Think_Bank_Thought_Leadership

THINK
Our latest collection of insightful thought pieces
covering our industry’s hottest topics

4

Initials CX is a total customer
experience agency created for
today’s world.
Yet for this to remain true, it’s crucial we both think
in the now and anticipate the future. That’s why our
team are always putting their minds to fresh, relevant
topics that can help our clients thrive, as life around
us continues to challenge and change.
Here you’ll find a collection of insightful thought
pieces and snackable published content spanning
the last year’s hottest industry subjects – where we
cover everything from the importance of accessible
design, to the emergence of social commerce, from
automotive to FMCG, from strategic standpoints
to creative ones. We hope you enjoy our musings.
Something we haven’t touched on yet that you’d like
to see? Drop us a line and we’ll gladly get stuck in.
Abby Hartley,
Head of Marketing
THINKBANK 5

01
Hacking the
new complex
consumer journey
06
How much digital
is too much?
Daniela Barletta
Annie Little
Strategist
Strategy Director
> page 28
02
> page 9
The EVP advantage
Richard Barrett
07
Brand purpose
might not be for
you – here’s why
Managing Director
> page 13
Simon Callender
Chief Strategy Officer
03
Social commerce:
The building blocks
for success
08
> page 31
Accessibility
in design
Dominic Murray
Chris Perowne
Director of Digital
Head of Design
> page 17
> page 37
04
The era of social
commerce
has arrived
Annie Little
09
Putting wearable
tech at the heart
of healthcare
strategies
Strategy Director
> page 21
Rachel Grigg
Client Partnerships Director
05
Why we must spell
out the creative
difference dyslexics
can make
10
> page 41
The rise of D2C
Annie Little
Strategy Director
Amelia Boyce
> page 44
Senior Account Manager
> page 25
6

Fad or future?
11 15
12
13
14
Demystifying today’s
emerging channels
Annie Little
Strategy Director
> page 49
Stepping into
the metaverse
Imogen Venn
Group Account Director
> page 53
How challenger
brands can disrupt
crowded categories
Imogen Venn
Group Account Director
> page 57
Will FMCG
restrictions mean
an uptick for
prize promotions?
James Willoughby
Client Services Director & Partner
> page 61
16
17
18
Sustainability:
Bridging the gap
between intention
and action
Mirella Mokbel
Head of Shopper Strategy
> page 64
Online
marketplaces
Annie Little
Strategy Director
> page 70
Why today’s car
brands are losing
their shine
Simon Callender
Chief Strategy Officer
> page 73
Navigating the
cost of living crisis
Daniela Barletta
Strategist
> page 77
THINKBANK 7

8

Hacking the
new complex
consumer journey
Annie Little
Strategy Director
With the COVID-19 pandemic transforming
shopping habits, journey orchestration matters
more now than ever before.
Digital commerce has totally shifted the journey
stage balance – now, there is no such thing as
“the” consumer journey for any given category.
Instead, there exists a complex maze of
touchpoints that must be carefully navigated
if brands wish to emerge successful.
Simply put, the stakes have never been higher.
Brands need to get a firm grip on how the
consumer journey has evolved and update
traditional linear purchase funnels from their
marketing agenda as a strategic priority.
In this article, we’ll look at the evolution of the
purchasing journey and the impact this has on
consumer behaviour.
With these insights in hand, we’ll offer valuable
guidance on how to ensure that – in a sea of
endless consumer choice – your brand gets
chosen first.
THINKBANK
9

The emergence of decision paralysis
The availability and ease with which consumers
can access product information has changed the
landscape forever.
Gone are the days of a linear purchase journey.
With more options and far greater accessibility
than ever before, consumers today are quite
literally spoiled for choice.
And while this new world offers countless benefits
for brands and retailers, it also adds a new layer
of complexity to consumer decision-making.
When this complexity reaches a tipping point, it can
spiral into “decision paralysis”: too much choice, too
many options, too hard to decide.
Such an overwhelming wealth of information for
consumers to wade through, has done the opposite
of streamlining the consumer journey. In many ways,
these extra touchpoints and decision-factors have
created a more complex and cumbersome path
to purchase.
A new model for the
consumer journey
To date, some of the savviest brands and
retailers have quickly pivoted their consumer
engagement strategies, adopting prevailing
shoppable touchpoints to remove any
immediate friction or pain points for their
target audience.
However, creating a high-converting
omnichannel purchase journey can’t be a
checkbox exercise. A more holistic and strategic
approach is required that spans the entire
consumer journey and incorporates reciprocal
actions at every experience encounter.
This requires a) an understanding of how the
consumer journey has evolved and b) insight
into how consumers are navigating their way
through it.
Let’s start by addressing the former.
This ‘messy middle’, coined by Google, is
a space of abundant choice and unlimited
content. Here, consumers explore and evaluate
product information, research brands and weigh
up their options. This is happening across an
ever-expanding digital ecosystem – from online
channels to social media to search engines,
aggregators, review websites and much more.
This exposure is not a stage or step in the
buying process, but rather an “always-on”
experience.
This means that consumers will traverse
the loop between exploration and evaluation
many times before a purchasing decision
is made.
So, how can brands show up at the right
moment and win consumer preference?
10

How to address cognitive biases
and win consumer preference
While the initial trigger and purchasing
moments still stand in today’s journey,
the middle area between the trigger and
purchase has become messy and complex.
Due to the constant
bombardment that
consumers now face,
they are turning to
a range of coping
mechanisms (cognitive
bias) to shortcut
indecision and make
purchase conclusions.
Cognitive biases are often a
result of the brain’s attempt
to simplify information
processing. In this case,
they help consumers make
sense of the world and reach
decisions with relative speed.
These cognitive biases shape shopping
behaviours and influence why we choose
one product over another.
By responding to the cognitive biases at play
intelligently, responsibly and at the right moment
in the consumer journey, brands can effectively
shorten the gap between trigger and purchase
and emerge victorious at the point of conversion.
But how do brands pinpoint which biases are
at play during a typical purchase journey within
their respective category?
Understanding
behavioural biases
encourages a deeper
psychological
understanding
of consumers.”
At Initials CX, we have developed our own
strategic model to help brands hack the
consumer journey and win the moments that
matter. Since the path to purchase is no longer
linear, we can’t afford to think in linear terms.
Our Consumer Journey Hacker is a data-driven
and behavioural-sciencebased
strategy that helps
brands plan for the right
stimuli that will impact
buyers in key moments.
Understanding behavioural
biases does more than
just increase advertising
effectiveness; it can
encourage a deeper
psychological understanding
of consumers, their cultural
norms and nuances and
ultimately inspire new
business strategies
and products.
These behavioural science principles (and the
behavioural and informational needs they align
with) are powerful tools for winning and defending
consumer preference in the new complex
consumer journey.
Here, the goal is to close the gap between trigger
and purchase. This means consumers spend less
time exposed to competitor brands and transition
to your basket faster and with greater confidence.
In a sea of overwhelming choice, this is how your
brand can emerge victorious.
As published by The Drum.
THINKBANK
11

12

The EVP
advantage
Richard Barrett
Managing Director
The world has undergone a series of profound
shifts since March 2020.
Increased competition for talent, rising staff
costs and employee retention are all key issues
on the minds of today’s business leaders. As
such, being an employer of choice has never
been more important.
To navigate these uncharted waters, companies
are beginning to realise the benefits of a strong
Employee Value Proposition, or EVP.
A study by Aon found that 41% of employers in
the UK intended to review their EVP in the light
of the COVID-19 pandemic, while 43% of
those without an existing EVP planned
to develop one.
When done correctly, an EVP will keep
a business evolving. It can build deeper
connections, flex to meet different aspects
of work, inspire personal growth, contribute
towards holistic wellbeing and rally people
around a shared purpose.
This means that if your company has a strong
EVP, and you’re living by it, then by default your
company is evolving, modernising and keeping
on the front foot.
THINKBANK
13

In fact, new research has shown 75% of
jobseekers are more likely to apply for a job if
the employer actively manages its employer
brand and EVP.
The good news is your EVP already exists –
you just need to find the magic.
Let’s explore how.
Breaking the EVP stereotype
Many people think of an EVP as a “thing” –
but it’s actually a living experience.
Yes, it absolutely ticks the box in terms of
attracting top talent, but it also tackles retention
and provides validity for every stage of the
employee lifecycle – from initial attraction all
the way through to the exit interview.
An EVP exists to ensure a constant betterment
for both the employer and employee during
this lifecycle. It contributes to the betterment
of every individual in the company and, as a
result, the wider success of the organisation.
In other words, it’s the link that sets common
expectations, embodies workplace culture and
delivers a higher purpose that all parties can
strive towards.
Contrary to popular stereotypes, an EVP is not
a one-way broadcast of strengths, benefits and
opportunities. It’s a mutual value exchange that
defines, captures and communicates what an
organisation will give to its employees and what
the employer will get back in return.
This mutual value exchange becomes an
ongoing ecosystem that sets the framework for
how senior leaders and employees at all levels
of the business can rally behind a shared vision.
How to find the magic of your EVP
At Initials CX, we walk clients through a four-step
process to arrive at the essence of what your
EVP truly stands for. The net result should be
clear, simple and flexible – which will allow the
EVP to be relevant to any individual at any time.
Let’s explore how this process works.
14

STEP
Audit
To kick off an EVP project, an
organisation must start with a
no-holds-barred assessment of
its existing culture and workplace.
This means auditing the real,
lived experiences – not just
the “sunshine” aspects of your
employer brand or why it’s nice
to work for you.
STEP
Territories
Next, businesses need to look at what
these insights reveal. What does the
company profile look like? Where does
this fit into archetypal representations
of an organisation?
STEP
Creative Ideas
Once all this information has been
gathered and analysed, companies
can start to determine how the
unique characteristics of their
employer brand can be translated
into creative ideas that drive
purpose, impact and emotion.
STEP
Manifestation
Finally, the EVP can be manifested into real-world campaign
execution – looking across all touchpoints and experiences
in and out of the business, such as the candidate experience,
training initiatives, cultural experiences and more.
By taking steps to proactively design an EVP, organisations can take ownership over their
employee experience and align this with the company vision to create a more positive
outlook for both the business and its employees.
THINKBANK 15

The benefits of a powerful and
authentic EVP
Once an EVP has been investigated, unearthed and
formulated, it can start to benefit multiple aspects of
the business.
Since this is a mutual value proposition, it sets the stage for
the reciprocal employee/employer relationship to follow. This
makes the entire recruitment process much more attractive,
streamlined and effective, which in turn drives the attraction
of talent that is better suited to the organisation.
Not only does this help attract top talent, but it can lower
recruitment costs, since companies begin to organically grow
their talent funnels and can rely less on agency support.
LinkedIn has shown that an effective employer brand and EVP can:
Reduce
turnover by
Reduce
cost-per-hire
by
Attract
50% more
qualified
applicants
Make time
to hire
faster
But the beauty of an EVP is that it doesn’t stop at the talent
attraction phase. It benefits existing employees by creating
clear parameters for progress, learning and development
and how to succeed within the organisation.
If your business has yet to invest in an EVP, then now is the
time to seriously consider how it can propel your business
forward during a time of marked change.
As published by The Drum.
16

Social commerce:
The building blocks
for success
Dominic Murray
Director of Digital
Up until recently, shopper behaviours were limited
to discovery and consideration, with purchase
taking place off-platform, on a brand or retailer
website. But all that has changed. Today’s social
platforms are poised to ‘close the loop’, with users
able to browse and shop seamlessly within one
connected social media experience. A development
that, undoubtedly, has the potential to transform
the way people buy online forever.
Once upon a time, social media was seen as
a hard-to-quantify awareness channel. Now,
it has the potential to deliver a direct impact to
your bottom line. In order to help you get there
I’m going to give a quick snapshot of the ten key
components needed to launch a successful
social commerce campaign – as outlined fully
in our Microguide to Social Commerce.
THINKBANK
17

1. Audit first
In our experience, the first step starts with a
digital audit of your existing tech stack, so that
current capabilities can be assessed before
any upgrades or add-ons are initiated.
2. Establishing campaign
objectives
This includes things like promoting business
values, alongside the ultimate goal of sales and
profit. Understanding the target demographic
is key to knowing which social media platform
would be best suited to deliver this.
3. Investing in social ads
It’s worthwhile targeting ads at former
customers, or those who have engaged with
your content previously. Ensure that hashtag
usage is consistent across all posts and ads,
so that followers know exactly which tags to
use when talking about a product.
4. Awareness-driven
social commerce
Brands must also look ahead to the social
platforms that will embrace social commerce
in the future, such as Twitch, Reddit and
Clubhouse. They are useful platforms for
connecting with the consumer now, and enable
you to gain further insight into how to optimise
future sales models in preparation for when
they launch social commerce further down
the line.
5. Countdown posts
and promotions
To build anticipation amongst your current
follower and contact bases, choose posts and
stories that encourage interest and discussion.
These can also be followed by ‘countdowns’
to build added hype.
6. Audience engagement
Asking relevant or open-ended questions
is a sure-fire way to get greater interaction.
Making sure that any questions from
customers are addressed promptly,
personally, and informatively will help
build engagement further.
7. Nano influencers
Since the pandemic, the rise of nano
influencers has helped create more
intimate environments to showcase
products. They have lower numbers of
followers than mainstream counterparts,
but far greater influence over them.
8. Content remains king,
but context is queen
Brands must understand when to entertain
and when to sell, relative to the state of
engagement in the customer journey. Setting
out a clear brand purpose and well thought
out social strategy that does both at the
right time is vital to both grab and retain
customer attention.
9. Performance and data
for ROI
Every available metric should be systematically
reviewed to see how campaigns have
performed and tied back to performance
and conversion KPIs and objectives.
10. The right tech
Ultimately, automation through good use of
technology will save time, which can therefore
be used elsewhere to generate more value.
There are many products that can automate
content, some even track performance.
18

Since the pandemic, brands able to offer direct-to-consumer (D2C) commerce have
capitalised on the immediate benefits of social commerce, while those that weren’t ready
have been missing out. With the number of social media users globally predicted to grow
from 4.48 billion in July 2020 to over 5.3 billion by 2025, no one can afford to ignore these
communities. Taking a structured approach, as outlined above, is key to ensuring social
commerce success for your brand.
As published by Performance Marketing World.
Social media users
predicted to grow to over
by 2025
THINKBANK
19

20

The era of
social commerce
has arrived
Is your brand ready to capitalise?
Annie Little
Strategy Director
In 2021, brands turned to social commerce for
timely answers to marketing challenges. The
integration of ‘shops’ and ‘buy now’ buttons into
social feeds drove traffic to ecommerce sites
and married commercial and social agendas.
This year, all eyes are fixed on the next evolution.
From Instagram’s Checkout feature, which closes
the loop and allows users to purchase products
in-app, to Spotify’s in-stream retail features, brands
will need to move quickly to take advantage.
Data from Hootsuite shows 81% of shoppers
research products via Instagram and Facebook,
while half of Pinterest users say shopping is
a top priority for them.
This comes at a time when 72% of millennials say
they are more likely to become a loyal customer
if a brand engages with them on social media.
As social communities and not-so-distant
metaverse worlds redefine how we connect,
share and interact, it’s clear that the future of
ecommerce is one with social commerce fixed
firmly at its core.
Whether you’re a seasoned social commerce
veteran or testing out the waters, here’s how your
brand can thrive in the crucial months ahead.
81%
of shoppers research products
via Instagram and Facebook.
72%
of millennials say they are more likely
to become a loyal customer if a brand
engages with them on social media.
Social commerce is a lucrative
revenue source for ALL brands –
not just the big players
Want the short truth? There is no “best” social
network to target.
Consumers use different platforms for different
purposes, and this will vary significantly based
on your brand’s products, services and role
in culture.
THINKBANK
21

In 2020, YouTube pioneered shopping ads in
video, Snapchat introduced Shoppable AR
formats and Instagram checkouts launched
in the US. And in 2021 with the launch of
Facebook Pay, TikTok’s partnership with Shopify
and Pinterest’s “Idea Pins” launch, the memo is
clear: social commerce is well and truly here.
Social media platforms have democratised the
playing field between small and big businesses.
One meme can send you viral. A clever post can
spin heads.
Today, the currency we’re all playing with is
attention and engagement. Sure, a big budget
can help draw views, but the right content and
messages can have a disproportionate impact
on a brand’s social commerce success.
This is what makes social commerce so
powerful; success is predicated as much
on relevance as it is on budget. By taking
advantage of existing features and getting into
the game early, forward-thinking brands can
carve out a niche as innovators in the space.
“How can my brand flourish?” Start by
cultivating an obsession with customer data
To create fertile ground for social commerce to flourish, brands
need to obsess over their customer data. This means identifying
your audience’s unique behaviours, preferences and needs, which
starts by asking the right questions.
When does demand
fluctuate for certain
products?
What platforms
do our audience
use to research
and explore?
What type of content
drives conversion?
22

Understanding the nuances of customer behaviour can
help brands seed categories and products at the right
time, whether that’s in the run up to sales peaks or
nurturing relationships during low demand periods.
The confluence of social media,
content and commerce is an
exciting area for 2022
The creator economy, social shopping and
peer-to-peer/influencer shopping is predicted
to boom in the Western world.
New platforms such as Patreon, Substack,
Cameo and TipJar are enabling creators to
bypass the traditional branded influencer
partnership. This means an entirely new
ecosystem is emerging where creators can
build relationships directly with their followers.
This concept of fandom is becoming an
increasingly powerful force, one that is already
evident in the rise of gaming. Gaming creators
and esports exploded in 2021, with an 80%
increase in livestream gaming content.
The most popular platforms such as YouTube,
Facebook and Instagram are adapting their
services to meet these new demands and offer
revenue sharing tools to creators. It’s needed,
as 71% of brands plan to increase spending
and leverage the power of creators to sell via
livestreams and shoppable media. TikTok has
seen the most growth, with 84% of marketers
planning to increase spend on the app in 2022.
As live streaming, digital entertainment and
social commerce collide, brands will need to
seriously consider how they can create organic
communities for loyal fans and followers.
Gaming creators and esports exploded in
2021, with an 80% increase in livestream
gaming content.
84% of marketers are planning to
increase spend on TikTok in 2022.
THINKBANK
23

Social commerce is the new
real estate
Today’s web of hyper-connectivity has created
new pockets of online communities.
We work, learn, communicate, play and shop
online. While in decades gone by the price of
consumer attention was determined by the size
and location of your store on the high street,
the rise of social media means that anyone,
anywhere can create a virtual shop front.
This is the crux of social commerce. To not
simply meet buyers where they are, but to
make these spaces places where people want
to get their products and connect with others.
The short-term advantage will be recognised
by go-to brands who future proof themselves
by being first to market with social commerce
integration. It has shifted from a perpetual
priority to a desperately needed lifeline to thrive
in a post-pandemic world.
Is your social storefront ready to meet the
expectations of a new generation of consumers?
With a new era upon us, patience is not a virtue.
Now is the time to get involved.
As published by Advertising Week.
24

Why we must spell
out the creative
difference dyslexics
can make
Amelia Boyce
Senior Account Manager
Can you keep a secret? Dyslexia isn’t something
to be hidden away. It’s not a taboo. In fact, it
could make all the difference at your agency.
When I first started working in advertising,
I conformed to the perceived norm. I kept my
dyslexia under wraps, fearful that revealing it
would embarrass me and hold me back from
the things I wanted to achieve.
I’m not alone. In a recent interview, Sir Richard
Branson revealed he suffered “cruelty and
humiliation” for poor reading and spelling skills
due to his severe dyslexia when he was starting
out. Now, looking back, he feels the condition is
a “superpower” that has always propelled him
forward in business.
The moment when I finally felt accepted as
a dyslexic was quite comical. Our CEO Jamie
leaned over to ask a colleague if she could help
him spell a word. She replied: “Don’t ask me –
I’m dyslexic.”
Jamie sought help from a second, then a third,
then a fourth person, only to be told they were
all dyslexic, too. Far from being exasperated,
he replied: “So am I, that’s why I’m asking!”
We all laughed: the “secret” was out.
It inspired us to think more closely about the
many unique attributes people with dyslexia
bring to our industry.
THINKBANK
25

Eight unique talents dyslexic
employees bring
The UK Government estimates 10% of our
population is dyslexic. While no such statistic
is readily available relating specifically to the
creative sector, Creative Equals figures it’ll be
about double the national proportion. As it
happens, a quarter of Initials CX employees
are dyslexic.
In addition, as part of an article about workplace
diversity, the Data & Marketing Association
(DMA) referenced survey data revealing that
of the 6% of employees with a diagnosed
neurodevelopmental condition, well over
a third (37%) stated they are dyslexic.
It was surprising and heartening to read
these statistics.
It’s even more exciting to discover the untapped
talent dyslexics can bring to our industry.
According to Ronald Davis in his groundbreaking
book The Gift of Dyslexia, dyslexics can bring
to the table eight traits that neurotypicals don’t
always possess.
We...
1. Have vivid imaginations – assisting with
conceptual ideas.
2. Use our brain’s ability to alter and create
perceptions – meaning we can put
ourselves firmly in the shoes of the
target audience.
3. Are highly aware of the environment we
and others inhabit – great when trying
to understand and communicate with
a target market.
4. Tend to be more curious than average –
we can dig deeper into why people
behave like they do and choose the
products they buy.
5. Think mainly in pictures, not words
(useful for at least one half of the
traditional creative team!).
6. Can be highly intuitive and insightful –
creative advertising is all about using
insights to drive effective work.
7. Think and perceive multi-dimensionally,
using all our senses – we can immediately
envision how flat design concepts can
come to life in physical environments,
across different formats.
8. Often experience thought as reality –
especially useful when creating events.
Imagining conceptual ideas in the real
world allows us to predict how consumers
will view them.
26

Having written that list, it’s clear there’s great
creative power in dyslexia. It also explains why
many of us are drawn to advertising and other
parts of the creativity industry.
Strategic, innovative, creative potential in one
brain. You might normally need a whole group
of people to put all of that into action. But despite
this being the case too many dyslexics still see
a diagnosis as a negative and decide to hide it.
That needs to change.
The driving force behind
creative agencies
Aside from Richard Branson, other famous
dyslexics have enjoyed huge success in a range
of industries: Jamie Oliver and Keira Knightly,
for example; and The Dots founder Pip Jamieson
and Hugh Robertson of RPM from our sector.
Those at the top table must recognise the
requirement for dyslexics to feel comfortable
in their role; and the need for agencies to round
out their skill sets with the talent on offer.
In its useful Dyslexia Employer Guide, the DMA
says: “Dyslexic people have an uneven cognitive
profile with contrasting abilities. Often, they
have strengths in creative, problem solving
and communication skills, but challenges with
spelling, reading, and with holding onto or
retrieving information quickly and accurately.”
The industry can’t allow those stated problems
to preclude the abilities that are also there to be
used. Instead, we must support and celebrate
dyslexia as part of the wider diversity that makes
creativity the wonderful, inventive, extraordinary
calling that it is. Some great initiatives are under
way, such as e-reader Leo making creative
education available in dyslexia-friendly formats,
to encourage more people with the condition
into the industry.
Meanwhile, global charity Made By Dyslexia
published its study The Value of Dyslexia
“to prepare dyslexic individuals for a changing
world and enable them to flourish”. (In fact, as
this article in Forbes explains, there’s a growing
belief dyslexics are the key to harnessing the
full power of a digital future.)
Collectively, we can all do so much more to
make the creative industry a second home
for dyslexic people.
Dyslexics can use their powers to propel
creativity. There’s even a strong case for
someone with dyslexia to add the condition
to the skills section of their CV as a key
personal strength.
So – what will your organisation do to celebrate
this talent, and write a new chapter in the
diversity handbook?
As published on shots.net.
THINKBANK
27

How much digital is
too much digital?
Daniela Barletta
Strategist
Today, the average consumer spends more
than 40% of their waking life online. It’s now
abundantly clear that the social dynamics
brought about by the pandemic have served
as a catalyst for even greater digital adoption.
As the world grows accustomed to the benefits
of digital life – namely convenience, experience
and speed – we might expect that consumers
want even more digital in their lives. After all,
this is what agencies, social media companies
and tech platforms are telling us.
And yet, while more digital seems like the logical
solution, our research shows this is simply not
true. What consumers really want are more
engaging experiences, where physical and digital
are used to complement each other and offer
more interactive moments.
28

As brands seek to design and implement compelling strategies,
this nuance must be accounted for to avoid digital overload and
a growing sense of “sameness” in the digital space.
In this article, we’ll explore how brands can facilitate a more
hybrid experience that caters to consumers’ expectations – and
reveal the surprising truth about what people are really after.
What do consumers really want
from brands?
The days of the linear customer journey are gone.
Today there are an endless number of devices, platforms and
channels on which brands and consumers can interact. And
though the benefits (targeted advertising, enhanced browsing,
faster checkout, quicker delivery, etc.) are palpable, the sheer
size and scope of these digital interactions can be draining.
At least that’s what consumers seem to be suggesting. In the
wake of the UK government’s announcement that all COVID-19
restrictions will end, we polled a nationally representative
audience of consumers to uncover how satisfied people are with
the digital experiences they receive from brands in the ‘health
and beauty’ and ‘alcohol’ sectors.
Interestingly, the results point to widespread digital fatigue.
Health and Beauty findings
When asked about attitudes towards brand experiences, nearly 1 in 3
consumers (32%) said they would “prefer less digital experiences”
while 36% would “prefer more physical experiences”.
Alcohol findings
A similar trend emerged in the alcohol sector, as 31% of consumers
indicated a desire for “less digital experiences”, whereas 37% would
“prefer more physical experiences”.
THINKBANK
29

These results jar with what mainstream opinion
tells us – that digital experiences in isolation
are what consumers want to experience more
of. While there’s no doubt that digital is here
to stay, these findings suggest that brands
should at least be asking, “How much digital
is too much?”
To remain relevant and cater to the consumer’s
ever-evolving needs, a hybrid approach will be
essential. Brands need to understand, facilitate
and even predict what consumers will want at
certain parts of their journey.
For example, when people are shopping
in-store, experiential theatre and digital
is an aspect that would cater to the need
for exploration and sampling, while postpurchase
rewards and loyalty schemes are
better suited to the digital realm via email,
app or push notifications.
Our evidence supports this, as well over a third
of respondents say they want “more physical
experiences” from brands in the future. To
put this into context, less than a quarter of
consumers indicated an appetite for “more
digital experiences”, which suggests that digital
ennui has indeed set in. This opens the door for
brands to deliver total customer experiences
that meet new expectations.
Delivering the total customer
experience to meet expectations
In an age where headlines are dominated by
tech giants, ecommerce brands and a not-sodistant
metaverse, it’s important to remember
that audiences exist in a hybrid world beyond
the purely digital space.
As our research suggests, consumers realise
that digital doesn’t solve all their problems and
doesn’t hold all the answers. After all, when the
whole world is lived through a screen, some
brand experiences online can start to look and
feel the same.
However, the real magic happens when the
physical and digital worlds collide to create true
blended experiences. This opportunity to exist
in more than one dimension enables brands
to be present for their audiences in ways that
reinforce overall brand messaging, values
and relevance.
Given the consumer expectation of more
physical experiences, it’s never been more
crucial for brands to prioritise customercentricity
when integrating online and offline
strategies. This is how brands can deliver a
total customer experience – one that explicitly
delivers on new expectations.
With the resurgence of the experience
economy, for example, brands can bring
thought-out tech advancements into the
physical space. It’s by facilitating a total
customer experience that brands can create
a real point of difference and better resonate
with a culture that is longing for more realworld
moments.
Clearly, there’s no going back from digital, but
this should serve as part of a 3-dimensional
brand world. As our research shows, the
brands that can combine physical and digital
experiences will deliver on the sum of what
audiences really want: seamless, enriching and
inspiring moments that weave across the total
customer experience.
As published by New Digital Age.
30

Brand purpose
might not be for
you – here’s why
Simon Callender
Chief Strategy Officer
Brand purpose has become one of the hottest
topics in today’s marketing world, but is all this
focus and hype justified?
Today’s consumers are more ethically and
socially conscious than ever before. From our
own research, we found that nearly half of
shoppers (46%) “only shop with brands that have
a wider societal purpose” or are “always seeking
ethical alternatives to existing brands”.
It’s within the context of these social shifts
that brands have tried to mirror changes in
consumer attitude and behaviour. While early
pioneers such as Patagonia and Nike helped
establish the contemporary brand purpose
mantle, you’d be hard pressed to find any
company today that hasn’t experimented
with the concept, often under the illusion
that it can be the cure for many brand ills.
THINKBANK
31

46% seek out
brands with a wider
societal purpose or
ethical alternatives
to existing brands...
but only 9% of
consumers trust
a brand when
it says it has a
deeper purpose
But consumers are growing weary. Shoppers
increasingly faced with the à la mode ubiquity
of purpose related campaigns have started
to question whether brands are really being
genuine with their sentiments or not.
This suspicion is cemented by compelling
evidence. Our research shows just 9% of
shoppers trust a brand when it says it has
a deeper purpose.
So we need to take a step back and look at
the situation objectively. In doing so, we may
just find that brand purpose isn’t the miracle
panacea for brands that lack consumer
connection – here’s why.
Kresse Wesling, Co-Founder at sustainable
luxury brand, Elvis & Kresse, comments, “Brand
purpose means nothing to me because it’s
just a term – the actions are what is important.
We’re an action-oriented company, and I’m very
worried about purpose becoming a catch-all
term that loses all value.”
A true brand purpose shouldn’t be another
messaging coat that can be slipped over the
existing brand architecture – it’s an actionoriented
strategy that can only be achieved and
have true credibility when it creates real change
that people value.
What does ‘brand purpose’
really mean?
The term “brand purpose” carries with it a string
of preconceptions, ideas and judgments.
For many, brand purpose has become
synonymous with “doing good”, which, like
sustainability, is now a catch-all phrase
that loosely categorises any humanitarian,
philanthropic or charitable business objective
under the same banner. However, at its most
basic, brand purpose is a promise to actively
pursue change in the wider world – how brands
choose to purpose that pledge is up to them.
That call for change needs to be meaningful
and relevant to a chosen target market and
vitally needs to be backed up by doing.
Brand purpose means
nothing to me because it’s
just a term – the actions are
what is important. We’re an
action-orientated company,
and I’m very worried about
purpose becoming a catchall
term that loses all value.”
Kresse Wesling, Elvis & Kresse
32

Dee Bulsara, Managing Director at OceanSaver
the Eco Cleaning brand, comments on this idea,
saying, “For us it’s very simple. If we don’t live
by our purpose, then we don’t have a brand.
Our purpose is to leave the planet a better
place than we found it, which [we bring to life]
through sustainability initiatives measured by
our ecological and carbon footprint.”
It’s through action and impact that brand
purpose moves from a boardroom strategy
to something that lives in the real world and
which can create a measurable and meaningful
effect in people’s lives. It’s the end result
that consumers need to witness, not just the
sentiment. If a brand lacks the commitment
and resources to create this change then brand
purpose becomes an unfulfilled, hollow wish
that will fade into marketing noise, generating
more of the consumer disillusionment that our
research points to.
For us it’s very simple. If we
don’t live by our purpose,
then we don’t have a brand.”
Dee Bulsara, OceanSaver
The majority of consumers agree that brand
purpose is something that should have a real
tangible impact on people and communities
(not just something a brand feels they can add
a ‘like’ to). Furthermore, 55% of consumers say
buying purpose brands “inspires me to work
harder for that cause” and “encourages me to
find out what I can do to help.”
55% of
consumers say
that buying
purpose brands
inspires me to
work harder for
that cause…
But 1/3 say
that buying
from purpose
brands makes
me feel I have
“done my bit”
Worryingly however, a third of shoppers say that
buying from a purpose brand “makes me feel
I’ve done my bit for that cause”, which highlights
why brands must deliver on their promises if we
want to avoid a net negative impact on the issue
at hand
Finding an authentic purpose that brands can
service in the real world is not something every
organisation can or should do. As we’ll see,
there must be room for permission and space
to drive impact.
Why brand purpose isn’t a tool
for everyone
Purpose is the ultimate proof point of a brand’s
commitment to its own values and beliefs. As
such, a brand purpose campaign should only
reflect the values that already underpin that
brand. If these values lack relevance, then
a brand purpose campaign will only amplify
this disconnect.
THINKBANK
33

This dissonance is partly to explain why issues
like greenwashing have become so prevalent
in the consumer psyche. An Accenture study of
more than 30,000 consumers worldwide found
that more than half (53%) of consumers who are
disappointed with a brand’s words or actions
on social issues complain about it. Even more
troubling, 47% now walk away from a brand in
frustration and 17% never come back.
There’s so much
disingenuous eco talk out
there from brands that don’t
have a sense of purpose.
Going forward, consumers
will have a really tough job
trying to figure out what is
eco and what isn’t.”
As Kresse Wesling notes, “If all of your actions
don’t match all of your intentions, then I think
you have a problem.”
If all of your actions don’t
match all of your intentions,
then I think you have
a problem.”
Kresse Wesling, Elvis & Kresse
At Initials CX, we walk our clients through a
three-step process to evaluate brand purpose
and determine whether it fits authentically with
a brand’s values.
Dee Bulsara, OceanSaver
With access to more information than ever
before, consumers have become particularly
adept at spotting false attempts to retroactively
assign “purpose” to a brand. This is especially
true when a brand has not invested its time,
energy or money into living its purpose in the
real world.
STEP
Ambition
OceanSaver’s Dee Bulsara, says, “There’s so
much disingenuous eco talk out there from
brands that don’t have a sense of purpose.
Going forward, consumers will have a real
tough job trying to figure out what is eco and
what isn’t.”
In order to make purpose work, brands need to
have the values and permission to back it up. It
requires ambition and dedication to see these
values through – both in the business and in the
world at large.
First, we assess what a brand’s real
ambition is by analysing commercial
objectives vs brand perception. What is
the time frame being discussed? Is the
brand committed to addressing an issue
for the long term? Are the objectives
aligned with the means?
34

STEP
Permission
STEP
Resource
Next, we need to determine whether or
not a brand has permission to speak on
a particular subject. What values does
the brand have or seek that it wants to
activate? How do these values connect
with consumers? Are they distinctive?
Do consumers care? Does a brand
purpose programme fit with the brand’s
archetypes and personality?
Finally, brands need to take an objective
look at their own commitment to a purpose
– both from a resourcing and financing
point of view. Do the human and financial
resources available allow you to address
this purpose in a meaningful way? Can you
deliver against consumer expectations?
A long-term vision, not a shortterm
solution
Too often, brands see purpose as a fix for shortterm
commercial performance. This is where
companies get themselves into trouble.
Brand purpose demands consistency, as
it elevates a brand’s beliefs into the public
realm. Unlike other activations, it needs to be
managed for the long-term, not the short-term.
Our research shows that 89% of consumers
would pay a premium for a brand that has an
authentic purpose. In fact, 1 in 3 consumers
would pay a premium of 35% or more for a
brand that demonstrates a genuine purpose.
This direct link between brand purpose and
increased expenditure perhaps explains why
so many brands are desperate to leverage the
power of purpose. But as we’ve seen, there’s
an incredible amount of distrust and scepticism
in the market, given that less than 1 in 10
shoppers trust a brand when it says it has
a deeper purpose.
So, how can we make sense of all this?
Well, a short-term attempt to leverage brand
purpose is likely to do more harm than good.
Consumers will see straight through this and
question a brand’s motives and intentions.
As OceanSaver’s Dee Bulsara says, “We still
believe that what we’re doing is for the longterm
health of the planet and the oceans – it’s
not a choice, it’s a “must”. People are starting
to switch on, but it’s going to take time.”
Purpose is a long-term solution. It’s a north-star
by which values can be applied to culture in
a socially relevant context over the course of
decades – not months.
As Kresse Wesling concludes, “Our purpose is
about a future where we don’t have extractive
or exploitative businesses. In this future, every
business should have purpose as part of
its DNA.”
When authenticity and impact are placed
before profit and perception, then true
brand purpose has a real chance to shine.
As published by The Drum.
THINKBANK 35

36

Accessibility
in design
Why digital design for your
whole market matters
Chris Perowne
Head of Design
It’s almost a decade since the London 2012
Paralympic Games heralded a generation
of “superhuman” athletes. Since then, the
visibility of disabled people in everything from
advertising to TV programmes has increased
considerably. Alongside this focus on visibility,
accessibility issues are also increasingly
under the spotlight. Which is why giving
due consideration to accessibility in design
is long overdue.
Looking at this from a digital design standpoint,
a cursory glance at most brands’ websites
reveals a glaring level of inequality in online
accessibility. Accessibility in design refers
to the extent to which a product or service
can be used universally, specifically taking
into account the needs of users living with
disabilities. Traditionally the assumption has
been this relates predominantly to making
websites accessible to visually impaired users.
In reality it’s about much more than that…
The commercial cost of
overlooking accessibility
in design
brands prioritise speed to market ahead of
most other strategic considerations, not least
accessibility in design. But in the rush to build
sites to launch the latest product or service
it’s easy to forget users who need more help
to navigate the web – even though doing so
could spell commercial disaster.
Consider this: according to a Scope/Family
Resources Survey there are 14.1 million disabled
people in the UK, including almost a fifth
(19%) of working-age adults. Moreover, plenty
of disabilities that cause online accessibility
problems aren’t obvious. Did you know, for
instance, that one in every dozen men across
the globe is colour blind? That’s just one
example. There are a host of other issues,
from motion sickness to epilepsy, that can
affect consumers’ ability to engage with poorly
designed sites.
There is a huge part of the population we
need to work harder for so that their purchase
journeys are easier. If brands don’t make it easy
for their entire consumer base to engage and
buy then, over time, the consequence could
be tangible financial loss.
Ecommerce has made sales more competitive
than ever before so it’s no surprise that many
THINKBANK
37

Making the consumer journey more
accessible for all
It’s harder to retrofit accessibility to a website than to build it
in from the beginning. So, the trick is to treat it as a strategic
imperative from the start, not just a box-ticking exercise.
There will almost always be a section of a brand’s target
market that need more support so it’s important to pose
the question upfront.
Historically, and despite the 2010 Equalities Act writing
the requirement into law, only third sector and government
service providers seem to have made this a priority. It is time
commercial organisations caught up. You wouldn’t have a
shop wheelchair users can’t access, so why have a website
that doesn’t work for large swathes of the population?
The World Wide Web Consortium’s (W3C) Web Accessibility
Initiative (WAI) has guidelines that offer a good starting point.
They split accessibility into three standards:
Basic accessibility, but still serviceable
‘Middle ground’ accessibility; most
government service websites conform
to this standard as a minimum
‘Hyper-accessible’ site design,
but anything ‘flashy’ has to go
Choosing the standard suitable for a brand’s audience is
challenging because there are often multiple different
business objectives at play that require balancing out. Luckily
technology and rigorous techniques now present solutions
that mean you can avoid needing to decide between having
an eye-catching site and an accessible one.
38

Good design and accessibility can go
hand-in-hand, with a practical approach
to UX that considers aspects such as:
Layout
Balanced, logical, and straightforward to navigate
Motion
Awareness that animation can be destabilising
or disorienting for some users
Size and Space
Should be proportionate, particularly relevant
to buttons and interactive elements
Typography
Clear hierarchy of legible fonts at appropriate sizes
Language
Simple, well written, without jargon or acronyms
Colour
Harmonious use of colour with strong contrast
for typography
Success relies on close collaboration between
agencies, clients and the extended design team;
a more holistic understanding between project
partners to align solutions to the audience’s
often diverse accessibility needs.
The process of understanding and implementing
accessibility in design takes time. It’s important
that everyone concerned doesn’t rush such vital
requirements. Our own website is a case in point:
it needs work from an accessibility point of view,
which is something we’re reviewing currently as
a priority.
Traditionally cost and complexity have been
viewed as two key barriers to better accessibility
in design. In reality, as long as the correct
approach is taken, there is nothing to be scared
of. Accessible design is good design, and the
idea that creativity, visual aesthetics, or dynamic
tech will inevitably be hindered is misguided
and out of date. Technical rigour is required but
it’s not rocket science, and the visual toolbox
remains the same.
In an era when brands are throwing focus on
the diversity of their own teams as well as their
audiences, accessibility in design is the next
step towards a truly inclusive experience for all.
Brands need to be considering it, and agencies
shouldn’t wait to be asked about it. We all need
to be addressing these issues head on. There is
an opportunity to get ahead of the curve here,
solving a problem before consumer demand
forces change, which it inevitably will.
As published by Shots.
THINKBANK
39

40

Putting wearable
tech at the heart
of healthcare
strategies
Rachel Grigg
Client Partnerships Director
Healthcare is shrinking.
Don’t worry, this isn’t an attack on the
NHS, government policy or UK patient
care generally. What we mean by that
is wearable technology now presents
an opportunity to make diagnosis and
treatment more efficient and effective
than ever.
A proliferation of portable and wearable
devices – from palm-sized ultrasound units
used by paramedics, to data-sharing smart
watches – has the potential to revolutionise
all of the ways in which healthcare is
planned and delivered.
We believe tech innovation can – and
must – be the beating heart of healthcare
delivery. Organisations will be inspired by
the way private-sector firms have used
technology to pivot, with entire industries
adapting to meet changing consumer
demands.
Look how smarter use of customer data
has shaken up the energy market, allowing
consumers to take control by switching to
a more suitable option in a few short clicks.
Then consider the wider advertising
industry, which has evolved from mass
TV marketing to one-to-one, personalised
messaging, drawing on data and
technology as its fuel.
It’s in this context that we should view
the future of healthcare provision in the
UK. Technology and the data it delivers in
droves can surely make a dent in painful
waiting lists; even take a scalpel to the
current two-week maximum wait to see
your GP.
THINKBANK
41

Driving adoption of
wearable tech
Wearables are not new. Around the turn of the
21st century, however, devices from Bluetooth
headsets to smart watches were rolled out.
They came with a promise to reach critical
mass in short order and revolutionise everyday
life in the process.
That hasn’t quite happened – but it doesn’t
mean the myriad benefits of wearables don’t
exist. In fact, investors still believe wearables
are the future. Biospace estimates the market
for this type of tech will grow from today’s
$21.3bn to $196.5bn by the end of the decade.
We think adoption has been slow due to two
main factors.
First, cost. As any headset-wearing driver or
smartwatch-toting runner will tell you, most
devices aren’t cheap. Nor are many subscription
services affordable for the masses during a
cost-of-living crisis.
Second, set-up. Many organisations – not least
the NHS – just aren’t structured in a way that
supports the effective capture and use of huge
volumes of data. Silos get in the way and too
much information falls through the cracks.
How healthcare can
be transformed
Your organisation doesn’t need to commit huge
budgets to explore wearable healthcare. Small
initial steps – focusing on a specific area of your
business or embryonic product idea – can reap
big rewards.
That’s the way we think the wearable health
tech market will grow. Proving patient demand
for new forms of diagnosis and treatment is
paramount. Investment in – and from – the
private sector will be crucial to drive mass
adoption of the technology in the public sector.
If the cost of ownership can be made more
palatable for organisations interest in selfmanagement
of patient health will grow.
So, how might this work – and what are
the benefits?
In effect, the possibilities are endless. We
already have access to devices that monitor
our heart rate and alert first responders if
sensors detect a health crisis like a stroke
or heart attack. Similar technology could be
rolled out across society, accelerating critical
treatment times.
These are both significant issues. But we
believe the secret to successfully harnessing
wearables is quite simple: start small.
We believe the secret
to successfully
harnessing
wearables is quite
simple: start small.”
42

Emergency response is the tip of the iceberg. All
of the data produced by wearables – from blood
sugar levels to monitoring changes in the menstrual
cycle – can automatically be passed to frontline
healthcare organisations, enabling professionals
to read and appropriately respond.
Mums-to-be might soon see the hefty “red book”
of maternity go digital. Wearables could pass data
to community midwives to monitor risk of common
conditions such as gestational diabetes and preeclampsia,
and arrange treatment in a more timely
fashion than was previously possible.
Further into the future – thought not too far away, if
reports of a forthcoming patent are true – wearable
glasses that overlay Virtual Reality onto our world
will also be able to correct the vision of anyone with
an optical prescription. Could similar innovation
revolutionise at-home diagnosis with, for instance,
a palm-sized scanner capable of identifying a
cracked bone after a fall?
Horizon scanning is always amusing and informative.
But wearables aren’t pipe dreams. We can already
use them today to make a difference.
Keep your finger on the pulse of
healthcare delivery
We’re not talking about the construction of vast
platforms. More agile formats of all sizes can get
the job done. For instance, a simple app that taps
connected, wearable technology for valuable
healthcare data can change the way patients
access diagnosis and treatment.
LABS takes a tech-agnostic, test-and-learn
approach to healthcare wearables. This is already
taking us down some interesting avenues.
Members of our team were heavily involved in one
of the world’s first European prescription-based
wearable tech services: a hypertension app that
monitored patient health and could be accessed
by their HCP (Health Care Professional) to enable
fast and direct treatment in real time.
When clients engage us we enter an initial
discovery phase. The output is an articulation
of the organisation’s business challenges;
objectives of using wearables in product and
service development, with a focus on security,
confidentiality and GDPR compliance; and a
roadmap with bespoke recommendations to
make the strategy a reality.
We will also advise on the latest data compliance
issues and regulations that we’ll need to account
for as we collaborate.
With health tech investment set to swell,
and patient demand for innovation in diagnosis
and treatment increasing, there has never
been a better time to consider new ways to
deliver smart, efficient healthcare. LABS can
help you keep your finger on the pulse of
these exciting developments.
THINKBANK
43

The rise of D2C
What the modern shopper
really wants
Annie Little
Strategy Director
In the past few years, a new generation of
disruptive start-ups has emerged, and they
are forcing traditional brands to re-think
how they build, market and sell products.
These Direct-to-Consumer (D2C) players
utilise an innovative marketing strategy
that enables them to enter the market
directly, without relying on middlemen or
third-party suppliers. This eliminates the
barrier between producer and consumer,
giving these businesses greater control
over their brand, reputation, marketing
and sales tactics.
44

The customer values that
are driving adoption
From Made.com to Patch Plants to Glossier,
D2C players have capitalised on greater
levels of data retention and consumer
insights which in turn allows for smarter
decision-making. Given this success,
the D2C market is projected to grow
by a staggering 19.2% in 2021 alone.
Fuelling these shifts lies a change in
shopper behaviour and psychology. New
research shows that 55% of consumers
prefer to buy from brands directly, while
a further 40% of shoppers say they will
purchase from a D2C brand in the next
five years.
While the direct model has gained
significant traction across sectors, studies
suggest there is still considerable room
for growth. From our own proprietary
research, we discovered that 82% of
consumers currently have between
zero and four D2C relationships. This
finding shows that the market is still
in its relative infancy.
For legacy brands, there is now a massive
opportunity to disrupt the status quo
with a D2C offering that delivers on
the expectations, values and desired
experiences of modern consumers.
As Karen Ehrlich, Marketing & Consumer
Engagement Director, U.K. & Ireland at
Clinique, says, “D2C is clearly a win-win
for brands and consumers.”
Let’s uncover why.
Knock-on effects from the COVID-19
pandemic have accelerated the shift
towards digital platforms. This offers
shoppers an easier and more convenient
customer experience. But this transition
is nothing new; in fact, D2C players have
been capitalising on this new set of
experiences for years.
To understand why D2C brands have been
so successful at customer acquisition,
retention and loyalty, we need to first
ascertain what specific values these
players are delivering on.
According to our research, values such as
‘convenience’ and ‘ease of use’ top the list
of D2C benefits, with a resounding 94% of
shoppers choosing at least one of these as
their reason for shopping with D2C brands.
55% of consumers
prefer to buy from
brands directly.”
These core drivers are pivotal in
motivating shoppers to engage with D2C
brands in the first instance, but teaming
‘convenience’ and ‘ease of use’ with
other key values such as ‘control over my
purchases’ and ‘the ability to customise’
is what truly differentiates D2C from other
ecommerce strategies.
THINKBANK
45

At Initials CX, we use a simple equation
that cements the value of a direct
proposition: convenience + customisation =
D2C conversion.
We believe it’s not enough for a brand to
simply launch a D2C channel; it has to be
relevant too. With increased consumer
preference on values such as convenience,
ease of use, customisation and control,
legacy brands need to build on these
values in ways that feel natural and
relevant to their brand identity.
Clinique’s Karen Ehrlich, agrees with
this, commenting, “It’s about having a
one-to-one dialogue between the brand
and consumer. This means D2C brands
can be in full control over the range of
brand experiences they offer. By tailoring
communications to the consumer, D2C
brands can ensure content is always
relevant and personalised, which leads
to a better customer experience.”
By applying these strategies, brands can
identify the gaps in their offering and
design solutions that are both relevant
and compelling for individual shoppers.
A link between purchasing
intent and category
With the D2C market still undergoing
a period of growth, some categories
have emerged as clear leaders in the
acquisition of market share.
Direct brands have used advanced
customer data metrics to personalise
the entire brand experience, allowing for
marketing campaigns that drive at the
heart of the individual’s wants and needs.
This set of tech solutions has optimised
the relationship with the customer through
automation of processes and sufficient
scalability in volume and sales channels.
Brewgooder’s James Hughes says,
“The best D2C brands tap into customer
behaviours and how people do things.
It’s this personalisation approach that
has really evolved D2C relationships and
processes beyond just direct comms.”
Beauty, for example, is one of the
leading D2C categories, with brands
such as Glossier and Harry’s setting the
standard for customer-first strategies
that are centred around convenience
46

and customisation. Unlike traditional
competitors, these new players have
experimented with distribution models
and designed a customer experience
that delivers on the values shoppers
care about.
Food is another flourishing category,
with D2C brands like Hello Fresh, Gousto
and Pact Coffee shaking up the sector
and redefining how consumers browse,
shop and buy. In our research, consumers
labelled ‘food’ as the number one
D2C category they were most likely
to purchase from.
While some categories may have had a
head start in adopting and applying the
D2C model, we’re now seeing this become
accepted more used by brands across
a number of different sectors.
Emerging D2C categories
Some categories are now in the early
stages of acquiring an engaged and loyal
customer base. Alcohol, for example, is
beginning to infiltrate the space, with D2C
sales increasing by a marked 27% during
the pandemic.
This shift is driven by the likes of
Brewgooder, which offers a subscriptionbased
service model that makes it easy
for customers to sample small-batch beers
that are delivered straight to their door.
Brewgooder’s James Hughes comments
on the adoption of the D2C model, saying,
“We’re now at a point where everyone
feels they can do D2C. The companies
that really do it best are the ones that
utilise all the strengths of their brand.
Our aim is to interlink all of our services,
so we can unlock the potential of the
online consumer journey and transition
effortlessly from online to offline.”
As we analyse the
D2C space, it’s clear
that direct brands
have succeeded
by delivering on
the values that
matter most to
a new generation
of shoppers.”
Even industry giants such as Diageo
are getting in on the action, launching
a stand-alone website for their Haig
Club scotch whisky brand for example.
For legacy brands, finding these rich
territories for growth will offer a compelling
opportunity to carve out a niche swathe
of the market. Achieving this, however,
will mean developing an offering that
uses D2C as one channel in a wider,
connected experience.
This is where legacy brands have ample
room to leverage the strengths of their
existing customer base and consumer
journey. By providing a D2C offering that
is part of a larger, connected experience,
legacy brands can make their market
positioning more relevant and deliver
products and services in ways that
resonate with today’s shoppers.
THINKBANK
47

Future growth for
D2C brands
As we analyse the D2C
space, it’s clear that direct
brands have succeeded
by delivering on the values
that matter most to a new
generation of shoppers.
This, in combination with
a more structured and indepth
data set, has enabled
a much more personalised
brand experience.
With fewer barriers to
entry, D2C businesses have
been able to deliver higher
margins while maintaining
greater control over their brand,
marketing and sales strategy.
Since more than 50% of shoppers have
less than two D2C relationships, there is
still plenty of room for brands to enter
the space. This is especially true for
heritage brands that may have a more
traditional product offering.
By tapping into new customer values,
building advanced data tracking systems
and leveraging the heritage aspect
of their brand, businesses can evolve
their D2C capabilities and establish
an offering that aligns with modern
consumer needs.
While the number of current
D2C relationships may be fairly low,
brands should expect that increased
competition in the space will make
this a key battleground for customer
acquisition in years to come.
Rory Sutherland, Vice Chairman at
Ogilvy UK, has discussed the concept
of a “cognitive maximum”, implying there
may well be a limit to the number of D2C
relationships consumers would be willing
to have. This makes sense, given that a high
number of D2C subscriptions could become
a logistical burden for consumers.
In fact, the defining criteria for success in
this space may well be determined by the
product serving a behavioural need. For
example, Gousto have solved a coordination
issue that consumers didn’t even know they
had. By providing people with a menu of
items, rather than having to shop for a long
list of ingredients before cooking, Gousto has
saved people time, money and mental space.
In a world where there will always be
a need for some form of aggregation,
it’s clear D2C will remain selective
and hard-won by brands that will
need to consistently justify their
role in consumers’ lives.
The brands that can build relevant,
personalised and connected experiences
that meet the wants and needs of a new
generation of shoppers will be the true
winners of the D2C space.
As published by The Drum.
48

Fad or future?
Demystifying today’s
emerging channels
Annie Little
Strategy Director
The pandemic has permanently altered the retail
landscape. Touchpoints in customer journeys
are converging, with some previously used for
awareness, engagement and education now
becoming shoppable purchase channels.
There are now numerous types of retail
commerce where convergence is evident; from
q-commerce, social commerce and contextual
commerce, to newly emerging livestream
commerce. You name it, there seems to be a
type of commerce for every letter of alphabet.
In this increasingly fragmented world,
omnichannel thinking – in the sense of simply
online versus offline – has become redundant.
THINKBANK
49

So it’s little wonder that brands can be
confused about which options offer the
most effective way to build a presence
that reaches consumers at the right time.
And with such a rapid shift in technologies
and consumer culture, it’s not just about
understanding what’s happening today,
but also horizon scanning to know what’s
coming next.
Marketers, strategists and innovators wish
more than anything for a way to predict the
future of retail and consumer behaviour.
Forewarned is forearmed after all.
Sadly, it’s not possible. If it was, we’d all
be millionaires.
Don’t despair: experience has taught us
there are ways to get a good steer on the
future. There are several strategies we’d
advise your brand to adopt to understand
the road ahead.
Separate fads
from trends
Starting with fads, let’s consider voice
search technology. More than half of all the
searches across the internet were expected
to be voice-based by the end of 2021, but
a December 2021 study by eMarketer found
that only 9% of adults have ever shopped
via voice.
The reason why v-commerce remains
widely untapped is that the user experience
with voice assistants is not optimal. Errors
create an aversion to using an algorithm or
a device, even if it improves with usage.
With the involvement of money in a v-comm
transaction, the aversion is stronger.
Shopping via v-commerce also creates an
‘invisible gap’ between user and basket
which lowers confidence in purchase.
Placing a product in your cart (physical
or virtual) is underpinned by a feeling of
ownership. Shopping with voice lacks this
visual cue and creates distance between
the user and the product.
Replicating the context from ecommerce
in a voice only interface is clearly not
feasible, and consumers are unlikely
to adopt this channel long-term, unless
marked improvements are made to the
user experience.
In contrast to this example, trends solve
problems and get stronger over time. Just
look at Amazon Go. Clearly the format has
cemented the concept of autonomous
shopping in mainstream retail, with Amazon
opening seven stores across the UK – and
unveiling plans for 260-plus stores by 2024.
The concept is based on a real human
need for convenience and Covid safety,
with technology that responds to shoppers’
desire for cashless, touch-free checkouts.
Thus, proving that technology driven
innovation can be disruptive and successful
if it helps enhance people’s lives, offers
a solution (not just data) and provides
confidence in the entire process.
There is a fragile line that separates a trend
from a fad. Knowing the unique needs
of your audience, and whether the
channel truly serves those desires, is key
to working out what’s a fad – and what’s
a growing trend.
50

Let the
audience decide
Keep on
pushing forward
Another essential factor is the target
market your brand is catering to. Whether
your brand’s message is in sync with
their identity and respects their unique
needs will determine the success of any
marketing activity.
For that reason, consumer needs
should always come first – with channel
a secondary consideration.
That means brands must assess all of
the channels to market that are available
to them through the lens of consumer
expectation, keeping in mind the pain
points each channel solves (or purports
to solve).
Ultimately, a cold calculation is required:
only emerging channels that respond to
people’s needs and behaviours, not their
short-lived desires, are worth investment.
The law of inertia states that something will
remain the same unless acted upon by an
outside force. In this way, trends will only
occur when one of two things happens:
• Legislation persuades people to adopt
new routines
• An influential force releases a concept
to widespread acclaim
Staying abreast of daily news and cultural
developments, and questioning their
impact on your target market, enables
your brand to harness growing trends.
Monitoring change sounds, and is,
fairly simple; it’s what you do with the
information that counts. Our advice is
to always be proactive, spending time
experimenting with new ideas and
technology in ways that anticipate and
offer solutions to consumers’ pain points.
If you don’t do this, your rivals will
It is difficult to identify trends and fads before they happen. Yet understanding the
difference between them is essential for survival. Whereas fads increase top-ofmind
awareness and demonstrate your organisation’s timeliness, trends will help you
expand your business and get ahead of your competition.
The three steps outlined above are the foundations of a successful approach to future
scanning, allowing you to spot and seize emerging trends, choosing the right channels
that will garner the greatest response from your customers.
With this in mind, now is the time to get to grips with the burgeoning range of channels
before the commerce lexicon gets even longer, and your brand gets left behind.
As published by ECommerce Age.
THINKBANK 51

52

Stepping into
the metaverse
How brands can create new experiences
and build loyal communities
Imogen Venn
Group Account Director
The next big technology platform isn’t a
distant, dystopian world. It’s here, now. And the
metaverse is primed for unprecedented growth.
According to Bloomberg, the metaverse will
capture $800 billion in market share by 2024,
as it explodes at the intersection of ecommerce,
social commerce, gaming, web 3.0, the creator
economy and new digital communities.
This isn’t just a passing fad, either. All the
major players are getting involved.
Meta’s Reality Labs department has invested
a cool $10 billion into the metaverse already,
Nvidia has introduced Omniverse technology
to be used by industries for digitally designing
real-world simulations, and Sony has invested
$200 million to secure the rights to music and
sounds that will be part of the metaverse.
All this hype and fervour has brands and
consumers wondering what this future world
will look like and how these experiences will
unfold and interact.
But the reality is even more exciting:
we’re already in the metaverse.
THINKBANK
53

In this article, we’ll explore how brands can
leverage today’s digital world to plan metaverse
experiences that will redefine the way people
search, browse and shop.
The metaverse is already here
Today, more than two-thirds of the world uses
mobile phones – a staggering 5.31 billion
people. On top of that, nearly 5 billion people
now have internet access and more than
4.6 billion are active social media users.
Brands don’t need to wait – the metaverse
is very much here.
In this new digital ecosystem, work is
conducted remotely via Zoom or Teams,
shopping is done online via Amazon or D2C
websites, and consumers engage, share and
interact via unique digital communities.
As emerging technologies such as AR and VR
have matured, brands and consumers alike
now have access to new modes of shopping
that weren’t feasible before.
Ikea Studio, for
example, has
been using AR
technologies to
allow customers
to use their
smartphone or
tablet to visualise
what furniture
and other home
décor will look
like in their own
space since 2018.
Amazon’s ‘View In
Your Room’ tool
has also enabled
consumers to see
how products fit
before you bring
them home.
Forward-thinking
brands will
need to merge
commerce with
new technologies,
behaviours and
expectations.”
This isn’t unique to retailers, either. Beauty
brands like Rimmel have been using the same
tech to allow consumers to try on products
virtually from the comfort of their own home.
The most recent brand tech experience that
made quite the splash was Nike’s acquisition
of RTFKT, which will enable the global fashion
giant to produce digital collectibles and NFTs
(including digital sneakers).
While this future digital world has been in
the making for several years, the stakes have
now changed.
The merging of social
commerce, ecommerce
and community building
The first step in the journey towards true
innovation is to accept that our perspective
needs to shift. As we’ve seen, the metaverse
is very much here and thriving.
So, what is the metaverse? Or, at the very least,
what will it look like?
The metaverse is a broad term
used to describe a virtualreality
space in which users
can interact with a computergenerated
environment and
other users. Visions of the
metaverse differ, but most
agree it will combine the best
elements of ecommerce,
social commerce and
blockchain technology to
power new communities
of shoppers.
To capitalise on this and
reimagine the customer
experience, forwardthinking
brands will need
to merge commerce with
new technologies, behaviours
and expectations.
54

In this new world, brands
can create truly bespoke
digital experiences. Imagine
a 3D environment where
shoppers can meet to browse,
discover and explore online
collections. Brands can create
truly immersive experiences,
powered by ecommerce,
social commerce and
cryptocurrencies, to enable
a richer, more seamless
user purchasing journey.
Here, integrated shopping
capabilities can include
physical products, digital
products or NFTs.
These virtual stores will
create a highly personalised digital shopping
experience for consumers where product
discovery will also accelerate. Through the
integration of AI technologies, brands can
track a customer’s behaviour, purchase history,
individual style and demographic profile,
harnessing this data to provide bespoke and
imaginative experiences simply not possible
in physical stores or today’s web 2.0.
It’s a complete reimagination of the shopping
experience – and something brands can (and
should) make plans for today.
What steps can brands take
to plan for the future?
At a time of exponential possibilities, the
question we should really be asking ourselves
is: “What is the future of the metaverse and
how can my brand interact with it?”
At Initials CX, we believe the most conservative
place to start is to look within Oculus and build
a brand presence there, as it comes with a
ready set consumer base that only looks set
to grow.
This way, brands that are new to the space can
start with a small budget to hold a metaverse
brand discovery session, which will give you
the insights and data needed to go on and
create a 360-purchase store.
Drawing on shopper insights in the metaverse,
brands can develop a strategic offering specific
to the metaverse and establish where and
how to show up. This approach makes sense
for brands that want to gain exposure to the
metaverse without jumping in feet first.
Alternatively, if a brand wanted to push the
boundaries even further, it could partner with
relevant influencers in the space, such as
Snoop Dogg and Deadmau5, who are already
building virtual brands that will host exclusive,
members-only parties within the metaverse.
The biggest investment, however, is overcoming
the mental hurdle of understanding what the
metaverse is and the potential it holds.
While it may sound like some distant, fantastic
future, the metaverse is already here in a big
way. Now is the time to test the waters and
start embracing the metaverse, as it looks set
to revolutionise the way brands and consumers
interact for years to come.
As published by Advertising Week.
THINKBANK
55

56

How challenger
brands can
disrupt crowded
categories
Imogen Venn
Group Account Director
Going head-to-head with iconic brands as a
challenger in your category is hard enough.
Throw in stiff competition from a raft of small
rivals and getting your product into shoppers’
hands can seem like a mountain to climb.
But believe it or not, it’s the perfect time
to be a challenger brand. Supply chain and
logistics issues continue to dog some of the
major players as they strive to get volume
into stores to fulfil big retail deals.
More agile players have already been riding
to the rescue of the grocers, filling the gaps
left by temporarily struggling big brands.
So, if challengers’ dreams are still very much
alive, what do they need to do to stand out
in-store and make themselves heard in the
din of cluttered categories?
Two core truths
Challengers generally succeed or fail
depending on their ability to tackle two
core challenges: building awareness
and educating consumers.
Awareness is key in a saturated market.
This can mean taking a broad approach to
showcasing your new product to as many
shoppers as possible – or honing in on specific
segments, such as consumers who have
dabbled in, but previously rejected a category.
Education can differentiate a challenger brand
from big and small competitors. Messaging
around product innovation is important here:
what does the consumer need to know, and
what makes your item the one they put in their
basket rather than a category rival?
With a track-record in helping disruptors
emerge from the shadow of big brands,
we’ve boiled down the essence of success
into several aspects you should consider.
THINKBANK
57

Following a seven-step strategy to successful shopper marketing
campaigns builds both awareness and education:
1. Creative disruption
It’s exciting to work with challenger brands that
like their creative to be different and disruptive.
They can be adventurous in a way established
brands, which often conform to creative
conventions, can’t. In fact, challengers need
standout creative to capture attention at shelf.
In our experience, though, emerging brands
need help teasing out their ethos to explain
with impact what they do and rise above rivals
in the crowded aisle.
2. Media strategy
With a killer idea to promote, the support of a
media budget can bring the brand story to life
and drive a significant amount of organic reach.
The strongest ideas live and breathe across
many different channels – and also in tandem.
An outdoor campaign can be hammered home
by memorable (and sharable) social media, and
well-executed in-store comms, for instance.
3. Concentrated firepower
Without the big bucks of major brands to draw
on, many challenger brands must cut their
marketing initiatives according to their cloth.
That means investing wisely, with the support of
a partner that isn’t just out to spend everything
upfront – or waste it across too many channels.
It’s about planning for the long haul, raising
awareness and educating consumers with
an initial splash, but also finding ways to be
creative so that the budget stretches as far
and as effectively as possible. “Doing less
better” is a good mantra.
4. Tracking matters
Make sure your marketing and retail partners
know what you’re hoping to achieve from the
campaign. Then draw a line between your
goals and the KPIs you’ll use to measure
performance. That means assessing how
well you’re driving shoppers through the
funnel from out-of-store media to point-of-sale
creative. Brand and sales tracking isn’t cheap,
but it’s crucial.
5. Personality’s key
It’s vital to present a challenger brand’s
personality as the shopper’s eyes sweep
across the shelves. This is aligned to creative
strategy, but really a separate job. It means
getting under the skin of the brand to infuse
its reason for being into communications at
every level; whether that’s building awareness
with a rational approach away from store,
or hard-hitting POS marketing to educate
the consumer.
6. Authentic difference
Whether you’re considering creative or brand
personality, building consumer trust through
authenticity is critical. Everything your brand
says must be true to who you are as a business.
If you can hit upon brand positioning and
a creative campaign that’s authentic and
different, shoppers will notice.
7. Targeted content
Where possible – although it will require
investment in technology – think about serving
digital content around geo-targeted locations.
This is key for boosting sales in-store, in
an era when people prefer to buy many
products online.
58

How we’ve grown potato milk
brand DUG
Our work for start-up potato milk brand DUG
is the seven-step strategy pressed into action.
Dairy alternatives has become a hugely
crowded category in recent years – from
oats to soy to almonds – driven by consumers’
desire for better diets. But that leaves little
room for a new product to squeeze itself
onto supermarket shelves.
With DUG wanting to enter UK grocers on
a short timescale the brand needed a new
positioning and creative identity to turn
the heads of buyers and shoppers alike.
We realised one of DUG’s great virtues is
its point of difference.
Built around a daring, urban personality the
solution is ‘Dare to DUG’. The positioning and
creative are designed to inspire audiences to
challenge their perceptions and existing brand
preferences, compelling them to step away
from the norm.
The campaign’s bold typography and daring
copy entice consumers across static and
animated POS assets, driving people to pick
up DUG products.
Hopefully this article has given you a flavour
of the ingredients that go into a successful
shopper marketing campaign if your brand
is starting out, on a small budget, or both.
Many consumers will seek out products that
look, say or do something a bit different – and
with the right approach to disruption in the
shopper marketing space, your brand can
succeed too.
As published by Internet Retailing.
THINKBANK 59

60

Will FMCG restrictions
mean an uptick for
prize promotions?
James Willoughby
Client Service Director & Partner
FMCG brands have been hyper-focused
on building new, exciting digital experiences.
But is there a resurgent opportunity for
prize promotions to play a part in the wider
connected experience?
As is well documented, the UK Department
of Health and Social Care has confirmed
plans to introduce promotional and location
restrictions on high fat, salt and sugar
(HFSS) products in stores.
This means it will be harder for brands to
advertise products in-store and severely limit
flexibility around discounts and sales. Product
innovation through the creation of healthier
products is one option, but clearly new strategies
will be required to drive sales and inspire loyalty.
On top of this, new privacy restrictions regarding
third-party cookies mean FMCG brands will
no longer have such oversight of customer
behaviour online.
Severing this rich source of data has serious
ramifications for FMCG brands that rely heavily
on external retailers to sell their products, since
many of these brands lack robust first-party data.
Both measures, which are set to be introduced
in 2022, will have serious knock-on effects for
FMCG brands that are looking to drive loyalty
and achieve cut through at the point of purchase.
Let’s explore why 2022 could be the year prize
promotions bring new energy and reinvention
to the table.
How can prize promotions solve
these challenges?
From cereal box inserts to exotic holidays, the
idea of a brand driving sales and engagement
through prizes and rewards has been around
for decades.
In today’s digital climate, however, prize
promotions can be seen as somewhat “boring”
and “old-fashioned”. Part of the problem is
that lazy prize promotions have tainted the
perception of all prize promotions.
When done well, prize promotions not only
have a short-term sales effect but can have
long-term benefits for the brand, too.
THINKBANK
61

Some of these benefits include:
• Showcasing a brand’s proposition
• Providing a way to stand out from the competition
• Aiding the negotiation of incremental in-store
display at retail
• Encouraging trial
• Driving sales
• Rewarding loyalty
Research has shown that 33% of prize
promotion participants are open to receiving
information about a brand.
What’s more, contests have an extremely
high conversion rate of almost 34%, which is
significant when compared to other sources
such as PPC which typically has substantially
lower conversion rates.
At a time when price promotions for HFSS
products will be banned, prize promotions
could serve as an incredibly effective way to
drive sales, encourage loyalty and capture
badly needed first-party data.
The art and the science of
prize promotions
That all sounds logical, but isn’t it expensive
to present an aspirational mechanic and
prize fund?
We’re glad you asked. At Initials CX, we’ve
spent over a decade crafting the perfect prize
promotions for a variety of household brands.
We recently conducted a study that surveyed
respondents who had been persuaded to buy
products based on promotions where they
can win or get something.
The aim of the research was to reveal
the psychological tipping points of prize
promotions, and we used a conjoint research
methodology to ensure no two people were
given obviously favourable options (i.e. would
you rather win £100 or £1,000). We found two
surprising insights:
• Consumers react as favourably to smaller
cash-value prizes as they do to larger
cash-value prizes
• Consumers react as favourably to
a lower odds chance of winning
as they do higher odds
Let’s consider an example. A brand creates
a promotion where the prize is valued at £5.
The odds presented are that 1 in 4 consumers
will win that £5 prize. Our research shows that
this offer will motivate 84% of consumers to
take part.
So, what happens if we keep the cash-value
prize the same (i.e. £5) but increase the odds
to a 1 in 10 chance of winning?
Surprisingly, the proportion of consumers
who would take part hardly changes at all,
dropping by just 5% to 79%. This swing
in user participation is quite negligible
when considering the amount of money
a brand would save by lowering the odds
so substantially.
62

Here’s what brands need to be aware of when
conducting prize promotions:
1
2
Lower odds don’t always mean
better take up – cost savings
can be comfortably considered
Higher-value prizes don’t always
equate to higher participation
The number of prizes is not
a hugely determining factor
4 3 5
Frequency of winning is not
that powerful
Method of entry is best kept
simple but depends on the
objectives of the campaign
By marrying science with creativity, FMCG brands
can more accurately plan spend and investment
to ensure that their prize promotions drive the
highest percentage of consumer uptake.
As new challenges force brands to think outside
the box, could it be the right moment to make
prize promotions cool again?
As published by The Drum.
THINKBANK 63

Sustainability:
Bridging the gap
between intention
and action
Mirella Mokbel
Head of Shopper Strategy
According to new research, 73% of
consumers have a desire to be more
sustainable in the next 12 months.
But while many consumers want to make
more sustainable choices, they often revert
back to price or product performance in the
moment of purchase. The onus then, is on
brands to help make sustainable choices
easier, simpler and more accessible.
As Olivia Sinclair, Marketing Manager at
Doisy & Dam, says, “I believe it’s our job as a
brand to make it as easy as possible for the
consumer to make sustainable choices.”
While most consumers are aware of how
shopping decisions impact the environment,
the path to purchase throws up numerous
barriers that can sway shoppers away from
making more sustainable choices.
To overcome this, brands need a robust
understanding of when to speak to
customers’ hearts and heads and what
messages to share.
In this article, we’ll explore how brands
can bridge the gap between intention
and action, flex messages across the
path to purchase and further a more
sustainable future.
64

What is sustainability,
anyway?
Sustainability has become a ‘catch-all’
phrase in recent times, so it will be useful
to explore how leading brands in the space
are defining it.
Dragan Oudshoorn, Global Channel
Marketing Manager B2C at Hansgrohe
Group, says, “We are not only committed to
create high quality products and solutions
that directly save water and energy,
hansgrohe is also dedicated to think and
operate sustainability across all production
processes, factories, employees and
resources. Our work focuses on three
sustainable and responsible elements:
economy, environment and society.”
For Ferry Kamp, Global CMO at Meatless
Farm, sustainability is about more than
just reducing environmental impact –
it’s actually about restoring the planet.
“We’ve taken the decision to move beyond
sustainability and become a regenerative
business. We want to go beyond reducing
negative impact and actually work to have
a positive impact on restoring the planet.”
From ethical supply chain practices to
sustainable ingredients to recyclable
packaging, sustainability encompasses
a host of different activities that are
pertinent to brands.
A recent Deloitte study found that “waste
reduction”, “reducing our carbon footprint”,
“sustainable packaging”, “ethical working”
and “human rights” were the top 5
sustainable practices that consumers
want brands to deliver on.
Doisy & Dam have made this a nonnegotiable
business priority. Olivia Sinclair
says, “Whether it’s our promise to never
use palm oil or to only use ethically
sourced cocoa, we think our commitment
to sustainability is what keeps our
customers loyal.”
THINKBANK
65

In today’s world, consumers believe
brands should play a significant role in
shaping the direction of sustainability.
in which time preference and high vs
low consideration categories can impact
decision-making.
When asked “how can brands can help
consumers adopt a more sustainable
lifestyle”, respondents cited “better
schemes to remove plastics and
packaging” (64%), “greater clarity on how
to dispose/recycle old products” (50%)
and “better information around origins
and sourcing” (46%) as the top three
answers, respectively.
As Britvic’s Sarah Webster notes, “It can
be hard for consumers to do the right
thing. For example, which bin do you
put the recycling in? Do you leave the
cap on or off? Do you leave the sleeve
on? If you put any friction in the way,
you create barriers to purchase.”
The role of time preference
in high and low
consideration categories
To bridge the gap between intention and
action, brands need to recognise the ways
To flex sustainability
messages across the
path to purchase, brands
need to consider when
to speak to the heart
and when to the head.”
Let’s consider an example. Jane
wants to buy a new car, but she’s
making a concerted effort to be more
environmentally conscious. Since
purchasing a car is a high consideration
category, sustainability will be a key
issue for Jane much earlier in the path
to purchase.
As Jane is on the way to the dealership,
she stops in a local supermarket to
purchase a drink. While Jane wants
to make more sustainable choices,
she doesn’t consciously consider the
environmental impact of the drink until
she’s physically at the point of purchase.
In the end, she decides to buy a familiar
soda on sale, rather than opt for a more
expensive drink with stronger
sustainability credentials.
In this example, it’s clear that time
preference (whether a purchase is for the
long-term or more disposable) influences
how and when consumers think
about sustainability. Higher
consideration categories need
to emphasise sustainability upfront,
whereas more spontaneous
categories need to focus on
highlighting sustainability at the
point of purchase.
Doisy & Dam’s Olivia Sinclair
agrees, adding, “Bridging the gap
between intention and action is
a tricky one. Closing conversions
online or in-store comes down
to building consumer confidence
and trust. This means making sure
our sustainability wording speaks
to people as people and making
sure our packaging stands out.”
66

How to flex sustainability
messages across the path
to purchase
Since sustainability messaging varies
depending on the brand, product and
category, it’s vital that companies
think strategically about how to flex
sustainability messages across the
path to purchase.
As Britvic’s Sarah Webster rightly notes,
sustainability “needs to be matched with
a clear hierarchy of messaging. You can
afford to have a lot more detail on your
website, whereas labels are quite small,
so you must be very clear and link into
your consumer insights – what’s the
shopper occasion? What’s the purpose
of that purchase? What are the
regulatory requirements?”
Nailing this journey can have a sizable
impact on the decisions shoppers make.
hansgrohe, for example, has designed
a water savings calculator that puts the
power of sustainability directly into the
hands of consumers, and shows the direct
impact one can make. Users enter their
information such as the number of
people living in their home and the
type of energy used. Based on this
information, the calculator will then
determine how much water and energy
consumers could save by switching
to a hansgrohe EcoSmart product.
This calculator demonstrates both the
functional and emotional benefits of
hansgrohe’s products, appealing to
consumers’ hearts and minds.
Hansgrohe Group’s Dragan Oudshoorn
says, “For our products, the first trigger is
all about creating awareness and further
educating consumers how they can make
an impact and contribute to a better planet
through our products and solutions. We
do this through different touchpoints and
campaigns that attract and explain our
sustainability initiatives. It’s relevant to
communicate this throughout the journey,
whether that’s packaging, website or point
of purchase.”
To flex sustainability messages across
the path to purchase, brands need to
consider when to speak to the heart
and when to the head.
THINKBANK
67

Here are a few do’s and don’ts to help brands
communicate sustainability initiatives in a way
that gets products in shoppers’ baskets:
Make sustainability
approachable
and relatable
There are two main pain points that stop
consumers from making sustainable
choices: they feel hopeless based on
the scope of the problem and/or they
are unclear on how purchasing from
a brand will contribute to change.
To solve this, brands should focus on
topics that their customers know and
define individual actions to create
authentic impact and encourage
participation. It has to feel incremental,
not revolutionary. Next, the contribution
should be easy to understand and
comparable. Use layman’s terms
and focus on everyday choices.
Be
transparent
Brands need to be honest about their
credentials and open about where they
are in the sustainability journey. This
authenticity will help brands connect
with people; often, the journey yet to
be realised can inspire action.
Show
don’t tell
Don’t make hollow promises. Brands can
drive authenticity by walking the walk and
consistently supporting the effort. This
means demonstrating how purchasing
from a brand will positively impact the
environment, such as showcasing small
wins that are accomplished together
with consumers. Messages that contain
evidence are more believable, and
measurable statements or claims are
usually preferable to messages of intent.
68

Be concise in
brand and product
storytelling
Today’s consumers digest information in small
bites. How a brand delivers its messages
is key; this needs to feel accessible, clear
and engaging. Avoid over-intellectualising
sustainability narrative and don’t overcomplicate
a product’s sustainable benefits.
Be clear
about objectives
When developing a sustainability
campaign, brands need to be clear from
the beginning about their objectives. Is
the campaign meant to increase brand
awareness and preference? Or should
it also convert and increase revenue?
Different objectives may require different
tactics and various types of storytelling.
Moving towards a
sustainable future
According to IBM, nearly 6 in 10 consumers
are willing to change their shopping habits
to reduce environmental impact. What’s
more, nearly 8 in 10 indicated sustainability
is important to them.
Clearly, sustainability is no longer just a
‘nice to have’. It’s an absolute must for any
brand that wants to stay relevant, win new
customers and drive loyalty.
Brands must help facilitate sustainable
purchasing decisions – by making products
that meet sustainable standards and by
designing these products to be easy,
efficient and desirable to purchase.
Britvic’s Sarah Webster poignantly concludes,
“No one has all of the answers. But that’s not
an excuse for no action. We’re learning along
the way, which is something we all need
to embrace. Because we all want to move
forward and make progress.”
By recognising nuances in the path to
purchase and flexing messages according
to different shopper experiences and
expectations, brands can do what’s right
for the planet, increase sales and play their
part in building a more sustainable future.
As published by The Drum.
THINKBANK
69

Online
marketplaces
A retailer opportunity
Annie Little
Strategy Director
It’s no secret that marketplaces attract
significant traffic and have high visitor
engagement, thanks to their fast delivery
propositions, broad choice of products available
and competitive prices. Amazon has become
a starting point for most shopping journeys,
with most consumers using the platform as
a shopping search engine to discover a vast
array of new products and repeat purchase
favourite items.
But as the marketplace model evolves beyond
the traditional horizontal ecommerce business
archetype (one stop shop that attracts a mass
market), individual mainstream retailers have
the opportunity to create niche marketplace
solutions, that offer more localised
and specialised products to their
target consumers.
Rise of the vertical
The vertical marketplace concept, aimed
at a single market sector to serve a specific
category of products to a targeted consumer,
allows individual retailers to better differentiate
on the basis of quality, knowledge and
expertise, and the variety of products offered
within their niche. This narrow focus also gives
retailers the opportunity to highlight their
expertise in the form of specialised knowledge
or years of experience in the industry.
A rich example of this is Etsy, the Brooklynbased
online marketplace has become one
of the leading destinations for handcrafts and
vintage items. Multiple high street retailers
are following their lead to launch curated
digital marketplaces in 2022, including
Superdrug, Mr Porter, Nike and B&Q. With
white label marketplace software and plugins,
such as Marketcube, making it possible for
such businesses to set up a plug-and-play
marketplace platform, it appears to be a
low-risk strategy for growing product sales.
70

The recipe to marketplace
popularity
Even before the pandemic, shoppers were
turning to online marketplaces in droves.
Beyond convenience, access to the best deals,
seamless checkout and quick deliveries,
marketplaces exceed consumer expectations
for an intuitive one-stop shopping experience.
Couple these tangible benefits with the
increased feeling of trust that comes from
access to impartial peer-to-peer reviews and
greater visibility of product availability, prices
and stock levels, the gamble of buying new
products is somewhat de-risked.
But the rising appeal of marketplaces isn’t
solely down to improved purchasing efficiencies
and brand transparency. Yes, consumers may
come for products, but they are staying for the
experience. Marketplaces have become hubs
for likeminded communities of consumers to
share information and vlog about product and
service experiences.
This circulation of information that is tangential
to the virtual ecommerce marketplace platform
itself, enables strangers to feel like locals,
as they are able to connect through shared
passions and circumstance.
The benefit of marketplaces
to retailers
The reach that marketplaces provide offers
ample opportunities for retailers to not only
connect with new customers – via access to
customer data – but also glean insights into
what potential and existing buyers are thinking.
Most marketplace platforms give sellers
access to data and analytics tools that
provide in-depth insights into the shopping
behaviours of consumers on the platform.
These insights not only help sellers optimise
their marketplace strategy, but also adapt
their entire omnichannel strategy to best
reach their customers.
The future
Overall, online marketplaces strengthen
a brand’s foothold in key categories.
Retailers of all sizes that have launched
their own marketplaces have been able
to expand what they could offer existing
customers well beyond their own inventory,
with low risk and little overhead.
For instance, at the onset of the pandemic,
sensing the shifting customer demand signals,
Etsy quickly ramped up its catalogue of face
masks due to the dynamism of its marketplace
seller base. Behaviour like this also inspired
new partnerships between companies – even
those that may have previously seen one
another as competitors.
Whilst the future looks bright for online
marketplaces in general, only retailers
who can keep up with trends in this way
will be able to make the most of the
opportunities presented.
As published by Charged Retail.
THINKBANK
71

72

Why today’s
car brands are
losing their shine
Simon Callender
Chief Strategy Officer
The UK automotive industry is having
a torrid time.
The Society of Motor Manufacturers and
Traders recorded a fall in output in year to
September 2021 of nearly 27%, which equates
to over 100,000 fewer new cars joining the
UK’s roads.
Even now as we adapt to living with Covid
and demand starts to return, a global chip
shortage is strangling new car supply dealing
manufacturers yet another body blow.
Prospective new car buyers scarred by the
buy-diesel-don’t-buy-diesel debacle, were
already becoming hesitant about which
new technology to back.
In this article, we’ll explore why car brands
are becoming indistinguishable from one
another and what these brands can do to
stand out from the crowd and drive a deeper
emotional connection with customers.
But the seeds of the industry’s woes run much
deeper. Even before Covid hit the picture was
far from rosy.
THINKBANK
73

An increasing brand fog
It used to be true that certain marques were
known for excelling in model sectors that
offered a distinct flavour of car ownership.
Alfa made spirited sporty cars, Ford made
dependable run-abouts and rep mobiles,
Volvo were boxy and safe, and VW made
small cars that would never let you down.
Today, however, the situation is far more
confusing since most cars are 4- or 5-star
NCAP certified. Serious performance, once
the preserve of uncomfortable two seaters
is now available from nearly every maker
across their entire model range.
Consequently, it’s become increasingly
hard to discern what specific car brands
offer and more importantly how the
ownership experience make you feel
and what it says about you the owner.
Let’s explore why this is occurring.
1. Market convergence
Many car brands have evolved their offerings
beyond their original market roles to follow both
volume and value. Once budget brands are now
firmly part of the bloated mid-market firmament
resulting in a hugely crowded landscape where
model choice is baffling.
2. Platform convergence
As the automotive industry has matured,
we’ve seen constant mergers take-overs and
collaborations all pursuing economies of scale
and the opportunity to split new model R&D
costs over the largest number of unit sales. The
result is often a muting of brand differentiation
and character.
3. Sector convergence
The 60s and 70s were the era of the three-box
sedan, then along came the hatchback followed
swiftly by the one box people carrier of the 90s
and 00s championed by the visionary French
designer Partick Le Quement. Now the SUV
rules the roost and every manufacturer from
Lamborghini to Skoda has at least one model
to serve up to a blinkered public.
4. Design convergence
In the late 90s the NCAP star scramble saw
manufacturers up their game on the safety
front. The knock-on effect of this pursuit of
safety was a set of standards that homogenised
many aspects of car design.
74

How to build deeper,
emotional connections
If car brands want to reap the rewards of
deeper emotional connection and raise the
fight above the margin eroding functional
spiral, then what’s to be done?
Firstly, there needs to be a recognition that
brand nurturing is a long-term game and
consumers need time to warm to and identify
with a set of values. This flies in the face of
the short termism that pervades modern
marketing departments.
Then, brands must agree a consistent set of
core values built from the marque’s historical
truths and which can be made real through
a simple, enduring, differentiating ethos.
This will involve a search for fresh insight
with an eye on future market development
and bold decision making.
The next stage is the most critical – the will
to live this ethos through consistent and
demonstrable behaviour. What is it that the
brand does to prove its values and beliefs are
relevant and appealing? Brands must convince
consumers to care through actions, not just
words, in every touchpoint from new model
creation to social commentary.
Finally, brands need to be courageous and
single minded. Standing for something
invariably means making choices and being
prepared to do what others won’t. Being
distinctive and meaningful takes nerve.
A ray of hope
The eventual move away from traditional
car ownership will usher in the arrival of
autonomous, on-demand transportation
pods and occasion-based subscription
mobility solutions, which further reduces
the scope for brands to differentiate.
If every vehicle occupant is demoted from
driver to passenger (in a world where speeds
and routes are pre-regulated), then the power
of brand is elevated once more.
Thankfully, there are some rays of hope.
Citroen is starting to return to its brand roots
by issuing a rallying call to ‘battle against
boring’ and looking for owners who ‘want to
stand out’. New EV brands such as Polestar
and Genesis have invested heavily in brand
meaning knowing that an electric proposition
alone isn’t enough to sustain a marque when in
15 years most of the market will be EV anyway.
Here’s hoping that the rest of the market will
heed the wake-up call.
As published by Automotive World.
THINKBANK
75

76

Navigating the
cost of living crisis
Four ways brands can play their part
Daniela Barletta
Strategist
The cost-of-living crisis affects everyone, but not
every consumer’s response is equal.
Brands are working hard to understand spending
trends as shoppers deal with rising prices, a fall
in wages in real terms, and the spectre of spiking
energy bills.
With the Bank of England suggesting inflation
could eventually hit 13% in the UK, more than
three quarters of consumers are already anxious
about the cost of living. This is inevitably leading
to changes in spending patterns.
But where exactly will consumers reduce spend?
And what can brands do to shore up market share?
Gaining an insight into new trends
The way that people in different age brackets will
approach the financial squeeze is fracturing. The
IFS has identified that inflation is disproportionately
affecting older, vulnerable and low-income groups
more than other demographics – largely because
energy cost increases make a bigger dent in their
household budgets.
However, instead of trying to group people by
demographic, age, or class, brands need to
consider how prepared people are to weather
the storm, and therefore how they are planning
on cutting costs.
THINKBANK
77

According to WARC and Mindshare UK, brands
should group consumers by their financial
tolerance. They have segmented the population
into three groups:
“Finance Negative”
This group is hit hardest by the cost-of-living
crisis. Finances are their main concern, so they
will certainly feel the pinch – making cost of
living a guiding factor and primary decisionmaking
influence going forward.
“Finance Neutral”
This group is more financially stable. They have
less financial responsibility because they are
more likely to be retired – so they’re not burdened
with job security, mortgage payments or financial
dependants living at home.
“Finance Positive”
The most affluent and positive segment; this
group of people are enjoying an easier bounce
back from the pandemic and are confident in their
saved money, paid debt and overhauled finances.
Regardless of which pot a consumer falls into,
they are united in their belief that brands should
behave differently in the current climate, showcasing
compelling emotional reasons to buy.
Three behavioural trends
we expect to return
When groups that are traditionally in a more
Finance Positive state – high earners and some
Baby Boomers – get the jitters, marketers must
rethink their targeting strategies.
That doesn’t mean just cutting prices to cater
to the Finance Negative mindset; it’s more
about understanding how audience habits are
switching and reacting accordingly. Using past
recession data there are three behavioural
trends we can be certain shoppers will return to:
Bargain Hunters
Cutting costs where possible by scanning
the market for the best value and price
promotions is an expected behaviour that
people across the spectrum will return to.
‘Denning’
Staying in more, and prioritising products
and services that will enhance their athome
experience. As people largely in
the Finance Neutral and Finance Positive
space spend more time indoors to save
money, they will favour brands offering
products or services that cater to this.
Brands as a ‘safe haven’
Clinging to familiarity in times of anxiety,
this behaviour sees consumers (both in
the Finance Positive and Finance Neutral
segments) stick with what they know,
despite having to pay more. When times
get tough, people lean into the simple
pleasure that comes from buying a brand
they know and love for indulgence
and respite.
What these trends have proved in the
past, and will demonstrate again, is that the
current climate doesn’t mean the majority
of consumers are universally trading down.
There is no one-size-fits-all approach that
brands should take in response to these
changing behaviours.
78

Four ways brands can refocus
All of this might seem a bit daunting for brands as they look to find a way to cater to consumer
expectations that are more multifaceted than ever. There are four clear roles brands must play
to remain relevant, appear authentic and add value.
1. Dialling up pricedriven
value
Tactical price-based promotions can save
consumers money and are also a way to
increase the value of a product using price,
appealing directly to a bargain-hunting
mindset. For example, Tesco’s Clubcard price
brings price-driven value to life in an overt
way, by lowering prices on specific items
and rewarding loyalty.
2. Enabling practical solutions
Giving consumers real-life, practical solutions
to enhance their day-to-day lives. Consumers
are looking for guidance from brands to steer
them through an uncertain time. Heinz’ Beanz
Mean More campaign is a good example that
highlights the versatility of the product, and
gives consumers new ways of thinking about
and using this pantry staple.
3. Reinforcing the brand value
Showcasing the functional or emotional
attributes of a product, and the value it brings
to consumers’ lives, presents shoppers with
another reason to buy a brand. For instance,
Hansgrohe’s Wallstoris range dials up the
functional value of the product – including
the expert craftsmanship and Germanengineered
design – to convince shoppers
to pay a slight price premium for this range
versus competitors.
4. Building connected purpose
At a time of collective crisis brands must be
prepared to support the societies in which they
operate. Whether it’s charitable giving, local
sponsorships, partnering with wellness brands
in adjacent categories, or using their gravitas to
influence consumers, there’s much they can do.
Caboodle, a surplus food scheme that partners
with brands and grocers to redistribute surplus
food, ultimately mitigating food waste, is a good
example of a brand living their purpose.
This confusing time for consumers adds
complexity for brands battling for spend
that households want to protect.
Brands choosing the obvious option of
price cuts alone may expose themselves to
market share erosion as people shop around.
Audiences should be viewed according to their
financial resilience, both in terms of disposable
income and the extent to which they’re worried
about their circumstances in the immediate
future. Understanding and responding to
nuanced financial circumstances is the only
way to engage with them effectively.
Many consumers want brands for other reasons
beyond just price-driven value, even as they
juggle their budgets. Recognising this will be
key to brands remaining on a strong footing –
both during these turbulent times and once we
eventually leave the cost-of-living crisis behind.
As published by Advertising Week.
THINKBANK
79

Four ways brands can refocus
All of this might seem a bit daunting for brands as they look to find a way to cater to consumer
expectations that are more multifaceted than ever. There are four clear roles brands must play
to remain relevant, appear authentic and add value.
1. Dialling up pricedriven
value
Tactical price-based promotions can save
consumers money and are also a way to
increase the value of a product using price,
appealing directly to a bargain-hunting
mindset. For example, Tesco’s Clubcard price
brings price-driven value to life in an overt
way, by lowering prices on specific items
and rewarding loyalty.
2. Enabling practical solutions
Giving consumers real-life, practical solutions
to enhance their day-to-day lives. Consumers
are looking for guidance from brands to steer
them through an uncertain time. Heinz’ Beanz
Mean More campaign is a good example that
highlights the versatility of the product, and
gives consumers new ways of thinking about
and using this pantry staple.
3. Reinforcing the brand value
Showcasing the functional or emotional
attributes of a product, and the value it brings
to consumers’ lives, presents shoppers with
another reason to buy a brand. For instance,
Hansgrohe’s Wallstoris range dials up the
functional value of the product – including
the expert craftsmanship and Germanengineered
design – to convince shoppers
to pay a slight price premium for this range
versus competitors.
4. Building connected purpose
At a time of collective crisis brands must be
prepared to support the societies in which they
operate. Whether it’s charitable giving, local
sponsorships, partnering with wellness brands
in adjacent categories, or using their gravitas to
influence consumers, there’s much they can do.
Caboodle, a surplus food scheme that partners
with brands and grocers to redistribute surplus
food, ultimately mitigating food waste, is a good
example of a brand living their purpose.
This confusing time for consumers adds
complexity for brands battling for spend
that households want to protect.
Brands choosing the obvious option of
price cuts alone may expose themselves to
market share erosion as people shop around.
Audiences should be viewed according to their
financial resilience, both in terms of disposable
income and the extent to which they’re worried
about their circumstances in the immediate
future. Understanding and responding to
nuanced financial circumstances is the only
way to engage with them effectively.
Many consumers want brands for other reasons
beyond just price-driven value, even as they
juggle their budgets. Recognising this will be
key to brands remaining on a strong footing –
both during these turbulent times and once we
eventually leave the cost-of-living crisis behind.
As published by Advertising Week.
THINKBANK
79

initialscx.co.uk
© Initials CX 2023