In marketing terminology, the silo effect occurs when a lack of communication or coordination of efforts between or within business units, departments, teams, etc. has a negative impact on overall performance in terms of meeting goals. It’s important to be aware of the silo effect as it affects branding, because the negative affect to your brand could hurt your business and bottom-line in the long term.
Let me explain. Business units or departments within a company often operate independently of each other. As such, efforts are duplicated or counter-productive to the organization as a whole. When it comes to branding, each silo haphazardly manipulates the brand (from incorrect logo usage to brand name errors, and more). The end result – a poor overall brand experience is presented to consumers, which leads to inconsistency and brand confusion.
The silo effect is a perfect example of why it’s so important for organizations to have a brand champion and brand guardian such as a Chief Brand Officer who works to ensure the various silos operating within the company produce outputs that communicate a consistent brand message and promise.
Take a look at your organization. Are teams operating in silos? Is your brand suffering because of the silo effect? If so, make the necessary changes to ensure your branding efforts remain a top priority for everyone.
Image: Flickr
Lucy is Editor at Corporate Eye
Dear Ms. Susan,
Why the name SILO, does it have any relevence.
Please clarify,
Thanks,
Mukesh