In the dynamic realm of brand-building, the desire for swift returns on investment often pressures CMOs to seek immediate results. Yet, a critical juncture is reached when bridging the understanding between CMOs and CFOs. A Forrester Research survey reveals that only 37% of CMOs emphasise the significance of a robust CFO relationship. This discrepancy underscores the necessity for enhanced communication and collaboration. Raja Rajamannar, Chief Marketing and Communications Officer at Mastercard, alongside CFO Sachin Mehra, articulated this divide at the Cannes Lions International Festival of Creativity. Rajamannar candidly acknowledged the challenge faced by CMOs in aligning long-term marketing endeavours with tangible business outcomes.
This disconnect resonates with findings from a recent survey conducted by digital marketing agency, The Executive Group. A staggering 72% of polled CFOs expressed difficulty in evaluating the efficacy of brand programs. Furthermore, a resounding 81% opined that such assessments could be concluded within a modest 12-month span.
It is imperative for the CMO to adeptly manage the CFO’s expectations, especially in an era of economic uncertainty. This entails providing a realistic comprehension of the time horizon inherent in brand-building endeavours. Kristof Neirynck, Global CMO at Avon, articulates this sentiment, emphasising the CMO’s role in delivering committed ROI and fostering profitable brand growth.
The Three-Year Brand-Building Roadmap
After Six Months: Create and Align
The initial half-year period is a crucial phase for strategic formulation. Yael Alaton, Partner at Pearlfisher London, underscores the importance of a well-defined roadmap that emerges from rigorous analysis and Research & Development efforts. Ian Henry, Director at the The Executive Group, cautions against an overemphasis on vanity metrics; “A balanced allocation of resources between brand and performance must be coupled with unwavering commitment, recognising that brand-building is a sustained endeavour.”
After Twelve Months: Express and Connect
While brand-tracking metrics may take time to exhibit progress, short-term indicators such as share of search, consumer sentiment, and site traffic should manifest between six to twelve months. Michael Lee, Global Chief Strategy Officer at the VCCP Partnership, advocates against perceiving brand-building as a trade-off for tactical performance. He expounds on the concept of ‘brand response,’ which harmoniously blends tactical communications with brand-building objectives.
After Eighteen Months: Establish and Measure
At the eighteen-month juncture, the complete brand experience across platforms and touchpoints must be refined. Lessons gleaned from consumer feedback and in-market results should inform future strategy. Kirsty Hunter, CMO at Innocent Drinks, highlights the emergence of a dedicated customer community through amplified social media engagement and user-generated content. Moreover, she underscores the imperative to substantiate the enduring commercial value of brand-building efforts.
After Two Years: Expand and Diversify
By the second year, brand identity and values should be firmly etched in the minds of the target audience. This phase offers an opportune moment to explore new territories, demographics, and potential collaborations. Yael Alaton additionally stresses the importance of leveraging a brand’s distinct position and equities to broaden its influence in consumers’ lives.
After Three Years: Nurture and Grow
The cumulative strategic investments of the initial three years culminate in a brand primed for future growth. Protection of brand equity and the cultivation of a unique customer relationship are paramount, focusing on unlocking further potential. Kirsty Hunter succinctly notes that the third year should signify the establishment of a recognisable brand associated with quality products, setting a robust foundation for future endeavours.
In conclusion, the success of a brand-building program is contingent upon transparent communication, a robust strategic framework, and tangible metrics to evaluate effectiveness. An effective program should be integrated into the long-term business strategy, reflecting an investment in the future.