In the world of marketing, there are several risks that companies must control and eliminate, therefore managing ‘risk’ for marketer are essentials too. Some of the threats that must be anticipated by marketing risk management are brand ad fraud and data breaches. For instance, when compiling marketing risk management, the company must set up a security system using a marketing perspective. Furthermore, here are some explanations of how essential managing risk for marketers is.
Maintaining Company Stability
In marketing risk management, it is very important to develop risk mitigation and integrated communication. The aim is to eliminate risk in the field of marketing in the future. Therefore, a person in charge of the marketing and communications divisions must be someone who understands business and views the problem from a risk management perspective.
Furthermore, the case of TSB’s IT meltdown may warn us about the importance of marketing risk management to maintain company stability. After the case blown up, TSB had to pay some compensation to its customers and force them to improve the security sector to restore customer trust.
Avoiding Possible Data Leaks
In 2018, electronics retailer Dixon Carphone must apologize to all consumers for data leakage that occurred. This case has cost around 10 million customers and 5.9 million credit and debit card users. Although they have resolved this case, fears of a recurrence of this incident are still looming.
In fact, some companies still do not give enough consideration on how to manage their data security. Meanwhile, companies face quite challenging threats of security nowadays. In short, if they don’t immediately manage their marketing risk management strategy, the brand can lose consumers and may face destruction.
Maintaining Customer or User Trust
Many consumers suspect that hate speech, violent, and inappropriate content is a brand mistake. For example, in the case of the Cambridge Analytica case that stormed Facebook in a day. This case has a serious accusation of Facebook selling the user’s data for the benefit of the American presidential election campaign. As a result, many users sue Facebook and lose trust to the social media company.
This case is proving that every company must have good marketing risk management. Companies must anticipate all possible misuse of user’s data to maintain their trust. Moreover, the company is also obliged to protect and formulate a strategy so that users have clear legal protection related to personal data.
Preserve a Good Brand Reputation
Marketing risk management is also useful for maintaining brand reputation. For a better result, the marketing team must work together with risk, legal, and compliance teams. Thus, the company can calculate all marketing strategies accurately.
Moreover, to maintain brand protection and brand safety, every company must also employ people who are experts in the field of IT security. It is because, in this digital era, we cannot avoid hackers. If the company fails to anticipate it, it can bring down the brand’s reputation in a second.
Those are some things about the importance of marketing risk management you should know. With comprehensive risk management, company stability and customer trust can continue to be maintained. Therefore, every company should also have expert staff in this field to be able to anticipate all risks.