Tips For Surviving a Recession

For those that hadn’t noticed, our country is emerging from one of the worst recessions of all time. Unless you have buried your head in the sand, been trapped in a cave or been living on your own private island with no TV or means of communication (in which case, feel free to share with me), you might have noticed that disposable income has reduced and competition between businesses and debts have increased...

Consumers are now placing emphasis on different factors when purchasing products. Price is extremely important, with less disposable income customers are being increasingly savvy with the money they do have. Talking about money is no longer taboo and people are openly discussing details of their finances with their friends and family. Now when customers find a bargain they are proud to tell their reference groups. In an uncertain world consumers are wanting to take control of their lives and are expressing this through their power over their purchases.

So what can companies do?

Return to their core values or develop some new ones
Consumers are looking for purchases to fulfil a higher need of self-actualisation, they want to feel as if they are doing something good. Whether that be for the environment or for farmers in foreign countries. Businesses that embark on cause related marketing will introduce the consumer to another reason as to why consumers should buy their product. Sustainability is moving up the agenda for consumers – so make sure it’s moving up yours.

Transparency
There has been a marked reduction in consumer’s levels of trust of big companies and institutions so transparency is key. Engage with consumers and give them truthful information.

Engage and encourage consumer involvement
CGM (consumer generated media), UGM (user generated media) or UGC (user generated content) – Whatever you call it, encourage consumers to take the lead in your marketing efforts. If they have used the product and service get them to tell their friends over social networking sites, write a blog about it or tweet. Consumers increasingly trust others who have been in contact with the product or service over so-called ‘experts’.

Get close to consumers
Gone are the days when transactional marketing is enough. Build a relationship with consumers and make them feel special. Relationship marketing is key in building brand loyalty, which is vital to market share and revenue.

Be more creative
Consumers are becoming increasingly dubious of believing adverts and obvious marketing techniques so mix in more creative methods such as PR, guerrilla marketing and expeditionary marketing. Add some more tools into your tool kit...

Environmental scanning
Trends are changing and will continue to shift for years to come so keep an ear close to the ground and keep up to date with trends and patterns in consumer behaviour.

The effects of the recession will be felt for years to come and consumer behaviour may have changed forever. Consumers have realised that they can be sensible with money and don’t always have to purchase products that they don’t need. In the words of Karl Lagerfeld, ‘Bling is over’, being thrifty is fashionable.

Learn it and embrace it. Don’t get left behind...


Article Written by Carli Smith


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