Australian businesses are struggling to keep up with rapidly evolving stakeholder expectations, according to Sefiani’s latest report: the Sefiani 2024 Communication that Matters Report, Reputation Relevance: Evolving the Corporate Self. 

The report features data from a study of 100 Australian marketing and communication leaders with ‘senior manager’ job titles and above, undertaken by global research firm Censuswide. It reveals only 30% of businesses surveyed have buyer personas and audience insights for all their stakeholder groups, and 49% have access to global insights only, that do not accurately reflect the Australian market.

Overemphasis on financials, ignoring broader audiences

While 93% of respondents have updated the way they execute on their brand purpose and mission to reflect changing stakeholder needs, the research shows many are doing so without insight into what those needs actually are. Sefiani’s research revealed that 48% prioritise investors and C-Suite leaders as their primary communications stakeholders, with only 18% prioritising customers, 5% the community, and 2% employees/future talent. 

Alongside new data, the report features award-winning case studies, and expert commentary from Australian communications leaders at IKEA, Docusign, and the Parramatta Eels National Rugby League Club. 

Patricia Routledge, Country Communications Manager, IKEA Australia and New Zealand, said: “At IKEA, our business idea and vision has been the same for nearly a century, but our positioning and how we drive impact against our vision is driven by local insight. We apply this process to our products and business model in the local environment, as well as our advocacy work. With the latter in particular, we apply a toolkit rooted in our vision to identify the local causes most relevant to our brand. This process involves significant research, using focus groups; media, social and political analysis; an internal audit of policies; an exploration of how the issue impacts coworkers; and consultation with NGOs, experts and academics.”

Key drivers of change: technology, sustainability and economic instability 

58% of Australian marketing and communications leader respondents said technological change is a driving factor behind why they have changed, or are currently changing, the way they execute on their brand purpose and mission. This is followed by sustainability/climate change considerations and economic instability (both 41%). There is then an expectation that purposeful services executed by the business generates increased sales (41%), investment (35%) and positive stakeholder feedback (31%).

“Ignoring changing customer needs can negatively impact long term performance,” said Mandy Galmes, Managing Partner ANZ at Sefiani. “How can a brand’s products and services remain relevant if they don’t know what current and evolving stakeholder needs are? By using up-to-date, local insights to drive purposeful products and services stakeholders want, delivered in a way that stakeholders expect, businesses can build stronger reputations, boost financial performance  and achieve long-term success.”

Implications for reputation and trust

Robyn Sefiani, President ANZ & Reputation Counsel at Sefiani said: “In the past year alone, we’ve seen examples of misalignment between purpose and action significantly impacting  corporate and brand reputations.”

“Reputation is arguably a company’s most valuable asset. Without genuine stakeholder insights, Australian businesses risk disconnecting from their audiences, potentially eroding trust. Companies must demonstrate an understanding of their stakeholders’ needs and experiences to tangibly support them into the future.”

The 2024 Communication that Matters Report is a valuable resource for businesses looking to build stronger reputations and achieve long-term success. It is available for download at https://insights.sefiani.com.au/reputation-relevance/