If you’ve been keeping an eye on the news in recent months, you’ll have heard about the Marks & Spencer (M&S) cyber attack.
The cyber attack hit in April and only resumed online orders last week, costing the retailer £300m in lost profits to date. For a brand that is built on trust, heritage and reliability, what impact has this incident had on their brand?
As brand strategists, we’re always interested in how a crisis affects a brand reputation. Research recently conducted by Maru shows that M&S has suffered a decline in brand advocacy at a top level, with the number of people who would recommend M&S dropping from 87% to 73% following the cyber incident. However, there was only a 2% decline in customers saying they would probably/definitely give M&S the benefit of the doubt if it were faced with ongoing product and service issues, showing customers potentially are willing to forgive and forget.
It’s only when you generate brand loyalty and advocacy that it can withstand times of crisis. In terms of behavioural science, this can be linked back to the principle of reciprocity. Reciprocity is a social norm that dictates we reward the positive actions of others with equally positive behaviours. M&S has a long-standing history in delivering customer satisfaction which is now being rewarded with customer loyalty. This highlights the importance of investing in your brand, as when you build long-term trust with your customers, you’re more likely to be able to fix things when they go wrong.
At Smith, we believe that your brand is the most important asset your business owns and can unleash your commercial advantage. This example shows that at the core of a brand is people and if you can get them to buy into your brand you can drive and maintain loyalty and positive perception. Your brand is a brain tattoo – it’s your customer’s perception of you – so creating a brand that is not only recognised but also trusted and liked is the key to driving success in the long-term.
Want to know more about the power of brand? Get in touch with us to find out more.