Brand Loyalty Is Feudal For Marketers: Santosh Desai, Future Brands
The Covid-19 pandemic is a disaster that seems to have an indefinite end and hence has created a crippling sense of anxiety and doubt amongst all sectors. Recovery has been slow and brands will take time to come out of the uncertainty that has been pushed ahead because of an even worse second wave of the pandemic.
In the third episode of BW Businessworld's Marketing Whispers, Santosh Desai, CEO & MD, Future Brands speaks about the various agents of change caused by the pandemic and how it has evolved the facets of marketing. Here are some interesting thoughts from the ace ad professional:
On Digital Transformation
The digital transformation was already underway but the pandemic has accelerated and amplified it. The compulsion to use digital ways have made the majority of consumers familiar. The Indian payment ecosystem has been a huge advantage in this transfer as it has a vastly simplified way of transacting.
Physical experiences are not going anywhere because our longing for them has been heightened because we have been confined to our homes. Hence physical retail will never vanish, but hybridisation and digitisation with sensory input will be the future. Brands are now moving from a rudimentary type of digital to a more evolved type of digital. Hence now it is even possible to build brand stories and narratives for a wider digital audience.
On Brand Loyalty
It is a surprise that marketers keep using the word brand loyalty as it is an outdated idea. Loyalty is a feudal word and it says that the customers will keep coming back to the brand no matter what it does. This is a very passive and dangerous idea because it places responsibility on the consumers and not on the marketers. A better way to talk about it is brand-believe because it is supported by the reason and actions of the brand.
On Agency Business
The agency business has missed the trick. This is one business that has no concept of investment as its entire work is to create intellectual properties and yet it has no ownership of those IPs. The agency business starts from zero every quarter. It is forever a project-business with very short-term relationships and price wars taking place is a recipe for disaster. If an adequate and self-sustaining revenue model is not created then the agency business is doomed.
On Stock Market Mechanisms
The stock market has a hair-trigger mechanism, so its intent and reading gets magnified. But the sudden spikes won’t sustain. As a momentary exuberance, it is a signal rather than an enduring vote of confidence. But at the same time, good top management does make a difference. That means that the stock markets are acknowledging the reality and then even more amplifying it. They do have a tendency to overvalue individuals at times.
On Data-driven Marketers
Marketers are certainly becoming more data-driven than what they were earlier. The advantage is that responsibility is taken away by the platforms. The targeting and apportionment of investment are becoming increasingly data-driven today. Data to be used to get great insights and to get to the next level of growth is still limited. Because that requires synthesising data from across channels and to put a large amount of it to narrow use in terms of investing and targeting.
