Edtech, fintech and foodtech brands, especially, are facing an increasing backlash that can erode brand value and adversely affect consumer perception. So what’s the crisis plan?
From Paytm being trolled for its underwhelming stock market debut to Zomato being cornered for spending huge money on ads featuring big Bollywood stars (Hrithik Roshan and Katrina Kaif) instead of ensuring “fair pay” to its delivery staff, an increasing number of consumer internet companies are facing brand crises due to various reasons. Being pulled up for everything from the negative impact on society to hurting religious sentiments has become the order of the day with digital platforms opening up the window for candid feedback and easy access to companies and their leaders.
Such incidents, which are happening with increasing frequency in edtech, fintech and foodtech, can have a serious impact on a company's brand value and consumer perception.
Branding and marketing experts believe that the broader reason for an increase in 'crisis' situations is owing to social media outlets aiding people to take their grievances and concerns to a lot of people in a short span of time. This wasn't possible in the pre-internet days when the crisis largely stemmed only from mainstream media's reporting of the brand (that started from media identifying aggrieved customers, or an adverse point of view among some people).