Crisis management: 4 reasons for brands to position themselves

Crisis management is fundamental for the brand to have the least damage – financial and reputational – possible when some image problem arises. 

The ideal, of course, would be that these moments were avoided. But as this is not feasible, the company needs to position itself based on reliable data and transparency in the information transmitted to employees, customers and partners. 

Thus, it strengthens the relationship with consumers and the market, emerging with learnings about its own capacity.

Why do you need to position yourself during crisis management?

A brand is faced with a crisis and, naturally, several doubts arise about what to do. Well, we know that each company’s situation is unique, but regardless of size or industry, positioning is paramount for the company’s reputation, as it affects the way customers and partners view and relate to the brand.

From this, we have selected 4 reasons that explain the importance of positioning being one of the pillars of the crisis management strategy. Check them out:

1. Earn points with consumers 

According to information from SmallBizGenius, 94% of customers are loyal to a brand that is fully transparent.

The business data intelligence firm also shows that 39% of consumers would start using a brand if it offered full transparency about the product, and 59% prefer to buy new products from brands they trust.  

In other words, speaking frankly with the public has advantages for both image and sales. 

In normal situations, this means disclosing institutional data in a systematic way, demonstrating in a broad and accessible way the compliance with legal obligations. But thinking about crisis management, transparency goes further.

In a turbulence, it is crucial for the brand to position itself, admitting mistakes and showing learning. This proves that transparency is a value that is part of the organizational culture, which creates or strengthens bonds of trust with customers.

2. Reduces CAC

If crisis management can intervene in sales to new consumers, it is consequently related to the Customer Acquisition Cost (CAC), a metric that indicates the investment required to win a customer. 

Therefore, if the organization’s positioning is positive, fewer actions and resources are spent to captivate new audiences, making the CAC lower. 

The formula to calculate is CAC = (investment in Marketing + investment in Sales) / number of new customers. For example, if a brand action cost R$ 15 thousand and brought 150 new customers, the CAC is R$ 100.

This metric needs to be calculated every month, because it shows the result of the efforts of the teams that are related to sales – thus supporting the organization’s strategic decisions. 

3. Keeps you competitive 

Maintaining or expanding its place in the market is essential to the sustainability of any brand. Therefore, a well-structured and well-executed crisis management directly interferes in the company’s competitiveness. 

The research Crisis management and its impact on brand image affirms that credibility is structural for the organization to navigate the dangerous seas of the crisis and overcome these turbulent waters.

The report explains that brands “with a strong reputation build relationships with stakeholders, which strengthens the brand image and reduces weaknesses”. 

4. Reinforces the brand

Facing a crisis is not a situation that brands want to deal with because it generates wear and tear, can scratch reputation, create friction with consumers, partners, and employees.

However, if the positioning in such a complicated scenario is effective, the positive side is the strengthening of the organization.

A delicate moment can, in addition to opening up space for company positioning, also generate learning and reorganization. PwC’s Global Crisis Survey 2019 report, for example, analyzed 2,084 organizations from 25 markets in 43 countries.

According to the study, 42% of companies that faced a major crisis between 2014 and 2019 said they were “in a better place” post-crisis. 

3 tips on how to act during crisis management

Now that we’ve talked about some of the benefits of positioning yourself when a brand is face to face with a crisis, let’s address 3 actions that are key in this situation. Take a look:

1. Prioritize the consumer 

As we saw in the previous topics, the way the brand chooses to position itself in crisis management can shake the relationship with customers and potential consumers.

So, this audience must be at the center of the brand’s actions, both in terms of information transparency and in terms of repairs, when necessary. 

2. Collect data constantly

87% of the companies that participated in the PwC report (see above) said that it is very important to accurately collect data during a crisis, but 40% admitted that they did not have the information to act.

Therefore, crisis management planning should foresee the use of tools that allow measuring the triggers of the crisis and calculating the repercussion inside and outside the organization. 

This scenario monitoring should – preferably – be part of the company’s routine, even allowing the anticipation of image problems. Data collection can be made in the traditional press and in social media, channels that allow the public’s feelings towards the brand to be evaluated.

3. Keep your team informed

Good crisis management planning includes media training for company spokespersons. However, it is necessary to go a little further.

All employees end up being informal ambassadors for the brand and therefore need to know from the company what is happening and how they should position themselves.

Hus, avoid at all costs that the team learns about the problems and their unfolding by third parties, which can even generate new crises.

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