A Changing Regulatory Landscape

In the fourth post of our series - ‘Solving Your Key Business Challenges in 2023’ - we’re looking at how changes to your business’s regulatory and compliance landscape should be addressed and how they can even be leveraged to your own benefit.

Regulatory change is here to stay

Over the last few decades, regulations around data protection and security have become increasingly stringent in line with new protective legislature and growing threats of cyber attacks.

With new laws and guidelines being introduced constantly, businesses today need to be agile and adapt quickly or face the consequences of large costly fines and brand reputation damage.

Under GDPR, for example the EU can fine organisations up to €20 million, or 4% of worldwide turnover for the preceding financial year, whichever is higher.

Given the severe repercussions, it’s no surprise that businesses are spending a considerable chunk of their budget on compliance. Bloomberg suggests that 50% of organisations are spending 6-10% of their revenue on compliance costs and this is continuing to increase annually.

So, what do you need to stay ahead of regulatory changes and how can your business leverage your investment, from a branding and marketing perspective, to deliver a competitive advantage?

1. Stay informed

You need to keep your eyes and ears open for any changes to laws and regulations that may be happening in the future that will affect your business. This can include market/industry-specific regulations, as well as broader laws such as data privacy, cybersecurity and consumer protection regulations. You need to be proactive and take steps to address them before they become an issue.

“55% of organisations say their compliance culture is based around a “Can we?” rather than “Should we?” attitude.” Deloitte State of Compliance 2020 Report

However, it isn’t all doom and gloom, regulatory changes can open up new opportunities for your business, such as new markets or new ways of doing business. Identify those opportunities and take advantage of them.

2. Collaborate with industry peers

Collaborate with other businesses in your industry and get involved with relevant associations to help create a unified voice. This can increase your chances of getting your collective opinions heard during periods of regulatory change or consultation - hugely effective in lobbying/advocating for regulation that will benefit your industry.

Businesses that take a lead on issues, and are seen to be doing the right thing by helping to affect positive change, can benefit with increased client engagement.

3. Adapt your branding and marketing strategy

If you anticipate law and regulation changes you can address your marketing strategy early and gain competitive advantage by using your brand, products, services and marketing activity to communicate your compliance.

Consider how regulatory changes may affect your target audience and adjust your branding and marketing strategy accordingly. For example, if regulations change to favour more environmentally friendly products, you may want to focus on promoting your business's eco-friendly initiatives.

Utilise your social channels to engage your key audiences in the process of gaining compliance. Once you are compliant, ensure you announce your compliance through all of your marketing materials, from websites through to email footers.

4. Review your branding and marketing materials

Ensure that your branding, labelling, and marketing materials comply and show compliance with the latest regulations. This can include reviewing and updating any claims made in advertising or on product packaging to ensure they are accurate and compliant with the latest regulations.

5. Communicate with your stakeholders

Keep your stakeholders informed about the changes and how it may affect the business and its operations. Be transparent and open with customers about how regulatory changes may affect your business and your products or services. This can help build trust and credibility with customers.

Conclusion

In a world awash with more and more regulation, staying informed, being proactive and having a plan in place to address regulatory change can not only help minimise the impact on your business, but differentiate it from the rest of the market place.

Using compliance as a key story in your marketing communications can become an essential tool in ensuring that you receive payback on your investment in meeting standards.

To find out how MC+Co can help you drive more impact from your advertising and marketing spend call +44 (0) 1277 366898. Alternatively, please fill out the form below and we’ll get back to you asap.