Branding accuracy is especially important now as companies manage the impact of the coronavirus pandemic in the early stages of consumer decision making. While much remains to be seen, it can be assumed that data-driven performance marketing will give marketers an edge when it comes to effectively reaching their target groups during and after a pandemic.
According to a consumer survey conducted in June 2020 in the UK, 71% of British consumers have tried new buying behavior, 37% of respondents admitted to switching their “go to” brands through Covid-19. As these habits develop further, orderly marketing performance management and granular data analytics will be essential for brands to stay connected with their customers and drive marketing ROI.
What is ROI in simple terms
ROI is a measure of your return on investment. An investment is understood as any business expense. It includes salaries of employees, rent of premises, advertising costs, and purchase of furniture and office supplies, etc. However, interest on a loan taken for business development is not included in these costs.
Often the ratio is calculated in relation to the company as a whole in order to understand whether it is unprofitable or profitable. However, it can be determined for individual areas of the firm’s activities. The most popular example is evaluating the effectiveness of marketing activities based on ROI. In this case, we are talking about ROMI – return on marketing investment. When calculating, only the amount spent on marketing is taken.
Here’s an example to illustrate how ROI works. Suppose a company wants to launch a loyalty program, but is not sure about its effectiveness. ROI will help determine the profitability of the event. After the program starts and the first data suitable for analysis appears, the coefficient is calculated. If its value is positive, then the event should be continued, if negative, then it is better to close it.
The ROI formula applies to PPC advertising, sales, TV ads, and even handing out flyers and posting street ads.
The coefficient is calculated to make the right management decisions, as well as in order to protect yourself from ineffective spending of money.
What is a brand
A brand in the modern world includes all consumer associations that arise in connection with a product as a result of gaining their own experience, public approval and advice from others. The consumer’s consciousness forms an image that combines various characteristics of the brand associated with its name, symbol (Nike logo), packaging (the shape of a Sosa-Co1a bottle), advertising character (Quiky rabbit, Nesquik), melody, organization of communications at the point of sale, experience of previous purchases and the degree of satisfaction with the quality of the product, as well as the feelings and emotions evoked by the advertising slogans.
Unlike products, brands are not created in production, they are formed and exist in the minds of consumers, providing an emotional connection between their perception and the functionality of the product. A brand is a collection of real and virtual opinions expressed in a brand that, if properly managed, creates impact and value.
What is branding
Branding is a component of the marketing activities of enterprises, both commercial and non-commercial, operating in a free market and competitive struggle for their consumers. The development of the capitalist economy has led to a significant excess of supply over demand, when the goods and services of many firms compete to satisfy the same need and, accordingly, the attention of the consumer.
Branding is a complex impact on the consumer of various elements of promotion (advertising, public relations, sales promotion, direct marketing, corporate identity, special events, etc.), aimed at creating a holistic and sustainable image in the minds of the consumer audience that identifies the trademark and distinguishes it from competitors in the market.
Correct branding and its basic elements
Performance branding is a discipline as successful and rigorous as other more mainstream performance marketing practices. One of the benefits of demand shaping and performance branding is that they help businesses overcome an established outdated mentality. Until recently, different parts of a marketing organization used different tools and data to review their cases. While brand managers have referenced marketing mix models to justify a larger TV budget, digital marketers have relied on attribution models to showcase record returns on search engine marketing investments. Performance branding helps business companies create synergies between different elements of the marketing mix, such as offline and online, or between sales promotion and investment in brand perception.
However, in order to take full advantage of its benefits, it is necessary to significantly change marketing practices towards greater flexibility and accuracy. The main elements of this include:
- The only source of truth that everyone agrees with and good data. Trusted data begins with the creation of a Customer Data Platform (CDP) that includes data from internal sources, external partners and third parties on a per-customer and per-customer basis and provides links to execution platforms. CDP must be designed and managed by a trusted team that can monitor data integrity as the only source of truth for the business. As important as developing understanding, making it available through dashboards that finance and finance leaders can easily access is an important opportunity to help stakeholders develop confidence in marketing’s ability to drive growth.
At the same time, as the ability to track customer preferences improves, it is important that a business first needs to establish, follow rigorous consumer consent management approaches and tools. it is necessary to ensure that the use of this data is in full compliance with all relevant rules, laws and consumer expectations.
- Agile operations to move quickly and learn. This allows teams to introduce more creative content variations, make tactical decisions quickly, and use knowledge to continually improve proposals. Marketers need to adhere to a rigorous training and testing regimen to ensure that new ideas based on changes in consumer behavior and technology are incorporated into performance branding programs.
- Close cooperation with trusted agencies. Marketing teams will not decide the transition to effective branding alone. This requires them to build an ecosystem of best-in-class partners to leverage the right data sources, leverage specialized technologies and analytics for key use cases such as dynamic creative execution, cross-channel ROI, and data integration. In addition, the way you work with your existing creative agency and media partners will be closer to making change with much greater frequency.
When first introduced, performance branding is often met with resistance and skepticism from both agencies and marketers. But when the value of this new technical capability is clearly demonstrated, businesses may find themselves rapidly transitioning to use it.
Long-term changes in consumer behavior
The COVID-19 pandemic is likely to forever change consumer behavior and bring about structural changes in retail. This is evidenced by the results of a study by Accenture, conducted among 3,000 consumers in 15 countries. The study was conducted in early April, when many countries were already in self-isolation.
Analysts’ findings indicate that consumers have begun to shift their shopping priorities. For example, respondents said they are currently buying more personal care and cleaning products, as well as canned and fresh food. At the same time, people began to buy less clothing, beauty products, and consumer electronics.
The findings indicate that many of the changes in consumer behavior caused by the pandemic will continue over the long term. In addition, the crisis is forcing people to take their health and the environmental impact of shopping more seriously.
- 60% of respondents began to spend more time taking care of themselves and their mental well-being, about six out of ten consumers (57%) began to actively engage in sports at home;
- 64% of consumers have begun to pay serious attention to reducing food waste, and plan to do so in the future;
- 50% of consumers began to make more purchases for health, and will continue to do so in the future;
- 45% of consumers have become more rational in their purchases.
The scale of the changes identified indicates that they will have a long-term effect. Without exposure to the virus, these processes would take years. It can be assumed that this consumer behavior will last longer than 18 months, or perhaps most of the new decade.