Do brands have a problem?

I once mentioned on the blog that 90% of the clients who come to us don’t have a strategy. This reflects a general market trend. Many brands that approach marketing agencies focus only on the „here and now.” They expect specific, measurable actions that will increase sales or generate more leads in the short term. They don’t see the need for brand image building, don’t want to wait for results, and don’t base their communication on values or build a strong brand foundation. Even though the marketing industry seems to understand that short-term campaigns are less effective in the long run than long-term ones, and that brand purpose is not just a buzzword but a response to customer expectations, brands still seem reluctant to accept this reality.*

Understanding the consumer perspective

Consumers are becoming increasingly aware of their choices, and as a result, they want to know more about the brands they engage with. They want to get to know them. Their expectations are shaped by personal values and experiences, while also being influenced by constantly changing social, political, economic, and technological forces. All of these factors shape their reactions to brands and their expectations of them.

What do today’s consumers expect? Tangible action. They expect brands to take responsibility, to take a stand on important issues—not just create a perfect, polished image. In fact, 64% of consumers believe that for a company to be more credible than its competitors, it must talk about its behavior, its impact on society and the environment, not just the benefits it offers to customers. People want real change on pressing social issues—from climate change to social and racial justice. They want genuine authenticity.

Brand authenticity

In June 2021, the latest global Authenticity Gap report was published. The study, initiated and conducted by FleishmanHillard, examines brand authenticity by analyzing the gap between customer expectations and their real experiences with brands. The analysis identified nine drivers of authenticity, through which consumers evaluate brands:

Customer benefits:

1. Offering better-quality products and services.
2. Better customer service.
3. Creating new, innovative products and services.

Social impact:

1. Better care for employees.
2. Making a positive impact on society and communities.
3. Better care for the environment.
   
   

Leadership behavior:

1. Commitment to ethical and responsible behavior.
2. Consistency and stable performance.
3. Communicating in a consistent, frequent, and trustworthy manner.
   
   

Consumers are clear about what matters to them

Data protection (48% of respondents), privacy (47%), and environmental protection and climate change (44%) are the top three social issues where consumers expect real action from brands. Other key areas include racism (33%), disability discrimination and actions for accessibility and equality (33%), violence against women (32%), gender discrimination (32%), and ethnic discrimination and equality (30%). Interestingly, the oldest (65+) and youngest (18-24) generations demand the most activism from brands.

Consumers also view brands through the lens of their leadership. Leaders shape the brand’s image and authenticity through their behavior. The saying „people make the brand” is very relevant in this context. Consumers have a clear opinion about when and why CEOs should take a public stance on important issues, especially (if not exclusively) on those that polarize society.

• 65% say CEOs must speak out on issues that „may not have a significant business impact but have a significant societal impact.”
• 73% of consumers believe CEOs should actively support and influence environmental policy changes.
• 65% of consumers believe companies must commit to promoting diversity, equity, and inclusion in the workplace to enhance their credibility.
• 65% of consumers believe companies and brands must demonstrate cultural awareness and listen to the needs of a diverse customer base.
• 68% believe companies must show that they adopt meaningful practices in data and consumer protection that go beyond mandatory regulations.
  
  

Key Takeaways

So, what should brands do to meet consumer expectations? How can they ensure they are perceived as authentic?

1. Know your audience
   Brands need to understand what their audience (not just current consumers) expects from them. Addressing these expectations and acting accordingly builds brand strength.

2. Define your brand
   Think about what your brand should be associated with and the values that define it. Identify your brand’s purpose and the promise you can make to your customers.

3. Do what you say
   Be consistent and honest in what you do and say. Your actions should align with your brand’s message. Your audience should receive consistent messages across all touchpoints with the brand. Don’t promise things you can’t deliver. Show proof of your actions.

4. Don’t be afraid to take a stand
   You won’t please everyone—it’s impossible. Consumers expect their brands to stand for something. Authenticity means being willing to talk about difficult issues. Keep in mind that brand perception is often most influenced by crises (e.g., brands that didn’t pull out of Russia after the invasion of Ukraine).

5. Measure what matters
   Don’t just focus on the here and now. Monitor your brand’s long-term trajectory while keeping your business goals in mind. Combine short-term campaigns with long-term strategies.
   
   

*This doesn’t refer to large players.
**All data comes from the Authenticity Gap: Global Report 2021 by FleishmanHillard.