“Connecting with consumers on a rational level is no longer enough,” according to Mintel, a global market intelligence and research agency. Instead, it’s key for businesses to embrace emotional branding, to attract customers who “seek more than simply transactional value in their purchases.”
What is Emotional Branding?
Mintel defines emotional branding as the practice of forming an emotional connection [through branding] to build lasting relationships between consumers and businesses. To shape brand perceptions, you need to “tap into feelings, values, and aspirations.”
While Mintel’s blog focuses on consumer products, you can apply the lessons to your small business. The idea is to become part of a customer’s life.
Mintel reports that “consumers now increasingly expect [businesses] to mirror their own priorities, whether those be sustainability, inclusivity, or joy in everyday moments. Emotional branding connects on a deeper level, enabling companies to foster trust and relevance in a highly competitive market.”
What’s Fueled the Rise of Emotional Branding?
Value perceptions are being redefined
Consumers today have “shifting perceptions” and no longer measure value solely by price, convenience, or functionality. Instead, value also “encompasses whether they trust a business and if its moral practices align with their own beliefs.” Mintel says this creates an added layer of emotional value.
And 47% of consumers say that emotional value is just as important as product quality and price when making future purchase decisions, a sentiment Mintel says will continue to grow, especially among Gen Z and millennials.
Implementing Successful Emotional Branding Strategies
Mintel says, “A strong emotional branding strategy aligns storytelling, personalization, and brand values with consumer expectations.”
Storytelling
Storytelling “remains a cornerstone of emotional branding,” allowing businesses to better connect with their customers and cement brand loyalty. Storytelling can follow several paths, for instance, invoking nostalgia, culture, or shared values.
Mintel says if you sell gifts, “building emotional connections with shoppers helps to remove the stress associated with gifting and differentiate offerings.” It also advises letting consumers know how your business fits into their lives. Execution is key. Mintel warns that poorly executing your message can result in appearing inauthentic.
Personalization
Using AI and your customer data enables you to personalize your content and recommendations to your customers. Mintel says this offers them convenience and makes them feel appreciated.
Use your loyalty programs to offer perks and exclusive experiences to your customers and demonstrate you’re actually listening to them. A Mintel report reveals that 63% of Gen Z and millennials say their favorite brands are those that feel like friends to them.
Building trust
Trust is the core of emotional branding. Mintel reports that 56% of consumers want a company’s values to align with their own when making a purchase. Transparency helps build trust, so be open about your sourcing, sustainable practices, and ethical commitments.
Customer experience impacts loyalty
Consumers increasingly want to do business with companies that deliver experiences, not just products, especially in retail. Mintel says the impact of emotions on purchases “is growing, driven by shoppers’ desire to feel seen, understood, and valued.” A “more experiential take” on loyalty programs can help you accomplish this. Offer more personalized and actual experiences, instead of only focusing on saving money.
Key Takeaways
Mintel concludes, “Emotional branding is a powerful way to bridge the gap between product functionality and consumer identity.” In today’s tumultuous economic environment, employing emotional branding strategies can help small businesses “create relevance, trust, and differentiation.”
Photo courtesy A. C. for Unsplash+
Rieva Lesonsky is President of Small Business Currents, LLC, a content company focusing on small businesses and entrepreneurship. You can find her on Twitter @Rieva, Bluesky @Rieva.bsky.social, and LinkedIn. Or email her at Rieva@SmallBusinessCurrents.com.
