The Importance of Brand Awareness During Times of Crisis
In times of turmoil, uncertainty reigns. The status quo is upended, impacting our personal and professional lives. Markets swing, industries such as healthcare, education, and entertainment, may never be the same, and long-term structural impact and behavioral changes are unknown. But for brands, one thing is certain: in times of crisis, maintaining brand awareness and trust is critical. Companies that remain connected and committed to their employees, customers, and partners will thrive.
Showing up when it matters
In trying times, having the support of a partner, family member, or friend is paramount. For a calming embrace to quell anxiety or a motivating message to reframe fear, we turn to the people we can count on — that we trust.
Outside of partners, family and friends, the institution our society places the most trust in is business, surpassing government and NGOs. The trust that business has accrued comes with great expectations, as consumers want brands to aim higher than ever before and tackle societal challenges. Richard Edelman, CEO of Edelman PR, shared data from their recent study on Brand Trust and the Coronavirus Pandemic, which found that 70% of people said if a brand does not participate in finding a solution and does not communicate about it, they are inclined not to buy that brand anymore. Moreover, in that same study, 35% of people said they already tried new brands that have been part of the solution.
Beyond meeting customer expectations, showing up during difficult times is good for a business’s bottom line. Over the years, research studies have confirmed that the best strategy for long-term ROI is to increase marketing spend during an economic slowdown. Analysis of the Profit Impact of Marketing Strategies study during the 2008 financial crisis found that companies that spent money during the crisis achieved significantly higher return on capital employed and gained an additional 1.3 percentage points of market share. Additionally, Kantar estimates that brands that go dark to save costs will see a 39% reduction in brand awareness, and delay their recovery after the COVID-19 pandemic. In times of crisis, consumer expectation of brands is action.
What your brand can do today
1. Be seen
Stay the course with your advertising. Retreating during a crisis period risks undermining customer expectations and long-term profitability. As Jason Kanefsky, Chief Investment Officer at Havas Media recently pointed out, “it’s critical to understand what your customers are looking for right now.” Use that knowledge to inform your creative and media strategy to inspire confidence from your audience. Be that trusted partner that’s there for them wherever they are.
2. Take action
Consumers aren’t just looking for talk — they want action. If your company is actively making a difference during a crisis, whether it’s on the front lines or by donating money or goods, communicate that with your customers. They want to be reassured that the brand they’re backing is doing the right thing, not just looking for new revenue streams. If your business has yet to take action, now is a good time to evaluate what you can do to help.
3. Prepare for what’s next
In parallel, start thinking about what comes next. How might the crisis impact your customers’ mindset or behaviors going forward? What new marketing, customer service or product innovation opportunities await? Tune-in and listen to your audience. Growing your brand in step with them will further strengthen their trust in you.
Companies tend to both over and underestimate how the status quo will change after a crisis and how permanent or temporary the consumer behavior shifts will be. While predicting the future with 100% accuracy is impossible, what is certain is that brands have an opportunity to be there for their customers during challenging times, and to benefit from it in the process.
