Oz brands just can’t buy love, study finds

Oz brands just can’t buy love, study finds
SHARE
THIS



Australia’s top advertisers are failing to build meaningful relationships with their customers, new research has found.

The study, carried out exclusively for B&T by innovation agency UDKU and research firm Stokes Mischewski, has revealed that despite continued major investment in advertising, some of Australia’s most iconic brands still have their work cut out in building sustainable relationships with consumers.

The research by Stokes Mischewski involved 2017 customers, 211 brands, 15 categories and 33 subcategories with over 22,000 responses evaluated.

As Colin Jowell, partner at UDKU, explains: “We wanted to create a tool to draw together two vital but different metrics for customer habits and attitudes into a single understanding.”

By doing this, the approach defined four relationship types: Advocates (customers with a strong usage habit and who recommend the brand highly), Habituals (customers with a strong usage habit but who are less likely to recommend it), Aspirants (customers with a weaker usage habit BUT who are likely to recommend it), and Switchers (where neither strong habits nor positive attitudes exist).

The research found that the top 20 advertisers in Australia are dominated by supermarkets, banks and telco’s, yet almost all brands in these categories fell into the switching or habit space.

"This result was not entirely unexpected,” said Dawn Mischewski, joint MD at Stokes Mischewski. “But where the data became interesting was that in almost every case, there was an exception to the category rule, or a segment for whom the relationship with the brand was quite different. It’s in these exceptions that the real insights lie. It gives clarity to the task at hand for marketers and examples of how others are succeeding.”

Failure to connect

So, does a telco have more in common with Apple or Energy Australia?

According to the study, when it comes to customer relationships, telco brands are more like a utility than a technology company.  Habits are relatively well-established in both utilities and telcos, but the proportion of customers willing to recommend them is relatively low.

“For telco brands to start enjoying the type of relationship that technology brands already enjoy with their customers, they need to create stronger emotional connections, but the data shows it might be more about the basics than the ‘wow’ factor,” said Mischewski.

“The evidence for this is that despite telcos’ efforts to align with the positive associations of technology brands and avoid becoming the “dumb pipe”, the only player measured to break out of the habit/switching space was Amaysim, whose offer of pure simple pricing has clearly been backed up by an equally simple on-boarding process.”

She added that another point of proof might be Optus’ relative strength in the sub-$50k pa. income market – given its historical dominance in prepaid, that would seem to make sense.

Buying deal, not loving deals

The telco example might lead some to believe it’s simply a matter of keen pricing, but that’s where the two dimensional view of the customer relationship is vital. For example, in the airline industry, it’s experience, not value, that drives a customer’s willingness to recommend an airline.

Singapore Airlines and Emirates drive the most positive attitudes. While the strength of habit using those brands may not be as strong due to more limited destinations within Australia, with a Singapore Airlines customer is 40% more likely to recommend their airline of choice than a Qantas customer. 

Conversely Tiger and Jetstar drive the least amount of recommendation – lower price is not enough of a compensation for people to actively recommend the brand.

Loyalty programs aren’t the answer to engagement either, or at least not in their current form. Qantas Frequent Flyer and Velocity both fall into the habit space with high usage, but low likelihood to recommend.

The answer lies in keeping one’s offer fresh and relevant, which is easier said than done,” said the study.

Virgin Australia Airlines has a relatively lower connection with its younger audience and is relatively weaker with female customers. Customers under 40 rate Virgin Australia and Jetstar similarly, both with far fewer customers prepared to recommend the brand.

Focus is the secret of success

The real success stories in customer relationship building can be seen in brands who have clearly segmented their market.

APIA’s single-minded focus on its demographic has delivered valuable and true advocates for the business that have been using the brand for as long as they have been able to, and have very high likelihood to recommend scores, especially with their newer customers.

Commonwealth Bank and Westpac both have notably stronger relationships with women, which may in part be credited to prominent and well executed “Women In Business” programs (and the fact the latter has one of Australia’s few high profile female CEO’s may also play a role).

That Nespresso’s strongest relationship is with its customers earning under $50k p.a. seems on the face of it, surprising, but could be evidence of one of the best text book cases of a “mass-tige” offer: something special, but not totally out of reach.

“At the end of the day, a marketing future that is more data-driven will require a multi-dimensional view of the customer. But for now, a two dimensional view may be a great place to start,” said Jowell.

Please login with linkedin to comment

Latest News

ADG Commercial & Content Directing Mentoree Profile: Stef Smith
  • Media

ADG Commercial & Content Directing Mentoree Profile: Stef Smith

Guess what! Our annual Women in Media Awards are in less than a month! We’re getting super excited, and you should be too – because what’s better than taking some time to celebrate the inspiring women in this industry? But to get you even more excited, we’ve decided to profile the recipients of the Australian Directors’ Guild […]

by B&T Magazine

B&T Magazine
MediaCom Exec Says “We Need To Stop Looking At The World Through A Man’s Eyes”
  • Advertising
  • Media

MediaCom Exec Says “We Need To Stop Looking At The World Through A Man’s Eyes”

As you should very well know, our Women in Media Awards are fast approaching – in fact, they’re only a month away! To celebrate this wonderful fact, and to get you excited to celebrate the inspiring women in this industry, we’ve spoken to one of the most diverse companies we could think of. An impressive […]

by B&T Magazine

B&T Magazine
Pooled Energy Appoints Magnum & Co And The Wired Agency
  • Advertising
  • Marketing

Pooled Energy Appoints Magnum & Co And The Wired Agency

Swimming pool electricity retailer Pooled Energy has appointed Magnum & Co and sister agency The Wired Agency to its roster, following a competitive pitch. Magnum & Co will handle Pooled Energy’s social media and PR, while The Wired Agency has been appointed to manage the company’s search and display advertising. Both agencies will collaborate with […]

McCann Creates Six ‘Unwritten Reviews’ For Melbourne International Film Festival
  • Advertising
  • Campaigns

McCann Creates Six ‘Unwritten Reviews’ For Melbourne International Film Festival

Creative agency McCann Melbourne has collaborated with local artists to ignite the senses at the Melbourne International Film Festival (MIFF). Inspired by the festival’s mission, the ‘Unwritten Reviews’ seek to bring to life the emotive response of each film through an unforgettable sensory experience – at times evoking the same response as the films. This […]

JWT Wins Creative Duties For Coles’ Vintage Cellars & First Choice Liquor
  • Advertising

JWT Wins Creative Duties For Coles’ Vintage Cellars & First Choice Liquor

J. Walter Thompson has been appointed as the lead creative agency for the Coles Liquor’s Vintage Cellars and First Choice Liquor brands, following a hotly-contested pitch involving several Melbourne-based agencies. Michael Godwin (pictured above), managing director at JWT Melbourne, said: “We’re thrilled to be working with the Coles Liquor team on these two brands and […]

Spark Foundry Scoops Up $10m Media Account For Peters Ice Cream
  • Advertising
  • Media

Spark Foundry Scoops Up $10m Media Account For Peters Ice Cream

Iconic ice cream company Peters Ice Cream is continuing its longstanding partnership with Publicis Media, appointing Spark Foundry to its media account. Zenith was the incumbent on the $10 million account, and B&T understands Initiative was also involved in the pitch process. Peters was established in Australia in 1907 by Fred Peters and its brands include […]

Australian Defence Force Celebrates NAIDOC Week Via The Story Lab & Cox Inall Change
  • Campaigns
  • Marketing

Australian Defence Force Celebrates NAIDOC Week Via The Story Lab & Cox Inall Change

Dentsu Aegis Network agencies Cox Inall Change and The Story Lab, have partnered with the Australian Defence Force (ADF) to create and promote video content for its Indigenous development programs. Following six months of documentary-style coverage, charting the highs and lows of recruits across three programs, the content was released to celebrate NAIDOC Week, as […]

Youngbloods Launches ‘Innovate Or Die’ Event In Partnership With General Assembly
  • Advertising
  • Marketing
  • Media

Youngbloods Launches ‘Innovate Or Die’ Event In Partnership With General Assembly

Youngbloods NSW has launched its August panel event, which will see six industry leaders discuss how innovation is transforming the industry. The event will take place General Assembly’s HQ on Wednesday 1 August at 7pm. Tickets (which you can purchase here) are $20 and include booze and pizza. The line-up of speakers for the event […]

Masculinity Roasted In Clever New Ad
  • Advertising
  • Campaigns

Masculinity Roasted In Clever New Ad

Think masculinity means drinking a case without chundering? Well, rediscover it (& possibly yourself) with this top ad.

by B&T Magazine

B&T Magazine
WPP AUNZ Partners With Career Trackers Indigenous Internship Program
  • Advertising

WPP AUNZ Partners With Career Trackers Indigenous Internship Program

Advertising and marketing network WPP AUNZ has joined the Career Trackers Indigenous Internship Program as part of its commitment to a diverse workforce, and the creation of opportunities that inspire excellence. As part of the program, WPP AUNZ has welcomed its first three interns: Abi-Leigh Dillon (WPP AUNZ), Amy Mccutcheon (MediaCom) and Jacinta Evans (Ogilvy), […]

Taboo Goes On A Hiring Spree
  • Advertising

Taboo Goes On A Hiring Spree

Taboo has gone a hiring spree. And when it comes to sprees, that's far better than a shooting one or a farting one.

Luke Kelly Becomes A Partner At HBT
  • Advertising
  • Marketing
  • Technology

Luke Kelly Becomes A Partner At HBT

B&T's not sure what's with that twirly thing in the press photo, suffice to say a vortex to an alternate dimension?

Women In Media Profile: Alison Michalk
  • Media

Women In Media Profile: Alison Michalk

If B&T's Women in Media profiles were an animal they would be a gazelle or lioness, or even a lioness eating a gazelle.

by B&T Magazine

B&T Magazine
Grant Broadcasters Makes Several Changes To Senior Executive Team
  • Media

Grant Broadcasters Makes Several Changes To Senior Executive Team

Independent media company Grant Broadcasters has announced a number of changes to its executive ranks. Grant Cameron will move up to become non-executive chairman for the company, and Alison Cameron (pictured above) – currently the chief operating officer – will assume the CEO role. Dugald Cameron remains responsible for the family’s investment portfolio and is […]

Shopper Media Group Partners With Mist To Offer New Tech & AI-Driven Capabilities
  • Advertising
  • Media

Shopper Media Group Partners With Mist To Offer New Tech & AI-Driven Capabilities

Australian retail out-of-home (OOH) business Shopper Media Group (SMG) has announced a partnership with AI-powered wireless networks provider Mist. The partnership will see SMG offer new WiFi, analytics and location-based services across the company’s portfolio of Australian shopping centres. Mist currently provides WiFi and location services using virtual Bluetooth LE technology to businesses across all […]

Indy Agency This Is Flow Wins Cruiseco’s $5 Million Media Account
  • Advertising
  • Media

Indy Agency This Is Flow Wins Cruiseco’s $5 Million Media Account

Travel organisation Cruiseco has announced the appointment of Sydney independent agency This is Flow (TIF) to handle its $5 million media account. This is the first time Cruiseco has appointed an agency, having managed its communications internally. Cruiseco is the largest and broadest distributor of cruise products in the Southern Hemisphere. With a membership base […]

Women In Media Profile: Naomi Shepherd
  • Media

Women In Media Profile: Naomi Shepherd

Need a Monday morning pick-me-up? You could stand naked next to the office fridge or read these inspiring words.

by B&T Magazine

B&T Magazine
APN Outdoor Takes Off With Queenstown Airport Contract
  • Advertising
  • Media

APN Outdoor Takes Off With Queenstown Airport Contract

Out-of-home media business APN Outdoor has won the tender for New Zealand’s Queenstown Airport. As part of the new agreement, APN Outdoor has flagged extensive development plans for Queenstown Airport’s advertising assets. The new contract adds Queenstown Airport to APN Outdoor’s existing portfolio of Auckland and Christchurch Airports. The media company will hire a South […]

Havas Secures Exclusive ‘Fight Of Champions’ Broadcast Rights With Foxtel For Australia & NZ
  • Media

Havas Secures Exclusive ‘Fight Of Champions’ Broadcast Rights With Foxtel For Australia & NZ

Havas Sports & Entertainment ANZ, a division of the broader global full-service agency Havas, has confirmed an exclusive deal with Foxtel to showcase the World Boxing Association (WBA) Welterweight Championship across the trans-Tasman. Billed as the ‘Fight of Champions’, Manny Pacquiao and Lucas Matthysse will square off for the WBA Welterweight belt this Sunday. Havas […]

The Question On Everybody’s Lips At Cannes: How Did Tesco Win The Grand Prix Media Lion?
  • Media
  • Opinion

The Question On Everybody’s Lips At Cannes: How Did Tesco Win The Grand Prix Media Lion?

In this guest post, PHD’s Chloe Hooper (pictured below) analyses the campaign that claimed top honours in the Media category at Cannes this year. I sat in the auditorium as the Cannes Media Lion winners for 2018 were awarded. One thing became instantly clear to me: it is all about taking home Gold or the Grand Prix. […]

Opinion

by B&T Magazine

B&T Magazine
MINI Australia Showcases New ‘Connected’ Vehicles Via Vizeum & Posterscope
  • Advertising
  • Campaigns

MINI Australia Showcases New ‘Connected’ Vehicles Via Vizeum & Posterscope

An integrated campaign by Vizeum Melbourne for MINI Australia’s new ‘Connected’ vehicles will see digital out-of-home (DOOH) served via Posterscope’s Liveposter platform. Delivered centrally, the campaign will showcase the flexible qualities DOOH provides via multiple creatives targeted with specific data overlays such as location, traffic, time of day, and weather triggers such as rain. The […]