Now is the time for brands to reinforce their value, not pull back
Illustration by Nick DeSantis / Getty / Shutterstock / The Current
It might sound crass, but there’s truth in Winston Churchill’s famous advice: “Never let a good crisis go to waste.”
Economic turmoil brings opportunity. In fact, half of the Fortune 500 companies were founded during or following periods of crisis. Why? Because those who are thinking creatively are best positioned to take advantage of changing realities.
Today, the world finds itself in a time of, if not quite crisis, then at least economic uncertainty. With global trade upheavals and reduced consumer spending, it’s a time that’s nothing short of turbulent.
While every tough economic period has its own unique challenges, there are lessons to be learned from the past that still hold true. It is during these moments when brands can prove themselves to be trustworthy, stable and helpful.
Now is the time for brands to demonstrate their true value — not just in price, but in purpose. It means showing people they care and can improve their lives in meaningful ways, and by staying true to their values.
Value the value you deliver
Pulling back in a scary situation is a natural response. But studies show that brands that cut spending during downturns suffer longer term damage. Nobody wins in a race to the bottom.
Instead, reinforce the value proposition of your brand. Highlight the quality, durability, customer service and unique benefits of your brand that justify your price. And yes, doing so means you need to invest in marketing.
Strong brands offer both financial and emotional benefits to people. In tighter times, the accrued points and rewards in a loyalty program can take on added value, acting as another form of currency. Be upfront with your customers about those benefits, making them more flexible and more accessible.
Show people that you understand the pressures they face — and that you’re responding with empathy and utility.
Stay true to the brand
A recent Ogilvy One survey of over 3,500 people worldwide found that 85% are loyal to brands that behave in ways they respect. This creates a clear implication: brands that live by their values are more likely to create lasting bonds with consumers — bonds that go beyond the transactional and are built on emotion and commonality.
During a tough economic moment, there’s an instinct to go heavy on promotions. But too much discounting can erode brand quality. In the short term, this may create positive results, but it’s not worth the long-term damage you’re doing to the brand by decreasing your brand equity.
By staying true to yourself and your brand, you’re endearing yourselves to customers who will appreciate that same authenticity, in both good times and bad.
Lead with empathy
Relationships are built on emotional value exchanges: give and take, communication, and ultimately, trust.
During the pandemic, 71% of consumers said brands that prioritized profits over people during times of upheaval lost their trust forever, according to Edelman research.
One panic move by brands can undo a lifetime of relationship building. According to the Edelman survey, 65% of respondents said a brand’s response to crisis impacts whether they’ll buy from it again.
That trust starts with transparency. Today’s consumers are more discerning than ever. They can spot corporate spin in a heartbeat. It’s much better for a brand to be honest about pricing changes, supply chain disruptions and operational challenges. If cost adjustments are necessary, take the time to explain to your customers the why and how, and what you’re doing to continue providing value.
Be different. Be creative.
In times of uncertainty, many brands will respond in predictable ways — more promotions, more tactical advertising, a focus on conversion, less brand building.
Be different in a time when everyone else is exercising discipline. That’s the power of creativity. During a crisis, the world turns black and white, and a bold splash of color stands out.
Creative responses signal confidence in the strength of your brand. And when you believe in it, others will too. In a world with a trust vacuum, brands find themselves with an opportunity to fill the void. Those who forge ahead with confidence, strength and positivity are the ones with a chance to weather the storm and come out ahead.
This op-ed represents the views and opinions of the author and not of The Current, a division of The Trade Desk, or The Trade Desk. The appearance of the op-ed on The Current does not constitute an endorsement by The Current or The Trade Desk.