Building a brand OR driving conversions?
Where do you put your marketing attention
Building a brand?
Driving conversions?
This is actually a trick question. The answer should be both. Research by Les Binet and Peter Field ‘The Long and Short of it’, showed that the most effective strategy for long term success was to do both. They recommend an investment balance of 60:40
60% of time/effort and money in the top of funnel activities to build long term brand awareness and loyalty
40% in conversion- production, short term, sales-focused activation spikes.
Les Binet and Peter Field ‘The Long and Short of it’
This split might seem counter initiatives when looking at a 12-month purchasing cycle. The results (yellow line) clearly show the immediate impact of conversion centred initiatives on sales.
Les Binet and Peter Field ‘The Long and Short of it’
However, when you overlay what happens when you are also focused on building a brand (red line). The data shows a different story.
Unlike with conversion initiatives, building a brand ensures that you are not starting time and time again from a flat base. Your promotional sales are incremental to the sales that you have organically achieved from being a recognised brand in the market.
Binet’s and Field’s work emphasises the importance of building brands as opposed to selling products. Looking at your marketing effort with a 60/40 split will ensure that you will deliver sales but also build a brand for the future.
If you need help building a marketing strategy that delivers short term conversions and long term brand building initiatives, get in touch.