ava...
31Discovering yourbrand hook31The journey to habit formation andbrand cravingCategoryMeasurement(Quantitative)ImmersionSes...
The BrandHook Habit ModelSome categories are more habitual than others. For example,supermarket shopping is a highly habit...
The BrandHook Habit Model• Some categories aremore habitual thanothers.• For example,supermarketshopping is a highlyhabitu...
The BrandHook Habit Model• We can then break theconsumers into fourquadrants which helpsidentify the businessfocus• Do the...
The BrandHook Habit Model• We can then break the habitmodel down by brand to seewhere the differences exist andwhat nuance...
• Consumer immersion orethnography is the key whentrying to understand habitformation.• By spending time in ourpeople‟s li...
The final stage is to drill into each segment andidentifying where the opportunities exist to impactchange.This is where w...
Dr. David Neal, a psychologistspecialising in consumer habits said:“This study is a powerful reminder thatconsumers are mu...
1. How habitual is category and your consumers?2. Where is your money best spent: strengthening ordisrupting?3. What are t...
Discovering your brand hookContactBrandHookLevel 4, 409 St Kilda Road, Melbourne, 3004Phone: +61 3 9077 7887www.brandhook....
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Consumers buy on autopilot. What does this mean for your brand? A New Marketing & Advertising Approach

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A year long investigation into the role of rituals, routines and habits and ways in which products and services, through an understanding of habit formation, can become part of the consumer habit

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Consumers buy on autopilot. What does this mean for your brand? A New Marketing & Advertising Approach

  1. 1. Discovering your brand hookConsumers buy on autopilot. What doesthis mean for your brand?Consumers, their habits and the BrandHook model to drive change.April 2013
  2. 2. This presentation is about how consumerslives are driven by habit, how they act onautopilot and what this means for brands.
  3. 3. There are four things to take out of this presentation:Our behaviour is ritualistic
  4. 4. Your consumers buy on habit
  5. 5. Consumer immersion = wisdom
  6. 6. A new framework for brand building
  7. 7. Let‟s start with daily rituals. 70% of us agreethat we have morning rituals. 63% of menhave a morning ritual and 43% agree theyhave a routine when it comes to toiletries.
  8. 8. 8Discovering yourbrand hook8A year ofobservationOver the course of 2012, BrandHook has spokenwith, observed and developed insights about avariety of people and a lot of women in in homesessions, accompanied shops, online communitiesand innovation sessions.• We observed a number of routines & habits from teadrinking, dieting, grocery shopping, clothes shoppingand many more.• We heard about the impact that kids have on ritualsand those that don‟t have children relax theirroutines on the weekend.• We experienced these routines as we spent timewith our tribes watching as their auto-pilot kicked into get jobs done.• Conversed with 1,000 women in an online forumacross the UK, US and Australia about their habits.• All the qualitative insights are supported by anationally representative study of 1005 Australians18+.QuantitativeQualitative
  9. 9. There are four main parts to this keynote. The firstthing to know is that repetition is central to everydaylife. Imagine having to rethink everything everyday. Life would be too hard.
  10. 10. of consumers daily lives is driven by rituals and routines.
  11. 11. Why do we have such strongdaily patterns?46% of people‟s behaviours are repeated almost daily andusually in the same context. Habits and routines areamplified by everyday demands, time pressures anddistractions.
  12. 12. BrandHook Rituals Study December 2012
  13. 13. 75% of people agreed thatroutines exist to make life runas smoothly as it can.BrandHook Rituals Study December 2012
  14. 14. Actually our study has toldus that 68% of mothers felttheir life was in fact incontrol.BrandHook Rituals Study December 2012
  15. 15. 15Discovering yourbrand hook15Mothers arethe mostritualisticwith 62%creatingroutines inlife.Mornings75%TV Programs74%Meal Times71%Work70%Finances68%SupermarketShopping66%Radio65%Cooking63%Cleaning60%Tidying59%Driving58%Internet57%
  16. 16. We actively create routines so we can move to autopilot.A part of the brain, the basal ganglia, is responsible for “chunking”series of activities into the brain‟s procedural memory, so we cancarry out an action or series of actions without thinking about it.When we are in a habit, we are in an unconscious state.
  17. 17. Bob Cooper, the survival expert, sells survival kits thatinclude a tea bag. Making a cup of tea puts people onautopilot and stops them thinking - which saves them frompanicking and reacting badly.
  18. 18. The Power of Habit, byCharles Duhigg, talks abouthow habits are made up ofCue – Routine – RewardTo change or reinforcehabits, they can either bedisrupted or strengthenedby changing the cues ortriggers.
  19. 19. Discovering yourbrand hookThe HabitLoopCueRewardRoutineCueRoutineThe critical elements to PROMOTE in habitFORMATION or STRENGTHENINGThe critical elements to DISRUPT in habitBREAKING
  20. 20. Not only do we form habits to help ussave time, make our lives easier ...we also think that these habits &routines are better than any possiblealternative.
  21. 21. This video illustrates how a habit (taking the escalator)can be disrupted by changing the cue (making the stairsmore fun).
  22. 22. Introducing a cue, such as the “out of date” stamp onTontine pillows, forms a habit of replacing old pillows.Tontine‟s market share has increased 20% year on yearsince this cue‟s introduction in 2010
  23. 23. Febreze was originally targeted at smokers and pet owners – butas they could not smell their own odours, there was limitedreward and no repeat purchase or habit formation. The trialbombed. Watching the immersion sessions helped the marketersidentify a new reward (a final touch when cleaning a roomchanged Febreze‟s fortunes.
  24. 24. Buying Apple products is a habit for many. Originally, the reward wasthinking creatively. Now, we just need the cue of knowing there is a newApple product to buy and the routine of buying it kicks in.Apple may have disrupted this habit by changing the charging cord on theiPhone 5, so people are awakened back to consciousness and mayreconsider their purchase.
  25. 25. Consumers‟ buying habits, especially for mundane products like soap andtrash bags, are habitual and involve no complex decision making – makingit hard for marketers to change behaviour.However, when going through a life event, such as moving house, gettingmarried or having a child, shopping habits become more flexible and opento intervention from marketers.
  26. 26. Rituals vary as a result of life stage. Younger people may relaxtheir routines on weekends. Mothers embrace rituals the most.Both men and women are at the height of habit formationbetween the ages of 45-54.
  27. 27. Even longer-term decisions tend to be routine for us – as seen inthe 2008 and 2012 US election results.
  28. 28. Repetition is key for brand success. Repetition strengthens thehabits we have with a particular brand.
  29. 29. 29Discovering yourbrand hookRepetition iskey for brandsuccess⑊ Repeated behaviours relating topurchases and consumption are linked withan increase in market share, customerlifetime value and share of wallet(Ehrenberg & Goodhardt, 2002; Wirtz,Mattila &Lwin 2007).
  30. 30. The old model of marketing isredundantWhen consumers are in a habit with a brand, they believe theirchoice is the best available choice; they do not pay attention towhat other brands have to offer.
  31. 31. 31Discovering yourbrand hook31The journey to habit formation andbrand cravingCategoryMeasurement(Quantitative)ImmersionSessions(Qualitative)TheBrandHookHabit Model™(Quantitative)This is where we measure thestrength of the category and how yourbrands compare to competitors. Wesegment customers on the basis ofwhere they fit in our habit model andidentify the opportunities to grow themarket share by either reinforcing thereward or disrupting a habit.To truly understand the cues, triggersand the rewards relating to eachbrand within each category, we needto be in the environment of thecustomers. Immersion sessions willbring these insights and provide theconsumer wisdom to drive the desiredbehaviours.We feed the consumer insight backinto the BrandHook model andquantify the actions each brand andBrand Manager need to focus on inorder to drive brand change.
  32. 32. The BrandHook Habit ModelSome categories are more habitual than others. For example,supermarket shopping is a highly habitual activity.
  33. 33. The BrandHook Habit Model• Some categories aremore habitual thanothers.• For example,supermarketshopping is a highlyhabitual activity.
  34. 34. The BrandHook Habit Model• We can then break theconsumers into fourquadrants which helpsidentify the businessfocus• Do the brand leadersconcentrate ondisrupting a competitivehabit or strengthen itson habit?
  35. 35. The BrandHook Habit Model• We can then break the habitmodel down by brand to seewhere the differences exist andwhat nuances each brand holds.
  36. 36. • Consumer immersion orethnography is the key whentrying to understand habitformation.• By spending time in ourpeople‟s lives watching, andbeing involved in their worldchanges the conversation.• As Hy says, „Moving fromfocus groups to ethnographyis like going from black andwhite to colour‟.
  37. 37. The final stage is to drill into each segment andidentifying where the opportunities exist to impactchange.This is where we identify the demographic,attitudinal and psychographic information that sitwithin each segment and look for the best tribesto focus efforts on.For example, the 5% of ALDI customers thatcould be targeted to strengthen their relationshipactually don‟t represent the greatest opportunityfor ALDI. Their spend is low and they are thecustomers that are travelling far to get the one ortwo bargains at ALDI infrequently.Current Woolworths and especially Colescustomers in a habit represent the realopportunity. What they value in their supermarketexperience, what they are looking for whilst instore and where they live – represent a far greateropportunity for ALDIExample BrandHook Habit Model™Measurement
  38. 38. Dr. David Neal, a psychologistspecialising in consumer habits said:“This study is a powerful reminder thatconsumers are much less consciouslyengaged in many product purchasedecisions than we typically assume.When brands and marketers ignore therole of ritual, they often miss the boat interms of influencing actual behaviour.”
  39. 39. 1. How habitual is category and your consumers?2. Where is your money best spent: strengthening ordisrupting?3. What are the triggers or rewards that will drive thathabit?
  40. 40. Discovering your brand hookContactBrandHookLevel 4, 409 St Kilda Road, Melbourne, 3004Phone: +61 3 9077 7887www.brandhook.com

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