Consumer confidence has dipped, with the University of Michigan’s consumer sentiment index falling to 62 in June 2024 from 67 in May2. But pointing fingers doesn’t fix the problem. Whether it’s the government, financial institutions, or consumer behavior, the responsibility is shared. Companies need to focus on real innovation and genuine customer empathy to tack through these turbulent waters. Brands that engage consumers on an emotional level will be the ones to continue to see their market share grow.
A recent Forrester report highlights that 73% of consumers feel that customer experience is crucial in their purchasing decisions, yet only 16% believe brands consistently deliver a great experience3. This is a missed opportunity for so many brands. In contrast, the brands that are excelling right now are the ones that have found ways to stand out and connect meaningfully with their audience, even when they are selective with their dollars.
Here are four strategies successful brands are using (and were using in 2011, mind you) to thrive in the current economic climate:
1. Constantly Innovate
Apple continues to set the standard for innovation. With the launch of the Vision Pro and the latest advancements in AI, Apple’s stock has surged, reinforcing its position as a market leader. By focusing on cutting-edge technology and seamless user experiences, Apple maintains its emotional connection with consumers4. Another example is Rivian, which is “creating solutions that shift consumer mindsets and inspire other companies to fundamentally change the way they operate”.
2. Rediscover the Brand
After years of struggling, Best Buy has seen a resurgence by returning to its core values of excellent customer service and in-store experience. By embracing a hybrid model of online and in-store shopping, they’ve made themselves indispensable to consumers looking for tech solutions5. Similarly, LEGO has continuously revitalized its brand over the last decade by tapping into nostalgia while also innovating with new product lines that appeal to both kids and adults with discretionary income. Consider the very recent launch of the introduction of the LEGO® Technic™ McLaren P1™, that will retail for just under $450.00 (Available August 1st). And we’re all kids at heart, right?
3. Stay in Your Lane
One of our favorite clients, Chick-fil-A, has become a quick-serve juggernaut by sticking to what it does best—delicious chicken and an exceptional guest experience. They haven’t diversified into unrelated product lines; instead, they’ve deepened their commitment to quality and consistency, innovating how they continue to grow, while maintaining and even improving standards. Patagonia, too, has stayed true to its mission of environmental sustainability, earning unwavering loyalty from its customer base. Now, partnering with upstart companies as an investor, they are completely redefining and refining the circular economy.
4. Refocus on Brand Trust
During times of uncertainty, consumers gravitate towards brands they trust. Costco has maintained consumer trust by consistently delivering value, quality, and excellent customer service. Even during economic downturns, Costco has kept its prices competitive and its product offerings reliable, reinforcing its commitment to members. Their campaigns emphasize community and loyalty, not just sales, creating a deeper connection with their audience. Its Kirkland brand is actually bigger than Nike and Coca-Cola6. Similarly, luxury brands like Gucci and Rolex have upheld their reputations by ensuring exceptional quality and exclusive experiences.
In these uncertain times, brands have a unique opportunity to differentiate themselves and make the competition irrelevant. By investing in your brands and products and building emotional connections with consumers, you not only foster loyalty, but also ensure profitability. Remember, it’s the strong brands that will come out on top and be credited with steering the economy towards full recovery and acceleration. At BOLTGROUP, we’ve helped clients not only weather the storms of financial turbulence for nearly 40 years, but helped dozens emerge from the fog bank even stronger, more sustainable, and more profitable than ever.
