3 Recession Protection Strategy Tips
Recession Protection Strategies
Tip #1 Don’t Stop Marketing!
This is the single biggest mistake that businesses that fail make in a recession.
When we emerge from this, if you have stopped all customer communication, you’ll have no backlog of pent-up demand and customer goodwill to fall back on. It will take you another 2- 3months to catch up when you turn the Marketing back on, and by then it may be too late.
Obviously, it doesn’t make sense for some businesses to continue with paid advertising: restaurants, hotels etc. But for others, if you can possibly continue, you should. Even if you can’t get the sales right now.
When someone is stuck at home and they start dreaming of the new sofa they’re going to get when this is all over, you need to be there when they search online using Google. They won’t be able to buy that day, but you’ll could be their first choice when they are finally able to go out and buy.
Don’t stop marketing, communicating and promoting, there are cost effective ways you can employ
Tip #2 Ring Fence Your Customers
Do you care about your customers? If you do, why would you stop Communicating to them just because they can’t give you money right now?
The business owner who ignores their customers during this time is telling them they view their relationship as purely transactional: When the money stops, the relationship stops.
People aren’t stupid. They’ll remember this and they’ll treat those business owners accordingly when the time comes. Meanwhile, if you take the time and trouble to keep communicating with your customers, you will be rewarded. It’s also just the right thing to do.
So if you’re still selling, step up the marketing and customer communication: Emails, Facebook, even direct mail if it’s feasible.
Tip #3 Don’t Cut Prices – Add More Value
We are obviously in a Recession and that Recession is going to continue when things get back to ‘normal.’ In the months ahead I urge you, implore you, do NOT cut your prices.
The natural inclination when selling gets hard is to reduce prices. It doesn’t work. It destroys your profit margins and you end up in a negative, destructive circle.
Also, this is going to be a weird Recession. There will still be millions of people with plenty of money. It’s just that the money is coming to a standstill for a while.
When it starts moving again, those with money will not need a price reduction. If your customers are having a hard time and you want to help, the solution isn’t cutting prices. It’s adding value. Add more value. Look at everything you do and ask how you can enhance what you offer them. Sky TV is launching new channels and adding more movies for everyone stuck at home. It’s adding more value. But it’s not cutting prices. In my business, we have clients where we manage their websites.
But they’re having problems in other areas of their business. My team is jumping in to help wherever we can, whether or not we’re technically being paid for it. We’re adding more value.
So step into your customers’ shoes and ask yourself how you can add more value in the weeks ahead.
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