I take my inspiration from many sources. Today’s message was triggered by John Quelch, a professor at Harvard Business School, who recently posted a piece on the HBS Working Knowledge site entitled “Marketing after the Recession.”
In it, he outlines recommendations for how to plan ahead…for AFTER the current recession. (The points are his; the comments primarily mine):
1. Focus on high-potential customers: Focus on building good relationships with your best customers and prospects. Don’t overlook the importance of amazing customer service and networking. Call some customers to let them know that you feel their pain, and are there for them whenever they are ready.
2. Don’t assume a return to normal: Attitudes and behaviors will change over longer recessions like we are experiencing. Once the economy comes out of its malaise, everything will NOT return to the “normal” you knew. Be ready to adapt to the new paradigms.
3. Assess your target market’s trust in your brand: Consumer brands such as ours have not experienced the same toxic press as those in the financial sector, but all corporate brands are likely to be met with some skepticism over time. Make sure yours is not one of them, by “holding their hand” more tightly, and constantly reassuring them that the same trustmark at your brand’s foundation remains intact.
4. Stay focused on costs: There will continue to be downward pressure on costs, due to slowing consumption and the resulting overcapacity. Continue to watch and manage your production and logistics costs, without impacting your product or service benchmarks.
5. Know your leading indicators: Continue to monitor those micro and macro indicators that predict the next quarter’s demand in your industry. And be wary of shifts in those indicators, based on the new paradigms that may emerge.
6. Develop scenarios: Like a battle, you must develop your plans around shifting factors as field intelligence emerges. Bear in mind what Peter Drucker’s advice: “A strategy is a sense of direction around which to improvise.” Etch nothing in stone.
7. Don’t wait for permission: Most companies will wait for Bernanke or the WSJ to tell them it’s OK. Get ahead of the crowd by doing what you and your advisors think is right. Your flexibility will allow you to refine direction while you’re moving.
8. Smart hedging has outweighed smart marketing: The current recession has not been kind to marketers. Commodity price volatility has shifted much corporate efforts toward internal management tools --- like hedging producer commodities --- rather than brand marketing. Vitally important to corporate earnings, but maintenance of the right balance will better prepare you to quickly respond to positive indicators.
We will emerge. Make sure you are prepared…
“Success is a lousy teacher. It seduces smart people into thinking they can’t lose.” --- Bill Gates