Photo: iStock / a-wrangler
Is ‘Warmth’ the Secret Sauce for Many Brands?
In a study that purports to give “new meaning to retail therapy,” university researchers say lonely people turn to brands that exude warmth.
Researchers from the University of Alberta had five groups of undergraduate students split into those made to feel socially excluded and those in the control who felt included.
The excluded people tended to choose warmer brands. “They think these brands will be better relationship partners,” said Kyle Murray, study co-author and dean of the Alberta School of Business, in a press release.
Those who felt included more often also chose the “warmer, fuzzier” brand if they had low self-acceptance.
“If you can be a warmer, more caring brand, you can actually make people feel better, and that will make them better customers,” said Prof. Murray. “They’re more likely to be loyal and more likely to choose you.”
The concept of brands imbuing “warmth” is often attributed to research from social psychologist Susan Fiske and consultant Chris Malone in their book, “The Human Brand.”
The study finds that as much as 82 percent of people’s judgments of others can be predicted by two categories of perception – warmth and competence – and that also applies to how consumers perceive, judge and behave toward brands.
Warmth is seen by the authors as a measure of “worthy intentions” and defined by traits such as being warm, friendly, likable, trustworthy, honest, and sincere. The authors further state that words such as “capable,” “intelligent” and “skills” convey competence, a measure of carrying out worthy intentions.
The book concluded that embracing warmth and competence is becoming more important as consumers seek genuine relationships with brands. The authors wrote in the book, “Customers already have near-instantaneous power to pass judgment on how companies and brands conduct themselves in public. That power will continue to grow for decades to come.”
A 2020 study from researchers at the University of Vienna found “brand warmth consistently and positively impacts functional and emotional value, whereas brand competence enhances functional value. The impact of the stereotyping dimensions on value is subsequently reflected in increased purchase intentions and higher brand ownership.”
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Brands that exude warmth hit the mark with lonely consumers, study shows — Phys.org
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Some like it warm: How warm brands mitigate the negative effects of social exclusion — Psychology & Marketing
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Introduction — The Human Brand
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Do brand warmth and brand competence add value to consumers? A stereotyping perspective — Journal of Business Research
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The benefits of retail therapy: Making purchase decisions reduces residual sadness — Science Direct
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New Retail Study Shows Marketers Under-Leverage Emotional Connection — Motista/PRNewswire
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Is Retail Therapy Actually Therapeutic? — Financial Times
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Retail Therapy: What Makes You Feel Relieved and Happy? — Iowa State University
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Think Retail Therapy Will Cure Loneliness? Think Again, Says A New Study — Huffington Post
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The Loneliness Loop: Why Feeling Sad Makes Us Shop and Shopping Makes Us Sad — The Atlantic
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How Emotion Has Overtaken Reason In Driving Brand Choice — Advertising Age
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Shoppers are Lonely, Anxious. Retail Therapy is a Solution — WSL
Discussion Questions
DISCUSSION QUESTIONS: Do you agree with the study’s findings on the advantages of warm over less-warm brands? What retailers and brands do you think of as imbuing warmth?
Poll
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Chuck Ehredt
CEO, Currency Alliance
Mark Self
President and CEO, Vector Textiles
There are two key elements. First is that retail has always been about managing emotions. And second is that people feel faster than they think. Emotions kick in before logic engages. And sometimes logic argues with emotion over the “need versus want” dynamic. It’s complicated, but I think emotion wins more of those arguments than logic does.
Jeff, great points. Outstanding brand managers know that a brand has to be treated/managed/cared for as a living, breathing thing. The connection that consumers make with brands can be complex to understand, but essential to the lifetime customer value from repeat buyers who continually make it their “go-to.” Great companies invest resources to uncover these insights and capitalize on them.
I am not sure if “warmth” is the secret sauce, but building loyal relationships with customers depends on delivering a consistently good experience, and an overall perception of value. Warmth sort of touches on both of these dimensions, and gets to a more important aspect of how customers currently perceive brands. Historically, brands expected their customers to demonstrate their loyalty to the brand in order to earn prizes. Today, customers increasingly stay loyal to those brands that show appreciation and recognition – so the tables have turned. Brands now need to be more proactive in courting customers at a personalized level to earn and retain their business.
The study is about people that feel excluded, but the important message here is that emotional connection matters, and that’s true for all customers. Emotional connection is the key to true loyalty and customer lifetime value.
And the “included” students in the study chose “not so warm” brands? Defining a brand as “warm” and applying loyalty characteristics to it sounds more than a bit far fetched. How about studying “value” or “customer service” or the merchandising mix in a store, and attributing loyalty based on those elements?
I can see this. It’s likely a big reason some people choose to shop via HSN or QVC. Both sell brands you can buy in other places, but the hosts exude warmth; they “come into your home” and become your friends.
Unless we’re talking shopping via Facebook Live, strong emotional connections like that don’t often happen in brick-and-mortar stores, and they certainly do not happen when buying online. Remember what Maya Angelou said: “People will forget what you said, people will forget what you did, but people will never forget how you made them feel.”
Simon Sinek neatly explains this in his TED Talk, Start With Why. Companies who communicate first with WHY they do something on a higher level are perceived in a higher light, have greater brand presence, greater customer loyalty. Whether this is warmth or simply being authentic, customers want to buy from a company which believes in something and lives it out.
State first why you do something, then how you do something, and execute on it every day.
While I like the concept & accompanying data, I think that the sauce is something even simpler. Everyone talks about loyalty but we tend to get it backwards. It’s not about customers being loyal to a brand or retailer. Instead, brands and retailers need to be loyal to their customers. How? Simply by delivering on their promises.
I was going to write what Georganne said about the importance of how you make people feel. But she stole my thunder.
No one gave the name of a store that felt they delivered on making customers feel warm and comfortable. Here is my great example, and it may seem strange. I would nominate Costco for the award if I were giving one. But it would be toward one department, hearing aids. The department comes across as not trying to sell something, but helping the customer overcome their challenges. That may be why they are the number one distributor of hearing aids in the country.