Pandemic + Maslow’s Hierarchy: How can you meet customer’s needs in these shifting times?
As COVID-19 spreads around the globe and countries enact various protective measures that restrict the movement and interactions of their citizens, we have seen customer’s needs shift and companies try to swiftly react to those shifting needs. In times of financial uncertainty, we have generally seen companies react to protect profits and the bottom line; however, in this current period of uncertainty, we are seeing companies lean into supporting their customers for the immediate term. These companies are trading short-term revenue for potentially longer-term brand loyalty with customers as the world returns to something more “normal.”
The key to this approach is for businesses to stay authentic to their values and customer value-proposition. We are seeing a different pyramid emerge at the moment and there’s a lot to learn from how some companies are leaning into their strengths to support customers.
Informational: Many global and local publications are removing paywall restrictions on reporting around COVID-19 to ensure that the general public is informed. The Washington Post, New York Times, Wall Street Journal, Guardian, AP News, and LA Times are among the leaders in the space. We are also seeing companies utilize their email lists to communicate changes to business hours, product offerings, and employee and community support to their customers.
Physiological: We have seen some companies extend services for free to provide for customers’ basic needs. Examples are Mint Mobile providing unlimited data for subscribers through April, UberEats and Postmates waiving delivery fees for customers and commission fees for independent restaurants. Fitness apps like Peloton and Lifetime Fitness are expanding free trial access to ensure people can still pursue physical well-being at home.
Psychological: Many video-based technology companies like Loom are extending their paid services for free to support educators and students as they suddenly find themselves trying to educate and connect remotely. Other companies are shifting to make their services more ‘social’ during a time where people may be isolated — for example, Netflix has added the Netflix Party Chrome Extension so you can invite your friends to watch movies together. Global Citizen is mobilizing music stars to share free Instagram Live concerts and promote the connection of people through music.
Community: The overall health and well-being of our communities are getting stressed in a manner we have not seen in recent history. Large corporations are stepping in to support those who need it most. For example, MLB teams are offering to cover stadium workers’ salaries during the postponed season, Facebook has created a $100M Small Business grant program, and Jameson’s and Miller Lite are examples of beverage companies directly supporting the Bartender’s Guild National Charity Foundation. Alaska Airlines announced on February 27, 2020 that they were suspending change and cancellation fees for anyone deciding “not to travel because of concerns related to the coronavirus,” allowing customers to make the best decisions for themselves and their families without worrying about financial impacts. Some other major [AH2] airlines have been slow to adapt to customers’ concerns, with often confusing and changing policies on who is eligible for refunds based on booking dates, destinations, and other factors.
What can companies learn from these examples?
Be aware what others in your industry are doing. Not every business model can necessarily support offering discounts and free services during a crisis. However, it is important to be aware what others may be doing so you can clearly communicate your offers in a way that won’t damage your brand. If customer expectations start shifting (for example, all retail outlets offering senior hours) then you need to be aware of how you can either adapt or differentiate.
Be judicious in your communication to customers. Information is important for your customers, but this is not an opportunity to blast your entire email lists on your company’s “thoughts on the situation.” Use those communication opportunities to communicate valuable information regarding products and services that your customers will find valuable.
Be authentic to your values and customer value proposition. Your efforts to support your customers’ needs will be evaluated by your authenticity, so stay close to your value proposition. For example, fitness apps offering expanded access to encourage workouts at home are authentic; offering access to diet beverages for delivery through their apps could be viewed as unseemly.
We believe as this pandemic crisis continues to evolve and change the business landscape, companies will be remembered for how they react and treat their employees and customers. It is imperative for executives, owners, founders, and leaders to remember that many eyes are watching the decisions they are making now. While there is extreme pressure to make swift decisions to protect your business, we encourage everyone in leadership to continue to take a moment to consider how your actions can be perceived and the lasting impacts it can have to your brand and your business.
At Slalom we have a set of core values that guide every action that we take with our employees and our clients — our first is “Do what is right, always.” We encourage everyone to join us in being guided by this core value as our collective north star in this tumultuous time.
To learn more, contact Slalom Strategy (strategy@slalom.com).
