Great Brands and real Loyalty are built in the Toughest Times
There have been a variety of events that have caught my attention that show how the toughest times really do make it evident how great, or not so great, companies are. Tough times make it very tempting for companies to stray from their moral codes or social responsibility goals, which really does hurt brands afterwards. On the contrary, doing what’s right in the hardest times to sacrifice a few profits and stockholder equity makes great companies great, and customer’s remember.
Examples: The recent flood in Fargo, North Dakota isn’t over, and still has the potential to be absolutely devastating. In the flood businesses are really getting behind the community, no surprise considering the way the cititzens came together. Subway and Buffalo Wild Wings, amongst many other restaurants, gives out free food to sandbaggers, Home Depot stays open 24/7, and countless of other cases I haven’t heard about.
The same happened in many cases during the Katrina mess. While it’s easy to close up shop and cut your losses, doing the right thing pays off with great customer loyalty afterwards.
The Economic Mess Today: The economy has unfortunately put up a smokescreen for some businesses to have an excuse to act, perhaps, irresponsibly. IBM has drawn a lot of criticism for their job cuts supposedly due to the economy, but are essentially just outsourcing maneuvers. Call it what it is please. Then obviously the AIG bonuses are utterly ridiculous in the public’s eye. Think that might have an impact on on consumers’ insurance decisions in the future?
On the bright side, I like Hyundai‘s Assurance deal going on for purchasing new cars, where if you lose your income you can return the vehicle. I’m not in the market, but they just earned 5 points in my mind.
The point is all businesses go through trying times, and it’s in these moments that their true character comes out and it’s very safe to say many people notice this. As a business, be sure to value your community, act responsibly, and fulfill your feduciary responsibility. People notice.
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