The Times, Sep 2008
Consumer behaviour is changing. Just look at the results from today’s survey. 42% think they will be saving less in the next 12 months and 54% think they will borrow less. As consumers start to have less money it will become a much tougher task for business to earn, and in some cases re-earn, their trust.
In these testing times business needs to adjust to these changes in consumer behaviour. But these adjustments need to be carefully thought through and not just knee jerk reactions. Take a company’s support for the local communities in which they operate. At first glance, logic suggests these activities should be an early casualty. You might be able to make a case for strategic corporate responsibility efforts which address core business issues. But the fluffier stuff that companies do around the sides? Surely a cost saving waiting to happen?
But I think this assumption is worthy of some deeper interrogation.
For starters there’s the obvious fact that companies who continue with their activity rather than cutting it at the first hurdle make it abundantly clear that they really believe in it.
But it’s also much more than that.
After all, it’s when times are tough that local communities are most in need of the assistance and so a bit of corporate investment can make a really substantive difference. The investment will have a far greater impact than it would in times of prosperity. What might previously have been a nice-to-have suddenly becomes a lifeline. And what might previously have gone unnoticed suddenly becomes enormously valued and appreciated. All this helps build consumer trust on a deep – and therefore lasting – level.
Just look at Microsoft’s ‘Unlimited Potential’ programme helping people access affordable technology, or the British Gas ‘Here to Help’ programme – an integrated approach with local authorities and charities to help the vulnerable customers, beyond their energy requirements.
Put simply, the company will get more bang for its buck. Particularly if its action stands in stark contrast to that of its competitors.
And then, when the good times roll round, the companies that have proved they care will come through far stronger. The communities will have found out who its real friends are. And the companies will see the reputational results. In a recession, compassion counts.
