The recent lifting of the energy price cap means millions will see a 10% increase in their bills just as winter approaches1. Energy providers now face the daunting task of conveying this difficult news to customers.
Giving bad news is something every comms team (and every human!) has to face at one point of their lives, yet it is always greeted with dread.
And with good reason. The stakes can be huge. Regardless of ‘whose fault it is’, the reputational risk of getting comms wrong can be devastating. We only need to recall the backlash E.On faced for offering free socks during the cost-of-living crisis, highlighting the risks of misjudged messaging2. Many organisations, fearing similar scrutiny, often choose to remain silent on sensitive issues3. But, staying quiet still represents a risk to your business, and is a missed opportunity to connect meaningfully with your audience, strengthen positive brand associations, and most critically provide vital information and support to your customers.
At Relish, we have years of experience in the utilities, media, and insurance sectors, helping organisations navigate communications around price changes. Here are our 3 key learnings for communicating bad news effectively.
Lesson 1: Tone of voice matters
Irreverance and humour are increasingly used in tone of voice guidelines to create more genuine connections, especially with younger audiences. However, there is a time and a place for humour. Ovo previously landed itself in hot-water for offering humorous tips on staying warm – including cuddling pets4. The accompanying backlash was linked not only to a misjudged tone in response to a serious issue, but because Ovo did not sufficiently demonstrate empathy with its customers.
For empathy to work, it needs to be grounded in deep, bottom-up customer understanding. Without understanding customers’ hopes, dreams, fears and aspirations you cannot expect to authentically empathise with them.
Your tone of voice also needs to be true to your brand and its values. What works for one, may feel jarring if coming from another company. Take Octopus Energy as an example. They used a lo-fi, mobile-filmed video featuring its founder, to communicate the price rises. This approach felt personal and aligned well with the brand’s customer-first ethos and its heritage as a disrupter.
However, had a more ‘establishment’ organisation used the same strategy, the reaction could be very different, and more likely to be seen as the company not taking the issue seriously. While this approach is consistent with Octopus’ perception as a disrupter, given its now dominant position in the energy market, it needs to carefully consider how long it can maintain this tone of communication.
Lesson 2: Reach vulnerable audiences
Keeping quiet on issues affecting vulnerable customers can lead to serious harm both to the customer and the brand’s reputation. Organisations should make a concerted, evidence-based effort to reach these audiences through channels that are accessible and convenient to the individual, rather than the organisation. When speaking to them, or signposting to support, it is also crucial to remember that not all vulnerabilities are visible, permanent, or indeed negative. Positive transitory life events such as getting married, moving house or welcoming a new baby can cause significant financial, physical and emotional strain.
Communications should be designed with various vulnerabilities in mind, utilising an inclusive copy, format, and media mix. Employees should be trained to identify vulnerabilities and how to respond with empathy.
Lesson 3: Establish a hierarchy of messaging
When delivering bad news, instinct often teaches us to go on the defensive and point to factors beyond our control. Instead, prioritise the messages that truly matter to customer:
- Personal Impact: Get to the point quickly, clearly communicating the personal impact of changes using straightforward language (e.g. pounds and pence)
- Empathy and Action: Establish empathy and detail the steps the organisation is taking to help customers. These steps should fulfil a relevant customer need, and align with your brand values. Asda’s action during the cost-of-living crisis to relaunch its ‘Just Essentials’ is a prime example of getting it right – a customer-first response to a need that aligns well with their mission5
- Transparency: Consumers won’t appreciate it if they feel you are ‘passing the buck’, so be transparent about the role (if any) your organisation has had in the negative news story
- Feedback Loop: Create an accessible feedback mechanism and guide customers on where to seek further support. Consider partnering with third-party organisations or consumer groups to enhance support.
Communicating bad news may be daunting, but it also presents an opportunity to reinforce brand values and enhance customer relationships.
At Relish, we can help your organisation embed customer understanding into your communications strategy, enabling you to navigate challenging situations effectively and compassionately.
-Florence Douglas
Insight Director
Sources:
[1] https://www.bbc.co.uk/news/articles/c7v6l26v585o
[2] https://www.bbc.co.uk/news/business-59995938
[3] https://www.ft.com/content/5fd513c3-e23f-4daa-817e-aa32cf6d18d4
[4] https://www.bbc.co.uk/news/business-59946622
