Fri, 14 Aug 2020
How to grow your business (during a recession)
This pandemic has put uncertainty in the eyes of the consumer, worldwide.
Crafting and designing a well-thought-out business approach, will ultimately define how your long-term results will play out.
Studies have shown how some brands have come out of a recession in the past, better than before.
You’ll be more likely to flourish from this recession if you get into the mind of the customer, adapt your offering and carefully craft your messaging.
Here are the three things we’ve learnt:
1. Strengthen trust (adapt).
Uncertainty looms, even for the well-off, comfortable customers. Trusted brands are seen as safe, and their products as the secure choice during these times.
Restoring confidence through your messaging, will not only reinforce a personal connection between the customer and your brand, it will illustrate an understanding.
Messages alone won’t strengthen trust, you must back these up with actions.
For example, in previous recessions, supermarkets would provide free flyers outlining lower-cost meals. This is a great move to combine the supportive, empathetic brand awareness it suggests, with actually promoting products.
2. Move with your customers (connect).
First things first, understand that your customers are going to shift and there will be new segments that arise from a recession.
Begin to take into account your customer’s emotional response and attitude as a result of the downturn. It would be a good idea to rearrange your current market with the following segments in-mind:
Vulnerable and worried
These are the hardest-hit bracket of people, who are anxious about their financials and reduce most types of spending.
Resilient but optimistic
This group eliminates spending at a slower pace than the vulnerable and worried, and are increasingly unconfident about the situation.
Stable and comfortable
Secure in their ability to move through the recession without too hard of a hit, not necessarily wealthy, however confident in their comfortability.
Unlikely to change their spending behaviour, not worried about their savings or purchases during this time.
3. Utilise cost-effective marketing (grow).
Millions of consumers around the world have shifted to online shopping due to closed shops and retailers.
Not only this, consumers have become much more active on social media platforms specifically on Facebook and YouTube.
With more users online, it is a no-brainer to make the most of this form of marketing through conscious online campaigns that cater to the new attitudes of a consumer.
Digital advertising is also relatively cheap, and easily measured which helps!
We’re here to chat if you’re stuck, looking to alter your strategy or are after a fresh approach.