SHERPA BRANDSGuiding Consumers To New Heights
Arnold on
explores cultural, brand
and consumer trends that are
directly impacting businesses today.
through a combination of cultural
observation and proprietary qualitative
and quantitative research, we aim to
uncover meaningful shifts in attitudes
and behaviors and provide marketers
with ways to harness these trends
to benefit their brands and
businesses.
It’s been more than 50 years since Jean
Nidetch from Queens, New York, invited
a group of friends over to her apartment
to confess her addiction to cookies. The
positive reinforcement she received from
them helped her overcome her weight
issues and recognize that an essential
component to losing weight and changing
bad eating habits is the support and
guidance of other like-minded people.
This experience was also the catalyst to
the creation of Weight Watchers, the
company she founded, which has since
helped millions of people in 30 countries
navigate the path to healthier lifestyles.
Throughout the years, Weight Watchers
has provided real guidance and support,
given relevant, actionable advice about
healthy options, and offered tools, like
its points system, to make the journey
easier. All the while, the brand has
enabled program participants to
celebrate and enjoy their progress and
accomplishments over their journey.
Weight Watchers, at its core, is a brand
that guides customers to the right solution
for them, and it’s a quintessential example
of what Arnold Worldwide has identified
as a “Sherpa brand.”
This edition of Arnold On focuses on
Sherpa brands.
As part of ongoing work and research
with our clients, we have uncovered
an emerging need for brands to provide
increased guidance, empowerment, trust
and emotional rewards.
To better understand this need and
to probe consumer attitudes, Arnold
Worldwide conducted a survey of 2,400
respondents in the U.S., U.K., Brazil
and China.
In the following report, we’ll explore
the definition of Sherpa brands and
their significance in today’s consumer
marketplace, as well as provide
actionable ways in which all brands
can build Sherpa qualities.
These findings can help brands uncover
a new way to build stronger relationships
with their customers to drive brand affinity.
CONTENTS
The Emergence of Sherpa Brands 3
The Role of a Sherpa Brand 9
Sherpa Brands Win 17
How to Become a Sherpa Brand 21
21
3
The Sherpa are a group of Tibetans who live in the high Himalayan mountain regions of Nepal. Because they have lived in the area for hundreds of years, the Sherpa people are experts when it comes to the local mountainous terrain. In fact, they are so skilled at their craft that the term “Sherpa” has become synonymous with any expert mountain guide anywhere in the world.
Sherpas use their knowledge and experience to help mountaineers make better decisions as they navigate difficult terrain. They provide helpful information and tools to make the journey easier and act as a trusted resource along the mountaineers’ path. But the most interesting dynamic of Sherpas is that at these magnificent summits, they stand back and let mountaineers revel in their personal accomplishment.
With the “difficult terrain” that many consumers face today – conflicting opinions and overwhelming information and choices – brands have begun embracing the qualities of the Sherpa to help consumers sift through and make sense of it all. Sherpa brands are leveraging their category expertise to help consumers feel more informed, more in control and empowered, and to help these consumers celebrate their personal accomplishments.
THE EmERGENCE Of SHERPA BRANDS
4
Q: How would you describe your outlook for the world around you in the next 12 months?
Q: How would you describe your outlook for your life in the next 12 months?
Q: Thinking about the next 12 months, what are your top priorities in life?
12% 16% 18% 22%30%
39% 43%49% 46%
68%
37% 41%52% 56%58%
66%
81% 85%
62%
83%
Consumer Outlooks
U.K. U.S.GLOBAL BRAZIL CHINA
U.K. U.S.GLOBAL BRAZIL CHINA
POSITIVE WORLD OUTLOOK
FALL 2011 FALL 2012
POSITIVE PERSONAL OUTLOOK
GLOBAL PRIORITIES FOR NEXT 12 MONTHS:
FALL 2011 FALL 2012
Have more financial
stability and security
Focus on my health Spend more time with
friends and family
1 2 3
40% 39% 31%
ExTERNAl AND INTERNAl fORCES SHAPING CONSUmERS’ lIvES
In our survey, we found that while
consumers’ outlook for the world
around them is improving, they are
still feeling external pressures, like
economic uncertainty caused by the
lingering effects of the global recession,
as well as political instability, that are
beyond their control.
These factors are compounded by the
overwhelming amount of information
that exists today. Consumers are
striving to strike a better balance and
achieve well-being in their lives.
They want to spend less time worrying
and more time on personal fulfillment,
such as connecting with friends and
family, and making better, healthier
decisions.
One way Sherpa brands are responding
to these shifts is by alleviating some of
the stress. They’re guiding consumers
to decisions in a multitude of areas,
like financial management and
healthcare. They also help people to be
more productive and give them a sense
of achievement, while saving them
time and money that can be used on
the things they really enjoy.
65
Q: Which values do you feel have become mORE ImPORTANT to you in the last few months? (choose top 3)
ACCElERATING AND EmERGING PERSONAl vAlUES
As part of this research, we identified
an acceleration of several values –
optimism, stability and prioritization –
as well as emerging values – control
and practicality. Consumers want to
feel in charge of their personal journeys
and Sherpa brands are making a
significant impact in this area.
Optimism: There’s no shortage of
negative news weighing on consumers’
minds. However, they are responding
positively by choosing to see the silver
lining. They seek greater contentment
and fulfillment in their lives and are
adopting a brighter view about what’s
to come.
Stability: following the financial and
housing market collapses in 2007–08,
consumers took a more conservative
approach to spending. In today’s
environment, financial stability means
more than spending only on the
essentials. Consumers are increasingly
spending on the affordable indulgences
that matter to them, provide them
with value and make their lives better.
Prioritization: People are looking to
strike a better balance in their lives,
but need to understand and manage
the trade-offs. Ultimately, they are
looking for help to prioritize what’s
most important to them. In a world
where you can’t have everything,
people want to understand their
choices and need to be guided to
the decisions that are best for them.
Control: With so much instability in
the world, consumers want to gain a
tighter grip on the things within their
power. Consumers are seeking tools
and resources to help them make
informed decisions, but also want
to remain in control of the decision-
making process.
Practicality: As the economy recovers,
smart consumers remain thoughtful in
their purchase decisions. While people
want products that are well designed
and provide them with a great
experience, they are also seeking utility
to ensure that they spend their money
wisely and make the right decision.
Importance of Personal values vs.
Change in Importance over the Past Year
Important Values
Connections
40%
35%
30%
25%
20%
15%
10%
5%
0%
–8% –6% –4% –2% –0% +2% +4% +6% +8%
Relaxation
Responsibility
Optimism
Stability
Prioritization
Control
Practicality
Balance
Safety
Simplification
Fun
Carpe DiemSustainability
Accelerating Values
Declining Values Emerging Values
Import
ance o
f Valu
es (
Fall 2
012)
Change in Importance (Fall 2012 vs. Fall 2011)
Honesty
Values in 2012–2013
87
Q: How important is it for a brand to help guide you to the decisions or choices that make the best of your daily life?9
Given external concerns and accelerating personal values, we have found a growing demand for guidance. Through our research, we found that 81% of consumers worldwide think it’s important for a brand to guide them to better decisions. This has resulted in the emergence of Sherpa brands.
Sherpa brands help people see the path, inform them at key decision points, provide decision-making tools along the way and help people navigate through their journey. The goal is to guide the consumer through a process, whether it’s the path to better health, financial freedom, planning a vacation or buying a new car. But like a real Sherpa, who enables climbers to celebrate at the mountain summit, Sherpa brands help people celebrate their own accomplishments.
Ultimately, Sherpa brands play a more meaningful role in consumers’ lives, achieving higher levels of trust and loyalty.
THE ROlE Of A SHERPA BRAND
U.S.
U.K.
China
Brazil
10
Q: How important is it for a Sherpa brand to have each of these characteristics?
Q: Which of these characteristics are most important for a Sherpa brand?
Q: Which of the following best describes how a brand that helps guide you to the decisions or choices that make the best of your daily life make you feel?
CHARACTERISTICS Of A SHERPA BRAND
While there are many characteristics
that define a Sherpa brand, there are
a few that reign supreme.
By providing guidance – including helpful
information and solutions to consumer
problems – Sherpa brands help
consumers navigate and make better
decisions. They strike a balance between
doing everything for the consumer and
the consumer doing it all.
Additionally, they make the decision-
making process less complex, easier to
understand and help consumers make
the choices that are right for them.
These elements lead consumers to
feel empowered, providing them with
greater satisfaction, confidence and
sense of accomplishment. This is the
formula for Sherpa brand success:
ensuring that an individual feels
emotionally rewarded at the end of
their journey.
1211
WHAT IS THE JOURNEY?
Navigating a supermarket has never
been easier than with the SK Telecom
Smart Cart, which provides up-to-the-
minute alerts on product availability
and coupon information. Customers
input their grocery lists at home on a
corresponding smartphone app and
sync the phone with the cart once
in-store. After it is synced, the cart
tailors a shopping experience and
route to the customer’s list of needs.
HOW DO THEY PROvIDE
KNOWlEDGE AND INfORmATION?
Along with location-based technology
that shows consumers special offers
based on where they are in-store, the
app and tablet on the cart offer tips
and product information.
WHAT ARE THE
EmOTIONAl BENEfITS?
The combination of the mobile
app and in-store Smart Cart help
make shopping a less stressful
and time-consuming process.
They empower the consumer to
take control of the experience,
feel satisfied with their purchases
and focus on other priorities.
WHAT IS THE JOURNEY?
fidelity helps clients plan financially for
their futures by connecting them with
investment solutions that best fit their
income, life stage and risk tolerance.
It provides extensive information on
the status of the financial sector and
guidance on where consumers have
opportunities to develop their specific
portfolios.
HOW DO THEY PROvIDE
KNOWlEDGE AND INfORmATION?
fidelity provides investors with peace
of mind and guidance at every level –
from one-on-one conversations with
investment professionals to powerful
DIY financial planning tools and research.
They guide investors to the appropriate
investments depending on their short-
and long-term goals and for their lives in
general. The focus is on an individual’s
“Personal Economy” because fidelity
recognizes that money management is
just one part of the whole picture.
WHAT ARE THE
EmOTIONAl BENEfITS?
The brand takes the overwhelming world
of finances and breaks it down in a way
that is understandable, providing support
via investment professionals, online
resources and calculators that help each
user navigate his/her personal situation.
Users are empowered with knowledge
and the ability to take control of their
investment choices.
fidelity Investments is among
the most diversified financial
services companies in the world,
offering a full range of investment
solutions for individual investors,
employers, institutions and
intermediaries. Their mission is
to help guide customers and
clients to achieve their financial
objectives, as manifested by
“the green line.”
Source: fidelity Website
1413
In 2011, Korean telecommunications
company SK Telecom launched a
pilot program in China that features
a geo-tagged “smart” shopping
cart that simplifies the often
arduous chore of grocery shopping.
It streamlines the process by
helping consumers map out the
most efficient way to check things
off their list and provides special
offers in real time.
SHERPA BRANDS
IN ACTION
Source: SK Telecom Press Release
WHAT IS THE JOURNEY?
The job search journey can be
overwhelming given the multitude
of ways to connect with companies
and get information. monster helps
individuals home in on their goals and
map out clear steps to get to their
dream job from where they are now.
HOW DO THEY PROvIDE
KNOWlEDGE AND INfORmATION?
“Career mapping” is a tool that
enables users to visually see the
steps that lead from their current
role to the career they want. The tool
also provides information on turnover
statistics in specific industries and
the backgrounds of people who
work in them. “Career Snapshots”
is another offering that supplies
in-depth information about what
careers in different fields look
like. “Career Benchmarking” is a
social tool that lets users compare
themselves to others in their industry
and career stage.
WHAT ARE THE
EmOTIONAl BENEfITS?
Users experience not only the
satisfaction of finding an opportunity
that matches their experience
and interests, but also a sense of
accomplishment every time they get
a step closer to their goal on the path
that monster helped them build.
How Sherpa Brands Are Delivering
Across Industries
How Sherpa Brands Are Delivering
Across Industries
“They help tailor a plan that is in
my budget and gives me the
coverage that I need.”
INSURANCE
APPARELHEALTHCARE
(U.S.)
“Recommend from knowledge
and experience the products
that are best for me on a
personal level and allow me
the choice to make the final
decision after hearing their
advice.”(U.K.)
(CHINA)
(BRAZIL)
(U.K.)
“Provide clear and concise
information about what their
product is, the ingredients,
and how to use products.”
DRUGSTORES
AUTOMOTIVE
”They have trained
professionals who give us
the information we need.“
“They provide the
choice and profes-
sional suggestions.”
EDUCATION
“Empowers me with
knowledge that
leads me down the
right path.”
(U.S.)
Q: What are brands doing well?1615
monster allows people to find job
listings that fit their interests and
career goals by consolidating all
the listings in one place and
making them easily searchable.
What sets monster apart as a
Sherpa brand is its “Career
mapping” tool, which provides
step-by-step guidance for users on
how to get to their ideal career.
Source: monster.com
Q: How much do you trust brands that help guide you to the decisions or choices that make the best of your daily life?
Q: How does a brand that helps guide you to the decisions or choices that make the best of your daily life affect your relationship with the brand?
17
Sherpa brands offer benefits that make consumers’ lives easier, which ultimately drives stronger affinity, loyalty and business.
most consumers are more likely to trust and be loyal to brands that guide them to decisions that make the most of their time.
SHERPA BRANDS WIN
U.S.:
U.K.:
18
A WINNING SHERPA BRAND
By living up to its motto, “Improving
Home Improvement,” lowe’s proves
why Sherpa brands win. Geared
primarily to the do-it-yourself home
renovator, lowe’s success is contingent
upon its ability not only to offer quality
products at good value, but also to be
a trusted advisor throughout the home
renovation process, from start to finish.
To help achieve this, the company has
created a wide-ranging series of tools,
including mylowes, which is a
personalized online utility that aids in
the planning of future projects and
pinpoints specific products needed to
complete the job. It also provides a
history of purchases, making it easy to
track everything bought in one location.
lowe’s is enhancing the brand
experience by expanding its service,
while providing customers with a
sense of accomplishment as they get
the right products to successfully
complete home improvement projects.
from a business perspective, the
brand has also increased the average
basket size of customers and the
number of times they shop at the store.
lowe’s actions as a Sherpa translate
to concrete, tangible increases in the
bottom line.
lOWE’S
Source: lowe’s Earnings Call, 2012
OVER 14.5 MILLION CARDS
HAVE BEEN ACTIVATED
4 MILLIONOVER
CARDHOLDERS HAVE REGISTERED
THEIR CARDS ON MYLOWES.
REGISTERED USERS SPEND MORE WITH LOWE’S OVERALL
In fact, they transact more
often and the spend per
transaction is greater than
that of those not registered.
$ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $
REGISTERED
NOT REGISTERED$
$
According to Lowe’s, since it
launched MyLowes in 2011:
2019
HOW TO BECOmE A SHERPA BRAND
There are seven actions that a brand can take to become a Sherpa brand. from understanding the customer’s journey, to providing them with the right tools and support that exceeds their expectations, to enabling them to celebrate their achievements, Sherpa brands must act not only as a guide, but as a trusted partner and champion as well.
Understand the
Customer’s Journey
Establish Your Expertise
Enable Customers
to Celebrate Their
Achievements
Live up to
Your Promise
Exceed Customer
Service Expectations
ENERGY BAR
Empower Customers
with the Right Tools
Offer Functional and
Emotional Support
SHERPA
TOOLKIT
2221
UNDERSTAND THE CUSTOmER’S
JOURNEY
Before your brand can truly guide, you must understand your
customer’s journey or path. Where are they trying to go? Ensure
that you understand the customer’s journey in order to answer
these questions and provide meaningful solutions.
ESTABlISH YOUR
ExPERTISE
Once the journey is identified, reflect on the value and expertise
that your brand provides when guiding that journey. Position
yourself as a thought leader in that area and offer information
that can help educate consumers and demystify the process.
24
THE SHERPA BRAND TOOlKIT
U.K. breastmilk replacement brand SmA
Nutrition understands what new moms are
going through. SmA provides emotional
support regarding concerns about the use
of substitutes for breastmilk and helpful
guidance and advice on baby care at key
stages. Additionally, customers can access
extensive resources for each phase of their
journey, including a live hotline, mobile app
and know-how help sheets and videos.
Apple “geniuses” are knowledgeable problem-
solvers for customers in the process of
purchasing, using or maintaining the brand’s
products. By providing accessible information
about complex questions related to technology
and troubleshooting, the “geniuses” offer
understandable solutions that put consumers’
minds at ease every step of the way.
90%of Genius Bar customers
are satisfied with the service
60%of consumers overall
would return to a store
after a positive customer
service experience
Source: NPD Group, 2012
90years of experience
understanding the
journey of new moms
Source: SmA Nutrition Website
23
EmPOWER CUSTOmERS WITH
THE RIGHT TOOlS
Greater value is something consumers look for in any brand.
However, from our survey, we also found that consumers prioritize
more information, solutions and expertise from brands to help
guide decision making. In addition, while Sherpa brands help guide
consumers, it’s important to remember that consumers want
to remain firmly in the driver’s seat. A good Sherpa brand helps
consumers navigate through decisions and encourages them along
their journey, but also allows them to revel in their achievements.
THE SHERPA BRAND TOOlKIT
Progressive provides effective and easy-to-use
guidance for customers through an array of
online and mobile tools that compare prices on
insurance and offer discounts for good driving.
These tools simplify the confusing process of
understanding and choosing car insurance.
After purchasing a Hellman’s product at a St.
marche grocery store in Brazil, customers
receive a personalized recipe at the bottom
of their receipt that uses what they purchased
that day as ingredients for the dish. These
suggestions enable Hellman’s to promote usage
of its products while guiding the customer
to cooking decisions that take advantage of
resources they already have.
Over
1 mIllIONpeople have tried
Progressive’s
Snapshot tool
Source: Progressive Website
Sales increased
44%in the first
month alone
Source: Hellman’s Press Release
2625
OffER fUNCTIONAl AND
EmOTIONAl SUPPORT
Your brand needs to do more than fill a need; it must also connect
on a deeper, more meaningful level. Sherpa brands are considered
trustworthy, high quality and reliable, and consumers who interact
with them feel satisfied, confident, rewarded and empowered by
their purchase.
lIvE UP TO
YOUR PROmISE
When it comes to values that consumers look for in brands,
trustworthiness, reliability and functionality are most important.
Your brand must deliver on all three in order to win consumers’
loyalty. Trustworthiness is especially important, as every mountaineer
wants to feel confident in their guide before starting the ascent.
THE SHERPA BRAND TOOlKIT
Weight Watchers, at its core, understands
the often difficult journey of weight loss. The
program recognizes the need for a trusted
partner along the path, and, above all, aims
to ensure its customers know they have a
strong support system that they can engage
via group meetings, a point-based weight-loss
toolkit and versatile apps.
As an online financial services provider,
mint.com handles millions of people’s sensitive
account information and has built a strong
reputation for protecting this data, solidifying
consumer trust. The service aggregates all
of a user’s accounts into one place, analyzes
spending to help identify opportunities for
savings and provides tools for setting goals.
Weight Watchers
customers lose
3xthe weight of a person
in a self-help program
People who lose weight
with other people are likely
to lose more weight
than on their own
Source: JAmA, 2003 and Obesity Journal, 2012
America’s #1personal financial service
provider with
10 mIllIONusers since launching
in 2007
Source: mint.com
2827
ExCEED CUSTOmER
SERvICE ExPECTATIONS
Your brand needs to have a strong foundation of knowledgeable
staff and accessible customer service along with open channels
of communication. How a brand interacts directly with a customer
is often a “make or break” moment in consumers’ minds.
THE SHERPA BRAND TOOlKIT
The “Barclays Connector” tool enables small
business owners to talk to others in the same
position and get authentic guidance from a
peer who has gone through the same process.
Through this feature, the company is crowd-
sourcing quality customer service that is
relevant to its account holders.
The card company has tapped into extensive
data about its customers to provide the best
and most tailored service possible worldwide,
24/7. When a customer calls, the service
representative sees deep background
information on the customer, including payment
patterns, in order to identify unscripted,
personalized solutions on the spot.
Grew at 3% CAGR
from 2009–2011 to have
785,000business accounts
in the U.K.
Source: Barclays Annual Report
#1in customer satisfaction
among all U.S. credit card
companies in 2012 for the
6th straight year by
J.D. Power and Associates
Source: J.D. Power and Associates
3029
ENABlE CUSTOmERS TO CElEBRATE
THEIR ACHIEvEmENTS
The best Sherpas guide people up the mountain, but let them enjoy
their achievement once the summit is reached. Your brand should
do the same. Empower and reward consumers along the way, but
emphasize that the goal was achieved by them alone.
THE SHERPA BRAND TOOlKIT
Nicorette emphasizes celebration of the little
steps that enable people to quit smoking
one cigarette at a time. The brand celebrates
achievement by chronicling every smoke-free day
and every dollar saved throughout the journey.
It also offers personalized advice and support to
quitters during the process.
vW is helping consumers in China celebrate
reducing their carbon footprints via the “Blue
mobility” smartphone app. The app makes it
easy for users to track and analyze their driving
behavior, access tips on curtailing fuel usage
and earn points toward an “eco-score” for
eco-friendly driving. When the app was first
launched, users could also compete via points
earned to win a trip to los Angeles.
Participating in
Nicorette’s Committed
Quitters program and
using the product
DOUBlESchances of success
Source: Nicorette Website
1.1 mIllIONdownloads, with
5% less fuel used
Source: volkswagen Website
3231
3433
ClOSING THOUGHTSToday, we see a number of values on the rise. People are looking for more control, prioritization, practicality, optimism and stability. But in today’s complex world, with its overwhelming amount of information and choices, people are demanding more guidance to help them achieve control, focus on their priorities and make better decisions for themselves that ultimately make them feel happier and more stable.
This demand for guidance has resulted in the emergence of Sherpa brands. Sherpa brands go further than just helping people navigate and simplify the decision-making process. Equally as important, they help people celebrate their accomplishments and goals throughout their journeys. This allows brands to play a more meaningful role in the lives of their customers, which results in greater brand trust and loyalty.
In a world where brands are trying to differentiate themselves and create stronger relationships with consumers, Sherpa brands are both the trusted partners that consumers rely on as they navigate through their journeys and the champions that celebrate consumer accomplishments along the trek.
ARNOlD STRATEGIC INSIGHTS GROUP
Arnold On is brought to you by the Arnold Strategic Insights Group. This edition is based
on the results of a global online survey of 2,400 adults conducted in December 2012 on
general attitudes and behavior, as well as on secondary research.
The Arnold On series provides analysis and consumer insights across a variety of topics,
and discusses their impact on how marketers communicate with consumers.
The content of this edition of Arnold On was developed by laurie Pocher, vP, Director,
Business Strategy; li Zhou, Analyst, Business Strategy; Sean O’Neill, vP, Director of
Business Strategy; Neela Pal, managing Partner, Global Director of Brand and Business
Strategy; and Brad Woodard, lead Designer.
If interested in further discussion or a workshop, please contact us:
lisa Unsworth
Chief marketing Officer
617.587.8242
35
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ATEGIC INSIGHTS G
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