3 Ways to Support and Strengthen Customer Relationships Right Now

3 Ways to Support and Strengthen Customer Relationships | Limbic Brand Evolution | Kevin Perlmutter
 

I believe that brands should exist to make people’s lives better. Fact is, at any given moment, a brand is either helping us get through life more successfully or enjoyably, or getting in the way of the things we want and need.  

Right now, in the middle of the unprecedented societal and economic crisis the Coronavirus has unleashed, the way that brands act will influence the short and long-term strength of their customer relationships. 

Certainly, the first priority of any business is survival. With great sadness, I’m hearing about businesses that are struggling to survive due to the evaporation of revenue and the weight of expenses that cannot be offset or deferred. For those businesses that are fortunate enough have the means to navigate through this situation, there are ways to move forward that may not only help with survival, but also help them strengthen customer relationships and earn new levels of long-term customer loyalty. 

Importantly, brand leaders should understand that how they make their customers feel at this moment will have a lasting impact, for better or for worse.

"Emotion has the greatest impact on customer loyalty." (Temkin)

All other things considered, how a brand makes someone feel has the the most significant influence on their future loyalty. This is true in good economic times, and perhaps even more important when people are struggling. In similar research, Forrester concluded “Emotion holds the key to achieving customer experience differentiation. Brands that want to break away from the pack should focus on emotion.”

With these insights in mind, it leads me to think about how brands are responding to this crisis with their customers, employees and society. Are they helping or hurting? Are they making an effort to make people’s lives better, or are they causing more distress?

Here are 3 ways that brand leaders can focus right now, to not only support, but strengthen customer relationships.

1. Pivot How You Serve Customers

Now is such an important time to not only maintain contact with your customers, but also to find new ways to strengthen those relationships. It’s important to remember that your customer’s lives, and mental states, have changed, at least for the near-term. 

"Right now people want greater security and protection, they want to maintain control, and they want moments of emotional release to unwind.”  (Based on to new research insights from Will Leach, author of Marketing to Mindstates)

By understanding and empathizing with your customers, it’s an opportunity to think about what you can be doing to help them get through this rough time. CVS and Walgreens recognized quickly that people will need their medications and that leaving the house was not a good idea, especially for those already managing illness. So they began offering free delivery of prescriptions.

Virtual services are another opportunity to stay connected with customers and may emerge to become offerings that build and extend loyalty. For example, gyms, yoga studios and other physical fitness brands are turning to online video to help their customers unwind and stay in shape. 

Businesses that deal in consulting, financial services and other areas where people are currently struggling, have an opportunity to host online presentations or workshops to help their clients navigate uncertain times. 

Restaurants that have turned to take-out and delivery as their only option, as another example, have an opportunity to think about new ideas, like selling meal plans to their customers who are busy working and homeschooling, and possibly running low on groceries. Whether it's a single restaurant or a group of restaurants in a small town, meal plan services can enable customers to commit to a certain number of meals per week for home delivery.

No matter what business you’re in, think about what your customer is going through and take the opportunity to develop new ways to connect with them. This kind of pivot will not only help your business survive in the short term, it will most likely create a stronger emotional connection with your brand — increasing long-term loyalty and customer value by 52% or more. (HBR

2. Treat Employees with Empathy

There’s no doubt that companies are making some very hard and painful decisions that will have an impact on their employee’s lives. Some situations are unavoidable due to economic constraints, and business survival needs to be a top priority for any company. However, for brands that are known by the public to be large profitable enterprises, there will be little empathy if they are seen to be treating their employees poorly at this time.

"62 percent of global consumers want companies to take a stand on current and broadly relevant issues such as sustainability, transparency and fair employment practices." (Accenture)

Already we’ve seen examples of brands that have caught large-scale public backlash due to seemingly unfair employee policies that have gone public - McDonalds’sHobby LobbyWhole Foods and others.

Meanwhile, many companies - StarbucksUberLyftWalmartPostmates, and many others - have enacted policies to support their hourly workers and executives with extended or more flexible health benefits, paid time off to support family needs or to self-isolate, and other benefits to help them get through this tough time.

There are many reasons for brands to treat employees exceptionally well at this time. Most importantly, it’s common human decency for employers to not turn their backs on employees during times of crisis. 

Beyond that, there are also proven business benefits to helping employees feel like they are highly valued and taken care of. In one study, companies with engaged employees had 89% greater customer satisfaction and 50% higher customer loyalty than their disengaged counterparts. (Hay Group

Studies also show that businesses with the highest levels of employee engagement are 22% more profitable than those with low levels of engagement. (Gallup) This is because these employees are happier, more enthusiastic, provide higher levels of customer service, contribute more ideas and recommend product/services to customers.

3. Pay it Forward

Today we are seeing many brands emerge, with their hearts in the right place, decisively moving into action, turning what they do best into things that make people’s lives better. 

Here are just a few examples…

Zoom has made their video conferencing services available for free to K-12 educators so they can stay connected with students

U-Haul is offering 30-days of storage free to displaced college student as dorms were suddenly closing

LVMH is turning fragrance factories into production facilities for hand sanitizer

GM, Ford, GE, Tesla, Dyson and others are turning into production facilities to produce ventilators 

NikeGapLVMHEddie BauerSene and many others are producing thousands of face masks

The Four Seasons Hotel in NYC is giving free housing to health care workers 

JetBlue is donating free flights for incoming medical volunteers heading to New York State

The list of brands taking action is growing every day.

There’s no doubt in my mind that the brand leaders making these decisions are doing so from an altruistic perspective, and they are not primarily focused on the business benefits. It is likely, however, that brands giving back to their communities now will be rewarded with greater customer affinity and loyalty in the future.

In fact, "64% of people choose, switch or avoid a brand based on its stance on social issues.” (Edleman)

Once again, this is about human decency, and paying it forward. In times of crisis, brands that have the means and resources to support should step up, in any way they can. 

Focus on How You Make People Feel

This is an incredible time where society is coming together, and people are helping one another. Many brands will need to pivot how they serve customers to build new revenue streams, and others have the resources and means to serve the greater good.

"People will forget what you said, people will forget what you did, but people will never forget how you made them feel." (Maya Angelou)

I predict that brands will be judged based on the ways they make people feel in today’s environment, and that there will be a recalibration of brand loyalty as a result. Brands will be remembered for how they pivot to connect with their customers to address emerging needs, how they treat their employees and how they do what they do best to help those in need.

For brand leaders in the midst of tough decisions, “how do you want people to feel”?. Let the answer be your guide.

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