We have called this page recession opportunities to highlight that there are benefits to be found even in the most dismal economy.
There is a lot of doom and gloom around at the moment linked to the economic climate which is taking hold of the nation – and indeed the world. There is no doubt that some people and businesses are suffering greatly as a result. But it doesn’t have to be all bad news. The most successful companies will see the opportunities that a new climate brings.
Take a look at some recession opportunities that could help you make the most of the current situation and not only survive - but thrive!
Exploit the web
One of the main implications of a recession is that people are spending less. So to keep your business thriving, you need to get more people spending their reduced resources with you. Recession marketing should be all about trying to keep your existing customers coming to you, and also attracting new ones whose needs have perhaps changed.
There is no easier way to do this than via the
internet
where there are literally billions of users looking for things or information every day. The vast majority of companies are not using the web to it’s best potential. Now more than ever is the time to do so. Look at our pages on
internet marketing
for more help on this subject.
- Reduced competition
Unfortunately there have been, and will be more, casualties of the economic downturn. Nobody wants this to happen, but if we are looking for opportunities, it would be remiss to leave this one out.
Some of your
competitors
may leave the playing field, leaving their client base looking for a new supplier. Keep your eyes and ears open for these opportunities and act quickly. Use all your marketing strength to reassure the consumers that you are there for them and let them know why they should go with you.
Look at our pages on
customer relationships
to help with this.
- Reap the rewards of others' cut backs
Many companies will be cutting down their marketing spend which means that those smart companies who keep up marketing will reap more rewards as there will be less competition. There is lots of evidence to demonstrate that those companies who keep up their marketing efforts in difficult time, prosper more when things pick up. So.... when looking at which costs to cut during a recession, don't make the biggest mistake so many misguided businesses make by cutting marketing.
- Time for reflection
In periods of boom, we are often running around like the proverbial chicken and do not have the luxury of time for review, pondering and reassessment. When times are slow, the extra time should be used constructively. Proactively marketing your company and services is the obvious way. But it also gives an often rare opportunity to rethink your offering in terms of your market’s needs.
In recessive times, we all have different needs and priorities – now is the time to reassess your products and services. By being flexible and adapting your offering to meet new needs, you really can stand out from the crowd and flourish despite the situation.
- Improved propositions and innovation
This is an opportunity to add new solutions or products to your range, or adapt existing ones, to meet new and changing customer needs. This can lead to more innovation, new ways of doing things, maybe reassessing whether we were actually meeting the needs of our customer properly anyway. The customer should really benefit from this, and in return - so will you!
Look at our pages on
knowing your business
and
target market
to help you reassess your business.
- Reduced rates
Companies in every industry are having to compete for business more than ever. And to do this, many are slashing prices. It’s not only consumers who can benefit from this – but your business can too. From energy discounts to rent and mortgage rate reductions, by shopping around you can really cut your own costs – one of the two main factors in increasing profitability!
And when it comes to marketing, you can take advantage of reduced
advertising
rates. Media that was previously out of your league may now be in your range. Or you may be able to do more, or bigger, than before.
- Mutual opportunities
Without wanting to sound corny, when times are tough, people often look to rally round each other more. This can work wonders in business. Looking out for each other, opening up opportunities for each other – maybe even joining forces on projects - can create a whole new world of benefits.
Again – just keep your eyes and ears open for opportunities. And keep networking as much as you can.
- Some losses are a gain
Finally – don’t shed tears over every single customer that you lose to the recession. While losing custom is not what you want, depending on your line of work, some customers may not be a huge loss.
There is a lot of truth in the Pareto 80/20 rule (in this case that you get 80% of your income from 20% of your customers). Based on this – you should put all your effort into maintaining your top 20%, but do not lose too much sleep about relinquishing some of the lower end as they will not make a significant impact on your bottom line.
In fact sometimes this can even help you improve your bottom line. You’d be amazed (or maybe not!) at how much of our time the some customers can take - and without much thanks - or profit! (I’m sure we’ve all had experience of those customers who expect the world, in return for very little!?. If you "lost" these clients, then you'll have more time to focus on the truly profitable customers, or getting new ones.
