When the economy starts up post-coronavirus, many brands will need to be reenergized. Plan now for post-coronavirus revitalization.
According to consultancy McKinsey “In a crisis, it’s natural to focus only on the near-term business results and adopt a pure survival strategy. But that could mean winning the battle but losing the war.”
Continue to speak to your loyalists. You need those customers who love the brand. Before spending resources on attracting new customers, the first priority is to focus on the customers who have favored your brand in the past.
Continue to communicate. Going dark may save resources, but while you are silent, another brand is stepping into the breach of your abandonment. Data from McKinsey show that those enterprises surviving after a crisis were those that “kept communicating with customers through the downturn.”
Rule #1: Refocus the Enterprise
After the virus, refocus the enterprise around the basic, common goals. Internal challenges come first. Employees will want to know what is going on and what will happen to them. Employees do not mind refocusing, especially when the enterprise is in flux, is on a downturn or is coming out of a crisis. But, employees do expect to know in what direction they are rowing and to what destination they are headed.
Rule #2: Restore Brand Relevance
A brand is relevant if it is perceived to be addressing current customer needs and problems. Restoring relevance requires allocating resources to 1) a thorough knowledge of the current marketplace, 2) needs-based occasion-driven market segmentation and 3) revitalizing the brand’s promise – major shifts in consumer behavior may mean a serious review of the brand’s relevant differentiated benefits.
Rule #3: Reinvent The Brand Experience
Reinventing the Brand Experience requires investment into 1) innovation and renovation; 2) marketing; 3) growing the brand’s Trustworthy Brand Value Equation. (A brand’s Trustworthy Brand Value Equation is the mental calculation of what one gets [functional, emotional, and social benefits] relative to what one pays [the costs to the customer in terms of money, time and effort] multiplied by trust.); 4) ensuring the brand is perceived to be a fair value (fairness is more than mere price; fairness contains justice. Justice means that the benefits-per-costs equation is equitable, dependable, fair.).
Rule #4: Reinforce a Results Culture
A results culture evaluates progress based on producing measurable results leading to high quality revenue growth. A results culture rests on measurable milestones and rewarding people based on performance where progress is tracked in a Balanced Brand-Business Scorecard. People manage what management measures, recognizes and rewards. A Balanced Brand-Business Scorecard evaluates whether the right people are producing the right results in the right way to meet the right goals.
Rule #5:Rebuild Brand Trust
Building trust as a source of organizational wealth – Trust Capital – is an important driver for enduring, profitable growth. Creating Trust Capital allows a company or a brand to generate a trust reserve that helps through crises of brand or corporate character. A trust reserve of Trust Capital builds strong relationships over time. Brands that focused on building trust and generating trust capital prior to the coronavirus have a head start in post-crisis brand revitalization.
Rule #6: Realize Organizational Alignment
Alignment means everyone is working together toward the same destination, the same view as to where the brand is headed, the same brand goals, the same common definitions, the same priorities and the same common metrics. Aligning the enterprise requires enterprise-wide commitment to a common ambition and strategy for achieving that ambition.
Join the world’s largest network of auto industry professionals https://autoretailpro.com/joinus/