Digital Transformation, Brand Purpose and Performance Influence Upswing in 2021

More than two-thirds (69 percent) of the executives surveyed globally expect their business to decline in the second half of the current year. Just under half (45 percent) of these expect their business to decline by up to 20 percent, while one in five expect a decline of more than 40 percent. In the context of news of positive clinical trials of a stage 3 vaccine, only a quarter (23 percent) expect their business to recover within a six-month period after a vaccine launch, while 41 percent expect a recovery within a year. More than a quarter (27 percent) expect it to take up to two years for their business to fully recover from the Covid 19 crisis.

In light of this general economic concern and constraints in marketing spending, Kantar points to three core principles that will positively influence a renewed recovery.

Principle 1: Digital transformation

Omnichannel and e-commerce are growing rapidly. Forty percent of consumers say they increased their e-commerce spending during the lockdown, according to Kantar's Covid 19 Barometer. The same is said by 48 percent of households with children. Forty-five percent of consumers will continue to shop at online stores they discovered during the pandemic. In the Global Business Compass, 55 percent of executives surveyed say their company invested in e-commerce activities during the pandemic. Not only is the shift affecting online business, but new buying patterns and behaviors are emerging that make brands and companies more vulnerable to competition. As digital offerings have become an integral part of the new normal, the challenge here is for brands that want to compete to improve the personal experience.

Marketing teams can drive success by rethinking their media strategy and shifting to the best-performing channels. Testing new growth and partnership models such as social commerce and direct-to-consumer should be on every CMO's agenda. At the same time, changing consumer needs, buying habits and the importance of different touchpoints must be incorporated into new e-commerce strategies. This understanding will require a targeted data strategy that emphasizes the power of proprietary data and combines it with trusted third-party data. This will enable a better understanding of consumer signals within marketing and media teams.

Principle 2: Purpose and sustainability will make a difference

The pandemic has made people question the purpose and sustainability of their own actions and reevaluate them in their priorities. According to the Covid 19 Barometer, 85 percent of consumers care about buying from companies that support actions they consider important. Brands need to have an impact on people's lives and the world they live in. Purpose is a systemic stabilizer for brands in times of global economic recession. Now it's important to rekindle relationships with consumers and connect as a brand with consumer needs. Companies need to play a supportive and meaningful role in people's lives. To do this, they must position themselves on issues such as diversity, local culture versus globalization, racial equality, sustainability and community.

In 2021, marketing teams should think about what explicit or implicit needs they can meet and the impact you have on users' lives - whether functional or emotional. Purpose needs to be integrated as a living element of communication, product, brand experience and brand engagement, rather than treated as an isolated concept. Companies should re-engage with consumers and their concerns in a transparent, meaningful and connected way. Likewise, they should be willing to work for the public good.

Principle 3: Corporate performance and innovation

Nearly two out of three executives believe they do not have the right business model to be competitive. During the pandemic, 20 percent of companies experienced growth. There are lessons other companies can learn from these examples, particularly about how companies are managed. Fifty-nine percent of companies that achieved growth during the pandemic turned their business model around. More than a quarter invested more heavily in innovation. The recovery process requires companies to make drastic changes to old ways of working and to seriously review and invest in business performance.

With a feedback loop with employees and consumers, companies can ensure that their company's narrative and long-term strategic priorities remain relevant. Furthermore, their learning curve will accelerate and best practices can be scaled consistently. Employees' new rituals must be at the heart of the innovation strategy. Innovation is one of the key characteristics that enable meaningful and differentiable brands to recover up to nine times faster. They should reimagine sales strategies, remembering that people crave human connection. Companies should also elevate the human experience in the digital environment. According to the Covid 19 Barometer, only one in four consumers is satisfied with retailers' omnichannel presence. Siloed organizations that isolate the customer experience from sales and marketing urgently need to be restructured. This is the only way to get a holistic view of how to reactivate demand.

"The key to success is to adapt to new conditions as quickly as possible," explains Irmgard Heinz, Chief Commercial Officer at Kantar. "Consumer behavior has changed forever. That, of course, includes growth opportunities. Adapt your strategy and realize sustainable competitive advantages through a clear first-mover strategy. As the results of our annual BrandZ study show, the brands that vigorously work their way out of crises early on are more successful in the long term."