There are worse things than a crap logo…
There are more formidable threats to brands than a bad logo or a refresh that misses the mark - and they take considerably longer to recover from…
Who remembers British Airways and the Data Breach?
In 2018, BA experienced a nasty data breach that compromised the personal and financial information of 420,000 customers, eroding trust in the blink of an eye. British Airways responded swiftly by notifying affected customers and authorities within days. They implemented more robust security measures, including multi-factor authentication and improved data encryption. The company also settled legal claims and paid fines, demonstrating accountability and commitment to customer protection. This transparent and proactive approach helped them regain customer trust over time.
And what about the outrageous Tesco horsemeat Hoo-ha? In 2013, it was discovered that some of Tesco's beef products contained horsemeat, leading to a major scandal.
Tesco immediately removed the affected products from shelves and terminated contracts with suppliers that failed to meet their standards. They introduced rigorous DNA testing for meat products and launched a campaign to rebuild consumer trust, emphasizing transparency and the quality of their supply chain. These steps helped Tesco restore its reputation and reassure customers about the integrity of its products.
Back in 'those days' when a brand faced a crisis about its products, services or governance, it could double down on its core strengths and begin to rehabilitate its reputation within a couple of years. But in today's polarised environment, a hit like the above examples to an organization's reputation is much more severe.
Driven by politics and culture wars, with long-lasting reputational damage, brands facing political backlash can alienate a significant portion of their customer base, making recovery difficult. Political and cultural crises can cause long-lasting reputational damage to brands because they tap into deeply held beliefs and values, leading to strong emotional reactions. In a polarized society, taking a stance on such issues can split a brand's customer base, alienating a significant portion.
This division makes recovery difficult, as changing perceptions about a brand's values is more challenging and takes longer than addressing product-related issues. Sustained backlash and the challenge of regaining trust further complicate recovery. Examples include Disney's opposition to Florida's "Don't Say Gay" bill and Nike's campaign featuring Colin Kaepernick, leading to polarised responses and prolonged controversies.
Closer to home, brands like Marks & Spencer and John Lewis have found themselves in the middle of cultural debates, significantly affecting their public perception.
Marks & Spencer has faced scrutiny over its efforts to promote diversity and inclusion. The brand has been proactive in supporting initiatives like the 10,000 Black Interns program and aiming for 50% female representation in senior management by 20251. However, these efforts have sometimes sparked debates about whether the company is doing enough or merely engaging in performative activism. For example, their Christmas ad campaigns featuring diverse families have received mixed reactions, with some praising the inclusivity and others criticizing it as pandering.
These examples illustrate how engaging in cultural and political debates can polarise public opinion, making it challenging for brands to maintain a positive reputation across a diverse customer base. Brands must carefully balance their core values with the expectations of their customers to navigate these complex issues successfully.
So how do brands avoid activating the political brain and spiralling into a Crisis?
Know Your Customer:
Knowing customer sentiments and representing them correctly and accurately is rule number one.
Bring People Together:
Not all social actions need to be controversial. Greggs' partnership with charities to tackle homelessness is a unifying initiative that enhances its brand image; you don't have to be spicy to be involved.
Back It Up:
Brands need a track record of acting on their values. Lush is a great example; Lush stated that social media platforms have become places where users are exposed to harm and manipulation, which contradicts the company's values of promoting well-being and relaxation. By stepping away from these platforms, Lush aims to protect its customers from these adverse effects and hopes to encourage social media companies to create safer environments.
Don't Flip-Flop:
Consistency is key. IKEA stood firm on its sustainability initiatives despite critics arguing that IKEA's low pricing policy promotes excessive consumerism, which contradicts its sustainability claim. IKEA has demonstrated the importance of consistency by steadfastly adhering to its sustainability initiatives, even in the face of criticism. This commitment has been crucial in maintaining its brand integrity.
Get Advice from Both Sides:
Engaging experts from diverse backgrounds can help brands navigate complex issues. Unilever's advisory board includes experts from various fields, ensuring balanced decision-making.
“So when everyone and their mum has an opinion about your new identity, look past the vanity comments and see what else is routed in the backlash… there could be something far more fundamental lurking in the shadows to bite you in the brand butt…”