Empathy and Empowerment

We are in a cost-of-living crisis: inflation is rising; spending is dropping; quality of life is fading; and estimates suggest that the recession is set to last for another 18 months. Naturally, brands are responding in diverse ways. Understandably, many are hiking up their prices, which is fine. But some are taking liberties, which is not so fine. As the US Secretary of Labor notes, ‘corporations are using increasing costs as excuses to increase their prices even higher’. For obvious reasons, I am going to go ahead and suggest brands do not do this. Rather, I would argue that now, more than ever, is the opportunity for brands to inspire loyalty, so that they can prosper when this mess is over.

In September this year, John Lewis responded to the cost-of-living crisis by removing its ‘Never knowingly undersold’ slogan. In its place, they positioned themselves with the consumer, projecting stability and solidarity with their new positioning of ‘For all of life’s moments’. The change – which also came as the brand faces ever-plummeting ‘Value for Money’ and ‘Purchase Intent’ scores – was an acknowledgement that the brand needed ‘to be brave,’ and ‘be clear on what you [they] stand for’. But as empathetic as this messaging is, how does this positioning tangibly benefit the consumer during a cost-of-living crisis? As Chief Strategy Officer of TMW Unlimited, Dan Bower, explained for The Drum ‘now doesn’t feel like the time for gooey schmaltz if it’s not accompanied by solid, tangible support’.

So how can brands be empathetic in a meaningful way? From the past, we might learn from Sainsbury’s, whose 2011 campaign Feed-your-family-for-a-fiver brought the supermarket £540m in direct sales. This Christmas, they have also launched their Christmas Dinner Plan, which costs just £4 per person. Morrisons and Heinz, by contrast, are giving away 160,000 free hot meals across 397 Morrisons cafés – all the consumer had to do was ‘Ask for Henry’ at the tills. It is worth noting, too, that other supermarkets are following suit with these initiatives, not least Iceland. These are wise strategic decisions: aside from being considerate of consumers’ wellbeing, it makes commercial sense too. In the UK, 81% of consumers have changed their shopping behaviour in response to financial concerns. For both companies and consumers, it is important to keep one-another on side.

Energy companies, too, are taking steps to empathise with their customers, providing recipe tips for meals that require less power to make. In France, EcoWatt partnered with a local weather channel to produce energy forecasts, to warn the citizens of Marseille and Lyon about potential energy shortages. An example of a simple campaign which offers a practical reward for customers.

And, as important as energy and food are to our livelihoods, thoughtful decisions from brands are not exclusive to these categories. In the summer, Ebay partnered with Love Island to promote second-hand clothing while, in October, Channel 4 partnered with seven brands, including Boots, Vodafone and GO Compare to create an ad break which offered ways to save money or access support during the cost-of-living crisis. So there are many ways big brands can help.

The same can be said for the importance of empathy and support internally. Research undertaken by McKinsey in 2021 found that 54% of employees cited a lack of support from their employer when leaving or considering leaving their company. And this is important, given that only in June this year, a Blackhawk Network study found that only 5% of employees felt they were getting requisite support during the cost-of-living crisis. Since then, fortunately, PwC have found that 81% of large employers are considering financial support or other means, and some are tangibly taking action. Tesco, for instance, recently announced an extra pay rise for their staff in October, and Sainsbury took similar action in September with their ‘cost-of-living support for colleagues’. Such is the nature of this crisis; the ball is firmly in the court of corporate leadership. But, for empathetic employers, despite the potential financial outlay, it is likely an astute (and considerate) investment.

So the takeaway is this: do not just talk empathetic, walk empathetic. And empower your employees and consumers to work or shop with your brand with confidence and assurance. I do not mean this in some sort of cheesy marketing jargon way, but because not only will it increase your profits in the long run, but because it is the thoughtful thing to do in the short term too. Anyway, enough with the doom & gloom. I hope you all have a wonderful, wholesome and heart-warming Holidays!