This article was originally posted on Forbes.com.
What do Apple, Lego and Starbucks have in common? Sure, they are powerhouse brands, but another common thread is that they have all faced periods of decline and recovered.
The fact is that it’s not uncommon for brands (even successful and beloved ones) to face decline. While it could be caused by a myriad of factors, brands that quickly figure out what went wrong—and implement the right strategies in response—can follow the hero’s journey of our examples and not slip into obscurity with the Blackberrys and MySpaces of the world.
Common Reasons For Decline
First, let’s look at some of the typical reasons brands may struggle:
Competitors Gaining Momentum
One of the most common culprits behind brand decline is increased competition. As new players enter the market or existing competitors ramp up their efforts, maintaining a dominant position becomes more difficult—and more expensive. This can happen when a well-funded competitor enters the fray who is willing and able to run at a loss while bidding up advertising and grabbing market share.
Changing Consumer Trends
Consumer behavior is constantly changing and evolving, driven by societal trends and technological advancements. Brands that fail to adapt and align their products and messaging with what the market wants today will pay for it as customer engagement and loyalty decline. Look at how Netflix evolved while Blockbuster didn’t. Trends come and go; brands that adapt have staying power.
Inefficiencies In Your Advertising
Digital advertising offers so many opportunities to reach and engage audiences at scale, but there are also many opportunities to get it wrong. Targeting the wrong audiences, serving the wrong messages, or investing in the wrong channels can result in ads that either don’t resonate or aren’t seen by the people who may have become customers.
Macroeconomic Conditions
Economic challenges (like down markets or inflation) and global or national events can disrupt consumer spending and market dynamics, affecting your bottom line. A news cycle that sparks fear can impact inventory on advertising platforms, driving up costs while consumers become distracted and disconnected from a purchase mindset. When it lingers, it can cause a momentum shift for brands, no matter how strong their performance was before.
A Shift In Post-Pandemic Buyer Behavior
One of the biggest challenges facing brands is simply being in the post-Covid era. While brands like Delta and Carnival took a hit during the pandemic, some e-commerce and direct-to-consumer brands actually saw growth. Those that adapted quickly to digital made lemonade out of lemons. But as life returned to “normal,” many e-commerce brands have faced a decline in trying to keep up with the return to brick-and-mortar and increased competition.
Reviving A Declining Brand
Whatever the reason, decline doesn’t have to be irreversible. With some careful analysis and smart strategies, declining brands can be revived to their former glory, and even stronger than before. Here are some actions to consider:
Figure Out What Went Wrong
The first step is to identify which areas are underperforming. Analytics tools can help assess marketing channel performance and help uncover areas that need work. Set benchmarks based on your industry and look at your target audiences, messaging and creative to assess which levers need to be adjusted.
Be An Early Adopter—And An Early Adapter
Brands that are first to market get a first-mover advantage. You can still get the effects of early adoption by taking advantage of new tools and technologies when they arise. That means if Instagram or Google rolls out a new feature, be quick to test it. If you recognize new consumer trends or shifts in buyer behavior, see if you can capitalize and be the early bird who catches the worm.
Level-Set On Your Brand Messaging And USPs
Review your brand messaging. Are your messages still resonating with your target audience and the current market landscape? One simple exercise I like to do is read the brand assets (think ads, emails, product page copy) and ask myself, “Who cares?” If you can clearly answer with a segment of people who would, then you’re on the right track.
Analyze How You Stack Up To Competitors
Peek behind the curtain at the strategies and tactics of your competitors and others in your industry or similar industries using resources like the Meta Ad Library, Similarweb, SpyFu, SEMrush and Really Good Emails. Determine how you leverage your brand’s unique strengths in the context of that landscape. Your audience is seeing their content; does yours stand out? What does the audience desire that isn’t being addressed? Find your opportunities and start planning.
Expand Your Cross-Channel Efforts
It’s worthwhile to explore the idea of diversifying your marketing efforts. If you’re relying heavily on email and see declining performance, consider SMS. If you’re only focusing on Meta and Google, consider building out your organic efforts or engaging in programmatic display, native, connected TV, or podcast ads to reach new and untapped segments.
Don’t Be The Only One Selling Your Brand
The indisputable power of ratings and reviews proves that consumers want to hear about your brand from someone other than you. Harness the power of creators and influencers to broadcast your brand from angles that feel authentic to them. Forge partnerships with brands that align with your values and can authentically promote your products (think: suppliers or complementary products). Consider PR to get media coverage that places your brand squarely in front of your intended audience. Having others vouch for you gives you instant credibility that can move the needle.
Work On Closing The Gap
Gauging progress can be challenging as you close the gap and move toward growth. It’s tempting to try everything at once, but resist. Implement small changes and measure the impact against your KPIs. Track your overall marketing effectiveness ratio (MER) and analyze trends over time to confirm you’re moving the needle. Stay vigilant, measure your progress, and continue to innovate. Learn from brands that have faced similar struggles, and forge your own path ahead.