August 12, 2020
As companies continue to redevelop their brand strategies, we’ll take a look into what brands are finding the most powerful in 2020.
Today, brands are now reducing their risk by strategizing actions to accommodate changes in consumer behavior in the digital age. McKinsey’s The Future of Brand Strategy: It’s Time To Go Electric sets the foundation for what companies are planning as they continue to focus more intently on their digital efforts. We break down the main focal points brands are establishing to continuously stay ahead of the competition and drive revenue.
Going Online = Going Electric
With the rapid change of consumer behavior, brands are starting to see drastic changes around what their customers are looking for. Today, consumers are able to switch from brand to brand without looking back. According to McKinsey’s The Future of Brand Strategy, “Risk reduction is the most important brand function by far, well ahead of image benefit and information efficiency. A strong brand radiates trust and shields shoppers from the risk of making the wrong choice,” (McKinsey, 2020). The new standard of brand trustworthiness is starting to reveal itself as companies build into the digital world. In order to stay parallel to these changes, companies are now relying on data and analytics to effectively communicate with their customers and keep their loyalty.
Brand Powers: Science, Art and Craft
Brands are relying on three powers to continuously outperform their market and stay ahead in the game. Behind the power of science, brands must capture consumer sentiment, agility and personalization to cultivate solid relationships and forwardly drive revenue. They must be aware of how their company is being perceived online and stay close to the customer throughout current events to gauge a connection. Along with this, brand’s must stay creative to consistently outperform their competitors. McKinsey states, “We find that successful brand campaigns embed their messages in stories that touch, thrill, or amuse their target audience. Increasingly, consumers also expect their favorite brands to create value beyond product benefits,” (McKinsey, 2020) which goes into harnessing creativity to go beyond the product.
Lastly, brands must center their craft on a common purpose. Consumers will notice when a brand sticks or breaks their promises and will form decisions quickly on those actions. It’s important to be transparent and keep company values in focus, especially in the online world.
The unexpected is now something unfeared. We’ve seen brands take different actions to improve their business development and operations strategies during COVID-19, and they’re now well-equipped to reach consumers online. McKinsey’s report shows how brands are able to spring back to life after a series of global drawbacks, and we’re ready to see how these companies will take advantage of the new opportunities in the digital space.