AdExchanger Talks: Back To Marketing Basics, With Back Market’s New CMO

Podcast Information:

• Title: AdExchanger
• Host/Author: AdExchanger Talks
• Episode: Back To Marketing Basics, With Back Market’s New CMO
• Release Date: October 22, 2024

1. Introduction

Alison Schiff, Managing Editor of AdExchanger, welcomes Joy Howard, the newly appointed Chief Marketing Officer (CMO) of Back Market, an online marketplace specializing in refurbished and secondhand electronics. Joy brings a wealth of experience from prominent brands like Patagonia, Sonos, and Nike, setting the stage for an insightful discussion on Back Market's innovative marketing strategies and commitment to sustainability.

2. Joy Howard's Personal Journey

Joy Howard opens up about her eclectic background, sharing that she was part of an indie shoegaze band in the 1990s named Sealy S. Despite modest ongoing royalties, Joy highlights her transition from music to the business world, emphasizing how her creative past influences her strategic approach in marketing today.

“I think a lot of people don't know that I was in an indie band in the 90s... I went to business school and stopped being a professional musician.”
[02:29]

Beyond music, Joy founded and successfully sold Early Majority, a gender-neutral outerwear brand. The brand focused on simplifying outdoor clothing by designing versatile, gender-inclusive layers, challenging the industry’s trend of product proliferation.

3. Transition to Back Market

Alison probes into Joy's move to Back Market, curious about shifting from large consumer brands to a marketplace for refurbished electronics. Joy explains that Back Market perfectly aligns with her passion for building cultural brands that resonate with contemporary societal trends.

“It's a mission-driven company... we make [their] growing more positive our environmental impact.”
[26:29]

4. Back Market's Marketing Strategy

Joy outlines Back Market's dual objectives: making refurbished electronics accessible and safe for consumers while promoting environmental sustainability. She emphasizes leveraging cultural movements toward sustainability and frugality to reshape consumer behavior.

“For 99% of what you do with your technology, an older model is actually just as good.”
[09:16]

5. Overcoming Consumer Resistance

Addressing the challenge of convincing consumers to opt for refurbished over new products, Joy discusses tapping into the widespread fatigue with relentless upgrade cycles. She highlights strategies to educate consumers on the adequacy and benefits of older models, both financially and environmentally.

“People are being told they have to have the newest model phone... they are getting tired of it.”
[09:16]

6. Sustainability Efforts

Sustainability is at the core of Back Market’s mission. Joy shares compelling statistics, such as refurbishing a smartphone producing only 15 pounds of CO₂ compared to 191 pounds from manufacturing new ones. She underscores the company's dedication to combating climate change through responsible consumption.

“Manufacturing a new smartphone produces 191 pounds of CO2 and refurbishing a product creates like 15 pounds of CO2.”
[23:55]

7. Specific Campaigns and Marketing Tactics

One of Back Market’s standout initiatives is the "Downgrade Now" campaign. Launched in September, this out-of-home advertising effort encourages consumers to purchase refurbished devices by showcasing older models with the provocative tagline “Downgrade Now,” challenging the industry's push for constant upgrades.

“If you're thinking about selling your 14, it's never going to be as valuable as it is for the next two weeks.”
[16:12]

8. Media and Advertising Strategies

Joy elaborates on the strategic choice of out-of-home (OOH) advertising to build trust. She contrasts OOH with digital platforms like Meta and Twitter, which she considers less trustworthy for conveying Back Market’s mission. Instead, Back Market focuses on media that fosters trust and effectively captures consumer attention.

“Out of Home builds trust... people kind of feel like, oh wow, if they're on the super bowl then they must be legit.”
[34:21]

9. Data and Personalization

Personalization is pivotal in Back Market’s approach. Joy discusses leveraging first-party data to understand consumer behavior, such as knowing which device a customer currently owns. This data drives personalized recommendations and enhances customer experience through informed CRM strategies.

“The most important thing for us to know is actually what device they have right now.”
[18:11]

10. Challenges and Future Outlook

Joy addresses the complexities of transforming consumer perceptions in the US market, which remains more resistant to secondhand electronics compared to Europe. She also touches on the ongoing Right to Repair movement, advocating for regulatory changes to support the sustainability of refurbished products.

“Why wouldn't you [replace a phone battery]? And by the way, all of the fighting that we've been doing for right to repair is finally having an impact...”
[50:18]

11. Closing Remarks

The conversation concludes with a personal exchange about smartphone choices, reinforcing the podcast’s themes of sustainability and responsible consumption. Joy’s commitment to Back Market’s mission highlights the potential for impactful marketing to drive positive environmental change.

“Down with planned obsolescence. And everyone should go listen to Celie and earn Joy some royalties.”
[51:22]

Key Takeaways:

• Mission-Driven Marketing: Back Market integrates sustainability into its core strategy, positioning refurbished electronics as both economically and environmentally beneficial.
• Trust-Building Media: Emphasis on out-of-home advertising to establish credibility and trust with consumers.
• Personalization Through Data: Utilization of first-party data to deliver tailored recommendations and enhance customer engagement.
• Challenging Industry Norms: Campaigns like "Downgrade Now" disrupt the conventional push for constant upgrades, advocating for a more sustainable consumption model.
• Cultural Adaptation: Strategies tailored to different markets, recognizing the varying consumer attitudes towards refurbished products between Europe and the US.

This episode of AdExchanger Talks offers an in-depth exploration of how Back Market, under Joy Howard's leadership, is redefining marketing strategies to promote sustainability and reshape consumer behavior in the electronics market.