Consumers: Brands’ Response to a Crisis Influences Loyalty

January 9, 2020

This article is included in these additional categories:

Brand Loyalty & Purchase Habits | Brand-Related | Cross-Media & Traditional | Digital | PR | Social Media | Word of Mouth

Crisp Brand Crisis Response and Consumer Loyalty Jan2020In a time when negative information about a brand, whether factual or manufactured, can travel quickly, brands are expected to act swiftly and effectively to a crisis. Indeed, a recent report [download page] from Crisp finds that two-thirds of consumers say they are unlikely to shop with a company after it experiences a crisis and responds poorly.

That being said, nearly 9 in 10 of the 2,000 US and UK consumers surveyed said they were somewhat (53%) or very (36%) likely to shop with a brand that has experienced a crisis and handled it well.

Although the definition of a crisis differs depending on the person, almost two-thirds (64%) of respondents consider the mistreatment of workers to be a crisis. This aligns with data showing that Millennials care about how companies treat their employees.

Another 59% of respondents report that either ethical misconduct or CEO misconduct constitutes a company crisis, while 58% consider the mistreatment of customers to be a crisis.

No matter what the crisis entails, the news is most likely to be shared via social media. Some 40% of consumers say they share brand crisis news through social media, compared to the 29% who share it in-person with friends or family.

So, what are the biggest mistakes brands make when addressing a crisis? Almost 3 in 10 (28%) respondents say that not accepting responsibility for the crisis is one of the biggest mistakes a brand can make. One-fifth (20%) of respondents say that brands can make the mistake of not acknowledging the crisis, while others say it’s a mistake to fail to offer a solution to prevent similar issues (15%).

Another 13% of respondents say the biggest mistake for a brand to fail to respond fast enough. In fact, more than half (53%) say that they expect a response to a crisis from a brand within 1 hour, while one-third (34%) say they expect a response within 30 minutes. More importantly, 3 in 5 respondents expect the initial public response to come from the CEO of the company as opposed to a PR person (5%).

Highlighting the importance of handling a crisis appropriately, a full 55% of respondents say they warn family and friends about brands that handle a crisis poorly, compared to the 39% who refer a company to friends and family when a company they’ve shopped with before handles a crisis well.

The full report can be downloaded here.

About the Data: The data is based on a survey of 2,000 consumers from the US and the UK in May 2019.


Explore More Articles.

Marketing Charts Logo

Stay on the cutting edge of marketing.

Sign up for our free newsletter.

You have Successfully Subscribed!

Pin It on Pinterest

Share This