Searching for stability in an unstable economy

Economists predict the U.S. economy is headed towards a recession. To avert what some say is inevitable, the government has developed a stimulus package designed to give consumers money to spend, thereby simulating economic growth. 

In business, unlike government, leaders look to cut costs and save money during an economic downturn. Unfortunately, business leaders cut the very costs that lead to sales. For example, the cost of marketing is typically cut first with employee development and training eliminated very soon thereafter. And, if things don’t improve, the cost of customer retention gets slashed in an effort to decrease spending.

These traditional fixes save money and decrease spending, but sadly they also decrease the customer’s spending. During tough economic times it can be challenging to find ways to cut expenses. However, maintaining a marketing presence and providing superior customer care have proven to provide greater long term returns than any short term savings that may be achieved without them.

I usually advise my clients to keep a subtle message in front of their customers communicating strength and stability. This gentle assurance, coupled with well trained, customer focused employees, pay huge dividends for many years. The lasting benefits of this strategy is less about what my clients said, and more about what their competitors did NOT say.

We all want to feel safe and secure and we want to know that the people with whom we do business are constant and reliable. That’s the message I suggest my clients convey to their customers, and it’s the message to which their customers respond. Our current administration contends that if you give consumers money they will spend it. I, on the other hand, contend that if you give customers a reason to do business, they will.

 What do you think, we want to hear from you?