Kevin Roberts talks about walking the walk on the Consumer Republic

By Tony Koenderman, first published in AdReview 2009

Kevin Roberts will never forget what Yoshi Ishizaka, the head of Toyota, told him ten years ago. “You will never know more about cars than Toyota,” he said. “But we will never know more about the people who buy them than Saatchi & Saatchi.”
For Roberts, the agency’s worldwide CEO, it was both a tribute from one of its biggest clients, and an acknowledgement of the key role that each plays in the relationship.
“As we move into the Attraction Economy, knowing how consumers feel and having insight and foresight to develop great ideas that drive them to action will be a key success factor for any agency,” Saatchi’s worldwide CEO says. “The winners will be those who devolve from hierarchy, process, brands and old models to truly walking the walk on the Consumer Republic.”
An English-born rugby-loving New Zealander who now lives in New York, Roberts’ personality presents an interesting mix of intensity and informality, of thoughtfulness and action. Under his leadership, Saatchi & Saatchi has recovered its original vitality, and the New York agency was the Cannes Lions Festival’s agency of the year in (year). Saatchi & Saatchi is part of Publicis Groupe, Europe’s largest, and the world’s fourth largest communications group
Roberts is under no illusions about the impact of what looks like being the worst economic crisis in a century.
“This is not a recession or a depression,” he says. “It’s a catastrophe.  The world has been living on credit for a decade and it has all come to a shattering stop.  The bankers, economists, politicians and experts are running around in ever decreasing circles trying to explain what happened and what will happen.  I don’t think they have any idea.
“Our reality is that no one has any money and we will all have to adjust to living within our means; a new thought for anyone under the age of 35.
“2009 will be difficult but as the French say Nous croyons en l’homme:  We believe in mankind.  People will adjust to the new reality; there was a terrific poster developed in 1943 in the UK when World War II was creating havoc.  It said, “Keep calm and carry on.”  That’s what we all need to do today.  We should avoid cataclysmic pendulum swings in our communication planning and marketing efforts and focus instead on delivering priceless value to the consumer.  Everyday.  Everywhere.
“The post catastrophe world will be driven by sustainability, authenticity, trust, love, and new ideas.”
Agencies are well positioned for this new dynamic, in which the consumer is boss, Roberts believes.
“This new world will revolve not around information and knowledge (these will be table stakes) but around ideas.  The Age of the Idea is upon us because the consumer is insisting on innovation, vitality, transformation and change that make her feel more secure and happy.  To create Loyalty Beyond Reason, agencies will have to move from being directors to becoming connectors, and to creating Lovemarks not brands.”
How are traditional brands changing under this pressure from, among other things, a new generation of consumers who don’t obey the old rules?
Roberts is emphatic. “There are no rules in the new Consumer Republic. The customer wants to be inspired and entertained, not simply informed.  She wants to be engaged and involved, not yelled at and told.  A core concept of Lovemarks is the notion that they don’t belong to the companies that manufacture them or the retailers that sell them; they belong to the people who buy them.  Giving up control of the brand is anathema to most companies.  But this is a prerequisite for success in tomorrow’s world.”
This doesn’t mean “brand loyalty” is an oxymoron, or that loyalty doesn’t matter any more. It does. “In this turbulent world where no institutions can assume trust as a matter of course, loyalty matters more than ever before.  But it is much more difficult to secure,” Roberts avers. “Gone are the days when product performance, price, quality, or value were discriminators to create real loyalty.  These are now basic table stakes in all categories.
“The objective we must pursue is to create Loyalty Beyond Reason, beyond price, beyond attribute and to create priceless value for consumers.  This requires a mixture of sustainable, functional, competitive performance and quality, combined with emotional authenticity, and magic.”
Roberts was talking to AdReview shortly before his scheduled attendance as guest speaker at the AdReview Awards. His visit underscored the importance the network places on doing business in Africa.
“Africa is important to us because it is important to our clients,” he points out. “We have a strong belief that the role of business is to make the world a better place for everyone.  Ignoring the African consumer is no longer an option.  Growth is stalled throughout much of the world; the opportunity to grow in Africa by putting the African consumer at the heart of everything we do is enormous.  It is challenging, exciting, difficult and a real priority for us.”
In South Africa, he says, Saatchi & Saatchi is a company on the move. “The leadership team is committed, passionate, flexible and focused.  We have strong international clients here and a real desire to do more locally.  Creatively, South African has always been a hotbed of talent and I see no reason why this will not continue going forward.
“I hope we can attract a lot of tomorrow’s digital talent into the agency as well as those folks that really care about sustainability.  Helping turn South Africa into a True Blue nation in sustainability terms to complement the rainbow positioning is something that excites me very much.  And challenging the Springboks for Rugby World Cup 2011 in my New Zealand home country is also stimulating in the extreme.  There is no more passionate relationship in rugby than the Springboks vs. the All Blacks.”
Clearly, Roberts believes in change, and his restless style has guided the agency through two transformations already.
“When I joined the company 11 years ago we shifted our focus from advertising to ideas.  From this, Lovemarks developed and the next step will be to underpin the Lovemarks philosophy with real True Blue sustainability.
“The agency is dedicated to creating world changing ideas that create sustainable growth for our clients. Reinvention and transformation are what consumers demand and what clients need.  We will do our best to deliver both.”