The Game of Brand Loyalties in Pandemic

By Tanya Agarwal

I hope you peeps are doing well in this pandemic! It surely has disrupted the lives of the living and made us believe that wrath of nature can be unforgiving but also made us realize that life is more precious than our busy work schedules. The pandemic has changed the way we have lived so far, classes are now online, companies are following work from home policies, movies are premiering on OTT platforms; in all people are adapting to the new normal and so are the companies.

In the pre-pandemic era, brands across all the industries and geographies mainly focused on roping customer loyalties through transactional incentives which were earlier in most cases established at point-of-purchase. By transactional loyalties, I meant discounts, coupons, reward points, promotions etc. and how easy they are to use.  Brands provided customers with multiple choices, making their switching cost almost negligible. In that light, brands focused more on transactional incentives for increased sales rather than leveraging on emotional loyalty programs. For example, Zomato and Swiggy both witness a greater number of orders when they provide heavy discounts on their food delivery platform. I believe conditioning through transactional incentives is developed at a much faster pace when compared with the emotional benefits, which could be one of the many reasons for brands to focus on transactional loyalty programs.

As the pandemic continues to destroy economies around the world, people are changing the way they shop and interact with brands. In such an uncertain environment where customers have a lesser amount to spend and look for trusted brands, exploring emotional customer loyalty is worth the shot to drive profitable and repeat sales. Brands need to answer questions like, what they should communicate, how should they communicate, to whom they should communicate, where should they spend their marketing budget and what does customer means to them in these situations.

Customers have increased their expectations from brands, perhaps more than ever. As brands are levelling up their A-game, some are earning the loyalty and some are losing the trust! The company must put the interests of its customers first. This may be the time when they guide customers and create long-lasting memories for their brand.

Here are some approaches through which brands can use emotional quotient and connect with the people at large.

Engagement: Consumers with digital and social connections can decide which brands can survive and even prosper in this uncertain situation. The brand’s new approach should be suitable for attracting audiences. It is more important than ever for brands to keep in touch with their audiences and treat them with awareness, wisdom and empathy.

From free e-newspaper subscriptions to virtual fitness sessions, brands went up and beyond to be relevant and engaging.

Example- In May 2020, India’s YouTube hosted the “One Country Cohabitation” digital event to counter the country’s confrontation with COVID-19. This digital event was attended by more than 100 creators, artists and celebrities who were broadcast live at home.

Value edition: In a pandemic, brands should prioritize planning strategies for customers in all aspects of their business strategy. Although it is easy to slash prices making price promotions take a company only to go a distance before consumers are tired of it or flock to competitors who lowered prices even further. Hence a brand should develop products and services. Which can be achieved by providing new offers, a better mode of usage, and more favourable prices, all of which can create a brand culture and encourage support. This effort will have a profound impact on customers' memory and loyalty.

Example: As gyms and fitness training centres across the country remain shut amid the pandemic, fitness startup cult.fit announced that it’s going online with cult.live, through which online fitness classes would be available across formats like strength, cardio, HRX, and yoga on all seven days of the week. The app would provide with real-time feedback with an energy meter that would track the workout. The company has evolved its offerings according to the current situation giving the power to people to do workouts in the comfort of their homes.

Empathize: When people feel vulnerable, empathy and assurance are the two ways they trust the brand to bind them. Customers recognize and respond to positive and inspiring content to recognize the social, financial and other realities of this epidemic. Therefore, the message sent to the customer should be humane and should include health, empathy, courage and humility to ensure the safety and relevance of the project.

Example- Hyundai recently partnered with Genesis to provide six-month car payments for new car owners who unexpectedly lost their jobs due to the COVID-19 pandemic this year. Such offerings only are building blocks of loyalty as customers feel that they are valued and important

During the inevitable challenge of the COVID-19 pandemic, consumer buying behaviour has been redefined. Brands must not only seek to increase the share of wallet but also enhance the share of mind and heart. Marketers need to reconsider and rethink their company’s value proposition to consumers, re-evaluate which products and services can best achieve that value proposition and re-plan the delivery method in each region.