Consequences of resisting to change

Posted: May 12, 2013 in Business

Martin Sorrell claimed in November 2009 that brands were not investing into digital marketing because “the people who run their agencies are too old and resistant to change”.

Now it’s 2013 those people have certainly adapted to change but now we’re in a new phase where it’s in many cases preferred to access online products and services through Facebook or mobile by consumers. Those brands who are prepared to act fast on customer demands and trends embracing new platforms by converting their online product or service onto the likes of iOS, Android and Facebook will reap the benefits, but for those brands who are wondering why their customer volumes have been declining in the last 12 months whilst their competitors have an aggressive social and mobile platform strategy need to understand that by not taking risks at all is far more risky than taking risks by investing into a long term strategy.

Years ago a brand could spend their way through hard times to fill new customer levels at a respectable CPA without the need of a half decent product and customer service team, but nowadays unless you have a product which is in demand across multiple platforms and more importantly address customer service issues, your brand could go from hero to zero like a rat up a drainpipe.

As digital media costs are increasing more than ever due to biddable media, various departments have to start supporting acquisition marketing teams more than ever in order to maximise ROI whether customer service via social media or creative, CRM, product development and data analysis – serving billions of banners and optimising relentlessly will only go so far.

As volumes decreased for, there was an option of either continuing that trend or making a bold move to re-structure the business putting around 90% focus on social media platforms. Within a year of that decision being made are now one of the largest Facebook games developer in the world which has brought in a very healthy ROI indeed.

Party Poker announced in May that it will invest $50 million in social games – you only have to look at their brand search volumes through Google insights across the past 2 years to see why they’ve made this bold move.

There are still businesses out there that have an online product or service where senior management seriously do not believe that investing into social in any form or bringing their product to mobile is important yet 50% of people in the UK access Facebook and 1 in 4 people in the US use mobile apps. Using your mobile for banking, requesting a test drive on a new car, ordering your weekly shop was the norm years ago!

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