Consumers struggle to name eco-friendly, diverse brands

What this means: While it’s no secret consumers have more choices than ever when it comes to the retailers and brands from which they purchase, it creates an even more challenging environment to gain shoppers’ attention and create brand awareness. With a shorter consumer attention span, brand values have to be clearly messaged by retailers and brands. In particular, messaging around efforts such as sustainability, which aren’t always front and center in the retail experience, may be more difficult for the consumer to understand. More than half of U.S. consumers cannot name a brand that makes a difference when it comes to the environment or diversity, reports Growth from Knowledge (GfK) in collaboration with Goodvertising Agency. Specifically, 57% of respondents could not name any brands that they thought took care of the environment and fought climate change. “Don’t expect consumers to remember small efforts from your brand,” Eric Villain, GfK NA’s managing director of marketing effectiveness, told Retail Leader Pro. “They are used to a particular communications style and positioning from brands they know. They recognize the tone and manner. If a brand communicates something different and unexpected, it will need consistent effort and investment to take hold — like a repositioning.” Consumers also are leery of instances of greenwashing, when a brand or company deceptively or misleadingly claims its products or practices are environmentally friendly. “This is why authenticity and brand alignment are key for purpose efforts,” Villain said. Across three issues studied – the environment, diversity and giving back to the community – GfK found these trends: U.S. consumers making more than $125,000 a year are much more likely to remember at least one brand that supported a cause, compared to those earning $30,000 to $60,000. Millennial women were much less likely to be able to name a purposeful brand than millennial men. Gen Z was most likely of all generations to not name a single purposeful brand unaided (in terms of overall making a difference), gave lowest ranks to most of the prompted brands included in the survey and posted the lowest sincerity scores across all prompted brands. In the Gen Z cohort, GfK reported 18-21-year-olds are much more likely to not name purposeful brands (54%) or a brand that is taking care of the environment (66%). Consumers with at least some college education are more often able to name purposeful brands versus those with a high school education or less. Americans in the West are slightly better at remembering purposeful brands spontaneously than those in the Midwest. Recognizing retailers Among those who could name at least one brand that is giving back, the overwhelming majority of mentions went to two retail giants – Amazon and Walmart. Amazon received the most spontaneous mentions as a brand that respondents thought was taking care of the environment (174 mentions), diversity (298 respondents), and community (193 respondents). Tesla ranked second in the environment category with 137 mentions, and was the only other brand able to break the 100-mentions threshold for the environmental cause. Walmart ranked second in diversity and community with 180 and 181 spontaneous mentions, respectively. When GfK prompted respondents with the names of 16 major brands in five major categories – from cleaning to retail to auto – and asked how well they were making a difference for key issues and causes, Target and Walmart scored the highest recognition. (Amazon was not one of the prompted brands.) Brands deeply marketed with purpose, such as Seventh Generation and Ben & Jerry’s, landed in the middle of the pack. Roughly half to two-thirds of Americans who are aware of a given brand’s initiatives said those efforts made them feel better about the brand, but purpose-driven brands such as Seventh Generation and Ben & Jerry’s did not get extra recognition from consumers on their efforts, GfK reported. In turn, purpose-driven efforts and campaigns have become commonplace and not much of a differentiator anymore, according to GfK. On the other hand, if a brand were to completely avoid causes, that would likely be noticed. “Don’t be afraid to brand your message and communicate it,” Villain said. “Purpose should not be a small effort; it is one of the pillars of brand equity and brand building.” Retailers may have an advantage in this respect, in that they can use the physical location or website to send clear messages on diversity, equity and inclusion (DEI). “Use your brand language and positioning to develop a purpose or a DEI effort that fits with the personality of the retailer or brand as consumers have come to understand it,” Villain said. “There has to be a good fit; not greenwashing banalities.” Purpose-driven and eco-friendly brands are still expected to remain relevant with consumers this year, especially if a health benefit to the consumer is included, Villain said. Health benefits can be communicated in many ways: “Better for you” — “Food and drink have a direct impact on health for consumers and their significant others,” Villain said. “Better for the environment,” which also has an impact on consumers albeit a longer-term health effects such as clean air and water, Villain said. “The key communication has to be relevant to the consumer,” Villain explained. “Why should I care?” What’s next: As retailers and brands focus on the future of sustainability, they need to message these efforts and educate consumers. If consumers understand and see these efforts behind the scenes, it may help to move the needle on conversion and loyalty. Marketing is key in all aspects of the retail experience, and using it as a tool to increase awareness by consumers is no exception. Retailers must also focus messaging around what is most important and impactful for their own distinct shoppers.

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