Creating value during the moments that matter most

In 2024, we live in a digital-first world, where everything, from fashion to flowers, pensions to podcasts, is available at the tap of a screen. In this world, consumers are consistently presented with multiple pieces of information across numerous channels. This means that brands must make the most of every opportunity to engage with customers during these digital interactions.

The number of marketing channels used by brands to connect with customers has exploded in recent years. This multichannel approach presents both advantages and drawbacks – brands can build strong awareness over time, reinforced through multiple platforms, but achieving cut through can be challenging, expensive and create more exposure to risk.

What is responsible marketing?
 

The role of the Chief Marketing Officer (CMO) has also evolved at pace, and their impact cannot be overstated. Beyond branding, content, and advertising, these senior leaders have become gatekeepers, ensuring that organisations operate within the ever-changing regulatory frameworks that govern their respective industries, and helping mitigate risk for consumers. Take, for example, the International Alliance for Responsible Drinking, which is supported by CMOs from many of the leading global beer, wine, and spirits producers.

The term “responsible marketing” was initially coined to describe marketing efforts that consider the social, ethical, and environmental impact of advertising, as well as the product or service the organisations provides. It all comes down to trust: responsible marketers follow a strict code of ethics, making the decisions they know their customers would want them to make.  Key goals of responsible marketing are to:

• ensure regulatory compliance
• prevent inappropriate engagement and purchases
• grow brand trust
• build positive customer experiences
• protect customer data.

In this digital age, responsible marketing goes even further. From ensuring that customer’s data is treated with respect to assessing the compliance of third parties, responsible marketers are now having to become risk specialists.

This can be challenging, and responsible CMOs are increasingly looking for specialist expertise to help guide them with best-practice tools and technology. It has never been more important to proactively detect and respond to risks, and do this in harmony with the rest of the organisation.
 

The halo effect of risk management
 

Responsible marketers are now dealing with challenges that are unique to the digital age and defy traditional approaches. But where there is risk, there is also opportunity.

CMOs must assume now responsibility for the consumers that interact with their brands across the multichannel digital landscape. According to a recent survey of senior leaders by Deloitte, 85% see marketing as having some or all of the responsibility for e-commerce risks.

If a consumer shares personal data with a brand over social media, it is the CMO’s job to ensure that data is protected. If an influencer representing the brand creates problematic content, the CMO must now have a process to follow in response.

However, responding to risks in a consistent, thoughtful and efficient way can be truly impactful. The modern consumer is a sophisticated digital citizen, and expectations are high. An analysis of the volume of search traffic generated for related terms shows that searches including the word “data” have doubled in a decade, according to Google Trends. A robust process allows brands to stand out from competitors, boost consumer engagement and deliver real brand value.

This is pertinent given the current retail landscape. While retail spend is declining, e-commerce spend continues to rise. In 2022, digital commerce passed the US$1 trillion mark in a single year for the first time ever, according to Comscore.

In addition, the global social media commerce industry, led by platforms like TikTok and Instagram, is expected to grow three times as fast as traditional ecommerce to US$1.2 trillion by 2025.
 

Brave new world
 

More than half the people in the world today are on social media, according to recent estimates. Little wonder that CMOs must ensure that their brands maintain a presence on the relevant channels.

These digital interactions are increasingly vital for building deeper and more meaningful relationships with customers. Research has found that 85% of marketers say direct access to customer data is critical to gaining a competitive advantage.

As the number of digital channels continues to rise, providing an ever-larger ‘attack surface’, digital risk will increasingly become a priority for global CMOs. Planning, process, strong data governance and an informed approach to risk can help CMOs respond swiftly and efficiently, and preserve brand reputation and consumer trust.

At the same time, regulation is always changing. For CMOs, keeping their organisations compliant with these moving targets can be challenging, but responsible marketers embrace compliance because of the protection it affords consumers.

CMOs are no longer solely masters of the consumer experience, they must also drive a competitive and compliant digital marketing strategy which navigates a marketing risk universe. We see the marketing risk universe categorised across a spectrum of inherent control, including owned media, earned third-party content, and negative sentiments and trends from independent stakeholders. 

Responsible marketers have more control, more data, and more opportunities to delight consumers than ever before.

At Deloitte we understand digital risks and how to mitigate them. We have a track record in providing insight and frameworks to drive and maintain brand equity through responsible marketing. If you would like to discuss how to navigate and manage risk across digital marketing channels with any of our experts, please get in touch.