More than one person will think: “how? The more we sell, the better, where is the problem? ”.
Especially since digital marketing strategies and measurement have become established in companies, the obsession with maximizing sales in the short term has become more pronounced. We can measure results in real time and optimize campaigns to the maximum. It is a process that never ends.
Companies live off sales, so selling should always be good, right?
Obsession with conversion optimization can be detrimental to your brand
The theory is summed up as “anything that doesn’t contribute to conversion is superfluous.”
We see its erroneous application in many e-commerce companies, in courses on conversion optimization (CRO), in articles with “tricks” (I’m always surprised when a professional talks about “tricks”) to improve this or that aspect, or in conferences, where volume is equated with success.
The most confused equate traffic volume (or fans, database registrations, etc.) with success and others (true professionals) compare it with sales volume or conversion rate improvement.
The latter are largely right, but in my view this approach leads to three types of strategic risks :
Brands without a soul : by focusing messages on price and offer, we strip our communication of brand attributes and start competing price against price. The brand neither offers a reason to pay more, nor does it create loyalty. It ends up being diluted. To support my argument, there is nothing better than data.
According to the Meaningful Brands study (conducted by Havas Group in 2017) “ Spaniards would not care if 91% of brands disappeared ”.
Of course, not all brands have to make a difference (it depends a lot on the type of product), but what does this data tell us? Poorly defined positioning, undifferentiated indonesia number communication, brands that put sales before the overall meaning of their activity (conversion to sales at any price), strategies focused on sales that forget to talk about the brand and its attributes... the result? Low or no value contribution, undifferentiated brands, low loyalty ... and the economic consequences for brands: lower average purchases, less repeat purchase, less recommendation ...
Single-message marketing strategies : no matter what stage of the purchasing decision process our future client is in, they receive a single message: buy, offer, buy! And obviously the impression they get is not the best and the results in terms of acquisition are not the best.
Dissatisfied customers : current customers are often forgotten and do not receive special treatment. It seems that as soon as they make their first purchase, companies forget about them.
Marketing strategies based on branding
On the other side of the coin are strategies based on the brand , on creating a relationship with the audience, on providing value beyond the product and price.
When in the study ' Meaningful brands ', which I mentioned in the previous section, they talk about the most meaningful brands for customers, you highlight that:
In Spain we look for functional benefits of the product (42%), collective benefits (29%) and personal benefits (29%).
But also that the most relevant brands fulfill the functional benefits, but the majority ( 83% ) also fulfill the personal ones. In other words, what makes the difference are the personal benefits , what the brand brings to me personally.
What does it mean for a brand to be relevant to its audience?
Add value, be relevant,… these are very big and generic words. What do we mean? What do we look for in a brand beyond the functional benefits of a product or service?
If we look at the explanation of the Brand Relevance Index from the Havas Group study when talking about:
Personal benefits , we talk about physical, organizational, financial, intellectual, social, emotional and nature-related benefits.
Collective benefits : economy, work environment, community, environment, ethics.
Functional benefits.
Meaningful brands - Havas Group - Relevance
If we stick to the data, but also to logic, a brand is relevant to us when it produces changes in our lives , when in addition to being useful (functional benefits), it makes my life easier/better and also contributes to the common good. In other words, when it contributes to improving our quality of life .
An effective branding strategy is based on products that deliver on the promises made by the brand.
For a branding strategy to be successful, it must be based on a very solid product strategy.
It is of no use to talk about brand attributes and their contributions to improving the lives of the audience if the product does not fulfill those promises. In other words, we have to balance the weight of marketing and the product in the values of the brand.
In this regard, I found this excerpt from an interview with Steve Jobs very interesting , in which he talks about this 'power struggle' between marketing and product. He was clearly focused on the product (as reflected until recently by Apple's strategy. Little marketing and top-quality products) and yet he complained about the excessive weight of marketing.
Designer's Digest - Steve Jobs on the role of product and marketing people.
I totally agree, and although it may seem otherwise, it supports my argument, because the marketing strategy must reflect and enhance the company's brand and product strategy (as I said at the beginning of this section, a brilliant marketing strategy is useless if the product does not fulfill the promises made by the brand).
In order to carry out a brilliant branding strategy, we must base it on a top-quality product. In this way, the marketing strategy can reinforce the product-brand relationship and focus communication on achieving that 'special' relationship with the audience thanks to the changes in their quality of life.
Advantages of a marketing strategy based on branding
This is all very well and makes perfect sense. But what tangible benefits does it bring to the company ?
Increase in the average purchase of new customers : adding brand attributes to our strategy increases the perception of value and therefore predisposes to greater spending in the form of purchasing more expensive products than average and/or greater purchase volume.
Customer loyalty and recommendation : brand messages reinforce communication with existing customers and boost recommendations and repeat purchases. As well as making perfect sense (current customers are the company's largest source of income), they increase our turnover and attract new customers (there is nothing more powerful than a recommendation from an existing customer to attract a new one).
Improves brand perception : This is not a benefit we can see in the short term, but better brand perception improves all ratios throughout the purchase decision process ( purchase funnel ).
When we value a brand positively, our willingness to click on its advertising, read its content, interact on social networks, etc. increases considerably.
What should we do? Branding strategy or conversion optimization?
As in so many cases, the answer is not in the extremes. Neither 100% brand strategies, nor 100% conversion.
We can define a global branding strategy from which the rest of the strategies feed, take their essence, and then adapt to their needs.
In general, the higher up the purchase funnel , the greater the presence of the brand, and the closer we get to the moment of purchase, the greater the role of conversion optimization.
In this sense, I really liked the article by David Vogelpohl , a believer in conversion optimization, who is beginning to see the meaning of branding strategies .
In conclusion, we can say that both extremes can take the good from the other. Branding campaigns can have calls to action, and conversion campaigns can have the brand message/content that complements them.
Another advantage of using marketing strategies based on branding is precisely what Vogelpohl mentions in the article you cite: they improve future conversions.
I think that not “forcing” conversion in the first contacts between brand and consumer is beneficial in the long term.
You may lose some conversions in that first moment, but you can be sure that the conversions you get are of quality. As a result, it will be easier for you to convert those people again in the future.
Congratulations on the article. One of the best I have read lately.
Greetings
Samu
Hello Tristán Elósegui, I thank you for sharing such important articles with the community interested in knowing and learning. Regarding the previous comment about translating videos into Spanish or subtitling them, well! It was just a suggestion, but with what you provide you have 10, although it would be good to have the complete information for a better understanding.
Great reflection on the importance of branding in any digital marketing strategy. Both at the level of SEO on the web and of the brand itself, it must be understood that the priority should be to create a brand image, rather than going for conversion. Both things are collateral; if there is a good brand image, conversions will be higher.