MABR student Joseph Dorner provides his perspectives.
Brand Responsibility: A Proactive Response to COVID-19
By Joseph Dorner
We have all been impacted by COVID-19. If you or someone you know hasn’t gotten sick from the novel Coronavirus, you’ve almost certainly been caught in the economic fallout. For many in the US the harsh reality of this crisis hit home within the first couple of weeks as the virus spread. Businesses were forced to close their doors as states enacted stay at home and social distancing orders; millions of people suddenly found themselves without work. According to the Pew Research Center, “Roughly three-in-ten adults (28%) say they or someone in their household has been laid off or lost their job because of the coronavirus outbreak. A third say they or someone in their household has had to take a cut in pay due to reduced hours or demand for their work.”[1] The impact on our nation’s economy has been tremendous. Personally, the experience felt as though I had been pushed to the edge of a cliff and a vast canyon of uncertainty was laid out before me. Like being on a rollercoaster that has made that steady climb to the top of the first, terrifying drop. I endured those initial weeks of the pandemic like so many others—unsure of what might come next.
On April 13th, almost exactly one month from when I began working from home, I was told that due to the sharp decline in production everyone’s hours in my department would be cut by half. A wave of fear and uncertainty washed over me. I felt as though I had plunged into the abyss like so many other Americans. I contemplated the impact this would have on me and those I work with. I slowly emerged from my initial reaction and settled into a sense of gratitude that at least my family and I were healthy, and though my hours would be cut, I still had a job. We would find a way through this.
As we adapted to this new reality, brands were adapting too. Many had quickly sent out COVID-19 email updates reassuring consumers they were taking the public health crisis seriously. In these communications brands outlined the many ways they were taking action to prevent the spread of the virus. The seriousness of the situation was becoming more and more apparent each day. Brands continued to respond as the needs shifted from offering simple reassurances to providing real assistance to customers in need. The brands that have stood out the most to me during this crisis anticipated the impending financial burden their customers would face and enacted easy-to-access solutions to bring relief. Many have implemented proactive programs that go beyond waiving late fees and postponing due dates. For example, State Farm Insurance announced it would refund $2 billion in premiums to its policy holders, and many other insurance companies have enacted similar programs[2]. Toyota is offering zero percent financing for qualified buyers on most new models to help keep Americans on the road. This offer benefits prospective customers and may bring in new buyers during difficult times, but Toyota’s COVID-19 response for existing customers has been unmatched in my experience. Toyota announced it would provide up to 90-day deferments on existing auto loans with no impact to your credit. When I called to inquire, I was quickly connected with a Toyota customer service representative and able to apply the offer to my personal account within minutes. Forbes.com[3] lists a number of banks offering deferments on home loans through programs similar to what Toyota is offering. From auto insurance and vehicle loans to mortgages, consumers are receiving much-needed relief from brands that are displaying an authentic commitment to social good.
While brands pivot to stay relevant in uncharted territory, I believe those that have been proactive in their response to COVID-19 with customer-centered solutions will emerge from this crisis experiencing new levels of brand loyalty from the people they have helped. When our economy recovers and people return to shop for products and services they will no doubt remember the brands that followed through on their values during a time of need.
[1] Kim Parker, Juliana Menasce Horowitz, and Anna Brown. “About Half of Lower-Income Americans Report Household Job or Wage Loss Due to COVID-19” pewsocialtrends.org. Apr 21, 2020.
[2] Andrew Keshner. “State Farm and other car insurance companies are giving refunds due to coronavirus — how you can get yours” marketwatch.com. Apr 21, 2020.
[3] Andrew DePietro. “Banks Offering Deferment on Mortgage Payments During Coronavirus” forbes.com. Mar 31, 2020.