Every company has its ups and downs financially. But when the economy takes a downturn, many businesses aren’t sure how to thrive during a recession.
Luckily, many of the habits that make a business successful during good times also make a company successful during lean times. And focusing on those habits can help your organization weather the storm.
Focus on customer experience
Multiple studies have found that organizations with best-in-class customer experience can thrive during a recession. What’s more, it is possible to cut costs while improving the customer experience. How? Here are some tips:
- Research the top reasons customers contact you, and then work to reduce unnecessary contact by improving customer communication and/or marketing materials. Studies suggest one-third of customer questions could be eliminated with better upfront communication.
- Remind employees how important it is to own customer inquiries and honour commitments.
- Teach employees about quality and quantity, so your team understands that high-quality service the first time prevents rework later on.
Show client appreciation
It costs five times more to acquire a new customer than it does to hold onto an existing customer. Find ways to make sure your customers know that you appreciate their business during this time. Ideas to keep them coming back include:
- Customer discounts
- Customer appreciation giveaways like Popsockets® or stylus pens
- Exclusive offers
- Subscription programs
Optimize your operations
When you’re wondering how to thrive during a recession, consider cutting costs by finding ways to improve your processes to save time and money.
Look into optimizing your inventory to help keep costs down by:
- Finding an alternate supplier that charges less for the same products
- Keeping less product on hand to reduce storage costs
- Arranging a drop-ship option to save on storage and freight costs
During a recession, many organizations will cut marketing to reduce costs. But doing that also reduces the chances of new customers finding your business. Try to keep your marketing consistent—or consider lower-cost alternatives, like:
- Becoming more active on social media
- Creating a blog to add value and search engine optimization to your website
- Reaching out to current customers to request more online reviews—and thank those who review you with a small gift, like a combination power bank and flashlight
- Sending customer appreciation giveaways, like pizza cutters or multi-tools, to new and repeat customers to help keep your business top of mind
Hold onto your employees
While many companies consider laying off staff during an economic downturn, holding onto employees during lean times using temporary layoffs or reduced hours has been shown to help companies thrive long term. Not only does it help boost morale, retaining employees also prevents companies from having to invest in hiring and training costs once the recession has ended.
Help your company keep going—and growing
When you’re wondering how to thrive during a recession, the best answer is: Do the same things that help you thrive during the good times. Keep these tips in mind to help your company sustain itself in every economic landscape.