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How To Explain Gaps In Employment: Tips & Examples

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Learning how to explain employment gaps is important if you''ve had an extended period of time away from work. All hiring managers and interviewers consider these gaps to be a red (or yellow) flag, so they''ll naturally have some questions.

How to explain gaps in employment

But don''t worry.

Once you know how to explain employment gaps effectively, you''ll be able to put their mind at ease and move forward with the interview.

Table of contents

What’s Considered an “Employment Gap?”

An employment gap is any period in your professional career where you didn’t have a formal job. When you look at your resume, it should detail your work history in reverse chronological order by month and year. It’s a chronological timeline of your career, and employment gaps typically stand out.

Gaps can vary in length from a few months to several years. Hiring managers will almost always ask about them. They’re common “red flags,” and hiring decision-makers will inquire about them to learn more.

Whatever the case, knowing how to explain employment gaps effectively is incredibly important. They are treated as a cause for concern by default, so you must provide an explanation to ease worries and ensure you’re not taken out of the running for consideration.

How to Explain Employment Gaps

When you have employment gaps in your work history, it can feel like you’re already fighting an uphill battle. But these gaps don’t have to negatively impact your chances of getting hired.

Learn how to explain employment gaps during an interview by following the tips below.

1. Tell the Truth

The most important thing you should do is be honest. It’s tempting to lie when responding to these types of inquiries. Whether you’re ashamed of why you have an employment gap or not, there’s always a nagging feeling that you have to defend yourself.

Brush those feelings off before you enter your interview. Remember why hiring managers ask about it in the first place. It’s not to be accusatory or make you feel like you''ve done something wrong. Companies aren’t so much concerned with the gap itself than what it might represent.

Think of it from a hiring manager’s perspective. They’re trying to get the best person for the job. They want someone qualified and reliable. Plus, they want to bring people in who will support the bottom line and stay with the company for longer than a few months.

When they see that gap in your resume, it casts doubts. That’s fine. It’s your job to reassure them that the lapse won’t affect your performance if you get hired.

That’s the ultimate goal of asking about the employment gap. Hiring managers want reassurance that whatever caused that pause in employment won’t prevent you from being successful now.

Don’t make the mistake of telling tall tales. Lying about the employment gap is one of the worst things you do. Being untruthful will come back to bite you. No matter how much you rehearse your answer, it''s still a gamble.

The hiring manager might decide to do some digging and discover the truth. When they see that you lied, you can kiss that job opportunity goodbye.

It’s much better to remain honest and upfront. Honesty is always the best policy, no matter how awkward that might feel. Even if the reasoning behind the gap is less-than-ideal, you can always frame it as a positive (more on that soon).

2. Determine What Gaps You Don’t Need to Worry About Addressing

Contrary to popular belief, you don’t have to explain every employment gap. In fact, you don’t even need to mention every job on your resume!

If you’re further along in your career, hiring managers aren’t interested in learning about those years you spent hopping around part-time jobs as a teenager. Leave those jobs off your resume so they won''t distract recruiters. They’re interested in your career history and the path you took to get where you are now. 

So, what gaps aren''t as important? Generally, anything less than six months isn’t going to be a major concern during interviews. The same goes for gaps that occurred more than a decade ago. Those lapses are in your past and haven’t affected you in a long time, so they’re practically irrelevant.

Here’s a little tip: You can ditch the months in your resume entirely to avoid drawing attention to short breaks of less than six months. Instead of putting the exact date, just write the year.

Short employment gaps aren’t a cause for concern because they’re pretty easy to explain. Sometimes, it takes several months to go through the hiring process and land a job. That’s especially true if you’re already in executive territory.

Most hiring managers will write those gaps off because they can also be due to personal reasons such as illness, pregnancy, and other major life events. Most won’t even bother to bring them up. 

3. Show What Relevant Experience & Skills You Gained During the Gap

The best way to explain employment gaps is to talk about what you learned during that time. What skills did you gain, and how will that experience benefit you in the workplace moving forward?

Ultimately, your goal should make this period of time seem like it served a purpose. You want to talk about it in a way that shows it helped you become a better professional in your industry, even if you spend none of that time actively working.

There are many ways to pull this off. The simplest is to talk about skills you obtained during that time. For example, maybe you took a year off and during that time you learned Spanish! Or perhaps you brushed up on relevant software that changed during your absence from the workplace.

You can even talk about soft skills and opportunities you took to push your personal development. Some good examples include learning to be more empathetic, getting used to working solo, and other skills you might need when returning to work.

Find ways to tie everything back to the position you’re trying to get. Soft skills apply to a wide range of jobs, so that tip isn’t as difficult as it seems. Highlight how the employment gap served you, and how it prepared you to get to where you are now.

4. Practice

Please don’t enter your interview without being ready to explain notable employment gaps. You can almost guarantee that questions about your employment gap will come up. Prepare your response ahead of time, keep it concise, and move on.

Understand why the gap occurred and form an explanation that benefits you. It should be positive, focus on what you learned, and be 100 percent honest. You do not need to delve into all the details. Keep it high level.

Go over your explanation with friends and find different ways to say it. Don’t rehearse a scripted answer verbatim. The goal of practicing is to ensure that you know how to deliver a response that sounds confident.

Get comfortable talking about the employment gap, and you can be confident enough not to stumble over your words or say something you regret.

Common Reasons for a Gap in Employment

There are many reasons why an employment gap can occur. Some are within your control, others are not. Having a solid reason for that lapse in work is half the battle when it comes to explaining employment gaps that you might have.

Here are some common reasons that won''t raise any eyebrows.

You Took Medical Leave

Of course, your health is the most important thing. Medical leave is an easy explanation that most hiring managers will recognize without further questions. People have to take extended breaks from work all the time to deal with health issues like cancer, serious bodily injury, and more. You don''t need to disclose the nature of the medical leave, but if possible, let the interviewer know if the condition is resolved.

You Needed to Be a Caretaker for Someone in Your Family

It’s not just your own health that can create an employment gap. Many people have no choice but to become caregivers for sick children, elderly parents, or any other family member. You should include in your answer that you no longer need to be the caretaker so the interviewer doesn’t worry that this will happen again.

Caring for someone else is a full-time job, making gaps necessary.

You Moved

Relocating to a new area is a big deal, although this is less applicable if you''re simply moving to another nearby city. Employment gaps are common when you’re making big moves to another state, country, or continent.

Those moves take time to adjust. Plus, finding work and getting legal matters taken care of can be time-consuming.

You Were Pursuing Formal Education or Career Development

Pursuing your education or developing your career with programs and certifications are excellent reasons to have an employment gap. Hiring managers love to hear when candidates take the initiative to further their career and skillset.

Those endeavors take time and attention, whether getting another degree or doing a certification program. Having a job while doing this can be challenging (and slow you down), so it''s reasonable to take time off.

You Were Looking for a New Job

It’s not always easy to land a job. Depending on your industry and local job market, you could end up waiting months for an opening. Don’t be afraid to talk about that process when explaining an employment gap.

You Were Laid Off

Being laid off is another reason that hiring managers understand. Budget cuts happen, and layoffs are entirely out of your hands. As long as you used your time productively, it’s perfectly reasonable to have a lengthy employment gap.

You Started Your Own Business

If you started your own business, you probably had no choice but to end your formal employment. Continuing to balance your job and your business would be too much to handle. Plus, many organizations would see your continued work as a conflict of interest.

And even if your business idea ended up failing, that''s alright. In fact, it’s safe to assume that it did if you’re interviewing for a job. You can discuss what happened (and what you learned) when explaining the gap.

You may decide to list your business on your resume to help explain this gap.

Opportunities to Explain Gaps in Employment

Now that you know how to explain employment gaps, it''s worth going over situations where you''ll have a chance to do so.

If the gap is significant, you can proactively mention it in your cover letter. Doing so draws the hiring manager’s attention to that point in your resume. By including it in your cover letter, you can explain the gap before it hurts your chances.

Another option is to include it in your work history. Position it as if it were another job. You can use the spot to explain the gap, tell the hiring manager what you did during your time off, and how it affects your work now.

Finally, there’s the interview. It’ll likely come up during your meeting if you don’t explain the employment gap in your resume or cover letter. Have an explanation ready, and you can get it out of the way and move on.

Example Explanations

We have a couple of example explanations to give you a good idea of how to explain employment gaps effectively.

Example 1

In our first example, the job seeker was laid off from a job they held several years ago. Their explanation works well because it addresses the gap briefly, talks about what they did during their time, and effortlessly transitions to discussing the job they’re trying to land.

“That employment gap resulted from being laid off from the job I previously held. I got a lay-off notice without much warning, so I had to spend several months searching for new employment. I began my job search immediately, focusing my efforts on finding supervisor or manager positions.

While I did have several interviews during that lapse in employment, finding the right fit took longer than I anticipated. I eventually found an excellent opportunity to hone my leadership skills. My priorities now are to lead large projects and manage a team directly.

I saw that the job description mentioned mentoring and training new team members. Can you tell me more about that?”

Example 2

The interviewee relocated to a new state in this next example. It didn’t work out, but they talk about how it prepared them for the job they’re trying to get now.

“I had always wanted to live in Seattle. After a lot of thought, I decided to finally follow my dream.

I attempted to find a job while living out of state, but I wasn''t seeing much success. So I decided to move out there and settle in. I waited tables to cover my living expenses while there and while looking for a new job. 

During that transition, I acquired many skills I don’t think I would have gained otherwise. I became more aware of servicing customers and managing my time. I’m eager to apply those skills here at [COMPANY].”

Closing Thoughts

Once you know how to explain employment gaps, you''ll be able to ease any worries that interviewers or hiring managers have.

Remember, employment gaps occur all the time. If you''re honest and prepared, you''ll do just fine!

The post How To Explain Gaps In Employment: Tips & Examples appeared first on Career Sherpa.

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Does Data Monetization Really Require A Process Discipline?
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Does Data Monetization Really Require A Process Discipline?

To get good at it, our answer is yes…

Updated this article to include design principles and other elements, as CDOs and CDAOs continue to prove the value of data analytics to COOs and CEOs. The path to the C-suite is in proving the ROI of data analytics, setting up the tests, and providing the evidence.

As an analytics practitioner and leader, I have always stressed the need to create a predictable, repeatable, stable process for analytical data innovation. A data innovation process would help the firm monetize its critical data assets. A monetization capability has applications for several marketing and business domains such as campaign management, customer experience, product development, customer and prospect segmentation, and more (risk, etc.). A good data monetization process has at its core the ability to generate pilots every quarter to facilitate more significant tests and learning. Analytical data innovation has a direct impact on customer satisfaction and retention.

This article was written a few years back initially; however, at that time, the only thing we seemed to hear about was quick wins and not about setting up monetization and test and learn as a process. I posit that the continued focus on quick wins only and not creating a process for learning may be hindering analytical adoption and moving data analytics maturity to the next level. There are good quick wins and bad quick wins depending on whether they are measurable and scalable. It might now be time to suggest a more defined team and process be stood up within the CDAO and design worlds to hit the accelerator on monetizations. In some firms, particularly in Fintech, design practices joined at the hip with CDAOs are beginning to create such a process. My updates to the process are below.

Data Innovation Process Updates

The challenges in developing the analytical data innovation process include:

  • Building out a robust data monetization capability to drive consumer and commercial strategy by improving revenue and profit impacts across various activities.
  • Developing a strategic analytics roadmap to take the company to the next level. As a starting point, one needs to understand the current state of data analytics and decision sciences.
  • Optimizing the function to drive organic growth by retrofitting existing capabilities as the business transforms from offline to digital channels.
  • Building a highly regarded, expert team with new skill sets to create analytical products and monetize the data while ensuring compliance with consumer privacy and other regulatory considerations. This includes design skill sets.
  • Using Agile and Agile at Scale to create squads and new teams, with new departments coming online, such as design practices and data analytics COEs. Set up lean start-up protocols using design principles to create tests based on a monetization process that has a clear path to be deployed within the company’s strategy. The discipline of design can help CDAOs and CDOs bring their quick wins to life. Business cases and ROI goals should be set for each test and monetization.
  • Establishing an orientation to innovation and change leadership, focusing on an efficient test and learning discipline to improve the bottom line. In many firms, this is still not a defined process and team, although, as mentioned, start-ups and fintech seem to be ahead in this area.

For each pilot, a monetization process needs to be followed, starting with defining the business case and vetting it with business partners and executives. Is the business willing to make changes and deploy the learnings? After gaining concurrence from the business partners, assemble the right team to keep the monetization effort on track, including executive sponsors, consultants/analytics experts, academics, design practice experts, prototyping firms, line of business sponsors, and IT.

To create the proper pilot development process, you can borrow from both Agile and SDLC, which ensures the formulation of the appropriate business and data requirements. Take the best elements from different project management methods to create the criteria. For example, a development process method can ensure success measures are established for the project.

The following steps are to perform feasibility analysis, create a prototype, and validate the pilot. For most analytical pilots, this involved creating test segmentations or models which can then be deployed in the market so one can read and validate the results. Some of the steps I have gone through in validating pilots included ensuring that we had actual data and systems to deploy the analytic solution. For example, some models require unique data sources to be able to score and implement them at their point of use.

The final step is to determine how far along the monetization cycle you will take an analytical pilot. For example, many times in segmentation, you may find a profitable segment but the segment cannot quickly grow or scale. On the other hand, a pilot that goes into implementation will require execution support and the establishment of success metrics. One new comment on this is that the pilot should have a definition of done and clear success metrics that the CEO and COO are aware of and endorses so that when the pilot is a success, it can be rolled out and celebrated.

My philosophy is to maintain a pipeline of analytical pilots, knowing that only 10%-20% will be fully monetized. This is the central premise behind the test that learns and fails fast and cheaply. Design practices can now help expand the number of pilots that are monetized. See Randy Bean’s book Fail Fast Learn Faster for perspectives on this.

Ideally, there is enough diversity of pilots in the queue to generate new analytical products quarterly. This process is iterative as the pilots should be viewed as living solutions, and permanent departments, squads, and tribes should be set up to perpetuate this model.

Given that many CDAOs are still struggling with tenure and investment and proving the ROI, I want your thoughts on how this process can help and what you think is the state of the state is on test and learn and monetization. Are quick wins still quick, or does this process need to usurp quick wins?

Food Allergies In The Office? What You Need To Know
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Food Allergies In The Office? What You Need To Know

As someone with severe food allergies, I know how difficult it can be to address your food allergies with new co-workers and peers in an assertive yet informative way—especially when starting a new job in a completely unfamiliar environment. How can your place of work be inclusive of employees with severe food allergies?

What Is A “Severe” Food Allergy?

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Severe food allergies are called severe for a reason. They’re life-threatening and should be taken very seriously. When someone with food allergies ingests food that contains the triggering allergen, they can go into anaphylaxis. If not administered epinephrine (an EpiPen) in time to treat the anaphylactic reaction, the reaction can be fatal.

Work Spaces And Food Allergies Don’t Always Mix

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There are about 32 million Americans with food allergies. And with reports that food allergies in children increased by 50% between 1997 and 2011, they won’t be going away anytime soon. Two children in every classroom will soon mean two people in every office. So, what is it like to work in an office with food allergies?

To start, it may mean not having a piece of cake at that upcoming office birthday party. Lunchtime always keeps them on guard, and they usually opt to brown-bag-it, using caution in the cafeteria and shared office kitchens. Maybe they’re thinking about skipping the office outing to an unfamiliar restaurant on Friday, not sure if they’ll be comfortable eating there. Every day in an open office plan could bring anxiety, as they worry about airborne allergens and lack of safe, allergen-free spaces.

If you have food allergies, chances are you can relate to at least one of these things. But if you don’t have severe food allergies, you may be wondering: What does this really mean?

What The Law Says

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In the U.S., based on Section 504 of the Rehabilitation Act of 1973 and the ADA Amendments Act of 2008, the definition of “disability” has been modified to include those with severe allergies. This is due to the fact that severe allergies are “a physical or mental impairment that substantially limits one or more major life activities” (eating, breathing, and major bodily functions related to the immune, digestive, bowel, and respiratory system).

To sum it up:

“No individual shall be discriminated against on the basis of disability in the full and equal enjoyment of the goods, services, facilities, privileges, advantages, or accommodations of any place of public accommodation by any person who owns, leases (or leases to), or operates a place of public accommodation.” 42 U.S.C. § 12182.

Anyone with food allergies knows these laws are not widely enforced or known to apply to food allergies (think peanuts being served at baseball games or on airplanes). So, even though everyone in the U.S. with disabilities is entitled to the same rights as able-bodied people, people with severe food allergies often encounter their food allergies in these public spaces and at work and cannot fully partake in whatever activities are going on at these places. More importantly, their health and well-being could be at risk.

Most places of work are considered public places—by legal definition meaning “any enclosed indoor area used by the general public or serving as a place of work containing two hundred fifty or more square feet of floor space.” Therefore, the two laws mentioned above apply, or should apply, to your place of work.

What Employers Should Know

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Good employers want to be as inclusive as possible. Yet it can be hard to be inclusive of those with food allergies if you’re unaware of who has food allergies in your office.

The best way to be inclusive and considerate about food allergies is to ask new and current employees if they have any severe food allergies. And if any do, ask them what you can do to make their work environment safe and comfortable. This shows employees you care, and by acknowledging food allergies as something serious and very, very real, it already establishes that foundation of trust that is so hard to gain in the first place.

Consider what it’s like trying to decide when to tell an employer about your food allergy. When asked if you have a disability on a job application, food allergies are not listed. If there’s a space to check “other” and write in a different answer, you may consider, for a split second, writing in your severe food allergy.

Does your disability require reasonable accommodation?

Yes and no. It’s not a physical disability, in the sense that you can’t visually tell who does or doesn’t have a food allergy. Yet your arrival at a new company could require them to change their policies and culture.

As you can see, it’s not easy explaining food allergies at work when there’s no system in place to deal with them. That’s why, as an employer, you should come up with a system that works for your company. After all, it’s your job to make sure all of your employees feel safe and included.

What YOU Can Do

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If you’re someone with a food allergy, you probably have lots of experience navigating the world with your condition. But the professional world can be a bit tricky.

When starting a new job, it’s best to tell your boss about your allergy as soon as you can, if they don’t bring up the topic first (you’re responsible for letting them know, and you’re entitled to reasonable accommodation!). Then, ask if you can call a meeting to explain your situation to your new co-workers. This will allow for an open dialogue about the subject, and those who have questions will be able to have them answered in a supportive and honest environment.

If you don’t have food allergies, but work with someone who does, please be respectful of their condition. If you’re unsure whether it’s okay to eat something around them, just ask. Communication is always the right choice.

Everyone deserves a safe and comfortable work environment. And it’s important to remember that no one chooses to have a food allergy.

If we all try to be more kind and considerate toward our peers, it will make work better—for everyone!

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This article was originally published at an earlier date.

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How Challenger Brands Can Steal The Thunder
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How Challenger Brands Can Steal The Thunder

Brands and businesses are intertwined entities, mutually influencing each other’s value. They represent two sides of the same coin. Among brands, we can broadly categorize them as leaders, followers, and challengers. Our focus here lies on challenger brands—businesses that fearlessly compete against established players, aiming to disrupt the market and redefine consumer perceptions. Their mission is to challenge conventional notions and reshape consumers’ hearts and minds.

In this article, we will explore the essence of challenger brands, effective strategies to build credibility and trust, essential guidelines for navigating potential pitfalls, seizing market share through digital marketing, and the transformative power of collaboration. Join us as we delve into the world of these audacious brands that dare to challenge the status quo and forge a unique path to success.

Challenger vs. Established: Defining Brand Differences

A challenger brand is a company or product that competes in a market dominated by established and well-known brands. It typically faces the challenge of breaking through market barriers and gaining market share from dominant brands.

Traditionally, challenger brands like Pepsi vs. Coca-Cola in the Cola Wars went head-to-head with competitors. Today, they transcend competition by challenging the status quo, consumer behaviors, and deeply held beliefs.

They fearlessly initiate confrontations, take firm positions, and write rules, redefining the game entirely. By differentiating themselves and targeting niche markets, they engage customers in compelling and unconventional ways. Operating with limited resources compared to established counterparts, challenger brands find creative ways to compete effectively and leave their mark.

Here are some defining characteristics of challenger brands and how they differ from established brands:

  • Market Position: Challenger brands operate as underdogs, seeking to disrupt the status quo and challenge the market leaders. They aim to position themselves as an alternative to the established brand by offering unique value propositions or addressing specific customer needs that the incumbents may overlook.
  • Limited Resources: Challenger brands often have limited financial resources, smaller budgets, and narrower brand recognition than established brands. They must be resourceful and find creative ways to impact the market, often relying on innovative strategies, guerrilla marketing, and word-of-mouth to gain traction.
  • Differentiation: To stand out in a crowded market, challenger brands differentiate themselves by offering something unique or innovative. They emphasize their points of differentiation, whether it’s through product features, pricing, customer service, or brand values. By highlighting what sets them apart, challenger brands strive to attract consumers seeking alternatives to the established options.
  • Nimbleness and Agility: Unlike established brands, challenger brands have the advantage of being more agile and flexible in their decision-making and execution. They can quickly adapt to changing market dynamics, consumer trends, and emerging technologies. This agility allows them to respond faster to customer needs, seize opportunities, and create disruption in the market.
  • Customer-Centric Approach: Challenger brands prioritize understanding and catering to the needs of their target consumers. They listen to customers’ feedback, actively engage with their audience, and offer personalized experiences. Challengers can develop a loyal customer base by strongly emphasizing customer satisfaction and building relationships.

Building Credibility & Trust: Strategies For Challenger Brands

There are two effective strategies for challenger brands to build credibility and trust with consumers who lean towards established brands.

  1. Deliver superior value – Consistently providing high-quality products or services that offer clear value beyond expectations is crucial. Challenger brands establish reliability and customer satisfaction by exceeding customer expectations and delivering exceptional experiences.
  2. Identify pain points and offer innovative solutions – Understanding the pain points consumers face with established brands and providing innovative solutions can earn credibility. By addressing unmet needs and offering a fresh approach, challenger brands can attract customers seeking alternatives.

Dollar Shave Club revolutionized the razor industry dominated by Gillette. A low-budget, “Our Blades Are F*cking Great” video campaign, reportedly shot for a mere $4,500, went viral. With a direct-to-consumer model, the brand challenged the status quo of existing brands and buyer behavior. They gained attention and disrupted the market by cutting out middlemen and delivering quality blades. Eventually, the brand was acquired by Unilever for $1 billion in 2016.

Navigating Pitfalls: Challenger Brand Strategy

The challenger brands should avoid the following pitfalls while taking the market head-on.

Lack of Differentiation: Without a truly differentiated product or offering that provides a better alternative to what’s already available, attempting to position oneself as a challenger brand will likely backfire. It’s crucial to develop strategies around a unique value proposition that sets the brand apart and resonates with consumers.

Copying Established Brands: Emulating the market leader or established brands can lead to blending in with the existing competition, resulting in a lack of distinction. Challenger brands should strive to carve out their identity and avoid the “sea of sameness.” It’s crucial to forge your path and create a unique identity to succeed.

Lack of Innovation: Failing to continuously innovate poses a potential threat to the brand’s success. Challenger brands should constantly seek new ways to differentiate themselves, improve their offerings, and stay ahead of changing consumer preferences and market trends.

Pricing Wars: Competing solely on price can be detrimental to long-term success. Instead, challenger brands should focus on value and differentiation.

Neglecting Brand Building: Not investing in building a strong brand positioning, identity, messaging, and customer experience to establish credibility will not help the brand get registered among the target audience.

Challenger brands should embrace their underdog status. By embodying the “David against Goliath” attitude, they should offer a more personal, authentic, and relatable experience compared to the corporate image of established brands.

Unleashing Digital Power: Challengers Stealing Market Share

Challenger brands leverage digital marketing and social media to raise brand awareness and steal market share from larger competitors through nimbleness, agility, and innovation. They can employ two major strategies: content marketing and guerrilla/viral marketing.

Let’s look at an example of this. Kind Snacks disrupted the snack industry by offering healthier options made with whole ingredients and no artificial flavors, preservatives, or excessive sugars. This focus challenged industry norms or processed snacks.

Kind Snacks gained market share by appealing to health-conscious consumers and carved out a niche. Leveraging content marketing through blogs, articles, social media, and influencer partnerships, the brand engages its audience, builds loyalty, and positions itself as a trusted resource for healthier snacking.

Through contrarian thinking, Kind Snacks differentiates itself from larger, less health-oriented brands.

Power Of Collaboration: Boosting Visibility For Challengers

In the competitive landscape, challenger brands can gain a significant advantage by strategically forming partnerships and collaborations. By joining forces with complementary brands, industry influencers, or even non-competitors, challenger brands can enhance their visibility and credibility in the market. Collaboration opens doors to new audiences, extends reach, and strengthens brand positioning.

First, partnerships provide challenger brands access to established networks and customer bases. By teaming up with well-known brands or influencers, challengers can tap into their existing audience and gain exposure to a larger pool of potential customers. This exposure can result in increased brand awareness and accelerated market entry. Additionally, collaborations with industry influencers or thought leaders lend credibility and trust to challenger brands as they leverage the influencer’s established reputation and expertise. This association can help overcome consumers’ skepticism towards lesser-known brands, boosting credibility and fostering a positive perception among the target audience.

Second, collaborations allow challenger brands to leverage shared resources, expertise, and creativity. By partnering with other companies, challengers can combine strengths and fill gaps in their capabilities. This can result in innovative product development, impactful marketing campaigns, and enhanced customer experiences. Joint marketing efforts, co-branded campaigns, or collaborative content creation can generate buzz, capturing consumers’ attention who may have been more inclined toward established competitors. Moreover, collaborations demonstrate a willingness to think outside the box and foster innovation, positioning the challenger brand as a dynamic and forward-thinking player in the industry.

In conclusion, challenger brands boldly disrupt established markets by offering unique value propositions and targeting niche markets, challenging consumer perceptions and reshaping the industry. Building credibility and trust is crucial for these brands, achieved through consistently delivering superior value and innovative solutions to address consumer pain points. To steal market share from larger competitors, challenger brands can leverage digital marketing, content strategies, and partnerships to raise brand awareness, engage with audiences, and access established networks. By embracing their underdog status and driving innovation, challenger brands have the potential to make a lasting impact, carving out their niche and stealing the thunder from established competitors.

For a step-by-step guide on how to develop a brand strategy, check out How to Develop a Brand Strategy by Lisa Perry.

Anand is a co-founder of TMA Global—a brand strategy studio. He helps brands find their purpose and get people to care about it. His mission is to turn businesses into beloved brands. Check out some of his guides here.

For more brand marketing insights, follow Anand Sankaranarayanan and Lisa Perry.

This article was written by Lisa Perry and Anand Sankaranarayanan.