Despite this positive outlook, there still appears to be a common theme: many businesses seem trapped in a cycle of focusing on short-term gains. An excessive focus on bottom-of-the-funnel (BoF) tactics and measurement, while undeniably effective in the moment, may be hindering long-term growth.
Having worked with many fashion retailers, I’ve observed that those who find their growth journey exponentially more laborious often have an over-reliance on immediate gratification strategies. However, it’s important to determine whether this is part of the business's core beliefs, or if they simply lack access to the data that would allow them to pivot and incorporate it into reporting and decision-making.
If the answer is the former, there is an argument that some brands and their focus on short-term results could indeed make them their own worst adversaries. As consumer behaviour evolves, the macroeconomic environment changes, and promotional fatigue sets in, the diminishing returns on these BoF tactics become increasingly apparent.
From my first-hand experience, as well as through some of our market-leading clients at Charlie Oscar, the retailers that are willing to be brave and challenge themselves by adopting a more diversified acquisition strategy are the ones that have experienced incremental growth, even in this highly competitive climate.
The most common misstep I’ve observed is an over-reliance on branded channels to drive growth. It’s easy to focus on revenue or demand without considering their sources. Businesses that prioritise a brand-first approach risk exhausting their existing customer base, relying too heavily on repeat purchases without expanding their reach. In contrast, those that succeed push beyond their comfort zones, investing in upper-funnel channels like influencer marketing or YouTube. This strategy helps them build brand awareness, reach new audiences, and create lasting brand equity, ultimately leading to a stronger, more adaptable business.
Business DNA is the foundation, but coupled with an honest reflection on the lower-funnel and upper-funnel values of marketing channels (made much easier via COmpass), I truly believe this is the key to unlocking long-term growth levers. While this approach may require a greater upfront investment, it can yield substantial returns in the long term. AKT London experienced this first-hand, harnessing the power of influencers through a mass gifting campaign that drove over 300,000 orders in just three months and achieved a 2.4x year-on-year growth rate.
It is imperative that retailers exhibit a willingness to experiment and adapt to changing market conditions. By diversifying their investment strategies and embracing a data-driven approach, brands can make more informed decisions and optimise their marketing efforts.
While short-term gains may be tempting, a holistic perspective is crucial for long-term success. Retailers that can balance immediate needs with future growth are more likely to thrive in today’s competitive landscape.
