Brand and Consumer

Consumer power to the people

Democratic Consumerism

Fuelled by the internet’s unequivocal impact on the way we now communicate and consume information, one of the biggest sea changes in consumer marketing is set to be the rise of ‘democratic consumerism’. Having become used to information and communication being available on-demand and at our fingertips, consumers no longer expect information, and indeed choices, to be pushed upon them by advertisers and brands. Instead, we now demand to be at the heart of the decision-making process, pulling the information we want to use to us when we want it.

Consumers, empowered by the web, want an honest and open two-way dialogue. Organisations that speak openly to their customers, genuinely listen to their feedback and demonstrate changes that they might or have made as a result will undoubtedly win their customer’s loyalty.

Nearly 70% of customers said the biggest single trigger to leave a product or service provider was customer recognition or service.

Any organisation with customers needs to take heed. Not only have people lost confidence in politicians, bankers and even Simon Cowell but our insight study* showed that they’re prepared to put their money where their mouth is. Nearly 70% of customers said the biggest single trigger to leave a product or service provider was customer recognition or service.

Under the banner of ‘power to the people’, some brands have found a way to harness this consumer power to their advantage and are using their customers’ views to help shape the future of their products and services.

In the largest move of democratic consumerism in the UK to date, Asda recently announced plans to enable its extensive ‘shoppers’ panel’ of customers to have a say in which products are sold on its shelves. The initiative received a warm welcome from the marketing and consumer media as the supermarket shifted a small slice of its autonomous decision-making powers over to its customers.

The idea of democratic consumerism will be one of the buzzwords for 2010, but it’s not a completely new concept as some brands have been running campaigns to encourage and respond to customer feedback for years now. Co-op, owned by their members, converted their entire own-brand hot drinks range to Fairtrade and banded eggs from caged hens. Online the best examples are My Starbucks Idea and Electrolux Design Lab.

Asda’s plans are a bold and admirable move in a sector that has often been criticised for its mass market approach to retailing, and a sure sign that the concept of democratic consumerism is likely to be on the agenda for many other mainstream brands in 2010. While Tesco and Sainsbury’s have both scored PR wins by securing prime-time TV series charting their endeavours to incorporate employees’ and would-be manufacturers’ ideas into their stores, Asda’s initiative appears to have shaken up the market. We can only watch now to see if their commitment to incorporate consumer feedback into their business on a long-term basis pays off.

"Consumers will respect companies who show they are willing to listen and then take action."

2010 will see some brands take the lead in devolving power to the consumer as others hang back unsure how to ‘control’ things once they’ve opened the dialogue. The truth is open and honest dialogue is just that. Consumers will respect companies who show they are willing to listen and then take action. The bottom line impact of democratic consumerism will not be proven for some time, but in the meantime consumers are having the conversations on the web anyway. The choice for brands in 2010 is not about controlling the uncontrollable, but whether to join in and shape conversations, or at the very least to make sure you’re listening.

* Search for Answers: a primary research study into consumer thinking conducted by Opinium Research in conjunction with Lansons Communications in November 2008 and May 2009

For more information on Lansons Brand & Consumer, contact brandandconsumer@lansons.com

‘Consumer power to the people’ photograph provided by Brad K.