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We often place a great deal of emphasis on the generation du jour – Gen Z. And while their cultural significance and influence is undeniable, it’s important to make room for the next wave of influential consumers – Generation Alpha. 

As the first group attributed to being true digital natives, these 8-15 year olds are forecasted to become the largest generation in history, approximating to over 2 billion by 2025. So they need to be on the radar when it comes to strategizing for your brand or business.

It can be hard to separate the myth from the facts when it comes to what’s going on in the world of Gen Alpha today. But we’re here to lift the lid on 4 trends that are heading downhill for kids. And a few of them might surprise you.

1. Putting time spent online on a pedestal

We often label this generation as tech-obsessed, but they’re adopting more of an offline lifestyle in 2023.

Since 2021, there’s been a drop in parents saying their child spends a lot of time on their devices (-10%), and online (-7%).

We’ve also noticed declines in the number of Gen Alpha who are interested in watching TV, especially films and movies, and talking to their friends online. But there have been increases in the number who say they like to see their friends in-person and play sports. 

After a prolonged period of being stuck online and indoors in their formative years, it’s no surprise that kids are gravitating toward offline and outdoor activities post-pandemic. We know that remote learning has divided parents and children, with some arguing that it’s had adverse implications on their children’s social skills.

We can see signs of this in our data, especially in places like Canada, where there’s been an 8% drop in the number of 12-15s saying they feel confident since 2021. 

Research carried out by the Mental Health Commission of Canada (MHCC) investigated this increase. They found that for this generation, promoting well-being and inclusivity by adopting a “whole-school approach” normalizes discussions around mental well-being, making impacted groups feel less isolated, and more seen. 

Over 2 in 5 teens also say talking about their feelings is important to them. So it’s even more essential to ensure that there are resources available on the receiving end to accommodate their needs. 

When talking about mental health, we often forget to include this group. But studies have shown that Gen Alpha are more likely to be worse off than their parents were at their age when it comes to their mental health, so brands need to ensure that mental health and wellness messaging is front and center when they’re engaging with this generation. 

2. Sitting by the sidelines

Gen Alpha have experienced an upbringing different to that of past generations. With their parents having resources like the internet readily available to them, their parenting styles are less traditional, and more collaborative. 

During 2020 and 2021, kids and parents spent more time together under the same roof, and household decision-making became more evenly distributed. 

We asked Generation Alpha kids who decides which apps they download, food they eat, toys they buy, video games they get, and clothes they purchase; and in all these areas, kids were more likely than average to say they pick them or choose with their parents. This suggests that parents today are more open and receptive to their child’s preferences, and are more likely to take them into account when making family decisions. 

With the abundance of variety that exists today when it comes to things like food or content, we can see that this new wave of young people is much more decisive and independent in their choices. In fact, 48% say that being treated their age is important to them. 

Parents are also willing to treat kids more maturely by giving them more money to spend. We can see this in action when we zero in on markets like Spain, Canada, and the UK, where monthly allowances have seen an increase YoY since 2021. 

The number of 12-15s saying they’ve bought something online in the last week has also risen by 20% in this timeframe, which shows how important it is for this group to be financially literate and understand the value of money. 

In the UK, financial institutions have noticed this demand, with apps like GoHenry giving parents the tools to be able to monitor their kids’ spending, while teaching them about finance. This year, NatWest also started offering Rooster Money to customers for free, for the same purpose.

3. Ongoing activism and online behavior

Gen Alpha kids are well-versed and forward-thinking when it comes to social issues. They’re more inclined to believe that everyone should be treated the same, and consider it their top priority when asked what’s most important to them. 

Often described as mini-millennials, we can partly attribute this group’s progressive views to their parents. In the US, millennials are 17% more likely than the average American to say that diversity, equity, and inclusion is very important to them, so it’s no surprise that these traits have caught on among their children. 

The number of 12-15s who believe that everyone should be treated the same has also increased since 2021.

Like Gen Z, they’re known for being activists, but we all have our limits when it comes to endurance. It’s likely that this group has started to experience content or news fatigue, resulting in a 16% decrease in the number of 12-15s saying they watch the news since 2021, mirroring a similar trend we’ve seen among their older counterparts. 

There’s been an 8% drop in the number of teens who say they’re interested in the environment since 2021.

Both news organizations and brands are likely to have a stake in managing consumer sentiment toward the environment in 2023. Answers like solutions-based writing help in mitigating climate fatigue or doomism, by providing consumers with opportunities for environmental goal-setting that are both achievable, and manageable long-term.

4. Traditional media habits 

For Gen Alpha, using social media isn’t only about personal connection. Social media has evolved, and they use it for a much wider range of reasons. 

Like Gen Z, Gen A are aware that the internet can be addictive. And they want to use it to enhance their lives rather than waste time, which helps explain why filling spare time saw an 11% drop as an incentive for using social media since 2021. 

What has stood its ground is finding funny and entertaining content like memes, which has seen a 6% increase YoY. While the use of social media as an entertainment channel has gained traction among older groups, Gen Alpha are taking it to a whole new level. 

We’ve seen the push and monetization of formats like memes within the past couple of years, with some even remarking that they deliver “better ROI than influencer-marketing”. 

As this tech-savvy, fast-paced generation continues to expand and dominate the market, brands need to ensure they’re utilizing formats that are native to this group to keep them engaged in the long-run. 

Since 2021, there’s been a 4% drop in interest in books, but a 75% increase in the number who say they’re interested in audiobooks.

While books are still very popular, this stat highlights the importance of tracking Gen Alpha’s evolving media preferences.

We saw the influence that short-form video platforms like TikTok had in propelling the reading trend via hashtags like #BookTok. These community-driven trends unify like-minded groups, and give brands insight into these consumers’ psychographic habits via their shared interests. This enables marketers to better profile their audiences, make accurate observations, and inform their business decisions. 

Key takeaways for brands?

• Post-pandemic, Gen A are looking to spend more of their time offline and outdoors, and brands can accommodate this by showcasing activities which encourage just that. 
• With more freedom around spending, kids’ demand for financial education is higher than past generations; and as the fintech landscape continues to evolve, institutions need to ensure that this group is equipped with the right tools. 
• They’re interested in the news, but have the tendency to get overwhelmed, like other generations. When it comes to climate change, initiatives to tackle it need to be achievable and manageable in the long-term.
• As a generation born into tech, digital formats speak to them. Brands marketing to these consumers need to be in the know on what’s trending, to boost and retain engagement.

The land down under is no exception from the global cost of living crisis. 

The increasing cost of things like rent, groceries, and fuel have weighed Australian consumers down. They have a bleak outlook on the economy, impacted by the price increases they’re seeing on a day-to-day basis. They’re making changes as a result: checking out discount grocers and retailers, cutting back on streaming services or out-of-home entertainment, and even improving their financial literacy through specialized courses.

We’ll explore certain aspects of how Australians view their economy, what they’re cutting back on, where they need help, and how brands can build consumer trust despite a less-than-ideal financial market.

What’s the economic sentiment like in Australia right now?

Broadly-speaking, Australians are pessimistic about the economy. Many expect inflation to increase, and their outlook on their personal finances and the country’s economy are near an all time low.

Compared to other OECD markets, however, it’s a bit different; Australians are generally more optimistic than those in markets like the UK, France, and Japan. Moreover, younger consumers tend to have a far more positive outlook, as do Australians in urban areas, and more populous states like New South Wales or Queensland. With greater job opportunities and higher wages to be found here, it makes sense in context – especially since rural states may not have the same privileges.

It’s worth remembering consumers don’t tend to base their outlook on things like GDP or the stock exchange; Australians are no different.

Instead, changes in their day-to-day life is the leading influencer on how they view the economy – and how they respond in turn. For example, with food inflation reaching its highest point since 2006, Australians have started turning to cheaper grocery stores like 7-Eleven and Aldi across the past 5 years. That said, traditional giants like Coles and Woolworths are still trusted brands, and consumers are responding positively to the pricing wars between the two. 

Banks and governments still have some influence, like updates from the Reserve Bank of Australia. Consumers will welcome the news that interest rates will be on hold for the first time in a year, and this could lead to more spending, and greater economic confidence in turn. It all depends, however, on whether consumers feel the effects here; if not, then it’s unlikely habits will change.

Financial literacy is just as important as savvy spending

With all this economic uncertainty, many Australians are feeling the need to improve their financial literacy. Nearly one in four Australians have investments in the stock market, but they’re more likely to prioritize riskier investments like cryptocurrency over traditional “safer” options like mutual funds and bonds.

When it comes to saving for a rainy day, 23% of Australians say they don’t have enough savings to cover even one month of basic living expenses. This is particularly alarming for baby boomers, who are approaching retirement age and may not have sufficient funds to support themselves down the line. These figures highlight the clear need for improved financial assistance to ensure that individuals are equipped with the knowledge and tools required to make informed decisions about their financial future.

28% of baby boomers in Australia don’t have enough expenses to cover one month of basic living expenses.

For the most part, Australians would like advice from certified financial advisors (CFAs). Banks should also be on standby; 75% say they should provide support for customers’ financial wellbeing. There’s certainly a gap that needs addressing here, however, since just 34% say that their bank actually offers this, with baby boomers feeling the least supported.  

Banks, especially large ones like Commonwealth and ANZ, have a key opportunity to reach out to customers and offer financial education. This doesn’t need to happen in 1:1 conversations; some banks are even exploring TikTok to reach younger audiences – it’s all about identifying each person’s needs, and how financial assistance fits into their lifestyle.

Saving for retirement, budgeting, and debt guidance are all relevant topics for Australians, so offering courses to consumers could go a long way to build brand trust – which is more important now than ever. Only a quarter of Australians trust financial institutions, but that can tick up with quality service and protecting consumer data. Banks, especially large ones, need to dedicate as many resources to these facets while reaching out to customers to offer financial education.

How Australians are spending their money

The top thing on Australians’ minds when it comes to spending right now are the essentials. Aussies are dedicating more of their household income to paying off bills/expenses, with 14% estimating that over 75% of their monthly income covers essential expenses, up from last year’s amount.  

Increasing rent certainly contributes to this. A third of Australians rent accommodation – much higher than the 17% of renters worldwide. Not only that, but mortgage rates are just too high for some, potentially explaining why less than half of Australians are interested in buying property. This, however, doesn’t mean they’re not spending; there’s room for smaller home purchases instead. Australians are dedicating more resources to fix up and improve their properties. In fact, some of the best retail performers 2022 were hardware/DIY stores Home Timber & Hardware, and Bunnings. 

Australians are shifting to more fuel-efficient cars with fuel being so expensive.

Housing isn’t the only essential purchase seeing a price hike. Three-quarters of Australians drive weekly, and with fuel prices the highest they’ve been since 2015, owners are shifting to more fuel-efficient cars. Since Q3 2021, there’s been a 34% increase in hybrid or electric car owners, as well as a rise in diesel vehicles, known for their fuel efficiency. 

While Australians are cutting back on excess spending, they’re not  putting on the brakes entirely. There’s still room in their budget for non-essentials too.

That might mean cutting back on regular drinking – with weekly alcohol consumption in Australia being 3rd overall worldwide. 37% said they’d spend less on alcohol, and nearly half said they could cut back on nights out. 

The same can be said for luxury goods and subscriptions. Only 39% of Australians made a luxury purchase in the last year, less than Western markets like Germany, Italy, and Spain. Instead, going to secondhand stores is on the rise. Nearly 1 in 5 are planning to buy secondhand clothes to save money, and even more want to sell things they own, increasing supply at these op-shops. 

In entertainment, subscriptions could soon be on the chopping block. Over 1 in 5 plan to cancel their subscriptions – second only to the UK. Australia is a huge market for streaming, with consumers more likely than most Western markets to subscribe to an online subscription of some sort. As such, it’s important for brands to find other ways to compete. Not everyone can slash their prices, so it’s vital that they understand the kinds of content which lands down under, and what other factors come to mind when paying for streaming subscriptions.

Lastly, vacations are still very much on Australians’ minds but they’re more than happy to have a staycation if it means saving money. Nearly 3 in 10 Australians have been on a domestic vacation in the last 6 months, and many have one planned soon – and who can blame them? Australians generally prefer beach vacations, so tourist boards and travel agencies need to emphasize the value in traveling within their borders. 

How to win with Australian consumers

It might sound strange but price isn’t everything. Make no mistake, cost is undoubtedly the most important factor at this time, but Australians are on the lookout for ways to get more for their money. It’s all about adding value beyond cost, like the availability of products – which is understandable given recent supply chain issues. 

Offering high-quality products is a surefire way to build brand trust. Australians want their brands to be reliable and authentic, which makes a lot of sense in a slowdown; having to repurchase products can negatively impact consumers’ perception of a brand. With trust in short supply, it’s important for brands to take this into account and shout about the quality of their products.

With 38% of Aussies purchasing a product/service online every week, brands have an opportunity to bolster their online marketplaces in order to keep consumers happy and win their trust.

It’s mostly about nailing the little things. Beyond price, free delivery is by far the biggest influence when buying a product, but loyalty/rewards programs play a role too – especially since they encourage returning customers. That being said, Australians are also fond of click & collect. Nearly 75% of Australian consumers drive every week, so getting on the road is no issue for them. Not only is it a marriage of online and brick-and-mortar storefronts, but of convenience and gratification for consumers as they experience the convenience of online shopping, but don’t have to wait (or pay) for delivery.

In times of hardship, consumers are generally more focused on problems that affect them, meaning things like eco-friendliness and social justice are often considered more of a luxury problem. That doesn’t mean leaving them behind, however. Australians still value brands’ commitments to sustainability or their stance on social issues, so brands who can stand by their values and help consumers make savings will be at an advantage.

The land down under low down: the key takeaways

Australians are feeling pessimistic about the economy and their personal finances. Many are making changes to their spending habits — without cutting spending entirely. 

Likewise, they’re on the lookout for more than just a discount.  Reliable and high-quality products are essential for building brand trust among Australian consumers, while brands that can meet online purchase drivers like free delivery and rewards programs could be well-positioned for success in the coming year.

By understanding the challenges and opportunities facing Australian consumers, businesses can better meet their needs and thrive in an economy that might have more losers than winners. Tough times creates the need for reliable partners, and brands have the opportunity to be just that. 

With 38% of Americans saying that they want companies to be socially responsible, it’s proof that brand values matter for US consumers. That’s why it’s more important than ever to understand what social issues matter, why they matter, and what people want brands to do about it.

Digging into the data for actionable insights is how brands zero in on customers’ values and secure deeper connections. So it makes sense that 18% of Americans say that the brands they buy represent their values and make them feel like they have a connection/relationship. Gen Z and millennials are 13% and 20% more likely to say that than the average American. 

For brands that want to win with consumers, it’s all about listening and learning before taking action. 

Want to know which social issues Americans care about most in 2023? Here’s a crash course in how to make sure your marketing strategy resonates with your target audience’s values.

The top 5 social issues US consumers care about

1. Mental health

2. Diversity, equity, and inclusion

3. Sustainability

4. Representation for the disabled community

5. Economic conditions 

1. Mental Health 

Consumer’s focus on mental health has increased following the pandemic. Since 2019, 31% of Americans report doing more activities to improve their mental health – the most popular activity that Americans are doing more often. 

Now, mental health awareness is higher than ever before with 89% of Americans saying that taking care of the mind is important. 

Across the United States and the world public figures have spoken out about their struggles with mental health. This has made conversations more frequent, and 52% of Americans say that improving access to mental help/health care is important to them. While more resources are being provided to those who are struggling, 77% of Americans want to see more of a focus on mental health in healthcare.  

Although pandemic-related concerns have dropped, the cost of living crisis may be exacerbating what was already a difficult economic time for many. When asked what factors negatively impact mental health, the financial situation ranks second just behind sleeping problems with 27% of Americans saying this.

Despite tough times, 75% of Americans rate their current mental health as good or very good. So, it’s not all bad news on the mental health front, and with more people aware than ever before, taking action to solve issues is more common. 

Mental health is a top concern among younger generations. Access to mental health help/care is a notable concern among Gen Z and Millennials, with 10% and 11% respectively considering it the most important social issue. This reflects the growing awareness and advocacy for mental health in younger generations, who are prioritizing mental wellbeing and pushing for greater access to mental health services.

Brands can stay relevant using insights to drive marketing campaigns focused on mental health is a surefire way to reach consumers. In recent years, many brands have released mental health campaigns that made a difference, raised awareness, and provided more resources to Americans who need help in difficult situations. 

A great example from the US is the Cause My Cleats campaign which destigmatizes issues around mental health using famous athletes. With 91% of NFL fans saying that looking after mental health is somewhat or very important, getting the conversation going is crucial.

2. Diversity, equity, and inclusion 

Diversity, equity, and inclusion (DE&I) is a crucial issue for many Americans, but there’s a lot of social justice fatigue among consumers. This is important to note when brands are considering how they can approach their communication about social issues. 

The most popular reasons that Americans who say DE&I is important are providing fair and equal opportunities (81%), to be more accepting of people (64%), and to better understand each other (54%). Fair opportunities have a wide range of meanings depending on the industry, but for many this means having better representation of diverse groups in all parts of business and society at large. 

70% of Americans say that the representation of diverse groups in ads is improving. That’s a positive sign that DE&I-focused ad campaigns have resonated with consumers. 

There are some significant differences between industries.

When Americans are asked what industries are doing well when it comes to DE&I, there are lots of different answers. The beauty industry’s best metric for DE&I is offering inclusive product ranges (40%). Fenty Beauty has found success due to increased makeup options for people of all skin tones, allowing beauty products to be available to more consumers. 

Sando Saputo, the brand’s Chief Marketing Officer, had this to say about their DE&I success: “Our approach to inclusion marketing has always been about ‘showing, not telling.” Never once did we use the word “inclusive” in our messaging.” 

By showing consumers what a brand stands for, the message can stick a lot better than simply telling consumers that you’re an inclusive brand. 

Other industries have also had DE&I campaigns but these campaigns haven’t had the same impact on consumers. Sports companies have a heavy focus on DE&I in recent years with campaigns such as Until We All Win from Nike. However, there’s a pretty large disconnect between the campaigns and what consumers think about the industry. 

Despite the campaigns, 31% of consumers say that they don’t know/have no opinion when asked what the sports industry is doing to improve DE&I. Brands should look to the sectors that are doing well when it comes to DE&I messaging to see how they can improve their own. 

DE&I can mean different things to different people

It’s important to look at what audiences want from brand initiatives. For example, Gen Z are 62% more likely than the average American to want brands to offer gender-neutral product ranges. This is the most distinctive DE&I product desire across all generations. 

Understanding the audience is important here. Gen Z are 38% more likely to be interested in fashion than the average consumer fashion brands that get it can adjust their shows to meet these needs. Last year, London Fashion Week was gender neutral for the first time, showing how brands are changing to keep up with Gen Z’s growing interest in gender-neutral fashion. 

In the workplace, DE&I is also super important. 73% of employed Americans say that DE&I in the workplace is important to them, but only 13% say that DE&I initiatives have had a large impact on the workplace. Like other DE&I efforts, it’s been difficult to gauge the impact. 

In the past 6 months, 40% of Americans who say DE&I is important have educated themselves as a way to support DE&I. This education aspect is super important, and is another avenue that brands can take when thinking about how to improve their DE&I messaging. Brands have a great opportunity to take action and provide more resources that make DE&I more accessible. This is especially important for sectors where DE&I messaging has not stuck with consumers. 

3. Sustainability 

When it comes to sustainability, price is a very important factor in products, especially recently with rising inflation, but it certainly isn’t everything. 

78% of Americans say that sustainability is important, but tradeoffs between expensive sustainable products and cheaper, less environmentally-friendly ones make consumers’ choice difficult. Millennials are 14% more likely to say that sustainability is very important than the average American, and are 30% more likely to be willing to pay for more sustainable products. 

When brands can find their audience of loyal customers they don’t have to be as concerned with those customers leaving during an economic downturn. While some consumers will leave for cheaper products, having a dedicated base of consumers who care about the environmental aspect of the product can lead to deeper and longer-lasting relationships. 

Brands have been increasingly invested in sustainability social issues and supporting sustainable causes. Sustainability pledges and creating new lines of sustainable and environmentally friendly products have all become very common in recent years. That shows brands have been listening to the 59% of Americans that believe brands should do more to make their products sustainable, and 36% of Americans want companies to reduce their environmental impact. 

Concern for the environment manifests itself in different ways.

40% of Americans say they are concerned about climate change, but Gen Z (44%) and baby boomers (45%) are the generations most concerned. Millennials aren’t as concerned about climate change, even though they’re most likely to take action and desire action from companies. Baby boomers don’t necessarily expect action from companies on sustainability issues, instead saying that consumers bear responsibility, but younger Americans say that corporations and governments have the most responsibility to act sustainably.

Americans are very invested in improving their sustainability actions and want to do more. 64% of consumers say that corporations have the most responsibility to act sustainability, higher than even the government or consumers. It isn’t easy to balance price and sustainability, but if brands can successfully navigate those challenges, they’ll win over more consumers.

4. Representation for the disabled community 

There has been a growing recognition of the importance of representation for individuals with disabilities. This is especially true in the workplace and for products available to disabled consumers. Americans are recognizing the need for better representation, and some brands have taken notice.  

50% of US consumers say disabled Americans need more representation than any other group, and 47% of Americans say that disability rights are an important issue to them. In particular, Americans think that disabled Americans need better representation in the workplace (50%), and in products (41%). 

Some brands have brought disabled groups to the forefront of marketing campaigns and have created new inclusive product lines. A great example of this is the L’Oreal product line that has offered more accessible products to disabled makeup users, meeting the demand for the 49% of Americans who believe that portraying diverse groups will improve ads. 

By expanding product lines and who they portray in advertisements, brands can resonate with young consumers looking to support inclusive companies. Like who, you ask? Gen Z. They’re 20% more likely than the average American to support better portrayal of these groups in ads.

5. Economic conditions

One issue that has been gaining increasing attention is poverty. As such, it’s crucial for brands to consider the impact of poverty on their audiences and address this pressing issue in their marketing initiatives. 

With the “bad vibes” economy in full swing, it makes sense that 17% of Americans say poverty is the most important social issue. This highlights the widespread recognition of economic issues in the US and the need to address poverty in America, regardless of age or background. 

There’s also a big tie between poverty and mental health. 

55% of Americans say that poverty/financial struggle is a main contributor to poor mental health in society. 

Despite poverty being a top social issue for Americans, companies are much less likely to have poverty-focused initiatives especially compared to how frequently companies focus on climate initiatives. It isn’t as easy for brands to address this issue because of the sensitive nature of poverty, but some companies have created initiatives. Unilever is one example of a company that is promoting poverty prevention and alleviation work. 

Why brands should care 

The key for brands to take action on all of these relies on connecting with consumers and showing what their brand is about. A deeper understanding of the brand’s audience and social issues that matter to them allows initiatives to be more successful and impactful. 

More than ever, consumers want less talk from brands and want to see results. 

Taking action isn’t easy, especially as economic conditions are cutting budgets in many industries. The brands that walk the walk during tough economic times will be the ones that come out on top when the good times return.

According to actor Keith David, “publicity is publicity, controversy and all that, it’s all good”.

Most marketers and business leaders would probably disagree. 

A lot of us like hearing about controversy, but we don’t necessarily want to be associated with it. If the news blacklisted our favorite clothing line, chances are we’d be less keen to wear it. 

Unfortunately, brands make mistakes. It’s easy to stumble, especially now. For starters, companies have been forced to raise prices, leaving many buyers skeptical. And social media allows brand interactions to spread like wildfire, which often leads to them going viral or being “canceled”.

In today’s fast-paced environment, businesses should keep taking data-driven steps toward building consumer trust. But they also need to know how to navigate a reputation crisis in case the worst should happen. 

Minimizing the risk of reputational damage

Many companies have pulled back on spending and chosen to focus on surviving in the short-term, rather than fine-tuning their online presence or building a good reputation, and it’s easy to see why. 

With the cost of living crisis raging on, we’d assume consumers are obsessed with price, and less bothered by brand image. This is especially true in sectors like food and drink, given the recent rise in Europeans saying they buy own-label supermarket products.

But brand reputation does matter, especially in the long-run.

Whether people trust a logo is usually high on their list of purchase drivers; and B2C relationships have strengthened over time, alongside buyer expectations. 

The number of Westerners saying they’re most motivated to promote a company they have a close bond with has risen by 31% since 2015, and a third would simply out of love for a brand.

Harry Lang, the VP of marketing at Kwalee, suggests that some businesses belong in the “Champion’s League of brands”: those that are so well-liked they seem untouchable. By the time we get to the Conference division (i.e. the lowest one), relationships are entirely based on price and therefore replaceable.  

Companies should aim to keep scoring points and move up these tiers, as people who engage with brands on a deeper level are more likely to be satisfied when they apologize for a mistake. 

Loyal customers are ultimately more likely to give brands the benefit of the doubt, hear them out, and quickly put a misstep behind them when a company makes amends. 

Why a crisis management plan is necessary

If there’s one downside to trust, it’s that fans are more motivated to call out a brand they like in the first place because their expectations are so high. And even those who aren’t loyal to a company want to hold it accountable when it leaves a sour taste in their mouth. They do this by sharing online reviews, occasionally leaving a negative comment or boycotting a brand.

Boycotts aren’t rare incidents that inevitably end in disaster; they’re actually fairly common. Social media boycotts in particular have become more frequent lately, with companies in the ‘Champion’s League’ having survived a fair few themselves. 

To put this into perspective, 63% of consumers say they’ve boycotted a brand before, with 16% of Americans doing so in the last 6 months. 

That’s partly why some companies don’t always take them seriously. As Ms. Brantley, the author of ‘Brewing a Boycott’, explains, “unless you have a really well-organized boycott with clear messaging”, it probably won’t catch on. Plus, most of them aren’t long lasting and only have a temporary effect on sales.

This doesn’t mean businesses should start thinking like Keith David, though. Even when they don’t have a clear impact on profits, protests can damage brand equity over time, pushing companies down a tier. They should be seen as a penalty, even if they don’t mean game over. 

To avoid a PR crisis, you have to check for holes

Bud Light’s partnership with transgender influencer Dylan Mulvaney has led some conservative critics to push for one. They’ve made the headlines, but Bud Light’s total sales over the first five months of 2023 were still higher than any other beer. 

While we don’t know whether it’ll stick, endorsing a political cause that goes against their values is fairly low on consumers’ list of reasons for boycotting, and 75% of US Bud Light drinkers describe themselves as open-minded.

With 2 in 5 wanting brands to be socially responsible, it’s generally more damaging to be seen as uninclusive than “too woke”. The most compelling incentive people give for jumping ship are actions that harm a specific community, with transphobic, homophobic, and racist behavior driving many shoppers. 

Unethical manufacturing practices and wrecking the environment are also high up there. The former even ranks above data breaches among clothing buyers, with many speaking out against fast fashion for both reasons. Clothes brands should address these issues in particular, as any movements they inspire have the potential to get off the ground. 

And you can do this kind of analysis with just about any target audience. Those who use takeaway apps, for example, are 17% more likely to be put off by employees being treated badly, with online grocery shoppers standing out most for condemning illegal activities like tax evasion. 

This research helps companies prioritize when working to avoid a reputation crisis. But sometimes even when brands put safeguards in place, data breaches, product recalls, and celebrity scandals happen anyway. So, it’s always good to have a backup plan. 

Avoiding a brand crisis with actionable insights and a communications strategy

As we hinted at, the power of a boycott will depend on various things like the severity of the problem and the trust brands have racked up. Another key influence is how companies respond, and crisis communications should be seen as a chance to show integrity. 

Price rise messages are a good case study as they demonstrate the power of good storytelling. 

According to our data, people most want to know when (30%) and why (28%) a price rise is happening. This is a sign they expect an honest, value-driven story that goes beyond how much they’ll be paying – which is actually the last thing they’re keen to know (16%). When done well, these updates can even inspire loyalty, and the sustainable toilet paper brand Who Gives a Crap has been praised for doing just that.

The most highly rated response to potential crises is companies issuing a statement. And just like price rise messaging, how they frame it really matters. 

In 2020, the software company SolarWinds suffered one of the biggest hacks in history. Two years later, customer retention rates are at historic highs, and the company’s key stakeholders put this down to being clear, open, and proactive during a setback. 

Brands should use these blueprints when making a crisis plan, but come up with their own design

When dealing with discontent, brands should generally aim to double or triple-up on the above solutions for maximum effect. It’s rarely best to ignore the problem and hope it goes away.  

Balenciaga hit the right notes when responding to protests against its controversial campaign. They issued a statement, apologized, promised to take legal action against those involved, and even partnered with a relevant charity to show they’d listened and learned from the experience.  

Yet, each boycott calls for its own unique blend of responses, as what dissolves one PR crisis might not work as well for another. 

Alongside statements, many people rate public apologies highly, but the decision to make one should be mulled over.

In our Bud Light example, saying sorry might not have been deemed necessary by most of its drinkers and could even work against the brand reputation they’re building. On this occasion, CEO Brendan Whitworth made a statement, not an apology. 

Companies’ reactions should also depend on what they’re accused of. Those who say they’re likely to boycott a brand for harming a community or due to homophobic/racist behavior stand out most for wanting brands to donate to a charity affected by the mistake. 

On the other hand, data breaches, eco scandals, and product recalls are distinct for creating demand for apologies. And relatively more people expect businesses to cut ties with those responsible when employees have been mistreated or brands have endorsed a political cause they’re against.

Speaking of cutting ties with those responsible, unless you live under a rock, you’ll be able to recall at least one celebrity-brand partnership that ended badly; Kanye West springs to mind. Many expect brands to break up with those behind company crises, and the stakes are even higher when they’ve got under people’s skin. 

In fact, 74% think brands should stop working with celebrities immediately if they do something offensive. In these cases, brands need to act quickly – clearly explaining how they responded, and why.

Turning potential customers and boycotters into brand ambassadors

In a nutshell, here are the main things brands should consider when working to avoid a crisis situation:

• First up, don’t underestimate the power of a good reputation, especially during hard times.
• If there’s one downside to trust, it’s that fans are initially more motivated to boycott a company. So, brands need to have a strategy in place and spot potential risks. 
• Finally, the best brand reputation management plans cover all bases. They identify the top motives for shunning businesses, lay out steps to avoid them, and underline the best ways to respond in the worst-case scenario: namely, get control of and rewrite the narrative.