14


Spring 2020


FEATURE


Postponables and Expendables are the


categories that have the most trouble during down markets, and should your business fall into one of these categories, you will undoubtedly see a temporary decrease in demand across all consumer segments, as consumers cut back and delay all but essential purchases. The key to surviving, therefore, is a two-phased approach in which you first focus on maintaining a positive and active relationship with your consumers during this challenging time and then use the right tactics at the right time to reengage them as their finances and confidence improve.


Assess Your Current and Upcoming Ads and Pull Inappropriate Copy or Images In March, a UK advertising regulator got 163 complaints about a Kentucky Fried Chicken ad where people licked their fingers. Unilever had to pull its Unstoppable campaign for Domestos (a British brand of household cleaner), which had language about germs “hiding, breeding, and infecting the weak.” Before you do anything new, you need to start by assessing the content that currently represents your brand and pull anything that could be reinterpreted in today’s climate as inappropriate or insensitive. Even photos of people high- fiving can be an issue—so look carefully! Once you have removed potentially damaging content, you can focus on how to move forward in the new climate effectively.


Focus on Relationships and Plan for the Future If you expect the demand for your product or service to decrease temporarily following an economic downturn, don’t stop marketing! A Harvard Business Review study of 4,700 public companies found that firms that cut faster and deeper (including cutting back on marketing), had the lowest probability of pulling ahead of the competition when the tide turned. The companies that did best focused on


operational efficiency and continued to invest in R&D and marketing. In short, recession is a time to nurture relationships and plan for the future. The following are some proven tactics to implement in the first few months following a downturn, when demand may be low.


Listen


Especially in times of social and economic stress, it’s more important than ever for businesses and brands to create a listening culture. If you don’t already have them, develop easy ways for your customers to give you real-time feedback (social media, surveys, dedicated customer service phone lines and customer support email addresses) and train your front line to document both the good and the bad. In addition to managing complaints and problems efficiently and effectively, you should be taking the good feedback and stories and sharing them with employees and your consumer audiences. Once you’re tuned in and hearing what


your customers are saying, respond carefully and consistently. The goal is customer retention—deliver exceptional customer experiences, not adequate customer experiences. Research firm TARP found that for every person who complains, on average, there are 26 who do not. That means if 10 customers complain, another 260 may remain silent, never to purchase or call again.


Events If your business relies heavily on events, communication with your audience is perhaps even more crucial as people struggle with knowing whether or not conferences, trade shows, and meetings will be rescheduled, and whether or not they will want or be able to travel to attend. Become an uber-communicator! Stay in touch about the decisions being made and the timeframe for decision-making. If feasible, have a backup plan to temporarily modify planned events (or create new ones) through the summer and fall to be held as virtual events. Robust technology exists to host livestreaming, networking, presentations, gamification, and even sponsorships. Opportunities to create measurable virtual attendee experiences that can reach audiences both far and near is easily accessible and widely utilized in many industries.


A Bridal Show Producer’s Approach to COVID-19


Marc McIntosh has been producing Washington DC’s largest bridal expo (“Wedding Experience”) for over 25 years. In previous recessions, his shows continued to do well as new vendors looking to enter the market were there to fill the shoes of vendors who had to bow out. When asked about COVID-19, he said, “The current crisis is showing signs of being completely different than anything we have faced. Not only has the economic climate deteriorated, but more importantly, it may be a while before people are willing to attend large events such as consumer shows.” Given the climate, McIntosh has doubled down on vendor communications. “Our exhibitors have been supportive of our actions thus far, and I believe that this is because we have shared our thought process and kept them updated on a regular basis,” he notes.


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