Marketing in the Wake of a Disaster
Building loyalty through marketing
In the aftermath of Sandy, there was an outpouring of support from brands nationwide. But what made their seemingly selfless good deeds nothing short of "marketing miracles"? The answer, according to Mark Dority, director of marketing at Kula Causes, is customer loyalty.
According to the Brand Keys Customer Loyalty Engagement Index, emotional engagement has become the dominant driver in purchase decisions and brand loyalty. Customers connect most strongly with brands that have demonstrated an ability to understand customers and help meet their needs, even if doing so doesn't provide any immediate financial benefit to the company, Dority explains.
"If marketers don't have a real handle on the emotional side of the purchase and engagement process, they end up with a 'placeholder,' one whose name people know but don't know for anything in particular and have absolutely no (brand) advantage in the marketplace. If that's where you are, you might as well spend your entire marketing budget on coupons, deals, and promotions," Robert Passikoff, president of Brand Keys, said in a statement.
Good companies look at natural disasters as opportunities to build closer relationships with customers. They understand that the focus should be on building the goodwill of their brand and strengthening the public trust, according to Kalb.
"In the aftermath of a storm or other natural disaster, customers want brands to care about them, even if they aren't making any money off their business at that moment. Whether that means giving products away or offering certain services at no cost, brands should focus on meeting those customers' needs, not profiting," Dority says. This is crucial because it not only breeds loyalty among those benefiting directly, but also draws in others who share in the brand's compassion toward victims in need. "The long-term loyalty," Dority asserts, "will prove much more valuable than a one-time profit opportunity," such as a storm-themed online sale.
Smart companies will take the longer view and sacrifice sales and profits in the short run to build goodwill and trust in the longer run, Kalb asserts. "In times of great need, people have exceptionally good memories. They remember those that help them, and they never forget those that try to take advantage of them," he says.
And contingency marketing shouldn't just apply to natural disasters--marketers should be ready to reach out and help customers during different times of need, including social unrest, economic downturns, and other situations.
When the government shut down for more than two weeks in October, for example, brands did what they could to help customers who had been furloughed. At AMC Theatres, federal employees with a valid government or military ID were offered a free small popcorn. AMC promised to offer the deal "until common sense is restored in Washington, DC, or, more likely, until the shutdown ends or we run out of free popcorn," according to a company statement.
Korean automaker Hyundai implemented a plan that would allow Hyundai owners to defer payments on their cars if they'd been put out of work by the government shutdown. Under the plan, current Hyundai owners who had been furloughed were able to defer payments for the duration of the shutdown. And any furloughed government worker who bought or leased a new Hyundai in October wasn't required to make any payments until January.
The furlough relief was an extension of the Hyundai Assurance program, which was implemented four years ago and gave Hyundai owners the option of returning their car for a refund if they lost their job during the recession.
"Politics has long been taboo for brands, but with social media, it's a golden opportunity to connect with consumers on a shared platform. Many brands are jumping into pop culture and news topics like gun control, tax reform, marriage equality, and the like," and there's nothing wrong with that, Jim Joseph, president of Cohn & Wolf North America, a global communications and public relations agency, said in a blog post.
When it comes to marketing during tough times, brands shouldn't be afraid to reach out to customers with timely content or offers. Still, Joseph has a word of caution: "I do have one rule that any brand must follow if they are going to jump into any news fray: The messaging and the connection to the topic must be consistent with what the brand is all about. It simply must make sense coming from the brand, otherwise it's likely to be viewed as insincere and in many cases inappropriate."
Ultimately, contingency marketing campaigns should be full of heart."Helping customers in a time of need is about just that--helping," Dority says. "If a company demonstrates how much it truly cares about people, the brand could gain the type of loyalty traditional marketing can't earn."
Associate Editor Maria Minsker can be reached at mminsker@infotoday.com.
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