Pivot or persevere?

Alex Moulton at TROLLBÄCK+COMPANY explains how brands can retain equity whilst adapting to a shifting market

 

“Make Instagram Instagram Again!” That’s what hundreds of thousands of Instagram users have begged the platform to do over the past year. But it’s become clear—ever since Instagram Stories launched in response to Snapchat’s success in 2016—that the platform intends to pivot to video (again) at the risk of deprioritizing what originally made it unique: the internet’s best place to share creative, aesthetic photos.

 

This vocal backlash begs the question: Is Instagram compromising its established brand equity in an effort to win back audiences from the now-dominant TikTok, or is it making a smart play to adapt?

 

Diverge or double-down?

This issue isn’t unique to Instagram. Every brand will face a similar dilemma when challenged: do you cannibalize the core of what you’ve built out of fear of becoming irrelevant, or do you double down on serving the users who feel seen and understood by what you’re already offering?

 

The decision is undoubtedly complex, but here are a few strategic considerations to help brands navigate a competitive market…

 

Know what you bring to the table

While every brand aspires to be the single best go-to choice for their customers, market competition is a net-positive. There should always be room for more than a single option. The branding opportunity is differentiation.

 

In the eyes of an audience, differentiated brands offer unique experiences. Think about the television landscape—no one wants to watch a single channel. Even with dominant streaming platforms, most people subscribe to 4 services and no one says “I only watch Netflix or Apple TV+.”

 

Each provides something special. With social media platforms, is there not space for substantial differentiation in features and content that allow space for many options? The fight for total dominance is counterintuitive for most people who are unlikely to ever be JUST an Instagram user or JUST a TikTok user.

 

There are multiple seats at the table for your audience’s attention. Your brand is more likely to earn and maintain its place when it has something original to offer.

 

Innovate, don’t impersonate

The most powerful brands deeply understand the difference between innovation and impersonation. The path to how, why, and when to invest in innovation should be in service of your brand’s unique character.

 

By articulating a foundational set of brand principles and actionable guidelines that can be put into practice by every internal team, a business can reshape measures of success that go beyond short-term sales or engagement metrics.

 

When a competitor launches an update or new product, the first reaction is typically an overwhelming desire to keep up and maintain relevance. But a pivot that emulates your competition’s new offering shouldn’t be confused with innovation. Nor does it guarantee that your customers will be more engaged.

 

Authentic innovation should be rooted in brand equity and amplify what makes it special. Zoom was able to dominate Skype by building a brand that enables hybrid workforces but also—and this is important—by creating initiatives that deliver on their stated goal of empowering and engaging communities through bold social impact initiatives.

 

Business innovation and brand innovation are often inseparable in the hearts and minds of your customers. Plus, the decision to stand your ground with integrity can be more valuable for long-term brand sustainability, even when facing what feels like short-term losses.

 

Manon Brouillette, EVP and CEO of Verizon’s consumer group recently remarked that “it’s very challenging being the premium brand” as the company faces price undercutting from competitors. “I think we have to be mindful of our customers. They’re feeling the pain in their monthly bill for food, for their rent, for everything, for gasoline in particular, and we’re trying to bring stuff to them that will help them.”

 

Verizon’s brand and business strategy leans into offering more long-term value, which provides meaningful differentiation and speaks to the brand’s values.

 

Bet on your brand

Succeeding when challenged ultimately comes down to knowing why your brand exists—beyond making money—to offer the best experience possible. As Instagram looks for new ways for its global community to express themselves, the question remains whether the new features and video-promoting algorithm will help the brand succeed or suffer. The vocal user frustration indicates that its major product pivot has eroded trust and brand love in the short term. Instagram is now intent on rebuilding trust while simultaneously advancing its growth mandate.

 

The business reality is that you must always be pivoting and always be persevering. The key is to set business strategies that complement brand strategies, building from strong foundations that prioritize unique brand characteristics. These foundational elements become a guide for deciding when and how to innovate while serving long-term sustainability.

 

Your brand equity is valuable capital. If you want to reap the rewards of making pivots and adapting in a fast-paced market, you need to prioritize brand equity and not ignore what already–and enduringly–makes your brand beloved by customers.

 

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Alex Moulton, Chief Creative Officer, TROLLBÄCK+COMPANY

 

Main image courtesy of iStockPhoto.com