In recent years there
has been a necessary shift in the way businesses advertise themselves to
consumers, thanks to the increasingly common information overload experienced
by the average person.
In 1945, just after
WWII, the annual total ad spend in the United States was about $2.8 billion (that's around $36.8
million before the adjustment for inflation). In 2013, it was around $140 billion.
Don't forget that this
is just paid media advertising; it doesn't include the many types of earned
coverage like search, social, email, supermarket displays, direct mail and so
on. Alongside the growth in media spends is a growth in the sheer volume of
products available, which is made possible by increasingly sophisticated
technologies for sales, inventory, delivery and so on.
What does this mean?
Well, simply that the strategy of 'just buy some ads and sell the benefits'
isn't enough anymore: you'll be lost in the noise. How can a brand retain
customers and create loyalty in an atmosphere where everyone else has a better
offer? Through tapping into the psychology of social relationships.
Imagine that you are
at home for Thanksgiving, and your mother has pulled out all the stops to
lovingly craft the most delicious, intricate dinner ever known to man. You and
your family have enjoyed a wonderful afternoon of socializing and snacking on
leftovers and watching football, and now it's time to leave. As you hug your
parents goodbye, you take out your wallet. "How much do I owe you for all
the love and time you put into this wonderful afternoon?" you ask.
"$100 for the food? here, have $50 more as a thank you for the great
hospitality!" How would your mother respond to such an offer? I don't know
about your mother, but my mom would be deeply offended.
New scenario: You've
gone to a restaurant for Thanksgiving dinner. It's the most delicious dinner you've
ever had, the atmosphere is great with the football playing in the background,
and best of all, your server is attentive, warm, and maternal. You feel right
at home. At the end of the meal, you give her a hug and thank her for the
delicious meal before leaving. She calls the cops and has you arrested for a
dine-and-dash.
And herein lies the difference between social norms and market
norms.
Social norms vs. market norms
The Thanksgiving
dinner example is one which I've borrowed from a book by Dan Ariely, Predictably Irrational: The Hidden Forces that Shape Our
Decisions. Ariely discusses two
ways in which humans interact: social norms andmarket norms.
Social
norms, as Ariely explains,
"are wrapped up in our social nature and our need for community. They are
usually warm and fuzzy. Instant paybacks are not required." Examples would
be: helping a friend move house, babysitting your grandchild, having your parents
over for dinner. There is an implied reciprocity on some level but it is not
instantaneous nor is it expected that the action will be repaid on a financial
level. These are the sort of relationships and interactions we
expect to have with friends and family.
Market
norms, on the other hand,
are about the exchange of resources and in particular, money. Examples of this
type of interaction would be any type of business transaction where goods or
services are exchanged for money: wages, prices, rents, interest, and
cost-and-benefit. These are the sort of relationships and interactions we
expect to have with businesses.
I've
drawn you a very rough illustration - it may not be the most aesthetically
pleasing visual, but it gets the point across:
