The Case Study of BuzzFeed Tasty and the Evolution of Brand

TL;DR

Brand loyalty has shifted from consumers being loyal to brands to brands being loyal to consumers, with the rise of the Internet and social media giving customers more control.

Transcript

I've been at BuzzFeed for about seven years and in a variety of roles I should caveat we're talking about brand today I do not have an MBA I do not have classic marketing training so what I've learned and what I'll talk about today it's really from living it at BuzzFeed and so the premise of the talk the question is does brand loyalty still exist a... Read More

Key Insights

• ✊ The Internet and social media have shifted the power dynamic between brands and customers, with customers now having more control.
• ❓ Brand loyalty has declined as consumers have more choices and value personalization over perfection.
• 🉐 Platforms like Facebook and Instagram have gained fierce loyalty from consumers due to their ability to provide choices and create personalized experiences.
• 🏛️ Tasty's success was built on understanding the importance of loyalty to the customer and adapting to changing consumer preferences.
• ❓ Walmart remains relevant by acquiring brands that are loyal to their customers and offer unique experiences.
• 👍 Building a modern media brand requires a combination of scale, proving effectiveness for clients, and the inclusion of talent to connect with the audience.

Questions & Answers

Q: How did Tasty evolve from a small team of producers to the largest food network in the world?

Tasty started as an experiment to understand Facebook video and grew organically, focusing on creating short, visually appealing, and language-independent videos that could be easily consumed on social media. The team's success led to expansion into other platforms, longer formats, and product development.

Q: Why is brand loyalty no longer as prominent as it used to be?

The rise of the Internet and social media has given consumers access to a multitude of choices, making brand loyalty less relevant. Additionally, the myth of aspiration, where brands projected perfection and consumers aspired to be like them, has faded. Personalization and accessibility are now more important factors for consumers.

Q: How did Tasty personalize their cookbook to cater to individual preferences?

Tasty's cookbook took a unique approach by allowing customers to personalize their recipes based on dietary restrictions or ingredient preferences. Unlike traditional cookbooks that provide a definitive list of recipes, Tasty's personalized approach resonated with consumers, leading to significant sales.

Q: How does Walmart exemplify loyalty to customers in a changing market?

As the market for low-priced products became more competitive, Walmart realized that simply offering low prices was not enough. To stay relevant, they focused on acquiring brands that had built a loyal following through customer-centric approaches. This demonstrated their loyalty to their customers by offering them a variety of options.

Summary

In this video, the speaker discusses the concept of brand loyalty and how it has changed in the digital age. They explain that the customer now has more control and that brands should be loyal to the customer rather than the other way around. The speaker uses the example of BuzzFeed's food division, Tasty, to illustrate how this approach has led to the brand's success. They also explore factors such as the multiplicity of choice and the shift from aspiration to personalization in the relationship between brands and consumers.

Questions & Answers

Q: How did Tasty, BuzzFeed's food division, come to be?

Tasty was actually built about four years ago out of BuzzFeed's R&D department. It started as a small team focused on creating short, visually engaging videos for Facebook. Its success led to its expansion into other platforms and the growth of the franchise.

Q: What factors have contributed to the change in brand loyalty?

The concept of brand loyalty has flipped due to the rise of the internet and social media. The customer now has more power and control, and there is a wider range of choices available. Additionally, the myth of aspiration has been replaced by a desire for personalization and a brand's understanding of the consumer.

Q: How has brand loyalty evolved in the digital age?

In the early days of digital media, brands had more instant and global reach, but their relationship with the audience was still limited. However, today's digital landscape allows for a more personalized and responsive relationship between brands and consumers. This relationship extends beyond just the brand and the audience, but also includes the audience's connections with friends and family.

Q: What is the driving force behind personalization in brand loyalty?

While technology and targeting play a role in personalization, it ultimately comes down to understanding human nature. Brands need to recognize that consumers want to feel represented and understood, rather than aspire to unrealistic ideals. Personalization is the new aspiration, and it goes beyond offering customized products or experiences.

Q: How has brand loyalty shifted in recent years?

Brand loyalty is no longer the primary driving force for purchasing decisions. A study showed that only 30% of consumers who claimed to be loyal to a brand actually repurchased from that brand. Additionally, 86% of brand loyalists say they are open to other brands. This indicates that loyalty has shifted from the brand to the consumer, and personalization and choice are now more important factors.

Q: Can you provide an example of how personalization can be applied to real life?

One example is Tasty's personalized cookbook, which allowed customers to customize their recipes based on their preferences. Instead of a definitive list of recipes, the book catered to individual needs, such as excluding meat or avocados. This approach resonated with customers and resulted in a successful product launch with high sales.

Q: Are social platforms where most loyalty resides now?

Yes, consumers may not be loyal to specific brands, but they are fiercely loyal to their social platforms. This loyalty stems from the platforms' ability to provide choices, sophisticated recommendations, and unique experiences tailored to each individual. Brands should take this into account when building their presence on social media.

Q: How did Tasty become successful so quickly?

Tasty's success can be attributed to its loyalty to the consumer, rather than the brand's preciousness. It understood that food is an emotion-first experience and focused on the social platforms to reach a wide audience. Tasty also personalized its products, adapted quickly, and expanded globally. These core driving factors propelled the brand to its rapid growth and awareness.

Q: Does the concept of loyalty still have relevance in the digital age?

While traditional brand loyalty has become less significant, building a brand that consumers feel connected to is still crucial in the digital and social media landscape. Brands need to focus on loyalty to the consumer and prove their value by driving in-store and online sales. Scale and talent are also important pillars for modern media brands.

Q: Can you provide an example of a brand with loyalty to its consumers?

Walmart is an excellent example of a brand that has built loyalty by focusing on brands that prioritize the customer experience. By partnering with successful and customer-focused brands like bonobos and ModCloth, Walmart has remained relevant in a world where low prices have become commoditized.

Takeaways

The key takeaway from this video is that brand loyalty has fundamentally changed in the era of the internet and social media. While consumers may not be loyal to specific brands, they are fiercely loyal to social platforms that provide them with choices and unique experiences. Brands need to shift their focus from expecting loyalty from consumers to being loyal to consumers. Personalization, understanding human nature, and building a strong connection with the audience are crucial in building successful brands. Additionally, brands must prove their value by driving sales and stay relevant by adapting and understanding the changing dynamics of the digital landscape.

Summary & Key Takeaways

• BuzzFeed's food division, Tasty, was originally created to explore Facebook video and has since grown into a massive brand with cross-platform success.

• The relationship between brands and customers has fundamentally changed due to the Internet, with customers now having more control and brands needing to adapt.

• Brand loyalty is no longer the driving force behind purchasing decisions, as consumers have more options and value personalization over perfection.