Feature
The Gist
- Learning agility. Brands adapted CX strategies amidst crises, ensuring operational continuity.
- Emotional connection. Emphasis on empathy and safety in customer messaging fostered trust.
- Digital adoption. Accelerated digital transformation helped brands meet evolving customer needs.
The past two decades have provided brands with many challenges and obstacles as society went through turbulent, disruptive times. These disruptions have taught businesses many lessons as they evolved and changed in order to remain operational and lucrative. Brands have learned to be adaptable, anticipate evolving customer needs and prioritize the customer experience.
Whether enhancing digital touchpoints, emphasizing a human connection or recognizing new shopping behaviors, brands have adapted their CX strategies amidst global disruptions to come out stronger in the end. This article will look at the lessons that brands have learned from the global disruptions of the past.
September 11th, 2001, Terrorist Attacks
The events of September 11th shook the citizens of the United States and the world to their core, as it was the only attack on US soil since the attack on Pearl Harbor on Dec. 7, 1941. On a beautiful Tuesday morning, 19 terrorists hijacked four airplanes. Approximately 2,977 victims were killed, including 2,753 individuals at the World Trade Center and surrounding areas in New York City, 184 at the Pentagon in Arlington, Virginia, and 40 individuals on Flight 93, which crashed in Pennsylvania. The victims were civilians from more than 90 countries as well as first responders who tragically lost their lives while trying to save others. It remains one of the deadliest terrorist acts in world history.
September 11th, commonly referred to as 9/11, was a prequel to the enactment of the Patriot Act, as well as the invasion of Iraq and Afghanistan by US troops. Additionally, on Nov. 19, 2001, the Transportation Security Administration (TSA) was created as a direct response to the 9/11 attacks.
The September 11th attacks caused an immediate shift in marketing as brands suspended potentially insensitive campaigns and adopted more somber, unifying messaging in the aftermath. Advertising budgets tightened amid uncertainty, while consumers emotionally pulled back from non-essential shopping. There was caution around anything that could be seen as triggering.
In the aftermath of 9/11, there was a palpable fear of flying, and the flight industry was severely impacted. Airlines were facing an unprecedented downturn, and had to rethink their CX strategies. The immediate response was about reassuring safety, but long-term changes reflected deeper shifts in the passenger experience.
One notable brand that tackled this head-on was Southwest Airlines. In the aftermath of 9/11, while many airlines were cutting back on services and amenities, Southwest doubled down on its commitment to customers. They avoided laying off employees, ensuring that customer service wouldn't suffer due to understaffing. More importantly, their consistent communication about safety protocols, combined with their transparent fare structures, instilled trust among passengers.
Additionally, with the rise in security protocols post-9/11, many airlines, such as Delta and American Airlines, enhanced their lounges and premium services. This not only made wait times more bearable but also turned them into opportunities for a superior customer experience. These enhancements ranged from offering upscale dining options to introducing quiet zones for relaxation or work.
In the long-term, marketing saw a greater emphasis on quality, value and bringing people together. Ecommerce gained traction as the wariness of public spaces lingered. Innovations emerged around security services. Ultimately, 9/11 forced brands to evaluate their strategies with greater empathy and agility to align with a new consumer mindset focused on resilience. The events accelerated changes in marketing reflecting altered attitudes and behaviors.
The 2002 Dot-Com Bubble Burst
The latter part of the 1990s and 2001 saw growth on the internet that until that time had been unprecedented. Netflix, Ebay, Amazon and Paypal were still in their infancy, and investors were heavily buying into internet stocks. It seemed like things were going to continue to go up, up, up. Then, in the third quarter of 2002, the stock market crashed worse than at any time since 1987.
During the first quarter, the Dow Jones Industrial Average fell 17.9%, and there was an overall downturn in the stock market. The reason for this crash was that investors had been buying into dot com promises and dreams, and the sell-off of overvalued internet stocks had begun. Stocks that had been selling for $72 a share went all the way down to $.92 cents a share. Investors moved to brick-and-mortar businesses, and shied away from online businesses that had yet to prove themselves.
The dot-com bubble bursting forced drastic marketing budget and staff cuts for many tech firms, shifting the remaining ad spend to tried-and-true tactics with reliable returns. Messaging emphasized value, quality and trust to combat negative associations. Traditional retailers highlighted physical advantages as ecommerce lost luster. Marketing ROI was scrutinized more closely, requiring back-to-basics strategies grounded in fundamentals versus the recent dot-com excesses. The aftermath saw a loss of faith in experimental marketing, with a greater focus on accountability, relatable customers, and the use of conventional channels over flashy but unproven digital tactics.
Related Article: Marketing in a Time of Crisis
The 2008 Financial Crisis, aka, The Great Recession
The 2008 recession, commonly called The Great Recession, was primarily triggered by the burst of the housing bubble, compounded by risky subprime mortgages and their subsequent bundling into complex financial products like mortgage-backed securities and collateralized debt obligations. As housing prices fell and defaults rose, the value of these securities plummeted, leading to massive losses for financial institutions.
Doubts about banks' health resulted in a liquidity crisis, highlighted by the bankruptcy of Lehman Brothers in September 2008. This financial debacle, made worse by lax oversight and an over-reliance on self-regulating markets, ran through industries worldwide, leading to a global economic downturn.
During this period, Starbucks stood out. When the recession hit, rather than solely cutting costs, the coffee giant reinvested in its customer experience. Starbucks’ CEO, Howard Schultz, realized that Starbucks had deviated from its stance of providing an unmatched experience to its customers, and stated that “The company must shift its focus away from bureaucracy and back to its customers, reigniting the emotional attachment with customers.”
Starbucks temporarily closed stores to retrain baristas and re-emphasize the craft of coffee making and launched the "My Starbucks Idea" program, which enabled customers to voice their opinion on their expectations from the brand. This resulted in a loyal customer base that valued quality and an experience tailored to them, even in tough economic times.
Overall, the 2008 financial crisis forced brands to slash marketing budgets and adapt to new consumer values such as affordability and prudence. With resources limited, tactics shifted to lower-cost digital channels that emphasized value, quality and discounts. Messaging aligned with sustainability and community. Real-time reactive marketing addressed swiftly changing markets versus long-term campaigns.
Smaller teams drove efficiency and creativity, doing more with less. Contests, promotions and loyalty programs aimed to spur sales amidst uncertainty. Economic conditions made marketing more focused on immediate results, consumer insights and conservative spending versus over-the-top, expensive branding. The recession accelerated the adoption of more economical digital strategies and a back-to-basics approach grounded in affordability and simplicity.
Related Article: Does Your Brand Have a Social Media PR Crisis Response Plan?
The 2019 COVID-19 Pandemic
The world is still recovering from the aftereffects and repercussions of the COVID-19 pandemic, which impacted the way brands do business, as well as consumer shopping behavior. Businesses turned to remote and hybrid workers to remain operational, and customers transitioned to online ordering, delivery and pickup-at-store options. The top priority for businesses was the health and safety of their employees and customers. Brands shifted their marketing strategies to focus on safety, convenience and ease of use.
Plexiglass “sneeze guards” separated customers from employees in many businesses, masks were required for entry to stores and social distancing markers were put in place. Fast-food restaurants remained open only for drive-through and delivery. Tourist attractions such as Disney World and Universal Studios closed down for an uncertain length of time. Schools shut down, and like businesses, moved to online classes. As the pandemic progressed, conferences, events and concerts moved to online, streaming events.
Additionally, supply chain disruptions began to occur across industries, and many brands struggled with shortages, which impacted their customers’ abilities to obtain the products they ordered. This heavily impacted brand trust and the overall customer experience. a post-purchase service solution provider, told CMSWire that unreliable supply chains brought on by COVID-19 and even recent port strikes have highlighted the importance of transparency as a core aspect of a brand’s customer experience strategy. “With consumers at home all day, order delays and delivery disruptions became top of mind for customers that had to turn to online shopping as the only way to secure essential items,” said Berman, who added that many retailers have had to update their web shops to include proactive, updated delivery estimates as consumer demands for transparency increased and factors such as supply chain issues, delivery disruptions and product availability required additional touchpoints.
The COVID-19 crisis accelerated the digital marketing transformation, as traditional channels were disrupted and consumer behavior dramatically shifted toward online activities and virtual experiences. Brand messaging evolved to address health safety, contactless services, and at-home needs with empathy and community prioritized. Targeted digital tactics, email marketing, and social engagement took precedence over big ad campaigns.
Guillermo Salazar, CEO and co-founder of IrisCX, a secure, end-to-end, enterprise-level video platform provider, told CMSWire that the brands his company works with were searching for ways to maintain a human connection with their customers while being able to execute the day-to-day tasks they have always done. “A lot of our clients send experts and technicians in person to a customer’s home to install, troubleshoot or fix complex home products,” said Salazar. “As the world went into various lockdowns and we tried to keep each other safe by keeping our distance, video consultations became one way for brands that would normally send an expert on-site to be able to walk customers through complicated issues and ensure people had their home products working how they should.”
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The pandemic made the use of video conferencing, communication and collaboration platforms extremely popular — and necessary. When the world went remote almost overnight, these platforms didn't just provide video conferencing functionality — they reinforced the nuances of human connection, and served as a virtual water cooler for many employees. They introduced features like touch-ups, customizable backgrounds and more to make virtual conversations feel more personable, thereby enhancing the employee experience.
Logan Nguyen, co-founder and CMO at NCHC, a health and wellness magazine, told CMSWire that global disruptions like the COVID-19 pandemic have had a major impact on customer experience. "Although recovery is slow, it’s certain that a few things that people experienced during the disruption will likely continue even after life snaps back to normalcy,” said Nguyen. “For example, financial services and medical sectors have continued to offer video consultations two years after the pandemic.” Nguyen said that we’re living in an era where customers want brands to care about their needs and emotions. “This further drives the need for brands to deliver better customer experiences to address the changing customer needs."
Data and agile insight-driven strategies became even more critical. Innovation thrived out of necessity, with new opportunities in areas like ecommerce, delivery, streaming and virtual events making up for halted in-person activities. Influencers and user-generated content drove authenticity and relationships. Overall, COVID-19 forced brands to rapidly rethink and invest in more flexible, personalized digital marketing reflecting the new realities of the pandemic.
Adaptability to Change
Businesses remained operational and often profitable during the pandemic by adapting to the situation, learning to rethink the way they connected with customers, suppliers, employees and other businesses. Remaining agile and adaptable during a period of crisis, and adapting to customers’ radically shifting needs became the common goal for most customer-facing brands. “It has become more important for companies to pay attention to customer needs and let them know the resources or measures they’ve put in place to meet those needs,” said Nguyen.
“Adopting customer experience strategies that align with changing consumer behavior can go a long way in establishing a strong relationship with customers and achieving sustainable business growth.” Nguyen explained that by understanding consumer behavior, brands are able to stay relevant and competitive in the constantly-evolving business environment.
Regardless of the crisis, those brands that prospered were able to adapt their business practices, up to and including the actual location where their employees worked. “The COVID-19 pandemic has forced many companies around the world to adopt a work-from-home approach,” said Nguyen. “However, as we see today, this was just the beginning of what has now evolved into a hybrid work model. All these approaches have been centered on technology,” said Nguyen, who added that customer experience leaders can invest in different technologies, such as chatbots, data technology, and natural language processing (NLP) voice chats, to enhance customer experience. Agile brands are able to align messaging and campaigns in real-time as markets change, while implementing digital solutions to replace disrupted channels.
Adopting flexible operations encourages innovation even with limited resources. A focus on customer experience builds loyalty when it matters most. Ultimately, agility enables brands to take decisive action and creative solutions that align with customers during uncertainty, which drives resilience.
Final Thoughts on Adapting CX Strategies
The past two decades have shown that brands must remain agile and put the customer first, especially during times of crisis. Global disruptions have forced brands to rapidly adapt their customer experience strategies to the changing behaviors and needs of their customers. The common thread is recognizing shifts in customer expectations and focusing on empathy, communication, and innovation to provide reassuring, personalized experiences. By maintaining flexibility and prioritizing the customer experience, brands can weather even the most challenging disruptions.
