In 1979, the U.S. was facing an economic crisis not unlike today’s. The Dow Jones plunged as low as 742 and our dependence on foreign oil led to swelling inflation and unemployment.
Sounds familiar, right? Today, we’re right back in 1979 with the same problems and dire outlook. People have lost jobs, homes…and basically their hope in the American dream. Failing banks and businesses. Failing consumer confidence.
But take a look at this:
In 1979, inflation was 12.5% with unemployment at 11.5%. The same numbers today? Inflation is around zero, while unemployment currently sits at 7.6% and even lower in Sioux Falls. Now imagine you’re an alien who’s just landed on Earth. Would you hope it was 1979, or 2009?
There’s definitely a lot of fear and uncertainty out there right now. But not a lot of perspective.
We’ve been through tough times like this before, and the main thing making this recession more severe is our perception that it is.
But you might know all of this already. What you don’t know is how to communicate it to your shareholders, employees and customers. At L&S, we believe in leading by example. We’re investing more in new business efforts and self-promotion than ever before. Why? Because we know it’s the smart way to react in a recession, and we’re telling our clients to do the same.
Here are six other areas where you can take the lead:
- Guard your most valuable assets – customers. Instead of resting on your laurels because you’ve already won them, keep and increase their business through CRM programs, product improvements and value-added services.
- Find the people who are ready to buy and give them everything they need to purchase. That means detailed online product information and e-commerce, responsive customer service and open, accessible businesses that invite you to buy.
- Optimize your budget allocations. This has nothing to do with the size of your budget, but how resourcefully you’re using it. Pick the right media to do the heavy lifting, backed up by supporting media to complete the circle and guide customers.
- Protect your core brand. It’s who you are, and having an identity is even more important now when other brands are losing sight of theirs. Keep who you are and what you have to offer at the heart of all you do.
- Deliver a value proposition. We’re all scrimping and saving. So pump some value and relevance into your brand.. Cable television isn’t a luxury – it’s an affordable alternative to nightlife and movies. Baking soda is more than a cooking ingredient – it’s an air freshener, cleaner and facial exfoliant. That’s creating value.
- Spend more. Or at least consider it. Market share can be gained more quickly and with less effort during a recession. So while your competition is pulling back, you can pull ahead by leaps and bounds.
The reality is, this recession won’t last. But if you play your cards right, what you do during it can.
