Dubai: A bad press — or getting trolled on social media — doesn’t seem to matter much these days for brands. Sure, they may lose a few billions in market capitalisation (as happened with Samsung after the Note 7 firestorm of bad publicity) or they may have to pay up a few billions (as Volkswagen did by way of fines after the diesel revelations.) And some of the world’s biggest financial institutions are still going about their business despite having had investigations and hefty fines being imposed for various irregularities. So, how much of a bad press ends up sticking to corporate reputations, if at all? “Consumer attitudes towards bad press are entirely reliant on the nature of the corporate transgression,” said Howard Belk, co-CEO and Chief Creative Officer at Siegel+Gale, the brand consultancy. “When consumers are duped by brands they trust — believe me — they hold a grudge.
“I think Volkswagen would strongly disagree with the opinion that their reputation has not sustained serious harm in some of their most important markets, including the US. VW systemically broke promises that their diesel vehicles complied with environmental regulations, and essentially ripped off consumers who bought their products secure in the knowledge they were buying green. This kind of betrayal of brand values will take a decade to repair.
“I do not think consumers are becoming more lenient of corporate transgressions. In fact, I think the opposite, that global brands are being held more accountable than ever for the way they do business, particularly by millennials.”
But staying on message is turning ever more difficult for brands. A slickly presented print or TV campaign will count for nothing if the brand is getting skewered in the digital media. (These days, it is as true in politics as for consumer brands.) Belk, however, insists that consistency is not something to be missed out on. “Experience had on a smartphone must be consistent with outdoor advertising, with the retail store, with sponsored events, packaging, and even customer support and call centres,” he said. “Overcoming the complexity inherent in all these media and platforms is immensely challenging.
“When I take a look at the brands that have accomplished this — McDonald’s, Uber, Google — the common thread is they are simplifiers. They have identified the essence of their value proposition and converted it to explicit and tangible experiences, which serve as proof points for their brand promises. At their best, their brand experiences are stunningly simple and startlingly fresh.
“The digital experience is not necessarily the single defining interaction of a brand image. That depends on the nature of the product or service. A digital wallet service like Venmo relies immensely on digital experience.
“The brand experience of Etihad is defined with numerous customer touch points, not least by the human element provided by their cabin stewards.”
