WH inc. Spring 2021 Active Explorer Consumer Research

WELCOME TO THE VORTEX

Spring 2021 marketing research report on the Active Explorer audience

As marketers prepare for the great reset, we thought we’d check in with our consumer panel (in addition to our fellow marketers) to see how everyone is surviving after a year of pandemicinduced change. The good news? Our audience is feeling optimistic, a trait inherent in the Active Explorer (AE) audience. But what does optimistic truly mean in terms of how they are thinking, feeling, and interacting with brands?

Take a look at the insights we have gathered below:

Some background: Just who is this Active Explorer audience?

These are the customers you want. They are more active in all aspects of their lives. Our screening consists of educated, affluent consumers who prioritize healthy eating, exercise and travel.

They are not just the everything organic, handmade clothing, yoga types, though—they are representative of a mentality that seeks to capture a positive experience, continue to learn and live life to its fullest.

They are more brand-loyal, do more product and brand research and buy based on a quality-value scale. They are willing to buy the best if you prove it, but they are not so easily persuaded by typical advertising and promotions. They crave a value exchange with the brands they choose to bring into their lives.

Care and feeding instructions Active Explorers like to learn, experience and discover. They are intelligent and do not like to be spoken down to. They can spot inauthenticity and marketing speak a mile away, and as such, need to be treated with respect and engage in real value exchanges with the companies they support.

We uncovered six major insights from our audience and awareness of those insights will help you in your marketing efforts moving forward. Along with these key takeaways, there are a handful of microproof points to help you make good decisions, tailor your marketing and connect with the AE audience.

In this report we’ll dive into the following: 1. AEs did not remain idle during lockdown – they dove deeper into old hobbies and started new ones. Look at what piqued their interest and how you can drive value for AEs through their newfound hobbies.

2. Lockdown focused AEs desire to be fit, but we see equal weight placed on mental health as we do physical. How is your brand helping AEs become a better, more healthy version of themselves?

3. Social media usage has seen a surge in growth, but content for content’s sake is self-defeating.

We’ll examine what content AEs are seeking.

4. AEs have shifted the weight they put on specific values for themselves and brands alike. See what values AEs demand from brands.

5. AEs want to travel again, desperately, but have spent considerable time making their personal oasis more desirable so that the need to get away isn’t as dire. See how you can tap into these aspirations.

6. AEs are optimistic about the future and that optimism is growing and contagious. Harness that optimism!

Primary reseach was conducted in the Spring of 2021 with 300 active explorers and 60 brand marketers. This was compared to research we conducted in the Summer of 2020 with 240 Active Explorers. Additional data sources cited through the publication.

Questions specific to your unique business? Contact mjw@WH1969.com

INSIGHT 1:

A ROLLING STONE GATHERS NO MOSS The lockdown taught us all about the value of homesteading, sourdough starters, knitting, raising chickens and centering our lives around the home and family. The AE audience, many of whom transitioned to work from home, dove into new hobbies with the extra time saved by not having to juggle kids’ schedules or spend time commuting to and from work. While not surprising, this speaks to the mindset of the AE ALWAYS MAKING THE MOST OF LIFE. And now that their horizons have been broadened, we are going to see another surge in new activities that blend traditional AE activities like travel and outdoor adventure with some more of the home-centered hobbies and skills that have been acquired over the past year. We predict a move toward a do-it-yourself attitude and an increase in self-reliance not seen in years. AEs are no longer outsourcing every handyman-type job or having everything packaged up for convenience.

They now have know-how and confidence in skills of all kinds, from cooking (sorry meal kit delivery companies!), to building their own sheds and selfdirected online study.

AEs are spending more on hobbies and taking up new ones. Even though the pandemic shut down travel, AEs kept exploring in new ways, and we expect some of these ways will stick and broaden the landscape even more for activities to keep the blood moving.

I purchased a sword for the first time. It’s part of a new hobby of backyard cutting and swordsmanship that I’ve gotten into since the pandemic. I got into it from reading medieval history.”

Questions specific to your unique business?

Contact mjw@WH1969.com

Working from home has given me more free time to do the things I love.”

These two factors combine in our market opportunity score, which measures increased spending (whether the hobby is new or existing) combined with the number of people who have taken up the hobby in the past year. The biggest market opportunities exist for these activities, as they indexed high through the pandemic and AEs indicate they will remain relevant: Cooking Gardening DIY/Home improvements/Woodworking Gym workouts/Strength training Grilling/BBQ Running

Purchase intent and propensity 70% Spend more (purchase intent) Started new (propensity)

60% 50% 40% 30% 20% 10%

It’s no surprise that AEs are watching more TV and streaming movies (77% reported this), but they are also cooking more (57%) and doing socially distanced outdoor activities (37%).

Although 70% of AEs have been more active or maintained same level of activity, nearly half said they have gained weight in the past year.

Even more compelling is the breadth and depth of interests that AEs hold. This translates into the hobbies they have started anew in the last year, or on which they spent more money or plan to spend more money. Take a look at this eye-popping chart on what they have going.

Horseback riding

Waterskiing/Wakeboarding

Surfing

Climbing

ATV/Snowmobiling

Scuba diving/Snorkeling

Sailing/Boating

Motorcycling

Skiing/Snowboarding

Tennis/Pickleboard

Golf

Hunting/Fishing

Kayaking/Canoeing

Photography

Swimming

Biking

Hiking/Camping

Crafting/Painting

Running

Yoga

Grilling/BBQ

Gym/Strength training

DIY/Home improvements

Gardening

Cooking

0%

Implications for marketers Appeal to the sense of wonder and discovery and build on new confidences.

Create value with communications to encourage trial, participation and fight boredom. If you are a company that has had a boom during the pandemic, you need to work really hard on your loyalty programs and to keep delivering the new. If you are in the hospitality business, for example, ask how you can build on the home experiences and not just offer the alternative.

Questions specific to your unique business? Contact mjw@WH1969.com

INSIGHT 2:

MENTAL HEALTH IS BLURRED WITH PHYSICAL HEALTH, and Active Explorers are looking for support

As the pandemic plods along, behavioral health has gone from a condition that was often left undiscussed to one of the buzziest topics around—and a potent marketing category.”

- Ad Age, Jan. 27, 2021

Discussions of mental health have lost a lot of their former stigma. Since AEs have an acute awareness of their bodies, mental health is now viewed on par with physical exercise—and often the two go handin-hand. As the pandemic, political divides and general uncertainty have fed the mental monsters, AEs have flocked to apps like Headspace and Calm to increase their overall awareness and mindfulness practice while helping discover ways to navigate the chaos.

Not as good as usual. Mask wearing and lack of socialization has taken its toll.

Getting outside to hike or kayak helps.”

I’ve been more stressed and try to spend time outdoors to help calm me when I’m feeling anxious and overwhelmed.”

AEs are using exercise to improve their mental health through running, at-home gym workouts, indoor bikes (like Peloton), rowing machines and treadmills. They are also pursuing meditation and yoga with some success. Others turn to therapy and medication, while some say that prayer helps.

I started doing meditation to help with my mental health and it has helped me cope a lot with all the different changes throughout the pandemic.”

My mental health has deteriorated as I am feeling more stressed and more easily agitated. I am also sleeping less well. What has helped my mental health is doing meditation for 10 minutes each day, plus a minimum of 30 minutes of exercise.”

Questions specific to your unique business? Contact mjw@WH1969.com

“Zoom fatigue” is certainly a factor to take into consideration (do you really want to add in one more video meeting?), but when we asked our audience about it, they seem to be coping rather well with only 6% reporting that they felt very fatigued. 80% of those surveyed are in the range of neutral to managing it well. How can product marketers use this newly accepted means of communicating? How can product marketers make the most of an in-person experience?

I have to attend a lot of meetings....I am tired at looking at myself on the screen.”

I don’t have strong feelings for video calls, but they’re necessary for my business.”

I have no issues with this. I find it a great way to keep connected at work while we are all remote.”

Implications for marketers Marketing can often be viewed as added noise in the world. “Buy Now!” messaging creates a sense of urgency, and a relentless goal of making a sale can often contribute to the overwhelmed feeling AEs report. Instead, why not use your marketing and content to create a sense of calm and deliver an experience that is fresh and inviting instead of pushy and demanding? Think about ways in which your brand can be a catalyst for taking care of mental health and can heal people from the chaos going on in the world. Not every brand is going to be able to partner with Headspace for a collab, but think about what you can deliver that adds to the increased awareness of taking care of one’s mental health. Most of all, become a brand that shows empathy, but please don’t do those dark piano commercial vignettes that say we are all in this together!

How would you rate your feelings about Zoom fatigue or screen fatigue either from personal or professional use of video calls right now?

6% 14%

43%

20%

17%

Very fatigued Some fatigue Neutral I’m hanging in there I’m managing it well

Questions specific to your unique business? Contact mjw@WH1969.com

INSIGHT 3:

SOCIAL MEDIA IS A CRAZY PLACE It’s no surprise that social media usage is way up. Active Explorers, remember, take in more of everything. Over the past year alone, numbers have skyrocketed and you can read about that all over the internet and in the media. What is important for our AE audience is that they want to get something substantial from social media—and not just entertainment value.

Marketers are focusing on, and investing in, these channels:

74% 72%

Direct to consumer

Paid social

As we learned in our marketer report, 74% of brands are investing in direct-to-consumer marketing and 72% are increasing their paid social budgets. An Accenture report also stated “customers have neither the time nor desire to manage one-to-one relationships with all the brands with which they do business.” What this tells us is that brands are going to have to work a lot harder to be relevant on social platforms for fear of getting tuned out.

Although when specifically asked about messages from brands, 70% of AEs do not want political messages and 64% want diversity and inclusion messages.

Implications for marketers Create content that AEs can learn from.

Work hard to create communities of fans, ambassadors and loyalists. Ask yourself why someone would be interested in what you’re sharing—and look to simply cut marketing programs that are floundering or that you can’t devote the right resources to in order to stand out.

Also, as consumers change their targeting preferences, and Facebook and Apple tighten their reins on targeted ads, brands that are adding value in the world will triumph over the brands that are simply looking to make a quick buck.

Over half of AEs are using social media more now and generally use the same sites. AEs enjoy and want these types of content (in descending order) from brands: Product how-to and usage tips Reviews Helping others Product offers Social issues Events Political messages Influencers Bloggers

46% 45% 37% 35% 34% 29% 20% 18% 18%

Questions specific to your unique business? Contact mjw@WH1969.com

INSIGHT 4:

RECENTERED

Perhaps one gift of the pandemic is we all had time to stop and reflect, reset our values and understand what is important. While “real” brands with real products have always been relevant to the AE, the importance of values that brands portray shifted from authenticity to a deeper personal connection, with family and honesty topping the list. This is based on the overall political climate as well as the pandemic crisis, centering people on what truly is important in their lives when the rest of the hullabaloo is stripped away.

Brand values Achievement 3%

Adventure 2%

Belief 1%

Challenge 2%

Connection 3%

Curiosity 2%

Discipline 2%

Discovery 2%

Ethical 4%

Honesty 10%

Personal values

Helpful 4%

Innovative 1%

Achievement 1%

Enduring 1%

Adventure 1%

Nurturing 2%

Belief 1%

Openness 2%

Challenge 2%

Optimistic 4%

Connection 3%

Original 2% Innovative 1%

Curiosity 1%

Discipline 1%

Value 2%

Discovery 1%

Ethical 6%

Helpful 4% Innovative 0%

Simple 1%

Fairness 3%

Honesty 17%

Respect 7% Caring 7%

Spiritual 4%

Enduring 1% Nurturing 0% Openness 3%

Understanding 4%

Optimistic 4% Original 2%

Real 2%

Family 15%

Higher purpose 3%

Innovative 1%

Equality 3%

Value 2%

Simple 1%

Fairness 4%

Implications for marketers

Caring 4%

Speak to the values you can represent authentically. Use the lens of “family” when creating your messaging. Although we should not even have to speak about honesty, its importance jumped out in our panel research.

With all of the tumult in the world, AEs are crying out for honest and genuine messaging.

Respect 7%

Spiritual 2%

Understanding 2% Real 2%

Higher purpose 3%

Family 20%

Equality 3%

Questions specific to your unique business? Contact mjw@WH1969.com

INSIGHT 5:

GOTTA GET AWAY

(or make it not so dire to have to get away) On the precipice of the great reset and re-opening, people are still split as to whether they want to get away or keep adding to their personal oasis. Our take is that there is an appetite to travel and that people are still appreciating their Active Exploration of home, too.

When asked about their favorite purchase in the past year, technology, cars and exercise equipment are dominant categories. Within technology, mentions include Airpods, Apple Watches, phones and TVs. Some mentioned car purchases, something they had researched and negotiated for extensively. Exercise equipment was the most frequent purchase, including indoor bikes/stationary bikes/Peleton, rowing machines and treadmills.

Shoes were a common response as well—both running and fashion. Other common answers included furniture/home furnishings, campers/RVs, motorcycles/dirt bikes and kayaks.

Which of the following are you shopping for or researching as you plan ahead?

61% 56% 49% 29% 24% 12% 10%

Travel plans to get away

Home improvements (indoor)

Backyard improvements

Functional foods to boost immune system Pets - buying for

Outdoor heating

Pets - adopting or owning a new pet

Questions specific to your unique business?

Contact mjw@WH1969.com

When asked about what they are shopping for now or researching to purchase later, travel is on many people’s minds. Close behind are home improvements, both indoor and outdoor, because who isn’t tired of seeing the same stuff at home?

Implications for marketers Non-travel brands should think about how they can deliver travel-like experiences at home as well as what they can deliver travel brands and destinations.

Travel benefits • Connect with other cultures • Experience the adrenaline of physically challenging activities • Learn new skills • Experience joy • Share experiences with family and friends • Realize freedom • Understand and appreciate others • Improve communication skills • Broaden your horizons • Boost your confidence • Get real-life education • Make memories • Understand yourself

INSIGHT 6:

THE GLASS IS STILL FILLING UP Active Explorers are an optimistic bunch by nature.

They view the world as an experience to be had and they seek out opportunities to learn more, do more and be more. It’s second nature to think about what’s next and to be looking forward to it. It comes as no surprise to us, now that vaccines are rolling out, the election is over and there has been an awakening of social justice, that people are feeling like things are getting better.

Optimism and opening up AEs express their level of optimism currently (on scale of 1 to 10) as an average of 7.2.

7.2

When asked what they will do first when life and businesses open up and/or they are vaccinated, most want to travel, while others want to dine out in a restaurant or go to a concert, sporting event or the movies. Many want to visit family or gather with friends (which is consistent with the values question)…although some (more than anticipated) say they will not get vaccinated.

I would love to travel the world with my family and friends.”

I’m in a place where some restrictions are still in place, but for the most part, we’ve been out since June 2020— practicing social distancing and with our masks. We’ve even traveled to dance conventions and our sixth grader has been in school.”

On a scale of 1-10, how optimistic are you about 2021?

Questions specific to your unique business? Contact mjw@WH1969.com

I just want to enjoy a meal in whatever restaurant that hasn’t gone out of business... though my three favorite places to eat are permanently closed.”

I don’t plan on being vaccinated and restrictions are lifted already. I’m living my life.”

Implications for marketers Optimism is powerful. It can change the world and paint a bright future. By embracing new ways of doing business, letting go of baggage and antiquated practices and meeting consumers where they want to be, you have an opportunity to thrive in the brave new world.

Consumers are already planning ahead and connecting with brands that provide them with value, show them new experiences and offer a sense of optimism. Be the water that is filling the glass—things can only get better.

FINAL WORDS As we all prepare for and embrace the great reset, brands have an opportunity ahead of them to focus on messaging, try some new things and become closer to the elusive AE audience. If you authentically participate in the value exchange with this audience, your rewards will be loyalty, margin and reduced churn. By nurturing your communities and delivering marketing that is part of the solution, you’ll be a part of the great reset and not just noise.

Questions specific to your unique business? Contact mjw@WH1969.com

wh1969.com