2011-12-15

Co.Exist

Does Your Brand Need A Reality Check?

Some companies—like Patagonia—thrive on the perception of their sustainability. Others—like Nike—keep it in the background. The difference between the reality of sustainability and customers’ perception of it can make or break your company.

Perception versus reality has always been a major source of tension for brands. And sustainability, once heralded as the next big brand advantage, has only made things worse. If you promise people your soap will make them smell nice and it doesn’t, they’ll get over it. If you falsely promise that your soap doesn’t have palm oil from orangutan-displacing plantations, people aren’t nearly as forgiving.

Brands like Patagonia provide shining examples of what can happen when you effectively align perception and reality. Their values, their brand, and their actions all convey the same sustainability message. Using this trifecta to engage more deeply with customers may have contributed to the fact that, during the worst of the recession, their sales continued to climb.

But the Patagonias of the world are few and far between. This point is illustrated by studies like MapChange and the Sustainability Leadership Report. They show that many companies are perceived to be much more sustainable than they actually are, while others are not getting credit for good deeds. Neither situation is enviable.

Is misalignment bad?

It can be. In the wrong situation, it can expose a brand to risk or prevent it from maximizing its return on sustainability investment. Apple, for example, is perceived as highly sustainable, thanks in part to sleek design and creative marketing. When supply chain assessments identified weaknesses and not-so-sustainable practices, the dissonance of these findings with the company’s reputation made headlines.

News Corp., on the other hand, has never had much of a good-feeling brand. But in reality, the company has been relatively pro-active on taking leadership positions in sustainability. Talking about News Corp. initiatives always results in the reaction: "I had no idea they were doing that!," which doesn’t usually equate with positive brand reinforcement.

Misalignment can be good

On the other hand, Nike produces some of the most sustainable sneakers in the world. But the company has chosen to underplay its sustainability chops because brand managers felt the message would conflict with the "authentic athletic performance" brand promise. That said, Nike is well-recognized for sustainability in the green community. Its CSR reports are impressive, and their Considered Design process inspiring.

You might say that Nike has used the perception/reality gap to its advantage. Mainstream consumers perceive the brand to be about performance. Conscious consumers recognize them for their sustainable innovations. Everyone wins.

What Works For Your Brand?

Managing the right balance of sustainability perception/reality for your brand means knowing when to communicate and when to take action. But most importantly, it means first understanding the sustainability issues that matter to the people who matter to you.

What do your customers care about, and how do they perceive your performance?

When GreenOrder helped a well-known international brand dig into these issues, they found 73 discrete customer sustainability expectations that touched on topics ranging from packaging materials to facility energy consumption and varied based on business line and geography.

Mapping perception against actual performance for each of these expectations illuminated important risks and opportunities. Where perception exceeded performance, action was needed to mitigate potential brand risk. And where performance exceeded perception, additional communication represented an opportunity.

Based on assessments of customer perception and company performance, the brand was able to narrow down to the top 10-20 areas of opportunity for additional action or communication, adding new levels of granularity and customer insight to their sustainability strategic planning process.

Words To The Wise

Perception versus reality represents a powerful lens through which brands or sustainability teams can view their strategies. Be warned, though, that perceptions and expectations can be fickle. They change by geography, time, and even product or service type.

Aligning perceptions and reality is ongoing work, but taking a conscious approach can help you create a more resilient brand, more loyal customers, and generate more value for each dollar spent.

This story was co-authored by Stephen Linaweaver and Brad Bate, sustainability consultants whose work and ethos I greatly admire.

Add New Comment

4 Comments

  • Brad Bate

    Leif, the customer sustainability expectations came from research that GreenOrder did specifically for a partner, and they will vary based on industry and a company's brand. For example, customers of a CPG company are likely to have very different expectations than customers of a utility. And even within the CPG industry, a company's existing brand can have an impact on what customers expect. The point here is that customers have many specific expectations for any brand, and it's important to understand and then prioritize those in order to effectively use them as inputs for strategy development. 

  • Brad Bate

    Leif, that's a great question about the factors that influence attitudes, expectations, and values by geography. While the research did reveal geographic variation in specific customer expectations for this particular brand, which could be used for strategic planning purposes, it did not get into the reasons behind these differences. It's a fascinating area for additional research. 

    If you're looking for more general data at a national level, National Geographic and GlobeScan have done some research on top issues for consumers in 17 different countries as part of their Greendex. I'm sure that other groups have also done research in this area, and it would be interesting to hear if others have suggestions. 

  • Leif Utne

    Thanks, Brad. So those 73 expectations were specific to that client's brand? Okay. The part I'm most curious about is how those expectations vary by geography, both within the US and around the world.

    What I'm interested in is how attitudes/expectations/values around sustainability are influenced by culture (regional, national, or ethnic). Does anyone here know of any more general research on this question?

  • Leif Utne

    Marc: Great piece. Can you point to somewhere where I can see what those "73 discrete customer sustainability expectations" are that GreenOrder found? Is it a report they published? I've been searching their site and coming up empty-handed.