Since the double dip recession of 2008/2012, many companies are finding themselves in troubled waters yet again. No two economic downturns are alike and hence it is important to understand the changing consumption patterns of your customers and fine-tune your engagement strategies accordingly. Against this crisis backdrop, most brands, retailers and manufacturers are rigorously searching for some level of stability. For prolonged success, connecting and engaging with loyal customers is critical. Customers are buying less, reducing budgets and becoming risk-averse. This situation has made the entire ecosystem even more competitive as brands are fighting for pieces of a smaller pie. So, bend over backwards to keep your existing customers happy and make sure you reward their loyalty. To serve a loyal customer well, identify how they function, what influences or triggers their decisions and how has their buying behavior changed. Be prepared to adapt to their current needs because flexibility is vital. Show them what you’re bringing to the table and how your company is helping them satisfy their needs.
“During an upturn, consumers are more open to new products,” says Andrew Swinand, CEO of Leo Burnett. “In a downturn, people focus more on value.” Your strategies need to reflect an empathetic view of the current economic climate. Your customers need to see that you understand the challenges in the market and that you appreciate their loyalty to the brand.
Here’s how you can connect with your customers during a recession and make your business unswayed by the uncertain times:
Recessions are inevitable and during such times, laying down a foundation for success through connecting and engaging with customers with a strategic loyalty program can help you navigate the economic downturn and position your business for long-term growth.