Yesterday, Alibaba announced that MYBank – part of Ant Financial – would offer RMB 20 billion (USD 2.86 billion) in loans to Chinese companies impacted by the coronavirus outbreak. Taobao and Tmall merchants in Hubei, the region most impacted by the epidemic, can apply for one-year loans that will be interest-free for the first three months, followed by a 20% discount on the rates for the remainder of the term. Businesses outside of Hubei can also access discounted loans, though without the interest-free months. The initiative is part of 20 other measures being taken by companies in Alibaba’s ecosystem, which include reduced fees on Taobao’s merchant tools and supply chain subsidies.
FIRST RESPONDERS. We’ve covered before how brands are expected to respond with speed and compassion during a crisis. Donations to relevant nonprofits are one way to help (see these Australian brands that donated 100% of their profits during the bushfires). Yet as MYBank’s example shows, innovators can find ways to leverage their own resources and unique skills during a time of need. And this is definitely a time of need for Hubei’s businesses, which face a wide array of consequences from the epidemic (MWC Barcelona, for one, just banned attendees and exhibitors from the province). Are you set up to react to the next crisis that impacts your customers in a way that leverages what you do best?
SYMPATHETIC PRICING. It’s no secret that we live in a world of dynamic pricing, where everything from a flight to a taxi ride can change by the cent, by the second. While they hint at the promise of a better deal, algorithmically ephemeral prices are designed to maximize margins for the supplier, not value for the customer. When was the last time you showed flexibility in your fees so that, beyond boosting your bottom line, you showed sympathy for the customer? If you’re worried about looking like you are marketing off the back of a crisis, don’t wait for something bad to happen! Alaska Airlines showed surfers it was sympathetic to what they cared about more than anything… swell size!
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