EFFICIENTLY USING EFFECTIVENESS, OR IS IT EFFECTIVELY USING EFFICIENCY?
Don’t get caught up in that efficiency buzzword to measure effectiveness because it’s actually that effectiveness word you should be focusing on according to a strategy guru.
The brand growth quandry has been a lightning rod for marketers this year, and in this thought provoking article in Campaign Live UK, PHD EMEA chief strategy officer, Malcolm Devoy, argues that marketers need to focus more on effectiveness than efficiency.
In our data driven industry, ‘efficiency’ and ‘effectiveness’ have become interchangeable, where both imply that “the outcome is good”. Not quite. Effectiveness is about shaping the end result whereas efficiency describes the effort or cost it takes to get there.
The media industry is increasingly fixated on efficiency metrics (such as price, ROI, cost per click and cost per reach) as KPIs for proving effectiveness. Understandable because these are what are most easily measurable, however too many are focusing primarily on efficiency as though it demonstrates effectiveness.
According to Malcolm Devoy, PHD EMEA Chief Strategy Officer, if you optimise towards efficiency “you can inadvertently reduce brand growth or even reduce brand size.”
One of the key findings in Devoy’s co-authored book, ‘Overthrow II – 10 Strategies from the New Wave of Challengers’, is that challenger brands are less interested in efficiency and more in brand building strategies that grow market share. By focusing on the outcomes first, brands can build more effective strategies that deliver real results, which in turn, facilitates efficiency.
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