Danger: Good Times Ahead
In case you haven’t noticed there is a sea change happening in business. As companies go into 2015 they are more confident that their marketplace is solid than at any time in the last five plus years. This is very different from every January I can remember since the recession hit. If you recall, as we would roll into each New Year, brands would emerge extremely cautiously, prepared at any moment to run for cover as they watched their consumers crawl back into their shell. Of course they had reason to be gun-shy. Pretty much on schedule every year the promise of the economy turned to ashes usually around the second quarter. Budgets were cut, rosy forecasts trimmed and the rest of the year was usually a matter of subsistence marketing.
This year, however, is different. Confidence is brimming, because the fundamentals are finally, truly strong. More important, consumers feel the wind at the back of the economy for the first time in a long time. As a result brands are bullishly turning their attention to full force competition. That’s a big shift in mind-set. Planning to grow market share in the face of competitive pressure requires a different set of strategies and tactics to those required to just make it through the year. This is made much more demanding when you consider that consumers have been trained by years of scarcity to be value conscious, sophisticated buyers. The upshot is the most challenging, competitive environment brands have probably ever seen.
The lean years have turned consumers into smart, careful shoppers. Buyers of all stripes have been provided with the tools, education and practice to become adept digital consumers armed with the skills required to make the best possible decisions every time. This has reshaped the buying process and redefined consumer expectations. Now there is really no choice for brands but to deliver enablement, transparency, quality and a superior experience. Anyway you look at it, it’s a tough nut to crack, but the companies that deliver on these expectations will earn a place in the consideration set.
All of this requires not only a different mind-set, but also a different tool kit to what brands used the last time they went out to do battle in a strong economic environment. Some forward thinking companies saw this coming, recognized that buying dynamics would forever be linked to new consumer expectations and put the pieces of a new kind of brand ecosystem in place. This ecosystem intelligently connects all of a brand’s touch-points throughout the consumer decision journey. With technology supplying consumer insights, and content keeping the consumer engaged, the new brand ecosystem has shifted to more science than art, and provides companies with more predictability even in the face of more complexity.
Today as we launch into the best environment in years, those brands that studied the new consumer and invested in the infrastructure and technology, find themselves ready to activate these sophisticated marketing ecosystems. Brands that did not do the work, however, are in a very different position. They will quickly find that they don’t have what they need and will be forced to not just change the tires on the bus at 60 mph, but to try and rebuild the whole bus without stopping.
Within the next few months the gap between the haves and have-nots will play out and for the first time the stark realities of marketing in the digital age will be plain for even the most hitherto blinkered to see.
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