How legacy brands can stay relevant
As consumer preferences and market dynamics change, even the most beloved legacy brands must adapt to stay relevant — or risk fading into obscurity.
In many sectors, start-ups and direct-to-consumer companies are outpacing legacy brands, especially when it comes to capturing new market growth, according to Bain & Company research.
The challenge is to stay relevant without alienating long-term loyal customers.
If you build trust, they will come. But will they stay?
In a crowded marketplace, a legacy brand’s established trust is an undeniable competitive advantage that’s difficult for newer companies to replicate quickly.
Trusted companies outperform their peers by up to 400%, according to Deloitte research. The same findings note 88% of customers who trust a brand will buy again. On top of that, American consumers find legacy brands twice as trustworthy as challengers (58% vs 27%), according to Petermeyer research.
But this isn’t a set-it and forget-it reality. Brands that stubbornly refuse to evolve risk becoming obsolete.
Why you can’t afford to stand still
“Insurgent” (small, fast-growing) companies captured an outsized (and increasing) share of incremental growth in 2024, according to Bain & Company. Four out of every 10 new dollars spent in consumer products were captured by new brands.
Start-ups offer freshness, novelty, and often the agility and responsiveness that comes with leaner structures. And a surge in direct-to-consumer brands provides buyers with hyper-personalized marketing and product recommendations.
Legacy brands face an unavoidable tension — between preserving the comfort zone loyal customers expect and innovation that resonates with both long-time customers and new audiences.
The one strategy legacy brands can use to stay relevant
Technology enhances core brand experiences.
While updating the company’s visual identity or messaging should eventually be on your list, start by leveraging new digital tools to enhance and personalize customer interactions. This lays the foundation for future updates by:
- Gathering valuable data and insights: New digital tools collect meaningful data about customer preferences, behaviors, and pain points. This real-time information is incredibly valuable. It helps a company understand exactly what customers want — making future product updates, marketing campaigns, and ultimately overall brand shifts much more informed and likely to succeed.
- Building customer trust through change: By starting with smaller, accessible changes, your company’s ongoing commitment to customers (and their evolving needs) is tangible. And customers — as well as consumers with strong brand affinity — experience the benefits of innovation.
- Create early wins and momentum: Rolling out new digital interactions successfully provides tangible proofs-of-concept and demonstrates a clear return on investment. Early wins can generate excitement and earn buy-in.
Implementing new tools isn’t just about the technology; it builds internal “digital muscles.” Teams develop new capabilities and a culture more at ease with continuous improvement.
Real-world use-cases
- Modernize existing touchpoints: Update your website with a user-friendly design. Improve mobile responsiveness. Strengthen your social media profiles by actively engaging with customers and using new features to tell your brand story.
- Personalize experiences at scale: Analyze your data to better understand customer preferences, purchasing habits, and engagement patterns. Instead of generic emails, send personalized communications that acknowledge each customer’s history with your brand.
- Introduce new, value-added interactions: Offer new resources that complement your core product or service. A legacy hardware brand, for example, might offer virtual tutorials for DIY projects.
- Bonus – Communicate tech adoption transparently: Clearly communicate the “why” behind new technologies. Find opportunities to call out how changes align with your brand’s commitment to service and quality.
Legacy brands face significant pressure from new competitors and ever-changing consumer expectations. But trust and loyalty remain powerful assets. Brands that successfully build off of established strengths while strategically transforming their digital presence are set up for strong growth — and continued relevance.