How to build a strong brand in a weak economy

Let’s get the bad news out of the way: To say that the US economy is facing its most difficult economic time since the Great Depression is not an exaggeration. Last week, employers cut nearly 600,000 jobs. Today, 11.6 million Americans are out of work. According to the Bureau of Labor Statistics, the unemployment rate has officially risen to 7.6%.

“This is the largest 13-month job loss since the payroll job series began in 1939,” Christina Romer, director of President Obama’s White House Council of Economic Advisers, said in a statement on Feb. 2009. “These numbers, and the very real suffering of American workers they represent, reinforce the need for bold fiscal action. If we don’t act, we are likely to lose millions more jobs and the unemployment rate could reach double digits.”

So what’s the good news, you say? Given this data, how do business, political, and nonprofit leaders rekindle confidence in their leadership abilities? How do they exemplify brand integrity and the goodwill your organization may have? Is such a thing possible, given current levels of consumer confidence and general economic malaise?

Not only is it possible to build a strong brand in today’s economy; there is never a chance to prosper. Using time-honored rules, one can strengthen brand trust and increase wallet share and voice, even in these challenging times. Two big opportunities to take advantage of those time-honored rules come to mind: Opportunity #1) Competitors are cutting their marketing spend, and Opportunity #2) Stakeholders are more perceptive in times of uncertainty.

Competitors are cutting marketing and research budgets

In 16 years as a marketer, I have often told clients, “NEVER stop communicating with your stakeholders when times are tough.” When trust is low, customers and employees want their trusted institutions to exude competence, integrity, and a core of humanity. When competitors “go black” to cut costs; Smart marketers seize the opportunity to fill the gap with communication that is relevant to the lives of their stakeholders. These days, whoever provides comfort, confidence, constancy and constancy wins. Here are some inexpensive yet powerful methods for producing meaningful rewards:

1) Social media. Several organizations use Facebook, YouTube, LinkedIn, and Twitter to communicate directly with the public. These are great messaging tools; but they are also excellent listening tools. Spend some time listening to talks about your brand. If you’re a small business, create some positive talk!

2) Corporate Social Responsibility Initiatives. For example, XYZ Company employees can work together mentoring youth, helping a local charity, or providing expertise to a fledgling company. These initiatives are not only good for the region, but tell a great story about the soul of the company (even in difficult times).

3) Consumer Advisory Councils. This is a tool we recently suggested to a client with a limited research budget. We help them recruit a group of core customers with varying levels of loyalty and satisfaction to help the company with product redesign and messaging development. Your clients can do a great job of keeping you honest, if you let them.

Customers, employees and shareholders are on high alert

Whether you run a small business or a multinational corporation, every message emanating from your organization (and brand) during this challenging economy takes on added meaning. Your stakeholders are listening to what you say and watching what you do. Consumers don’t spend as much; but they are listening to the signals that the organizations are sending. Employees are anxious, yet they are paying close attention to the moves their leaders make. With each new data point, stakeholders gain more trust in your brand — or lose it. This is the time to deeply establish your credentials as a trusted brand. Here are three critical actions to establish a strong brand in a weak economy:

1) Exude integrity. This is the most important element in building a trusted brand. Recently, I was conducting an interview for our upcoming Confidence in Leadership Series, and an executive vice president of a global hospitality company told me that the way his organization has been able to thrive in this economy is that his brand, “always delivers on its promise . There are no exceptions.” My words to him were: “Of course… What else would you tell me?”

He said something really interesting: “It’s not about what I tell you, it’s about what I do for my clients around the world.”

She had recently visited one of their high-end hotel chains in a major US city and was told that a (now former) employee had blatantly lied to a long-time customer about an offer of service. That particular corporate client had held his annual convention at the hotel for many years. They were very profitable and brought in a positive stream of national press each year. He concluded: “The situation was eventually resolved, but I felt our integrity was in question. The following weekend, I got in my car and drove across three states to apologize to the board members and refund a portion of their fees.” . Your integrity will not be forgotten.

2) Exhibit organizational capabilities. One thing is to talk about a good game, another is to deliver. Stakeholders want to know that the product works as it is supposed to and that your team has the technical knowledge to deliver on the promise. Take advantage of this opportunity to increase the institutional knowledge of your organization. Capitalize on stakeholder interest in high alert by educating them. Become a trusted source of knowledge, transparency and information in your industry or sector.

3) Emanate Good Will. Authentic goodwill, particularly when the public suffers, sends a powerful message through the organization’s channels and throughout its marketing mix. For example, companies with a long-term investment in sustainability practices are reinforcing their credentials as brands that “do good while doing good.” Other organizations have taken cost-cutting steps to save employee jobs in the long run. Even small businesses are getting involved by contributing their limited time and money to worthy causes.

Leaders of corporate, small business, civic or government institutions have a unique opportunity to build strong and lasting brand trust, even in a weakening economy. The key is to lead with integrity, highlight your individual and institutional capabilities, and let your stakeholders know that your company has a soul. Organizations that show strength of character now will reap the benefits of a strong and trusted brand when things improve.