“You are what you wear.”

Research from Duke University suggests that people who are dressed up buy more and spend more than their casually dressed counterparts.

Ever since the COVID-19 pandemic hit, people have been “dressing down” more than ever.  But recent consumer research suggests that for buying more and spending more, retailers do much better when their customers are dressing sharp.

Researchers at Duke University’s Fuqua School of Business analyzed the shopping habits of two different groups of consumers.  Smartly dressed shoppers — as in wearing dresses or blazers — put more items in their carts and spent more money compared to casual dressers (as in wearing T-shirts and flip-flops).

The difference among the two groups’ shopping behaviors were significant, too:  18% more items purchased and 6% more money spent by the sharp dressers.

The Duke University research findings were written up in a paper titled “The Aesthetics We Wear: How Attire Influences What We Buy,” which was published in the Journal of the Association for Consumer Research.

According to Keisha Cutright, a Duke University professor of marketing and a co-author of the report, when people are dressed up they tend to have more social confidence, which in turn reduces the anxiety people may feel about making certain purchasing decisions:

“We focus on how your dress affects your own perceptions.  When you’re dressed formally, you believe that people are looking at you more favorably and they believe you are more competent.  If you feel competent, you can buy whatever you want without worrying what other people think, or whether they will be judging you negatively.”

Parallel Duke research also found that retailers can actually prompt would-be shoppers to wear nicer outfits when shopping at their stores by featuring nicely dressed models in their advertising.  “So, there are some practical implications from the research for retailers,” Cutright says.

How about you? What sort of dynamics are in play regarding how you’re dressed and what you buy as a result?  Is there a correlation between what you’re wearing and how you’re shopping?  Please share your observations with other readers here.

Remembering international advertising executive Shirley Young (1935-2020).

The World War II immigrant from war-torn Asia became a pacesetting executive in the New York ad world before shifting to the corporate sphere.

As we begin a New Year, let’s pause for a brief moment to remember Shirley Young, the successful New York ad executive who passed away in the waning days of 2020.  She’s a person whose life story is as fascinating as it is inspiring.

Ms. Young may be best-remembered as a noted advertising executive whose career included a quarter century at Grey Advertising.  As president of Grey’s strategic marketing division, one of Young’s clients was General Motors, a company she later joined to help spearhead GM’s strategic development initiatives in China. 

Ms. Young moved in the worlds of business in the West and Far East with equal ease and poise.  To help understand how she could do so, looking at her early life helps explain her success. 

Born in Shanghai in 1935, Shirley Young was the daughter of Chinese diplomat Clarence Kuangson Young.  The family moved to Paris in the late 1930s and later to Manila, where her father had been appointed consul general at the Chinese embassy there.

In interviews later in life, Ms. Young would recount how soldiers had came to their Manila home when the city was overrun by the invading Japanese army.  Her diplomat father was arrested — and executed, as she later found out.  The occupiers sequestered little Shirley, her mother and her two sisters in a communal living space with other family members of jailed Chinese diplomats.  There, Shirley and her siblings helped raise pigs, chickens and ducks to survive wartime conditions in cramped quarters that were frequently left without electricity and basic water supply. 

Speaking of these early experiences, “I learned that whatever the circumstances, you can be happy,” Young told journalist Bill Moyers in a 2003 interview.

Following the Second World War, Shirley Young and her family emigrated to New York City, where her mother worked for the United Nations and later married another Chinese diplomat — this one representing the Chinese Nationalist government in Taiwan. 

Graduating from Wellesley College in 1955, Shirley had few concrete plans for the future.  Indeed, she considered herself more of a dreamer than a person whose heart was set on a business career.  But taking the advice of a friend to explore the emerging field of market research where she might be able to combine her natural curiosity about the world with gainful employment, after numerous job application rejections she finally landed an entry-level position in the field.

Learning the basics of market research at several New York employers, Ms. Young then joined Grey Advertising in 1959 where she rose steadily in the ranks.  As a senior-level woman in the then-male dominated world of advertising agencies, Young stood out.  In so doing during a time when major companies were just beginning to show interest in more diversified corporate direction, it’s little surprise that Young would be invited to join the boards of directors of several major companies.

Young’s field experience and keen strategic acumen drew the eye of General Motors, a Grey Advertising client that would go on to hire her as vice president of GM’s consumer market development department in 1988. It was an unusual move for a company that up to then had typically promoted senior managers from within the company’s own ranks.  Her key role at General Motors was in formulating and implementing the GM’s strategic business initiatives in China.

In the years following her retirement, Ms. Young slowed down — but only a little.  She founded and chaired the Committee of 100, an organization that seeks to propagate friendly relations between the United States and China.  Related to those Chinese/U.S. endeavors, a statement made by Ms. Young in 2018 was this memorable quote:

“We have to work together.  Given the intertwined relationship and globalization, it’s ridiculous to think we cannot work together.”

[These days, the jury may be out on that statement; the next few years will probably tell us if her view has actually carried the day …]

Looking back on Shirley Young’s life and career, it’s hard not to be impressed by her pluck and spirit.  A child born of privilege but who soon lost it all, she could easily have retreated into a world of “what might have been.”  Instead, she pieced together a new life that turned out to be “bigger and better” than she could have ever imagined in her early years.

One other facet of Ms. Young’s life and work is worth noting:  her love of the “high arts.”  She was a notable supporter of such musicians as the cellist Yo-Yo Ma, composer Tan Dun and pianist Lang Lang, and was also a tireless promoter of artistic exchanges between the United States and China.  One could certainly say that she was a significant catalyst in the burgeoning interest in Western classical music that has developed inside China over the past several decades. 

Acknowledging her contribution to the arts, Lang Lang’s organization wrote this epitaph about Shirley Young following her death:

“The Lang Lang Music Foundation mourns the passing of our director Shirley Young, a remarkable woman, patron of the arts, and a dear friend … she was unique and can never be forgotten.”

I think that sentiment is spot-on.

The difference between influencer marketing and true word-of-mouth advertising.

The next time you see a celebrity spokesperson speaking about a product or a service … don’t think much of it. Chances are, the celebrity isn’t doing a whole lot to increase a company’s sales or enhance its brand image.

We have affirmation of this trend from ExpertVoice, a marketing firm that has queried consumers on the issue of who they trust most for recommendations on what products and services to buy.

ExpertVoice’s findings confirm that while celebrity endorsements do raise awareness, typically that awareness fails to move the needle in terms of sales. Just ~4% of the participants in ExpertVoice’s research reported that they trust celebrity endorsements.  (And even that percentage is juiced by professional athletes who are more influential than other celebrities.)

As for the reason for the lack of trust, more than half of the respondents noted concerns about the money these spokespeople receive from the brands they’re endorsing. Consumers are wise to the practice – and they reject the notion that the endorser has anything other than personal enrichment in mind.

By way of comparison, here are how celebrities stack up against others when it comes to influencing consumer purchases:

Trust recommendations from friends/family members: ~83% of respondents

… from a professional expert (e.g., instructor or coach): ~54%

… from a co-worker: ~52%

… from a retail salesperson: ~42%

… from a professional athlete: ~6%

… from any other kind of celebrity: ~2%

As it turns out, people are more influenced by good, old-fashioned word-of-mouth testimonials from individuals who are making recommendations based on their actual experience with the products in question.

Moreover, if the endorsement is coming from someone they know personally, they’re even likelier to be swayed.

In a crowded marketplace full of many purchase choices, consumers are looking for trusted recommendations. That means something a lot more authentic than a celebrity endorser.  Considering the amount of money companies and brands have had to pony up for celebrity pitches, it seems an opportune time for marketers to be looking at alternative methods to influence their audiences.

Fair weather friends? Consumers tie loyalty programs to getting discounts and freebies.

As more consumers than ever before have gravitated online to do their shopping, loyalty programs continue to grow in importance.

But what do consumers really want out of these loyalty programs?

The short answer to that question is “freebies and discounts,” the Loyalty Barometer Report from HelloWorld, an arm of Merkle, makes clear.

Of the ~1,500 U.S. consumers polled, ~77% of the respondents said they expected benefits for their loyalty to be in the way of free products, and an almost-equal percentage (~75%) expect to be offered special offers or discounts.

As for the most important reasons people participate in loyalty programs, the Merkle survey reveals that most people take a purely “transactional” approach to them.  Discounts and free products far outweigh other considerations:

  • Participation to receive discounts or offers: ~43% of respondents cited as the most important reason
  • To earn free products: ~27%
  • To gain access to exclusive rewards: ~10%
  • To receive members-only benefits: ~9%
  • To stay connected to a “brand I love”: ~6%
  • Other factors: ~5%

Notice how far down the list “brand love” falls.

As for negative aspects of reward programs, it turns out that there are a number of those.  The following five factors were cited most often by the survey respondents:

  • It takes too long to earn a reward: ~54% cited
  • It’s too difficult to earn a reward: ~39%
  • Receiving too many communications: ~36%
  • The rewards aren’t very valuable: ~32%
  • Worries about personal information security: ~29%

[For more details from the Merkle report, you can access a summary of findings here.]

The results of the Merkle survey suggest that rewards programs may be more “transactional” in nature than many brand managers would like them to be.  But perhaps that’s happened because of the very way the loyalty programs have been structured. When loyalty marketing is focused on discounts, it’s likely to drive transactions without necessarily engendering much if any actual customer loyalty.

On the other hand, if we define customer loyalty as when people are willing to pay a premium, or go out of their way to purchase a particular brand’s product or service, that represents a significantly smaller group companies than the plethora of companies offering loyalty programs to their customers.

Which brands do you consider to be true loyalty leaders?  A few that come to my mind are Amazon, American Express and Nike — but what others might you posit?  Please share your thoughts with other readers here.

Finding the Sweet Spot in Ad Personalization

Marketing and advertising professionals know that personalization can be a very useful part of promotional strategies.  But doing personalization the right way has its challenges as well.

Those of us “of a certain age” remember when personalization first began to be used in promo campaigns.  Too often it was a joke – or carried out in such a way that it actually did more harm than good.

Probably the worst cases were when direct mail pieces would incorporate a person’s name inside the customer communications.  Often, the resulting piece was über-awkward – particularly if the name was misspelled or otherwise not presented how the recipient would normally be addressed; how many marketers know their customers’ nicknames?

Even worse was when mistake was repeated multiple places in the same promo piece – magnifying the problem to the level of farce.

Things are more sophisticated these days, and it’s pretty clear that targeted, relevant marketing works much better.  But after nearly 25 years of personalization and microtargeting in the digital realm, things have reached the level of diminishing returns:  ROI in deeper personalization declines as the efforts get more granular.

The more microtargeting that happens, the harder it becomes to find a large enough number of targets for each highly personalized ad.  At the same time, development costs increase even as the returns diminish, because creating a higher volume of microtargeted promotions aimed at highly specialized niche groups means that more effort has to go into ad creative, copywriting and production.

Of course, Facebook and Google have developed sophisticated ways to target advertising to the most lucrative prospects, to the degree that it’s often easier and more cost-effective to rely on those resources rather than undertaking personalization efforts in-house.  But there’s another potential issue with a relentless pursuit of personalization in advertising.  Engaging in it too much has the potential of creating a backlash, with some customers finding the practice overly intrusive – even creepy.

Ad retargeting is a particularly obnoxious practice – the digital equivalent of a salesperson following you around the store trying to get you to purchase an item you may have merely glanced at in passing interest.

Pushback is also manifesting itself in regulations such as CDPR (general data protection regulation), which aims to protect consumer data and how it’s used by making it more difficult to collect and store this kind of data.  Google has added fuel to the fire by ending support for third-party cookies – yet another barrier to obtaining worthwhile granular data.

All of this means that while personalization that increases relevancy remains a valuable marketing tool, it hasn’t turned out to be the silver bullet that some might have hoped.  Instead, it’s creating a good a balance between data and creativity that makes for the most successful campaigns.

The New World of PR

Companies work to find their place in the changing ecosystem — some more effectively than others.

For those of us who have been active  in the marketing communications industry over the past few decades, there’s been a sea change in how the industry operates — not least in the realm of PR and media relations.

One of the underlying reasons for this change is the dramatic shift that’s happened in the field of journalism. Traditional media companies which have long relied on professional reporters and editorial contributors have been dealing with a range of existential threats.  Print circulation has sagged while audiences have fragmented over a plethora of digital content publishers — most of which offer news and information free of charge.

At the same time, publishers’ revenues from advertising have plummeted as the media inventory has expanded to encompass the new digital content publishers.  The bottom-line impact of these twin developments is that it has become much more difficult for traditional media companies to employ the same number of staff reporters; indeed, many publishers have shrunk their newsrooms while relying increasingly on independent contributors and freelancers to fill in the gaps.

But the situation gets even more complicated thanks to the evolution of digital media and the explosive growth of self-publishing platforms. The reality is that there’s a new class of authors who are increasingly publishing from their own platforms, without being involved with any of the major media outlets.

In such a world, the notion of PR departments simply keeping in close touch with a limited number of key journalists as the most effective way of gaining earned media coverage seems almost quaint.

And it gets even more problematic when considering how much easier it is for businesses to prepare and disseminate PR news. At their best, PR pitches rely on the same tools as marketing in general: profiling the audience; personalizing the news pitch, and so forth.

The problem is, according to the U.S. Bureau of Census, there are now more than six PR pros for every journalist. This means that more PR news releases than ever are hitting the inboxes of far fewer journalists and reporters.

Is it any wonder that PR news released by companies is so often being ignored?

According to a recent survey of ~1,000 journalists by PR Newswire, the following aspects of PR pitches are the most annoying to reporters and journalists:

  • Too much overt “marketing” in the pitch
  • Lack of relevant or useful content
  • Unclear or misleading subject lines on e-emails
  • Insufficient news detail

On the other hand, some aspects help in a PR pitch, including:

  • High-resolution photography
  • Video clips
  • Infographics

In today’s PR landscape, obtaining earned media is more difficult than ever. These days, not only do you need a great story to tell, you need to craft the perfect narrative. And even then, you might never get the news covered by a so-called “Tier 1” publication.

But missing out on Tier 1 coverage isn’t necessarily the kiss of death. Sometimes the lower tier represents the best targeted audience to receive news from companies. Moreover, by employing low-cost self-publishing tools, a decent social media strategy plus some basic search engine optimization, it’s actually possible to build an audience and garner as many well-targeted readers as those elusive Tier 1 pubs might be able to deliver.

In the new world of PR, the “tried and true” avenues to earned media coverage aren’t getting the job done.  But there are more routes than ever to get the news out instead of having to channel your efforts to go through the gate-keepers of yore.

Yet another challenge for publishers: Subscription fatigue.

As if it isn’t enough that newspaper and magazine publishers have to compete with an ever-widening array of information providers, in the effort to migrate subscription revenues from print to digital these publishers are squaring off against an additional challenge: subscription fatigue.

Not every consumer is opposed to paying for media, but with so many fee-based streaming services now being offered — including the ones by powerhouses like Netflix and Spotify — trying to get people to focus on “yet another” resource is proving difficult.

Moreover, when it comes to news information sources it’s even more challenging. According to a recent Digital News Report prepared by Reuters Institute, when given a choice between paying for news or paying for a video streaming service, only ~12% of respondents in the Reuters survey stated that they would pick the news resource.

It seems that with so many time demands on people’s online activities, fewer are willing to pay for access to information that they don’t wish to commit to consuming on a regular basis. Unlike most of the entertainment streaming services, news stories are often available from free sources whenever a consumer might choose to access such news stories. Those alternative news sources may not be as comprehensive, but i’s a tradeoff many consumers appear willing to make.

This is hurting everyone in the news segment, including local newspapers in smaller markets which have faced a major falloff in print advertising revenues.

Underscoring this dynamic, more than 1,800 newspapers in the United States have closed their doors in the past 15 years. Today, fewer than half of the country’s counties have even one newspaper within their borders. This fallout is affecting the availability of some news information, as local media have a history of covering stories that aren’t covered elsewhere.

But it’s yet more collateral damage in the sea change that’s upended the world of newspapers and periodicals in recent years.

More findings from the Reuters Institute report can be accessed here.

A Marketer’s Resolution for the New Year

Note: Those of you who are regular readers of my marketing and culture blog have noticed that it “went dark” for a period of time over the past month or so.  The twin developments of health issues plus a death in the family (my mother, at the age of 96-and-a-half years), meant that I needed to be focused on recuperation and also estate matters.  But I’m back … and hopefully back to my regular schedule of posting.

For my final blog post of 2019, it comes in the form of a resolution for us marketers. It’s to finally acknowledge how little “upside potential” there actually is for social media to build or maintain a brand presence … and instead to place renewed focus on tactics that’ll actually deliver a more measurable ROI.

Most of my business clients have put a degree of effort into social media over the years – some with more focus and fortitude than others. But whether the campaigns have been “full speed ahead” or only half-hearted, invariably the end-result seems to be the same:  a sales needle that hardly moves, if at all.

Moreover, social media takes a deceptively significant amount of effort for that little bit of payoff. Companies that put in the effort devote human capital and in some cases substantive dollar resources to tap outside support, but frequently the results aren’t any more impactful than for our clients who merrily go on ignoring social medial platforms, year after year.  At least when looking at bottom-line sales.

Plus, in our highly sensitized world, these days it seems that when social media actually has an impact, more often than not it’s a negative one.  Too often it’s the sorry end-result of some sort of faux pas where even the best-laid plans for departmental or legal review aren’t carried out fully and the brand gets into trouble. (Sometimes that happens even with all of the checks and balances in place and being carried out religiously.)

So for 2020, we marketers could well be better off acknowledging how thin the promise of social media actually is.  We should ignore the siren calls of “likes” and “engagement” and stop chasing the phantom pot of gold at the end of the phantom rainbow. Chances are, your company’s bottom line will look just as strong, even as you focus more of your time and budget on marketing activities that’ll actually make a positive difference.

What are your thoughts on social media for brands? Please share them with other readers here.

How the psychology of color “colors” the effectiveness of websites.

As one of the five senses, sight is usually mentioned first. And little wonder, if we consider what an integral part of our life’s experience is based on what we see.

Color is a huge part of that — and it goes beyond “sight” as well. We use color not only to pinpoint a place on the visible spectrum, but also to describe intangible factors such as emotions and character traits.

Ever wonder why people talk about “orchestral color”? This seeming contradiction in terms is actually one of the fundamental ways we can “see” music in our minds as well as hear it in our ears. The Russian composer Alexander Scriabin went so far as to associate individual colors on the visual spectrum with specific musical chords; the colors themselves are written into the score for his last orchestral piece, his Fifth Symphony (Prometheus: The Poem of Fire), composed in 1910.

Alexander Scriabin

Recognizing the importance of color and its impact on how humans think and behave, marketers and branding specialists have long made use of the power of color in advertising and design. This continues today in the digital world of websites and other electronic media, where the choice of colors has measurable impact on website engagement and conversions.

Marketing and design specialist Raj Vardhman has compiled a number of interesting facts about the “psychology of color” and its impact on viewer engagement:

  • It takes approximately 90 seconds for a viewer to make a quick product assessment — and two-thirds of this judgment is based on color.
  • Color is a key reason for selecting a particular product. For instance, two-thirds of shoppers won’t purchase a large appliance if it isn’t available in their preferred color.
  • The classic notion of “pink for girls” and “blue for boys” turns out to be generally true (despite the penchant for choosing yellow when a family doesn’t want to “channel” their newborn towards a particular gender identity). Bold colors or shades of blue, black and darker green are preferred by most men, whereas more women prefer soft colors or tints of purple, pink, rose and lighter green.

Furthermore, attitudinal studies show that main color groups convey certain characteristics:

  • Red embodies life, excitement and boldness. It’s used often in iconic consumer brands, but also to announce clearance sales.
  • Blue telegraphs productivity, tranquility and trust. Is it any wonder that blue colors are the hands-down favorite among commercial/industrial product brands?
  • Green evokes growth, nature and harmony. Its use has been growing in recent decades.
  • Yellow personifies joy, intellect and energy. It’s employed by brands to evoke cheerful, sunny feelings.
  • Purple suggests wealth and royalty. It’s no accident that “royal purple” has been with us since Renaissance times.
  • Black projects authority, power and elegance. Not surprisingly, it’s the most popular choice for marketing luxury products. But it can be highly effective in promoting technology products as well.
  • White and silver communicate perfection and pristine clarity. These colors are also popular with technology products, but are used very often in healthcare-related products and services.

These time-honored color characteristics are very much in play in the world of websites. Such aspects are a factor in nine out of ten visitors to a website — half of whom report that they won’t return to a website based on the site’s lack of aesthetics, not just its functionality.

As well, the colors of call-to-action buttons are significant, as studies show that red, orange and green CTA buttons are the best ones for conversions (but only if they stand out from the rest of the content on the screen).

More fundamentally, what this means for website designers is that despite the desire to be “different” or “distinct” from others in the marketplace, many attitudes about color are so fundamental, that to fly in the face of them could well be a risky endeavor.

Beyond brand loyalty: Where “daily relevance” now matters.

In recent times, the Harvard Business Review has reported on a so-called “new era” that is emerging in marketing.  In an HBR article co-authored by Joshua Bellin, Robert Wollan and John Zealley, three marketing science specialists at Accenture, the notion of marketing as a set of sequential trends that overtake and supersede one another is covered.

What are those sequential trends? The HBR article outlines five of them and dubs them “eras,” each of them evolving with increasing rapidity:

  • Mass marketing (up through the 1970s) – The era of mass production, scale and distribution.
  • Marketing segmentation (1980s) – More sophisticated research enabling marketers to target customers in niche segments.
  • Customer-level marketing (1990s and 2000s) – Advances in enterprise IT make it possible to target individuals and aim to maximize customer lifetime value.
  • Loyalty marketing (2010s) – The era of CRM, tailored incentives and advanced customer retention.
  • Relevance marketing (emerging) – Mass communication to the previously unattainable “Segment of One.”

Clearly, it’s technology that has been the catalyst for change as we migrate from one era to the next. Mass marketing was a staple for the better part of 40 years, what with radio/TV and newspaper advertising being paramount.  But subsequent eras have come along much more quickly as we’ve moved from market segmentation to customer-level marketing and loyalty marketing.

As for the emerging era of “relevance marketing,” new techniques are enabling marketers to exploit explicit data by name (such as previous purchase history and other known information) along with implicit data (additional information that can be inferred by behavior).

The question is whether this kind of “relevance” will engender long-term wins with today’s customers. The same technology that enables advertisers to target “Segments of One” is what enables those very targets to weigh the worth of those messages, discounts and offers so that they can find the best “deal” for themselves in their exact moment of need.

As far as the customer is concerned, wholesale digitization means that last week’s “preferred vendor” could be next week’s “reject” — with “loyalty” standing at the wayside holding the bag.

The danger is that for the seller, it can rapidly become a “race to the bottom” as buyers’ spontaneity erodes profit margins while the brand goodwill dissipates as quickly as it was created.

Marketing thought leaders Jim Lecinski, Gord Hotchkiss and several others have referred to this as the “zero moment of truth” – and in this case the “zero” may also be referring to the seller’s profit margin after we’ve progressed through the five eras of marketing that bring us to the “Segment of One.”

What are your thoughts about where marketing is ending up now that technology has given companies the power to micro-target — particularly if it means profit margins declining to their own “micro” levels? Please share your thoughts with other readers.