It's an ugly, scary word. But whether we're in one, on the verge of one, or not, recession is just another opportunity to bring fresh thinking and improved performance to your organization. Maybe it's the best time to get something changed... to uncover a new margin opportunity... to outperform your category.
We've studied recessions and their impact on consumer purchase intent. And while they may differ in origin, impact and length, recessions do present opportunities to those leaders who eagerly wrestle with data, open themselves to new thinking, and are willing take the calculated risk.
Recessions hurt complex organizations harder than those that are nimble, more responsive and more pro-active. Use recessions to re-think how you go to market. Simplify your lines. Eliminate unnecessary brands and products. Re-think distribution and pricing. Re-focus your marketing mix. Seek out new opportunities to break through, find enormous efficiencies, or both.
Market-driven companies will outperform manufacturing and sales driven organizations in both good times and bad. They understand the psychology of their markets. They're able to identify and focus on a wide range of high value segments. Their messages are carefully tailored to the target's recessionary purchasing psychology. Interestingly, these opportunities don't begin and end with the "luxe" segment. Imagine being able to concentrate your marketing investment on "The Security Seeker," "The Solution Seeker," as well as "The Recession Proof." There is value to generate in this recession - if you know where to look.
Forty percent of American adults now identify themselves as a "values-driven" consumers. The socially conscious consumer is rapidly approaching majority status. Little wonder that the environment, diversity, nutrition and sustainability have become driving market trends. And there's little wonder why marketers are so interested in this burgeoning segment: 90 percent are willing to pay a 20 percent premium for the right products and services.
Make sure "the street" buys into your need for change -- and understands that real change could be two years in the making. Keep them focused on the horizon as much or more as the next quarter. Most important, make sure your plans are rooted in material insights and data, not just opinions.
Productivity and opportunity get squandered by organizations looking for a quick, tactical financial fix to the pressures of recession. Be different. Give your people a chance to respond to this economic challenge. Seek out their ideas. You'll be amazed by the practical, actionable and profitable ideas they have. And, you'll see real gains in productivity, cost-savings and opportunities seized. All of which makes investors very, very happy.