Partner & CCO at Demonstrate.
getty
Let’s face it, the jig is up for brands that are unwilling to take a stand and take action to address the perfect storm that we find ourselves in. I have often found myself in various executive meetings listening to very smart people quoting Simon Sinek and his now-iconic TED Talk, with one of the most famous quotes being: “People don’t buy what you do; they buy why you do it.” Unfortunately, they stop there, at the “why.” There is a second part to that soundbite which is often forgotten and is more important than ever before: “… And what you do simply proves what you believe.” We are entering a convergence point where customers are keenly aware and empowered to devalue brands based on their actions, or lack thereof.
I believe there are three major challenges to be tackled and that brands are uniquely positioned to lead the charge for change. And here is the tricky bit — the brands that choose to not act will undoubtedly find themselves culturally irrelevant and ultimately unprofitable.
Algorithms & Automation
It goes without saying that we are in the midst of a technological renaissance. It enables expeditious and evermore seamless transactions, and the idea of convenience is quickly morphing into personalization. By which I mean, the convenience of the right time, right place and right benefit(s) make for an easier conversion and a more loyal customer.
But we know that bias is built into the system because of the lack of diversity in our current system. Karen Hao writes in an article for the MIT Technical Review about how “bias can creep in at many stages of the deep-learning process,” highlighting that a lack of social context is a contributing factor. She quotes Andrew Selbst, co-author of Fairness and Abstraction in Sociotechnical Systems, who goes even further, stating that: “‘Fixing’ discrimination in algorithmic systems is not something that can be solved easily. It’s a process ongoing, just like discrimination in any other aspect of society.”
MORE FOR YOU
For the brands that are looking to grow their share of voice and relevance writ large, they need to understand that without the cultural nuance, perspectives and insights that diversity of thought brings at the decision-making stage, they will find their communication strategy full of holes. In part because they only understand a portion of the target market and not the whole. As a result, there will inevitably be misses because the brand doesn’t fully see the cultural tensions their product or service can alleviate — thereby losing relevance to a potential audience despite being a perfectly good solution or alternative to what already exists. The fault does not lie with the algorithm, it lies with the system’s architects.
Business Sustainability & Environmental Impact
Customers now, more than ever, want to understand the full implications of their purchase decisions. Historically this has been framed as a “post-consumption” concept. What kind of environmental impact will result once the good is no longer needed?
But consumer understanding and curiosity are rapidly evolving. Understanding the product origin, sourcing, employee health/wellness and overall environmental impact is a major driver in brand affinity, interest and ultimately loyalty. We have seen this in the apparel market, but this is also top of mind in abstract, less tangible areas like the cryptocurrency market and the associated environmental impacts related to mining and e-waste.
In Accenture’s recent report, Life Reimagined, it is notable to see that 65% of those surveyed are “attracted to doing business with brands that are environment-friendly, provide credible ‘green’ credentials for products/services, minimize harm to our environment and/or invest in sustainability.”
As your company looks toward its long-term goals, it is important to understand that how you choose to address your impact on the environment will directly affect your bottom line.
Health & Happiness As Human Capital
Covid-19 has been an invaluable lesson in terms of giving companies and individuals insight into how they can shape their work. For the companies that were digitally savvy or pivoted quickly in face of such unprecedented headwinds, they emerged more flexible and trusting of their employees to get their work done. For employees, they were challenged with reorganizing their approach to work and how they chose to integrate their work into their lives.
In a study, nearly half of millennials and 75% of Gen Z respondents said that they left a job because of mental health reasons. The fact that people experience mental health and wellness challenges is not new if you’ve been paying attention. Those issues do not go away when we “clock in.” The problem is that mental health has become a third rail issue because employees don’t feel safe or empowered to bring these issues up with their managers, human resources or executive leadership. And employers often don’t have the tools or comfort level to discuss them. As a result, productivity is negatively affected or they lose highly capable talent. Which makes the development of “centers of excellence” an extremely difficult or next-to-impossible task. The trickle-down effect will inevitably result in a lesser product/service offering and create room in the market that is ripe for disruption.
Ultimately, creating a strong foundation comes down to having an eye focused on diversity, equity and inclusivity. Who has a seat at the table matters greatly, and I believe this approach will only help to ensure your company’s ability to identify SMART solutions to help tackle these kinds of challenges. Having multiple perspectives will help identify potential pitfalls, resources and networks to move the business forward and drive long-term and sustained growth.
Forbes Agency Council is an invitation-only community for executives in successful public relations, media strategy, creative and advertising agencies. Do I qualify?
Go to Source
Author: Sean DallasKidd, Forbes Councils Member
