Brands must ditch crisis mode and shift back to purpose-driven action

As the pandemic recedes, consumers are shifting back to the necessities they previously looked for in brands. The need for transactional, rational relationships alone is fading, with the stickiest of brands being those that go beyond function and go for the feels.

The brands consumers previously gave the most love and respect to (according to the Purpose Premium Index) were predictable: Oxfam, Royal Flying Doctor Service, Red Cross , and Beyond Blue. Above; Australian Red Cross unveiled its first brand campaign in nearly 10 years in April 2021

Crisis mode for brands can be comforting, but it is always temporary. This means, what has been working for the past two years during the pandemic won’t necessarily cut it for much longer.

Instead, in 2022, “emotion” is set to come roaring back to life for marketers in Australia and businesses must be ready.

Long-term trends predict that as the pandemic crisis recedes, Australians will revert to type. Consumers will expect the brands they love and trust (and work for) to take concrete steps to operate more “responsibly” over time.

According to the annual Purpose Premium Index by Porter Novelli and Quantum Market Research, which looks at the relationship between purpose and reputation in the minds of Australians, consumers only really admired the brands that filled their basic needs in a crisis over the past two years.

But over time, we know brands don’t just want to be admired from afar. They want interaction, loyalty, connectivity and a place in your heart. After all, the fastest way to your wallet is via your heart, not your head.

During the before-times before the pandemic hit, when Australians were asked what they wanted organisations to focus on, their main concern was climate and environment.

The brands we gave our love and respect to in 2019 were predictable: Oxfam, Royal Flying Doctor Service, Red Cross, Beyond Blue. We felt an emotional attachment to these brands.

Brand love: Beyond Blue is one of Australia’s most well-known and visited mental health organisations

However, when the pandemic took hold in March 2020, our worlds shrank and our priorities changed overnight. The brands we took for granted as everyday steady businesses that would always be there for us with the simple basics soon rocketed up the priority list as we realised we truly needed these brands to function and get on with life.

By June 2020, climate and environmental issues were no longer Australians’ No.1 concern. They had dropped to No.4 on the list, behind our economy, the cost of living and unemployment, as lockdowns threatened – and destroyed – the livelihoods of millions.

We were focused on just getting through each day and the brands that could help us with that were most valued.

In communications, we call these relationships “rational”. That’s not necessarily a bad thing in a crisis as all brands need to be relevant and responsive to the moment.

However, the relationship that brands want to have with their customers, employees and stakeholders over the long term is an emotional one, not just a rational one.

It has to be a relationship in which people feel that their values align with the brand’s.

It’s tribal and powerful.

This emotional relationship makes brands sticky, and as the pandemic crisis recedes into the rearview mirror it is now an imperative again for brands.

In 2022, what makes many consumers feel good about their purchases is the feeling they’re doing business with a responsible brand that aligns with their values.

Consumers will pay a “purpose premium” for products and services from these sticky brands.

They’ll remain loyal to them if they have problems, they’ll invest in them and will even go and work for them.

Rhys Ryan is chief executive officer of Porter Novelli, a communications firm in the Clemenger Group.

As the pandemic recedes, we are immediately looking for meaningful action from brands again. Indeed, research shows that the environment has once again reclaimed its position as a key priority for Australians.

Sustainability is one example of the rising expectation on brands to behave more responsibly. But Australians from different walks of life also expect some brands to do more on employee conditions, gender pay equality, diversity and inclusion, and a range of human-related issues.

These long-term trends are back, and brands have to shake off crisis mode and invest back into that emotional long-haul strategy.

Brands must now “walk their talk” with practical action that delivers on their stated purpose if they want to impress sceptical Australians.

This means real, local, measurable actions to become a more responsible company, not communication of abstract notions or vague “2030 goals”.

The questions brands have to be asking are around how they are truly contributing to society, beyond just profit. Are they becoming more purpose-driven and are they even clear on what being purpose-driven means? Are they taking action to manufacture more sustainably? Are they treating their people responsibly and looking after customers more effectively, and what does this look like?

We’re sceptical, but Australians don’t expect brands to have everything tied up in a neat bow. We will trust and believe in brands that are willing to say “we’re not there yet, but here is what we’re doing to improve”.

The message is clear. As a brand, if your relationship with your customers, your employees and your stakeholders has become a transactional, rational one that is still focused on crisis mode, you need to think fast. And more importantly, act fast.

Rhys Ryan is chief executive of Porter Novelli, a communications firm in the Clemenger Group.