Brexit 2020: What Are Marketers Doing to Prepare?

Brexit 2020 is now a reality with Prime Minister Boris Johnson’s resounding win in the December 2019 election. The terms of Brexit will determine how the European and, in turn, the global economy evolve during and ahead of the Brexit 2020 transition. But, have we, as marketers, covered all our bases and are ready to face the outcomes? Let’s find out how marketers are preparing for the Brexit 2020 deadline.

The Conservative Party’s landslide victory has ensured that Britain is exiting the EU, quashing all hopes for a possible second referendum. But, uncertainty looms large when it comes to the kind of Brexit we can expect as 2020 unfolds. Will it be a no-deal Brexit? Or softer trade agreements? How will they strike a balance between market access and regulatory sovereignty?

Moreover, what impact will Brexit have on marketers in 2020 and beyond?

Learn More: Evaluating Brexit: What MarTech Companies Need to be Prepared for Following the ReferendumOpens a new window

Brexit 2020 – Its Impact and How Marketers are Preparing

Prime Minister Johnson has clarified that “getting Brexit done is now the irrefutable, irresistible, unarguable decision of the British people,” as reported by The GuardianOpens a new window . But he is yet to elaborate on the course of Brexit 2020.

While, Ursula von der Leyen, the new European Union President, forewarned that a comprehensive trade deal is “impossible” by the end of 2020, which is a “very tight” deadline.

“If the deadline was not extended it was not a case of ‘all or nothing’, but of priorities…We will go as far as we can, but the truth is that our partnership cannot and will not be the same as before and it cannot and will not be as close as before because with every choice comes a consequence with every decision comes a trade off,” according to a BBC reportOpens a new window .

Let’s explore what marketers can expect and how they are preparing for the transition.

1. Pound Wise?
 

According to The New York TimesOpens a new window , “Brexit Once Meant a Weaker British Pound, but Not Anymore.”

Why? Uncertainty has a significant impact on how markets react and in turn, the currency. When Britain voted ‘For’ Brexit, the uncertainty of how and when it would happen disrupted markets and the Pound plummeted. But the Conservatives’ victory in December 2019 has given a hope that the government will now be able to pull Britain out of the highly entropic scenario.

In currencies, as in other markets, traders like certainty…The market sees a Tory majority as the best outcome in the short term,” said Lee Hardman, a currency economist at MUFG, a Japanese bank. It gives you more clarity over the direction of Brexit – reports, The New York TimesOpens a new window .

But the British Pound is still at the risk of high volatility due to building anxiety over EU-UK negotiations. “The Pound fell against most of the world’s major currencies at the start of the new year,” reportedOpens a new window Pound Sterling Live.com.

The portal also quoted Shamik Dhar, Chief Economist at BNY Mellon Investment Management, about ‘No deal’ Brexit being a risk for the Pound in 2020 and “it’s very real, because at the end of the day if we can’t conclude a negotiation in that tight timeframe…the default is a ‘no deal’ exit . . . Sterling traded much of 2019 as a Brexit currency and so long as the ‘no deal’ risk remains I think it will remain weak.”

While CNBC analysts suggest thatOpens a new window , “The pound is unlikely to reattach itself to Brexit developments until later in the year when progress, or a lack thereof, becomes clear.”

So, the overall consensus is that the Pound can go either way and will take some time to stabilize. Knowing it can have a significant impact on marketing budgets, marketers should have started formulating contingency plans to adjust their marketing strategy in case of an eventuality. For instance, if the Pound were were to drop further, and you have a lot of costs tied to foreign currencies, your budget could take a hit. Thus, taking the necessary precautions and striking a balance among international marketing initiatives will become critical for marketers.

Plus, there is also the probability of new laws and regulations. Their compliances can introduce challenges and increase overhead costs. Thus, marketers are keeping a close watch on the developments and running on tighter budgets, to be better prepared.

2. Data Exchange Deal is Crucial
 

“72% of marketers are worried about data exchange,” as reported by EOpens a new window ConsultancyOpens a new window .

Why the concern?

• GDPR won’t change and marketers expect stricter data laws in the UK after the exit.
• A deal is critical for scores of businesses, especially in the tech, health and insurance sectors, which regularly transfer data — including bank details and other personal information — to and from the continent for analysis or processing – The Financial TimesOpens a new window .
•  FT also reportsOpens a new window , “The UK has said it will continue to temporarily allow data flows to the EU in a ‘no deal’ scenario to smooth any economic disruption. But Brussels has said it needs cast-iron legal guarantees before it can match that pledge.
• Both the EU and UK realise the importance of data protection. The free-flow of data between the EU and UK facilitates a huge number of business functions and allows market access to consumers and businesses.”
• The UK and EU hope to agree on an ‘adequacy agreement’ that will mutually recognise both jurisdictions as taking adequate care of individuals’ data, and therefore will permit the processing, storage and use of that data within the others’ jurisdiction, reports the Data & Marketing AssociationOpens a new window
   

According  to the Confederation of British Industry (CBI) reportOpens a new window on What Comes Next (no deals preparation),
 

• The risk of no deal on data has meant UK companies have already undertaken costly legal processes to update existing contracts, led some UK firms to shift jobs abroad in data-intensive areas such as HR, and seen investment in data centers in EU countries in place of UK ones.
• Businesses with the legal expertise and capacity to invest and make judgments on data flows have, in many cases, implemented standard contractual clauses to allow the continued import of personal data.
• Large firms should work with supply chains to check that smaller companies are no deal ready and provide advice on the appointment of EU representatives and working with EU data protection authorities.

Learn More: GDPR Has Teeth – Don’t Let It Bite Your BusinessOpens a new window

3. Customer Confidence and Open Market Share
 

Uncertainty can go either way. While some marketers will hold back; others may leverage this situation to their advantage by instilling confidence in customers and converting the open markets to their benefit.

According to GFKOpens a new window , UK Consumer Confidence dipped to -14 in October 2019, in the face of continued Brexit uncertainty. Although reduced customer spending is a warning sign, and can impact the marketing and ad spend. The risk-takers can turn this into an opportunity to capture customer attention, create brand awareness, and build customer trust by positioning themselves as strong brands customers can rely on in times of anxiety.

Here is how:

• Exceptional customer service can be a game-changer where you can assure your customers that they are protected and well looked after.

Shep Hyken, Customer Service ExpertOpens a new window , shares his inputs on how exceptional customer service can help brands better connect with the customers in turbulent times.

“Whenever there are any times of uncertainty for customers the key is to provide right information. Understand your customers’ concerns and anxiety. Be specific while addressing their concerns and attempt to reassure them and soothe their anxiety.

Secondly, this is an opportunity to change the way you do business. If you are lacking in customer service and experience; this is ‘THE’ time to change the way you work and prove yourself to your customers.

Bonus Tip: When times get tougher, and companies are looking to cut expenses ensure that you do not make cuts where customers will be affected. In times of distress where you have to make crucial decisions ensure that you prioritize customer service and customer experience over everything else,” he says.

• There is an opportunity for brands to create brand awareness and recall, while other brands go into a saving and calculating mode.
• Managing customer expectations and shielding them from currency fluctuations by offering them value for money products and services can have a long-standing impact on building their confidence and trust in your brand.
• And some intelligent advertising that can add a dash of humor or strike an emotional chord with customers can help you deliver a powerful marketing message
   

Image Source:  Marmite’s Twitter HandleOpens a new window

Example of Humor in Advertising Regarding Current Affairs

Brexit themed marketing campaigns can be bold and controversial but if they are in-sync with the public sentiment, your brand is bound to get noticed.

4. Digital Savior
 

Stricter border controls, export laws, traveling restrictions, and data adequacy will change the European market. But a digital marketing strategOpens a new window y will help you iron out the Brexit 2020 creases and establish a global online presence.

According to GoingGlobalLiveOpens a new window :

• Europe is still a safe zone for international marketing because Britain has established trade links, and despite Brexit, British products and services will continue to be in demand.
• An online international marketing strategy helps lower some of these potential barriers while making market penetration quicker, easier, and far more cost-effective.
• Europe will continue to be accessible post-Brexit while giving your business scope to build a global brand. Everything from content to communications can be adapted to appeal to international audiences, representing a massive cost and saving time.

5. People: Customers and Employees
 

Brexit 2020 is going to impact UK and EU citizens and protecting their rights is a pressing challenge. We suggest you read about the UK and EU’s contingency plans for the settlement of their citizens in this CBI reportOpens a new window .

A hard Brexit could have serious implications for businesses and their employees – from the validity of their work rights (permits) to the legality of their stays, and acceptance of their skill set.

Here is what businesses are doing and plan to do for a Brexit 2020 transition, according to the CBI report:

• Many businesses have already begun communicating information and actively supporting their current staff impacted by Brexit.
• Businesses can be proactive in communicating information and supporting both their EU staff in the UK and UK staff in the EU.
• Consult and use resources in the official Home Office Employer Toolkit on the EU Settlement SchemeOpens a new window

According to Econsultancy’s, Navigating Brexit: A Provisional Guide for Marketers and HR (Talent)Opens a new window , “companies are navigating the changing landscape to retain their position as attractive, inclusive employers. Retaining and growing existing international relationships is also a priority, impacted by both the UK’s withdrawal from the EU in an operational sense and the cultural impact of Brexit.”

Tony Zambito, a leading authority in buyer insights, points out in his blogOpens a new window that marketers need to rethink buyer insights and understand buyer personas through goal-directed behaviors.

“One of the remarkable insights into the Brexit vote is not so much how the vote may have split between left or right politics. But how the Leave vote and the Remain vote differed by ages and education. In simple terms, the Remain voters were younger, and a higher percentage had participated in education beyond high school. The Leave voters tended to be older and less holding post-secondary degrees…

This is the core of buyer insights and buyer personas – understanding how buyers’ goal-directed behaviors and goal-oriented thinking influence their buying decisions. Essential to global business marketing is understanding how cataclysmic events disrupt and influence how businesses, people, teams, and organizations change in their behaviors. Meaning, those responsible for global business marketing will have to monitor and refresh their insights on buyers as well as their buyer personas they may have by regions and/or segments,” he says.

Learn More: MarTech Bigwigs on the Brexit ReferendumOpens a new window

Brexit 2020 Transition Takeaways

Whether it’s a deal or no-deal, we have to prepare for the exit and brace ourselves for some tough days ahead owing to new regulations, laws, and rules. But, the long term outlook is positive. Being agile to the dynamics of political uncertainties, polarization, and customer behavior is the only approach to prepare for events like Brexit.

The key is to:

1. Have a deep understanding of currency fluctuations and decisions that impact market economics.
2. Keep a tab on rules and regulations and be proactive in complying with them at the earliest.
3. Have an agile strategy when it comes to devising your marketing strategy and allocating your marketing budgets.
4. Have an effective online and digital strategy to stay afloat during testing times and otherwise.
5. Keep ‘people’ – your customers and employees at the heart of all your decisions.

On that note, we hope the UK and EU can strike a balanced deal so that everyone can navigate through Brexit 2020.

How are you preparing for Brexit 2020? Tell us on Twitter,Opens a new window LinkedIn, oOpens a new window n FacebookOpens a new window ; we’re always listening!