ARA Retailer Magazine 63 October 2018

BUSINESS OPERATIONS | BRAND

Promote your brand, but make sure it’s protected too Is your brand equipped to deal with a major incident or negative customer experience?

T

he consequences of a negative incident can be significant – from loss of reputation to even a drop in stock price. It can place the very

survival of your brand at risk. The retail environment is open to a myriad of possible issues and scenarios that if mismanaged, can prove difficult to recover from. These challenges range from a negative customer experience, to an IT issue affecting sales, a web outage or a product recall. The ability to respond decisively and effectively to a negative incident is the ultimate test of management, your internal protocols and your company’s corporate culture. Research shows that companies who respond poorly to a major crisis or negative event, lose on average 15% of market value in the following months, compared to a 10% increase in share price for companies who respond effectively. Think of how that can impact your bottom line, not to mention the broader impact on your brand’s reputation and performance. While so many organisations dedicate a lot of time, energy and money to brand promotion – and rightly so – unless coupled with brand protection, this good work can be undone in an instant. No business is immune from the possibility of a sudden event or incident that can put brand reputation at risk. However, when ‘promote and protect’ are in balance you have a better chance of enjoying brand health, business growth and reputational resilience. So here are a few tips to equip you to manage an issue or incident.

BY CHRIS GRAY [DAYLIGHT AGENCY]

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