|
The acronym LOHAS (Lifestyles of Health and Sustainability) may not roll off the tongue, but it sure represents plenty of American influence. Conservatively estimated by the LOHAS Web site, the LOHAS market involves 41 million people, or 19 percent of U.S. adults, and $209 billion for goods and services focused on health, the environment, social justice, personal development and sustainable living. (Other estimates increase the percentage to a full third of Americans with $500 billion to spend in 2008.)
Also referred to as “Cultural Creatives”—a term coined by Yale sociologist and author Dr. Paul Ray in the book “The Cultural Creatives: How 50 Million People Are Changing the World” (co-authored by Sherry Anderson)—LOHAS consumers are unmistakably creating a new culture, one in which their values are often directly reflected in their purchasing. Hence, the terms “green,” LOHAS and “conscious consumers” equally refer to the Cultural Creative.
While their presence is already significant enough to get any marketer’s attention, the numbers of Americans living the LOHAS way will only increase. “Ray insists, and I fully agree, that this percentage can only increase as the folly of unrestrained consumerism and ostentatious display becomes ever more apparent in a resource-constrained world battered by global warming,” predicts Mal Warwick, founder and chairman of Mal Warwick Associates, a Berkeley, Calif.- and Washington, D.C.–based fundraising agency specializing in direct marketing.
“In short, I think you’ll find that this group is deeply committed to environmental preservation, understands the linkages between environmental damage and perils to human health, and is highly resistant to traditional marketing and advertising appeals,” explains Warwick.
With that in mind, don’t forget these five rules for the LOHAS market.
1. Get Better Response by Being Responsible
Showcasing how LOHAS values extend far beyond LOHAS’ community, look at this statistic from full-service, global PR firm Edelman: 85 percent of consumers worldwide will change the brands they buy or their consumption habits to “make tomorrow a better place.” In other words, the “responsible” message practically works across all segments today.
“LOHAS is leading edge, and its marketing concept is starting to take off because, from my perspective, it’s good business. Even mainstream people who wouldn’t necessarily be considered LOHAS consumers are increasingly interested in who they do business with, authenticity and patronizing businesses that aren’t doing bad things in the world,” says Perry Goldschein, founder and managing director of SRB Marketing in Denville, N.J., and author of “Conscious Clicks: A Guide to eMarketing for People, Planet & Profit.”
Patricia Kachura, DMA’s senior vice president for ethics and consumer affairs, concurs. “In today’s world, companies are judged not just by the products or services they provide, but for how they interact with their customers and with the world around them. Companies that engage responsibly and respectfully with consumers create a foundation of trust that can contribute greatly to long-term brand loyalty and business success. And beyond individual relationships, today’s consumers are more frequently looking at broader themes of corporate social responsibility, such as community, environmental and charitable commitments.”
In recognition of this trend, the DMA created a Committee on the Environment and Social Responsibility two years ago and unveiled the DMA Environmental Resolution (the “Green 15”: www.the-dma.org/Green15) last year, which asks DMA members to incorporate and benchmark 15 eco-friendly business practices.
2. Cost and Brand Still Matter
While the green message is important, the other benefits still merit first mentioning. “This is something that a lot of people have a lot of misconceptions about. The green aspects of any business or product is just an advantage, but for the vast majority, is not what people are buying,” claims Goldschein, who states that core LOHAS consumers (around 15 percent of the U.S. population) make certain purchases only from businesses that act and market in socially and environmentally responsible ways.
“For most, quality and price are still the top considerations. And if it’s green, that’s even better,” he says. Goldschein points to brands like Ben & Jerry’s and Patagonia as examples, as their superior products and brands are the primary reasons for their success. “The fact that they were environmentally and socially responsible made a small core of their customers evangelical about them and made the rest of the public simply more interested in their products,” he describes.
3. Be Relevant, yet Subtle
With people getting flooded by commercial messages on a daily basis, the marketing challenge today is to be more relevant. Sometimes, using the LOHAS label may be the key to making that product or service relevant, but it must be applied carefully.
“The core LOHAS consumer is more likely to do more homework, for even small purchases like clothing or home goods. They look at issues around the environment, fair trade, their own health and are willing to do more research. For example, if you’re doing a direct mail piece, you have the ability to communicate more and use credible research to back it up; you can explain why the product is designed and delivered the way it is. The core LOHAS consumers like that message and will spend more time with that message, but it can’t be done in a superficial way,” advises Goldschein, who notes that LOHAS consumers are heavy search-engine users and, consequently, advises that you use paid search effectively, microtarget your online advertising efforts, and build and use a good e-mail list.
4. Greens Have a “Phoney Baloney” Detector—so Be the Real Deal
In a study done last year by Ipsos Reid, seven in 10 Americans either “strongly” or “somewhat” agree that companies call their products green simply as a marketing tactic. To combat such skepticism and engender trust, you must show unequivocally that it’s genuinely green—perhaps aided by the seal of approval from trusted third-party sources.
“If you’re trying to say you have a product that’s better for them or for the environment, the first thing you want to do is make sure you can back that up,” suggests Goldschein. He says that if there are any shortcomings in the argument, then you have to know what those shortcomings are so you can address any criticisms. Then you want to craft a message that’s authentic and subtle in its claim that it’s good for the environment. “Transparency is the key word for LOHAS businesses, alongside social and environmental responsibility,” concludes Goldschein.
5. Lastly, Use the Green Testimonial
While some new rules are being invented for the LOHAS market, some direct marketing techniques are evergreen, such as the testimonial. Warwick asserts, “My biggest tip for marketing to this group? Use lots of customer testimonials. And, whatever you do, don’t exaggerate the benefits of your product or service—and don’t overpromise!”
Also referred to as “Cultural Creatives”—a term coined by Yale sociologist and author Dr. Paul Ray in the book “The Cultural Creatives: How 50 Million People Are Changing the World” (co-authored by Sherry Anderson)—LOHAS consumers are unmistakably creating a new culture, one in which their values are often directly reflected in their purchasing. Hence, the terms “green,” LOHAS and “conscious consumers” equally refer to the Cultural Creative.
While their presence is already significant enough to get any marketer’s attention, the numbers of Americans living the LOHAS way will only increase. “Ray insists, and I fully agree, that this percentage can only increase as the folly of unrestrained consumerism and ostentatious display becomes ever more apparent in a resource-constrained world battered by global warming,” predicts Mal Warwick, founder and chairman of Mal Warwick Associates, a Berkeley, Calif.- and Washington, D.C.–based fundraising agency specializing in direct marketing.
“In short, I think you’ll find that this group is deeply committed to environmental preservation, understands the linkages between environmental damage and perils to human health, and is highly resistant to traditional marketing and advertising appeals,” explains Warwick.
With that in mind, don’t forget these five rules for the LOHAS market.
1. Get Better Response by Being Responsible
Showcasing how LOHAS values extend far beyond LOHAS’ community, look at this statistic from full-service, global PR firm Edelman: 85 percent of consumers worldwide will change the brands they buy or their consumption habits to “make tomorrow a better place.” In other words, the “responsible” message practically works across all segments today.
“LOHAS is leading edge, and its marketing concept is starting to take off because, from my perspective, it’s good business. Even mainstream people who wouldn’t necessarily be considered LOHAS consumers are increasingly interested in who they do business with, authenticity and patronizing businesses that aren’t doing bad things in the world,” says Perry Goldschein, founder and managing director of SRB Marketing in Denville, N.J., and author of “Conscious Clicks: A Guide to eMarketing for People, Planet & Profit.”
Patricia Kachura, DMA’s senior vice president for ethics and consumer affairs, concurs. “In today’s world, companies are judged not just by the products or services they provide, but for how they interact with their customers and with the world around them. Companies that engage responsibly and respectfully with consumers create a foundation of trust that can contribute greatly to long-term brand loyalty and business success. And beyond individual relationships, today’s consumers are more frequently looking at broader themes of corporate social responsibility, such as community, environmental and charitable commitments.”
In recognition of this trend, the DMA created a Committee on the Environment and Social Responsibility two years ago and unveiled the DMA Environmental Resolution (the “Green 15”: www.the-dma.org/Green15) last year, which asks DMA members to incorporate and benchmark 15 eco-friendly business practices.
2. Cost and Brand Still Matter
While the green message is important, the other benefits still merit first mentioning. “This is something that a lot of people have a lot of misconceptions about. The green aspects of any business or product is just an advantage, but for the vast majority, is not what people are buying,” claims Goldschein, who states that core LOHAS consumers (around 15 percent of the U.S. population) make certain purchases only from businesses that act and market in socially and environmentally responsible ways.
“For most, quality and price are still the top considerations. And if it’s green, that’s even better,” he says. Goldschein points to brands like Ben & Jerry’s and Patagonia as examples, as their superior products and brands are the primary reasons for their success. “The fact that they were environmentally and socially responsible made a small core of their customers evangelical about them and made the rest of the public simply more interested in their products,” he describes.
3. Be Relevant, yet Subtle
With people getting flooded by commercial messages on a daily basis, the marketing challenge today is to be more relevant. Sometimes, using the LOHAS label may be the key to making that product or service relevant, but it must be applied carefully.
“The core LOHAS consumer is more likely to do more homework, for even small purchases like clothing or home goods. They look at issues around the environment, fair trade, their own health and are willing to do more research. For example, if you’re doing a direct mail piece, you have the ability to communicate more and use credible research to back it up; you can explain why the product is designed and delivered the way it is. The core LOHAS consumers like that message and will spend more time with that message, but it can’t be done in a superficial way,” advises Goldschein, who notes that LOHAS consumers are heavy search-engine users and, consequently, advises that you use paid search effectively, microtarget your online advertising efforts, and build and use a good e-mail list.
4. Greens Have a “Phoney Baloney” Detector—so Be the Real Deal
In a study done last year by Ipsos Reid, seven in 10 Americans either “strongly” or “somewhat” agree that companies call their products green simply as a marketing tactic. To combat such skepticism and engender trust, you must show unequivocally that it’s genuinely green—perhaps aided by the seal of approval from trusted third-party sources.
“If you’re trying to say you have a product that’s better for them or for the environment, the first thing you want to do is make sure you can back that up,” suggests Goldschein. He says that if there are any shortcomings in the argument, then you have to know what those shortcomings are so you can address any criticisms. Then you want to craft a message that’s authentic and subtle in its claim that it’s good for the environment. “Transparency is the key word for LOHAS businesses, alongside social and environmental responsibility,” concludes Goldschein.
5. Lastly, Use the Green Testimonial
While some new rules are being invented for the LOHAS market, some direct marketing techniques are evergreen, such as the testimonial. Warwick asserts, “My biggest tip for marketing to this group? Use lots of customer testimonials. And, whatever you do, don’t exaggerate the benefits of your product or service—and don’t overpromise!”
Companies Mentioned:
 |
|
