Low-touch, low-involvement (LTLI) brands are the norm in many big Australian industry sectors like insurance, utilities and superannuation.

These are the brands people begrudge spending time with because they’re just not that interesting. They’re ‘set and forget’ with policies, payments and memberships rolling over from one period to the next unchecked – often to our detriment as consumers. Some companies like to think of this as loyalty, but it’s often just inertia.

They are significant expenses in our household budget that can seem inescapable. You can’t opt out of electricity or the internet, voluntarily at least. In some cases, they seem to offer little in return like the insurance you hope never to use. Hence being labelled as ‘grudge’ purchases.

But when times are tough, we make the time to scrutinise our statements and pick off those oh-so-convenient direct debits.

While it can feel equally tough for business, it’s not the time for corporations to play the victim. Is it ever?

The community rarely perceives the corporate world with much sympathy, even though we are all dealing with external challenges. Brands need to wear the downside and be seen to be doing their best to lighten the load on the customers.

On the flip side, tough times can be windows of opportunity to build LTLI brands, simply because people are paying more attention. It’s an opportunity for brands to prove themselves as good corporate citizens who do actually care.

Here are some defensive tactics you can apply to build your LTLI brand as we head into the 2023 winter of discontent.

Dial-up quality and service

For more ‘premium’ LTLI brands, when loyalty is strained, remind people of the quality factors that drove them to choose you in the first place. What does your brand do better than the rest and how can you create warm reassurance around sticking with you?

For example, they might trust your brand of insurance because they respect your heritage and track record of paying out claims. This reputation may have driven recommendations by sources they know and trust.

Remind customers of this. Refresh their memory about the quality of your products, reputation, supply chains, origins, technologies and so on.

For LTLI brands, service is commonly a dimension of quality. Most Australians have had a bad service experience – and they’re quite common in LTLI sectors where interaction is, by definition, infrequent.

In turbulent times, it can be reassuring to stick with brands that have a good reputation for service, which is also a signal of care and a driver of trust.

Dial-up service levels where possible. Celebrate local call centres, short wait times and a competent, caring human face where there is one. Be alert for corporate language – in any customer touchpoint – that creates emotional distance.

Emphasise shared values

Despite having a mainly functional relationship with grudge purchase categories, customers often choose brands based on factors other than price. There can be an emotional price when trading down, and guilt is the currency unit.

Values and ethics do figure in times of crisis. If your brand touches the heart or holds dear something customers also hold dear, that’s a strong selling point.

Remind customers of your ethical position. For example, your care for your own people or your commitment to disadvantaged groups – be they customers or the wider community.

Increased prices are painful, but most Australians still want to do business with good companies. It feels less compromised.

Price + treats

True loyalty in low involvement categories is relatively weak at the best of times but it can be invested in with a value equation that feels balanced and caring.

Price is obviously the starting point in a world where cost-squeezed people hit comparison websites as a natural reflex.

Being way off the pace is asking for trouble. Assuming you are in the race, this is an ideal time to increase treats like promotions, perks, prize draws and giveaways. And an ideal time to remind the business of the relative cost of acquisition vs retention.

People love treats, and they’re valued more when we’re tightening their belts. Treats bring positive, active energy to the brand.

This is the best time to have a sale, surprise people with specials, discounts and those little added extras that make them feel valued. Think of it as an unexpected reward.

More than just positivity and promos, treats help LTLI brands show people that they like and are thinking about them. Which is quite powerful when the reverse isn’t true.

Reaching out

Finally, this is not a time to remain silent.

Communication is all-important to demonstrate your actions but to also show energy and commitment. You’re actively looking out for people, so make sure you show up.

Ask customers for feedback. Offer them expanded channels to be heard and increase your energy around dealing with complaints.

Even when belts are tightening, with a little foresight, LTLI brands can avoid the stigma of the grudge.