Breakdown risk
Also called risk factor.
Infringement risk is the probability that a marketing campaign or business decision will have unwanted, negative side effects. It is the potential damage to your brand if a bold action goes wrong with the public.
what are examples of Infringement risk
In marketing, you often see this risk with high-profile or humorous advertisements. A campaign can go very viral and boost brand awareness tremendously, but at the same time antagonize part of the target audience. If you miss the mark completely, the campaign can turn into an image crisis.
Outside of campaigns, breakdown risk also plays a big role in other business decisions. Think about putting a major website update live that unintentionally plummets conversions, or hiring staff that ends up costing more than it brings in.
why defection risk is important in marketing
When mapping out a marketing strategy, you should never be blinded by just the potential profits, clicks or conversions. By thoroughly analyzing the attrition risk in advance, you clearly identify the dangers to your brand value. This will save you from costly missteps.
Successfully managing this risk is all about balance. A brand must dare to stand out to make an impact, but with calculated risk. By thinking out scenarios in advance and testing content among a panel, you minimize the chance of reputation damage and protect the return on your budget.
