Recession-proof your Brand
Okay, so no one can totally recession-proof anything, but I’ve been thinking about some simple things you can do with and for your brand during down markets, when the temptation is to cut costs, slash prices, eliminate staff, lower service levels, change who you are and very possibly alienate customers (so that when the economy turns around - which it will- they’ll have moved on). I’ve been thinking about five opportunities:
1. Stay true to your value proposition but adapt to new realities. Anticipate how your customers are going to change their behaviour, and change with them. This is particularly important if you are in a category that is the first to get chopped when consumers feel queasy. Coffee drinkers might be skimping on their $4 daily latte, but they might also be interested in buying more beans and coffee-making accessories to roast, grind and brew at home. Large scale computer purchases may be down but service contracts, leasing and targeted productivity tools might be up. Professional services clients may not be planning the big projects but will thank you for bringing them ideas that will improve their performance for minimal investment. There are examples like this in just about every category. The idea is to shift your offer, while staying true to what your brand means to your customer. Keep delivering on your promise, just adjust the scale.
2. Invest in the most important parts of the experience. The quality of the customer’s experience is never more important than when people are being more careful with their money, cutting back and making tough choices. This is a perfect time for some customer touch-point analysis: map when and how your organization comes into contact with customers, and ask which of those touch points have the greatest effect on satisfaction and loyalty, and what can you do to improve, (that will not detract from the economics of the transaction). In a recent discussion with a client we determined there were over 150 potential touch points over the lifecycle of a customer’s relationship, but really just five or six that were truly make-or-break. This does not have to be an expensive six-month effort. Just ask a few of your call centre staff for the top three reasons you lose customers. You’ll be half way there.
3. Extend the reach of the brand, with existing customers and to new ones. In tight times we all do more with less. Look for the elasticity in your brand that will allow you to extend your customer base, offer a broader range and extend the duration of the relationship without a significant investment in development, marketing or merchandising. Look for product and service extensions that do not require a lot of customer education; that make sense given the relationships that already exist. Wrap your products in value-added services and solutions. In recent work with a business servives provider we discovered that their clients were frustrated by the fact that their offer was so limited. They had lots of permission to grow off the base of the great relationships they had formed.
4. Take advantage of the opportunity to stop doing something. There is a lot we all take on in the good years that we don’t really stop to examine. Unprofitable customers, losing lines of business, flagging territories, weak programs, indifferent products, distracting businesses and unproductive partnerships. This is the time to look closely at things like customer and product profitability and at what might be distracting you from your focus, confusing your customers or using resources that would be better spent on your core. This isn’t a slash and burn idea. It’s about directing resources to where they will work hardest for you in tough times.
5. Don’t be a sore loser. If you lose a customer, be understanding and keep the lines of communication more open. Keep in touch, be empathetic, let them know you aren’t bitter and keep coming back to them with ideas that are relevant and novel. They’ll be back, at least the good ones will.
I’m thinking that recession-proofing your brand could help get you through a year or two of turmoil, and you will be in fighting form when things finally turn around. Any other ideas?
