Impact on brand loyalty post COVID-19
The entire world is undergoing the grim of COVID-19. Most people across the world are under lockdown and there is very less movement outside. This moment has never been thought of by anyone. There is trouble in transport, movement of essential goods, lack of medical services for those who require them the most. But how is this all related to brand loyalty?
Pandemic has given rise to panic buying in most parts of the world for essential goods. It may be seen by the out-of-stock boards or empty shelves for toilet papers and water bottles at major retailers. Walmart or Costco, in the USA are also going out of stock. On one hand, some people are stocking up the supply at homes because there doesn’t seem to be an immediate end to this pandemic while on the other, there are some less fortunate who couldn’t even get the essential commodities anywhere.
How are preferences changing?
In normal conditions, people have specific preferences for some products over the others. These may be observed in routine day buying. People tend to buy the same product over a period of time because of a variety of reasons e.g. taste, price, convenience, affection, advertisements, availability etc. These products fulfill customer demands in a similar way. A customer tends to develop a special bond or relationship with the product over the period of time. And the same customer tries to buy the same product over the period.
In the unforeseen crisis of COVID-19, we are fighting for our survival. And when the question of our existence comes, we put necessity before choices.
Is brand loyalty getting hampered?
In these difficult days, if a person is preferring instant coffee of Nescafe from Nestle, which is now unavailable at the retail outlet, he would not mind switching to a different brand such as Bru from Hindustan Unilever which is currently available on the shelf. This may be a “forced switch” and not a willful one. But from now on, if Bru is able to be successful in pleasing a customer then a thread is getting developed for Nescafe in the longer run.
Customer is not getting his preferred choice of coffee during the pandemic and we really don’t know how long the pandemic is going to last, the forced switch as discussed above may turn into a “new willful switch” for coffee in the mind. There are chances that customers may develop new relationships with the new brand post pandemic.
How can companies handle this problem?
There is less what brands can do to reduce the impact of forced switch but there is definitely what brands can do to stop it from becoming a willful one.
- Brands can advertise more not for sale but nurturing the relationship with the customers
- Brand can improve its distribution capacity if it is possible
- Adapting more efficient supply chain with lesser time
- Increasing the credit limit or duration for the retailer
- Reducing the profit margin on the product
These are some points for brands to follow during lockdown to lessen the impact on brand loyalty post-COVID-19. Of course, these are just a list of things a company can do. And companies can always come up with more innovative and viable solutions understanding the requirements.
