👤 Marketing in the Ego-conomy
I before We. How ego, benefits and identity will shape the consumption of the future. Where the trend comes from and what it means for successful marketing strategies and green marketing.
Hi 👋 I’m Florian Schleicher. This is the FutureStrategies newsletter of FUTURES. Thank you so much for reading along 💚
“Why should I read this newsletter?”
That's probably the question you're asking yourself at the beginning.
And that's exactly the topic I want to write about today:
➡️ The trend towards always looking for personal and often immediate benefits.
More and more surveys show that consumers prioritise price, convenience and personal benefit over social or ethical considerations - especially in times of economic stress.
A multinational survey of 4,000 consumers in Europe found that price sensitivity has increased by ~5% since before the pandemic, while traditional factors such as product quality and convenience have become slightly less important.
In the face of high inflation and tight budgets, consumers are increasingly willing to compromise on quality or brand loyalty in order to save money.
And sustainability efforts are also affected by this:
“Consumers are increasingly opting for affordability over sustainability in their purchasing decisions, preferring cheaper alternatives as financial pressures hit household budgets.”
It is also very understandable: when money is tight, ethical or environmentally friendly decisions that do not pay off immediately are often put to one side.
This shows us one thing above all:
Consumers are becoming increasingly selfish.
Cost-benefit thinking is at the forefront and we are living more and more in a transactional world - which we are also experiencing in Trump's geopolitical policies.
Many people's first thought is therefore often:
“What’s in this for me?”
Consumer behavior is increasingly influenced by ego and self-identity.
People often choose brands not only because of their benefits, but also because of what these brands say about them. The “theory of self-congruence” states that consumers are attracted to brands that reflect their ideal self-image.
For example, luxury brands such as Rolex or (until recently) Tesla are chosen as symbols of status and success, not just for their functional value.
As soon as the personal advantage disappears, the willingness to buy collapses. We can see this right now in the collapse of Tesla sales figures: The car is the same as it was before Elon Musk's government contributions. But the personal, emotional value has changed.
So let’s look into:
Data points
The origin of the trend
What this means for marketing
Recommendations for marketing strategies
The challenge for sustainability
📊 Data points
The top brands in a Havas study perform 57% better when it comes to communicating personal benefits. Their shares even perform 200% better.
71% of consumers believe that companies should help them improve their own personal wellbeing and health.
69% of companies have strategies to offer benefits in exchange for personal data. This means that customers explicitly want to know what's in it for them before they give up their trust or data - be it discounts, VIP access or a smoother experience.
The majority lack optimism for the next generation. Only 36% of respondents believe that the next generation will be better off. In industrialized countries, only one in five see a better future.
71% of consumers expect companies to offer personalized interactions. 76% are frustrated when this is not the case.
“Over the last 15 years, we've commissioned research into what makes a brand really meaningful. What we've seen in the data is that actually there's a big shift back towards a personal lens on everything,”
Joanna Lawrence, Global Chief Strategy Officer at Havas Media Network
🗝️ Origins of the Ego-Conomy Trend
In my view, this movement towards the ego economy and the selfishness that goes with it began with the Covid-19 pandemic. The triggers: uncertainty, coupled with a retreat into and appreciation of the home - or what The Economist calls the “hermit consumer”. Then there were ongoing geopolitical conflicts in Eastern Europe, even more uncertainty, waves of inflation and therefore restrictions on personal budgets.
