Until relatively recently you might have mainly heard the word populism in association with politics. Politicians who have used popularism to boost support have littered political history and continue to do so.
The rise and effect of influencers on social media has been embraced by marketers. And for good reason. According to the findings reported in Business Wire of a study conducted by Matter Communications, 69% of consumers are likely to trust influencers over traditional advertising? The earning potential of those who can garner enough support to qualify as an influencer is not insignificant. So finding new tactics to boost audiences is a natural progression.
In this blog I look at the impact of populism on business. The transition from influence through personal branding to populism and the potential gain and risk to business of aligning with influencers using such a strategy. But first lets take a look at what is meant by populism and how it relates to business.
What is populism and how does it relate to business?
According to the encyclopaedia Britannica, populism as it relates to politics, “champions, or claims to champion, the common person, usually by favourable contrast with a real or perceived elite or establishment.” In short, it creates a persona that pits one group in society against another.
Populism relies on a detailed understanding of what matters to people and what their triggers are in order to garner support. In business, this would involve influencers exploiting detailed customer profiles. Profiles provided by software offering algorithms that deep dive in to consumer concerns, behaviours, politics and interests.
By characterising themselves as a spokesperson on the customers side business populists are able to present themselves as the solution to their needs in contrast to the competition. It might involve promoting misinformation about the competition or concern where there might be no issue.
Populism in business is not a new concept, just a rare one until relatively recently. Arguably Henry Ford, in the US represented a populist who presented himself as a man of the people while adhering to conspiracy theories which polarised sections of the population.
Business populism today
Social media has enabled people from across the world to build profiles and a following sufficient to call themselves influencers. While businesses leveraging the power and audience of influencers has led to a lucrative industry for those involved. This means the business model for an influencer on social media is based on drawing ever bigger audiences to their accounts.
Becoming a business populist is perhaps a natural progression for influencers who vie continually for more attention online.
Personal branding versus populism
There is a difference between self promotion through personal branding and populism in business. Richard Branson is not a populist. He is adept at building his brand around his own self image which he has carefully and successful cultivated over the years. His public persona is well recognised and represents the companies under the Virgin brand. His focus has always been on publicity stunts, such as hot air balloon travel and supporting public interest stories.
By contrast, a business populist creates a partisan position which typically aligns with some while alienating others. Elon Musk is perhaps the most high profile example of an entrepreneur who has transitioned from a powerful influencer with strong personal branding to populism.
What are the potential gains of populism in business?
Businesses which choose to align with populists can reap significant rewards. They may carve a niche for themselves in the market and limit their competition. If the market they target is high income this may prove a lucrative option. They benefit by association with the populist. This is important since the populist is able to identify with the story of their customer, their fears and concerns whether real or fabricated.
What are the potential risks of populism in business?
By aligning with the populist a business might also adopt their views by association. This would lead to alienating an often significant proportion of the population. Such a marketing strategy, if not carefully managed, is unlikely to bring a long term benefit. A business may have to pivot quickly when public opinion changes. A target market in business is unlikely to be an homogenous group. Depending on how focused the position of the populist the message may not resonate with the entire market.
The main risk here is people tend to not forget easily the damaging effects of alienation.
And finally….
Influencers in business marketing are on the rise. Going viral with a convincing product recommendation from an appropriately selected influencer is the kind of marketing business craves. However, when you move in to the incredibly influencial field of business populism, there’s a kick back. Controlling the message and taking care not to be untentionally damaged by the position of the populist will determine the success of any marketing strategy.