Survive the slowdown by building brand loyalty

December 8th, 2008 | Brand Strategy, Company Branding, Customer Value, News

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Harvard Business School Professor, John Quelch says “Instead of cutting the market research budget, you need to know more than ever how consumers are redefining value and responding to the recession.” He also states further that “successful companies do not abandon their marketing strategies in a recession; they adapt them.”

Many organisations simply examine the sales forecasts and cut spending across the board during a period of economic slowdown without considering how these cuts will impact on communication. Companies that do not ‘speak’ to their customers during recession times disengage them and find themselves vulnerable once the economy has regained momentum.

When your customers choose to spend the fewer dollars they have, you want them to choose your organisation not your competitors. The process of acquiring new customers is more costly than retaining existing ones, so it is of upmost importance that you hold on to your existing customers in a stagnant market.

It is well documented the impact employees can have on a customer’s experience with a company. In these tough economic times you need to be even more in tune to your customer’s needs and the ‘moment of truth’ brand experiences your company has with your customer’s everyday.

To differentiate your customer experience from that of your competitors in the current economic climate, consider the following:

* Vigilantly focus on customer needs – in a changing economy, a customer’s basic needs don’t disappear, but priorities can shift and you need to look for creative and innovative ways to satisfy those needs. It is more important than ever to know what is going on in the lives of your important customers and how you can better assist their business.

• Reinforce your brand attributes at every interaction – It’s important to remember that in a risk-adverse climate customers cling even stronger to the brand in which they are most familiar. Your brand attributes are a framework for your business decisions and interactions with our customers. Remind customers of why they should choose your brand at every interaction and opportunity.
• Communicate frequently – the pace of decision making can pick up when the economy slows so get information from the front lines to operating people as quickly as possible and keep customers informed.
• Look for more ways to deliver best value to our customers – think outside the square, work smarter with reduced budgets and look for new ways to provide more value for less expense.

Current and prospective customers are still forming opinions and gathering experiences regardless of whether you are proactively managing your brand or not. Believe it on not recessions actually provide exceptional opportunities to improve your strategic position.