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Shinmeikai "Strategic PR" [49]Is Corporate Value Determined by "Human Appeal"? ~Startup Corporate Value as Seen in Corporate Appeal Surveys~
Man, it's hot out there every day! This summer's heat seems to have arrived earlier and more intensely than usual... I don't mind sweating at work, but for someone like me who perspires easily, these temperatures are draining and tough. But you know what? There are companies out there that don't let that get them down—they're "hot" companies! This time, let's uncover the secrets behind these "hot" companies!
The 2nd Corporate Appeal Survey Results Are Out!
Our company, Dentsu Inc. Public Relations (commonly known as Dentsu PR), recently released the findings from the 2nd Corporate Appeal Survey conducted by our research institute, the Corporate Communications Strategy Institute. This survey analyzes corporate appeal based on three elements: "Human Appeal," "Corporate Appeal," and "Product Appeal." It surveyed 10,000 consumers across 150 companies in 10 major industries.
For details, please refer to the news release, but first, let me highlight what caught my attention! The survey presented the aforementioned "three elements × 12 items" and asked respondents whether they found each appealing or not. What immediately stands out is the overall increase in perceived corporate appeal. This seems to validate a point I've long advocated: "As products and services lose their USP (Unique Selling Proposition) and become indistinguishable, it's crucial to discover and cultivate fans of the company itself!"
Compared to last year, the total number of points for corporate appeal has risen to 103.5% overall. I believe this is clear evidence that consumers, who previously focused solely on products and services, are now increasingly viewing and evaluating the companies themselves. On the other hand, companies are also capitalizing on this trend, significantly strengthening their own information dissemination. They are succeeding in leaving a stronger presence in consumers' minds.
We must understand this as a new trend emerging in recent years, where both parties consciously recognize their "seeing and being seen" relationship and work together to elevate it. Initiatives like these, already leading in Europe and America, may well become the norm in Japan too.
Total Annual Change in Attraction Points Across All Industries
Visible "faces" foster reassurance, leading to fan loyalty
Among the three elements, "Human Appeal" was the one that most significantly boosted the total volume of corporate appeal points. It showed a year-on-year increase of 106.0%, higher than the 102.9% for "Corporate Appeal" and the 101.4% for "Product Appeal." So, what exactly is "Human Appeal"?
Here, "human appeal" refers to the charm conveyed by the "individuals" who make up the company—such as leadership presence, workplace culture, and responsiveness to social issues—and the charm projected by the "corporate entity" itself through its business activities. I often say, "Companies without a human face suffer greatly in communication." Even as an organizational entity, a company's identity is conveyed through "the president's statements," "the company's character," or "the demeanor of each individual employee who makes up the company."
Similar to the "Mr./Ms. So-and-so's Vegetables" labels often seen at supermarkets, it's only by perceiving the creator as a human being that we can finally stand at the threshold of genuine, heartfelt communication. In other words, the communication efforts of various companies to help consumers better understand their businesses across different layers may finally be bearing fruit.
Incidentally, among the top five factors that make a company attractive, three relate to "human appeal": "Leading the industry with a clear vision (1st place / 51.6%)", "Having trustworthy leaders/management (3rd place / 42.9%)", and "Having leaders/management full of a challenging spirit (4th place / 39.0%)". While these factors may seem distant from consumers' immediate criteria for purchasing goods or services, we are now in an era where such positive impressions of a company actually influence purchasing behavior.
The Human Appeal That Defines Startup Value
Looking at these survey results, I strongly feel that "startups, more than anyone, should leverage PR more effectively." Why? Because I believe it's crucial for startups to help people understand the "personality" of their founders. And PR is the method that can effectively support this. As you know, startups invent new products and business models through their unique ingenuity and strive to spread them throughout society. Their first task is to appeal to investors about how their business will succeed and scale, securing the initial operating capital.
While some startups may be fortunate enough to have their immense potential discovered and understood by the keen instincts of excellent investors, it must be said that the probability of Japanese startups actually securing the expected funding and successfully advancing their endeavors is extremely low compared to their counterparts in Europe and the US. I believe this inability to fully nurture the innovation born from such startups contributes to Japan's sense of stagnation.
Many investors say they "look at the people first," but are startups truly prepared to make a compelling case? Conversely, this survey results clearly demonstrate that such preparation is indeed essential.
Interestingly, when examining factors that attract investors by demographic attributes like age or gender, no significant overall trends emerged. However, the differences observed when comparing investors and non-investors proved highly intriguing. The factors where the gap was most pronounced were: "Management focused on innovation" (37.2% of investors vs. 27.5% of non-investors), followed by "Contributing to societal development or solving social issues" (40.7% of investors vs. 32.4% of non-investors), and "Management based on a strong corporate philosophy/vision" (investors 38.8% / non-investors 30.7%). Investors scored approximately 8 to 10 percentage points higher on each of these points.
Yes, these are all evaluations related to "personal appeal." While investors might seem to focus on assessments like "excellent growth strategy," "stable revenue base," or "potential for long-term growth" – factors typically included under "corporate appeal" – it seems that trust in the "people" involved remains a critically important investment criterion. As the saying goes, "investors judge by looking into the eyes of the management."
"Startups × PR" Will Change Japan
To elaborate on why PR can significantly contribute to startups, it's because most startups are inherently innovative. This means that simply presenting products or services to consumers often makes them very difficult to understand. Why? Because they are things consumers have never seen or heard of before.
Therefore, companies must clearly articulate the specific benefits these innovations offer to consumers in their current lives. Yet, this is often not done effectively. The same applies when communicating with investors. This is precisely where PR, skilled at fostering understanding, can be highly effective.
Organizing the founder's character, supporting their conduct to build trust, and then clearly conveying the contemporary value of the innovative products or services born from this—this is precisely PR's area of expertise. Building on such activities, once consumers are at a stage where they can smoothly accept these offered values, it would be appropriate to pursue major investment and advertising campaigns. But first, solidify your own position. Why not try the "power of PR" to achieve that?
Summary: Corporate value is determined by "human appeal"!
・Compared to last year, the total number of corporate appeal points increased to 103.5%.
・The factor driving this increase in total appeal points is "human appeal".
・"Human Appeal" refers to the charm conveyed by the "individuals" comprising the company and the "corporate entity" through its business activities, such as leadership, workplace culture, and responsiveness to social issues.
・For startups especially, gaining trust requires helping people understand the founder's "character."
・Startups, which often provide new value to society, must explain the specific benefits they offer to consumers today, thereby increasing understanding and empathy.
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Author
Iguchi Osamu
PR Consulting Dentsu Inc.
Executive Officer
Chief PR Planner
We handle a wide range of services, from developing data-driven corporate PR strategies to strategic PR for products and services, viral campaigns utilizing video content, and municipal PR. Proposes initiatives like "PR IMPAKT," which creates content likely to trend in news and social media, and "Information Flow Structure," which unravels information pathways across media. Over 30 years of experience in PR agencies. Recipient of numerous awards including "World's Top 50 PR Projects," "Cannes Lions Grand Prix," "Asia Pacific Innovator 25," and "Gunn Report Top Campaigns 100." Has served as a judge for numerous domestic and international awards, including Cannes Lions, Spikes Asia, SABRE Awards Asia-Pacific, PR Awards Asia, Japan PR Association PR Award Grand Prix, and Nikkei SDGs Idea Competition. Author of "The Essence of Strategic PR: Five Perspectives for Practice" and co-author of "Learning from 17 Successful Cases: Local Government PR Strategy."
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