The past year was marked by some very difficult circumstances, one of which was the recent hurricane that caused devastation to much of the East Coast. The challenge of rebuilding and moving forward in the aftermath of the storm remains an ongoing dilemma. As 2013 begins to unfold, it is important that companies be mindful of the continued upward battle among impacted consumers.
In this post, we look back to the personal and business impacts of Hurricane Sandy and discuss the anticipated implications of positive and negative actions companies have taken as a result.
Company Actions Change Brand Opinions
Taking a pulse on company activity around the time of Hurricane Sandy, it’s clear that behavior clearly had an impact on consumer perceptions. Positive gestures, ranging from things as simple as waiving fees on late bills to considerable donations of food and money, left a mark.
In a recent omnibus* study, we surveyed a representative sampling of the population and found that half of consumers had a positive reaction to these company initiatives, indicating that they have a ‘much better’ or ‘slightly better’ opinion of the company as a result. Among consumers directly impacted in the Northeast, 70% of consumers indicated an increased opinion.
In the opposite camp, some companies were either operating ‘business as usual,’ not acknowledging the goings-on, or worse, seemed to lack any cognizance of the personal impact to consumers (e.g., property damage, power outages, loss of life, personal injury). For example, American Apparel had a sale going on during storm stricken areas of the US, suggesting that consumers who were “bored” could come and take advantage of their specials. Consumers across the nation were overtly outraged over this marketing tactic.
A Difficult Experience during Hurricane Sandy: A Personal Story
Being centrally located in Hartford, CT, many of us at The Pert Group were faced with some complications as a result of Hurricane Sandy. However, one co-worker in particular had to undergo particularly trying circumstances at his home in Long Island. He explained, “It was a complicated situation on Long Island. We were without power for three and a half weeks and there was a massive gas shortage, which made it difficult to get gas for generators. For the six to seven weeks immediately following the storm, we spent time gutting the house (walls, kitchen, floors etc). ”
The response from the community seemed to be part of what made his experience more manageable. “Throughout this situation there were many, many acts of kindness from friends, family members, neighbors and total strangers. There was an outpouring of help from people in nearby communities. It’s one of the best things I’ve ever witnessed, seeing everyone band together.”
Acts of kindness and support were also apparent from local grocers and supermarkets, and these actions had a hugely positive impact on him and his community. Though much of the help from local companies was anonymous, he felt that branded efforts would be received positively as well and that “people would become very loyal to the companies that helped them out. People will remember who was there for them. For some of the local businesses, it will cement their status as a reliable member of the community.”
Simultaneously, he witnessed very unsympathetic and self-interested actions of companies, and this also left an impression. “There was a local restaurant that actually increased their prices because of the outage. There were also gas stations that were price gouging, and I personally refuse to fill my gas tank at any of these places. I think when companies take advantage of people in situations like this, they’ll remember it, and it will impact the company in a negative way.”
However, he suggests that if marketing tactics were done in a tactful way and the service could offer people something relevant to the circumstances, it was accepted and helpful to the community. “If a company had a relevant offering (such as a restoration company), then I personally wasn’t offended by advertising, as long it was done in a tactful way. With restoration work, for instance, the service was needed and communications for this service were done tactfully.”
The Bottom Line: Tactful and Timely Actions Make a Mark
Businesses need to mindful of their actions and how they can be interpreted at all times, with particular attention given during crises. Consumers may forget if a company had no response or communication during Hurricane Sandy. However, negative actions are expected to leave a lasting impression and could ultimately hurt a company’s image if left unrepaired.
On the other end of the spectrum, positive actions go a long way, particularly among consumers directly impacted in these types of circumstances. It is the optimal time to truly give the consumer a brand experience that they will always remember. Positive actions taken by companies have the potential to forge a stronger brand experience/closeness with consumers. In this way, actions substantiate brand value to consumers.
What has your company done in times of crisis, and how has it impacted your business?
*Our omnibus was conducted in December 2012 via an online research panel among a nationally representative sample of 1000 consumers aged 18-65.
