raraPR founder Jade Roberts reveals the ways your business can grow in a downturn.
There is nothing more that clouds our natural instinct and ability to embrace the freedom that is required to be creative than when we feel as though our foundations are fragile or that our future is uncertain.
Instead we play it safe, we say yes to things for financial security that should be a no and we cling to elements in life that we can control – like buying exorbitant amounts of loo paper (if you’re lucky enough to find it) as we let our emotions bypass normal rationale.
Distorted perception and maintaining control is the principle driver of this phenomenon as we all experience the effects of coronavirus now and in the future.
However clamping down on originality, resourcefulness and imagination to minimise perceived risk instead of embracing this time as an opportunity to be creatively smart is actually the worst thing right now for any consumer-led, retail business and especially small creative businesses.
Now is also not the time to be withdrawn when it comes to embracing media opportunities.
In times of crisis, it’s when consumers need connection to brands they know, like and trust more than ever. And it’s an opportunity for lesser-known brands to step up and take on that role as corporate brands historically become more gun-shy and protocol-bound, in the face of adversity.
Media as well as owned social media platforms play an important role in being the conduit of that voice for a business.
Here are six things we can do for our businesses to optimise opportunities in economic downturn;
01
Introduce small products for big wins
Historically in times of recession or downturn when disposable income is under pressure the purchase of small luxury items increase. Fragrance and skin care purchases go up as well as lipstick among other cheap thrills that are an instant pick-me-up.
It’s called ‘the lipstick effect’. And it’s centred around the buyer perception that “I can’t afford to eat out but I can afford the coffee”. “I can’t afford the Chanel bag but I can buy the lipstick”. “I can’t travel overseas but I can go camping in my back yard”.
When things feel grey and big-ticket items are off the list, shoppers find ways to treat themselves and mood-boost by buying small luxury items. Cheap thrills pay the bills for small business. Now is a good opportunity to diversify your product and service offering into bite sized pieces that are accessible and rewarding to your audience.
02
Initiate and execute a content strategy that is value-based
Embrace the quiet time by executing a content strategy that is centred on value. Instead of pushing out pretty posts that look good and say nothing. Now is a great time to deliver on sharing your knowledge, giving back, and building a community for when the economy recovers. By doing this you’ll be building a strong foundation centred around a community that ‘knows, likes, trusts, and buys from you in the future.
03
Be inspired by forced sustainability
If you’re always thinking about how you want to be more sustainable but not always sure how, or too busy to investigate, then now is a time to be inspired. When behaviours are forced upon us we learn to adapt. In the height of downtown and product shortages businesses now have no choice but to reduce consumption of unnecessary items and waste. Instead of it being an inconvenience to our work worlds we can start to truly embrace the discovery of finding ways to be more sustainable, reduce overhead costs and as a result be kinder to the planet.
04
Switch to online and make it slick
When we’re faced with unprecedented times it’s an opportunity to improve the online fabric of your business. Use this time to investigate how you can raise your online user experience, diversity your online product offering, or switch some of your in-person service offering to an online one to cast your business net wide. Consider what IP you have and productise it in an online capacity. Now is an opportunity for product-based businesses to consider online service offerings, and in-person service based businesses to consider creating online products.
05
Make things better by making better things
In the backdrop of uncertain times consumers divert their spend to essentials. If shopping behaviours change how will this affect your business? What do people in your target audience need most and what is essential to them in your offering? Where are your products made and how can you reduce the demand on external manufacturing? If you’ve got a bit more time on your hands now is an opportunity to review your product offering and supply chain. Look at what you sell and how unearth ways to make the world better by making better things.
06
Share ideas with your industry competitors
It’s important to leverage the power of human connection during a crisis. This includes being supporters of those in your category who you would normally compete with. You face the same problems, why not embrace being stronger together. I actually wish this happened more generally. Retailers should commend the great work of other retailers without fearing the loss of a sale. Same goes for PR agencies who usually work incognito to one another.
It’s time to let go of the dark days of silo business operation and pull back the lens on how joining forces can make impact on a greater scale. Open more doors for you and your industry competitors by sharing ideas to make your category not only more connected (and better friends) but more visible to your audience. Ideas that are brainstormed result in ideas with more value.
What are you and your business going to do next?