Members share their thoughts on whether long-term brand building is suffering because of the need to deliver short-term results.
Has financial services marketing been guilty of focusing too much on the short-term in the chase for ROI? Has this meant a focus on digital channels rather than longer-term brand building? To add your view, visit the Knowledge Centre and leave your comment at the bottom of the page.
Overall effectiveness is key Financial services marketing has long been guilty of concentrating on the short-term. From traditional print campaigns that focused on performance or the star fund manager of the day, through to current campaigns that are based on the current trends, whether that is sector or ESG focused.
Campaigns and marketing activities need to be looked at in the context of both short and long-term brand building, using traditional methods supplemented with understanding and utilising the benefits of new technology. We also need to consider whether we are designing products that meet the financial goals of modern consumers, measuring client satisfaction and customer experience. To grow brands profitably, I think that there needs to be renewed focus on the overall effectiveness of marketing, not just the efficiency that digital channels can bring. Hannah Holden Head of Marketing, Thesis Asset Management
Invest in brands to keep them alive We need our organisations to recognise that the "brand" is an asset like any other. It can depreciate and appreciate depending on investment and other micro and macro forces. Everything from valuation to consistent brand measurement, econometrics and other methods to isolate the brand contribution to sale, revenue and market cap will help. As marketers, it’s our responsibility to help create the balance between short and long-term impact. The brand will outlive any new channel of reaching our customers if we invest enough in it to keep it alive. Ayokunle Adesina Senior Brand Manager, Aviva
Take a stance on what matters to you Nike realised some years ago that they were not simply selling sneakers and sportswear – they were in the business of helping customers become fearless and achieve goals. Similarly, in finance, we often forget we don’t exist to offer competitive 5-year mortgages – we are there to provide a safer, more prosperous future for families.
It is a smart, customer-centric strategy that allows businesses to diversify and move with the times, rather than relying on historic successes. In the next couple of years, we’ll start seeing financial organisations taking a stance on issues that matter to them, from financial literacy to social mobility. This will mean marketing budgets will become more balanced once again, covering both revenue-generating activities and long-term brand identity. Ilona Sediha Senior Brand Manager, NS&I
Don't deride digital I get the need to question chasing short-term results over long-term brand building, but what has digital got to do with it? That’s just the channel – not the message. Who says you can’t use digital channels to help build the brand? And if your brand is only online it’s a pretty essential part of the channel mix – whatever the content looks like. We must stop thinking of digital as a silo. Brand doesn’t have to mean full page press ads. Brand is in everything we do and the digital experience is as relevant as any, whatever your objectives, long or short-term. Sasha Dabliz Consultant, White Marble Marketing
Success may not be immediately apparent Understandably, financial services marketing has sought to maximise the potential of digital channels. Marketing is after all a results-driven exercise and the lure of ‘likes’ can be enticing (and relatively inexpensive). But a focus on short-term gain can be detrimental to achieving long-term objectives.
The best results tend to come from a balanced approach, recognising the value that digital channels can bring, but combining these effectively with longer-term brand building, through traditional channels. For instance, the impact of a strong press campaign is not always immediately apparent, in comparison with that of social media activity. But perhaps it’s worth bearing in mind the old story of the hare and the tortoise - the race is not always to the swift. Fiona Nicolson Director, Continuous Communications
Perhaps, but we are getting better! Re-investment in value-add marketing, such as promoting thought leadership, is definitely on the rise. The need to acquire clients and net-new-assets will never abate, but firms are realizing that building long-term relationships with clients requires more than just a constant drip of product promotion. Look at recent efforts by Bank of America, Wealthfront and Schwab. All three are demonstrating how a focus on the client and his or her needs can be central to a compelling marketing message. One that incorporates traditional and digital channels while helping support a brand and build loyalty. Kevin W. Smith Founder & Principal, Kevin & Co.
Success relies on a balance Regardless of age, we live our lives digitally, so to argue against a digital focus would be counter-intuitive. However, don’t be seduced by a lone focus on digital consumption. Winners will demonstrate cohesion across multiple channels, balancing the immediate needs of the now with a concrete foundation for future growth. Jamie Brookes Head of Channels & Communications, RBS
A longer-term strategy could be more rewarding Good marketing is about making the best use of the available tools and channels, achieving the right balance to help meet the commercial objectives of a business. The accountability and transparency of digital channels makes them appealing, but they should be considered as part of the recipe, alongside investment in brand building and the stories that help a business to stand out against their competition.
It’s a bit like the Stanford Marshmallow Experiment. The immediacy of digital channels is very tempting, particularly when a demanding exec might be crying out for instant results. But the deferred gratification of a longer-term strategy can ultimately be more rewarding. Alex Hammond Managing Director, Also Communications
Don't let ROI get in the way of creativity Marketing in financial services is increasingly becoming about MI, ROI and conversion rates. While these are key to developing and executing successful marketing programmes, there is a danger they take precedence over creativity, intuition, emotional intelligence and longer-term brand strategy. Think of any memorable marketing campaign or successful promotion and the chances are it’s been driven just as much by creativity and originality as it was by data. Financial services marketing has to be a balance of the two. Christopher Dean Head of Marketing, Sanlam UK