Getting your business ready to ride the storm is a must. Like never before, this pandemic has given business owners and decision makers extra time to think, plan and strategise for the recession ahead. By using this time wisely, businesses can prepare for what can be the most challenging yet most rewarding days for their business.
Here’s a few ways your business can win new sales, gain growth, maintain customers and more as the economy gets set to battle the recession.
One of the most memorable quotes about advertising in a recession came from Sam Walton, the founder of American multinational retailer, Wal-Mart. He was asked, “What do you think about a recession?” his response, “I thought about it and decided not to participate.”
Make your competitor’s loss, your gain
There will be companies in your sector that will be heavily affected by the recession. Keep an eye on your competitors – are they offering their customers the best price or quality? Is their turnaround time slower than yours? Do you have a better delivery service? Have they stopped advertising? This is your time to showcase your strengths and show their customers what you can do. The way to do this is by making necessary adjustments and advertising these messages.
In the 1990 / 91 recession, McDonald’s dropped its advertising and promotion budget. As a result, this posed as a great opportunity for Pizza Hut who increase sales by 61% while McDonald’s sales decreased by 28%.
Build & Invest in Stronger Customer Relationships
Winning new customers is very important but your current, loyal customers are the backbone of your company. Some of these customers will cut back their spend, but others will continue to keep you afloat. Ensure that your product or service to them continues to improve in quality, stay connected by asking for their feedback – and actually take this onboard. Show these customers how much you care which in turn will encourage word of mouth advertising …and who doesn’t free advertising?
Start A Recession Marketing Reserve
Keep cash aside for the worst days. As you cut back on most things always keep an investment pot aside for advertising your business to gain more customers. If you have made impressive changes, diversified, or if your business is looking to target your new /competitors customers, you will need to advertise.
Adjust your Inventory Planning
Managing your inventory during a recession is tricky. You need to really find out where you can save, which items or services are important or not and forecast well. Having too much stock in a slower moving market will be hard to shift and you may then have to sell at discounted prices, potentially incurring a loss. If you have too little stock you’ll miss out on profits.
Forecast your sales and keep a safety allowance. Keep learning and adjusting your stock orders as you go.
Diversify & Build Multiple Streams of Revenue
What are your customers buying in the current market? Don’t lag behind out of fear, if there is a service or product that will help boost your sales and give your customers even more reasons to continue spending money with you, act quick. Be sure to distinguish whether this product / service will be a short term or long term addition to your business – then order this product or invest in this service accordingly.