A recent whitepaper by Deloitte for Facebook has found that only 17% percent of Australian marketers are focusing on brand building as part of their marketing strategy.
23% said their primary focus was increasing revenue sales over brand building, 18% was building customer engagement and 17% increasing market share. As a result, 22% of marketers said their brand has stagnated or declined over the last 12 months according to the report.
Kareene Koh from Deloitte Digital, said failing to recognise the importance of brand comes at a cost to business. “Our survey found that businesses whose brands stagnated over the past year also saw their revenues fall by 13 per cent on average over this period,” she said.
“I’ve worked in many industries over the years, and if you stop investing in brand to get a very short-term outcome, you might not see the results in three months or six months, but after a while you will see your brands start to decline,” she said.
Kareen also said “On average, you will have to spend twice as much to get that brand value back to restore your sales outcome.”
Businesses need to be able to grow, sustain and thrive in a rapidly changing technology environment. If brand activity is not consistent and keeping up with changing consumer behaviours, revenue will decline.
We think there could be a few reasons why revenue has declined. As marketers are so focused on content and engagement to get stats to show their boss, the quality of content has suffered. Brand building has taken second stage, and instead of prioritising quality over quantity we’re happy to forgo authentic content pieces to make way for a sea of average content. In an age of limited resources, where CRM is king and capturing leads our battleground, it would be wise to maintain a balanced strategy of equal parts.
Review your current marketing and brand strategy, survey your customers (and staff) to see how you’re tracking and adjust the focus. Otherwise you’ll have to spend twice as much on your brand to catch up with your competitors.