The world has been stunned by the events of
the past few months. We have endured the fact
that Wall Street and their partners in the banking
business have been treating the economy with a
casino consciousness. Their practices fostered by
deregulation manifested by CEOs who looked to
line their own pockets instead of their shareholders
placed a burden on the consuming public by
using the resources of Fannie Mae and Freddie
Mac to back illiquid mortgages. In addition to the
housing fallout, those ancillary businesses dependent
on home ownership, its care, maintenance
and repair suffer greatly. Banks afraid of making
loans to one another, let alone providing financing
to what they think is a suspicious consumer, appear
frozen but slowly thawing. However, not fast
enough to reignite the economy.
Jobs have been lost in great abundance, Detroit
is poised to see disaster should any or all of
the big three file for bankruptcy protection. The
middle class has been staying home—not shopping,
driving or flying—until they feel some relief
in energy prices. Many media companies have felt
a great pinch from losses in ad revenues yet are
somewhat relieved by the millions spent on political
advertising. Local firms fret about the current
times and what lies ahead amidst neighboring
businesses that have vanished overnight.
As people have felt a loss of balance, I reminded
myself of the works of Arthur Somers Roche,
a wonderful film writer and novelist in the 1930s
who would say of what’s going on today “that
fear mongering has replaced positive thought and
feeding anxiety which becomes a stream of dread
trickling through the mind, which if encouraged,
cuts a channel into which all other thoughts are
drained.” So many Americans are fraught with
what’s going on in their world it seems impossible
for them to think clearly and believe there are better
days ahead.
Now we have a new president whose ideals, philosophies
and coming policies will hopefully lead our country out of its
current malaise with a steady and firm hand, yet
realizing that the mountain of debt that has been
built with take time to dismantle. Whether your political party or not..President Obama needs your support....
In our media world I can remember the many
times we as a nation felt a similar financial burden.
But today it seems so much more complex,
affecting the entire global community. Our clients
are worried about keeping their businesses afloat,
which affects the lives of so many others; sending
their kids to college; continuing to pay the mortgage;
and maintaining a healthy lifestyle. So what
are we going to do to help them?
We can’t let them bury their heads in the sand
and let the world pass by because that will have
an effect on your world as well. They’ve got to
realize that now is the time to push ahead and not
get caught up in pessimistic thinking. Consistency
in media marketing must be their business model.
We know what happens when businesses stop
advertising. Current and potential customers stop
going to their business…then the business suffers
greater losses. We have learned from past recessions
that when a business continues to push their
market share, it’s always the best solution. When
the market returns, a business can double and
triple their market share against competition who
stayed on the sideline. Sure, our courage as well
as theirs will be tested, but over time our economy
will recover and we will all see better times.
So in the meantime, here is a current snapshot
of what local businesses should do according
to one retail expert, Dr. Tom DeCotiis, founder of
enterprise growth consulting firm CorVirtus and
author of the new book “Make it Glow.”
The key to business survival in a down economy
is having built up enough customer loyalty and
customer trust to weather the storm.
Here are Dr. DeCotiis’ five essential tips to
make it through a tough economy and lay the
groundwork for even more success.
1. Focus Your Employees on Creating Positive
Customer Transactions
Insist that your employees provide a great experience
every time, and teach them how to do it.
Train every employee in proper customer service
procedures and ensure they clearly understand
the importance of the customer to the company’s,
and their own, survival. In difficult times,
companies don’t get a second chance to
make a good impression on customers.
2. Ensure Your Customer Feels Valued
Customers need to valued, not just for
their money, but for who they are. Make
sure that your company is addressing
your customers’ need for a strong sense
of belonging and significance. For example,
make sure that your staff is positive
and proactive with complaints rather
than negative and reactive.
3. Set Your Customer Expectations
It’s not a matter of exceeding customer
expectations, but guaranteeing that
your customers are never disappointed.
Use your company’s unique selling point
to shape your customer’s expectations.
Saks Fifth Avenue sell their consumers
on their exclusive and elegant shopping
experience, when customers go into their
retail outlets they are not disappointed.
4. Ensure That Your Employees Understand
Your Company’s Values
People are drawn to integrity whether
it comes from another person or a company
they buy from. If your employees
understand what your company is trying
to accomplish, then they will accomplish
it. This is important to remember as owners
train managers, who train employees,
and so on. The result of this communication
chain is a lack of consistency and
alignment with the original values of the
company. Spot check different locations
of your business with “secret shoppers,”
people posing as customers who will report
to you their experiences. This will tell
you exactly how your company’s values
are being adhered to.
5. Evaluate How Cutting Costs Will
Affect Your Customer
There is a big difference between cutting
and managing costs. What you never
want to do is cut quality. A company lives
or dies by its reputation, and quality is at
least one-third of its reputation.
Remember, You Earn the Business
You Deserve Customers who love you will never
leave you, or will only do so as a last resort.
The key to surviving in a down economy
is to not lose sight of what matter’s
most--keeping customers happy. “Focus
on keeping your company worthy of your
customers’ loyalty,” says Dr. DeCotiis. “If
you do, then you will propel your business
through this downturn and create
a solid foundation from which to grow in
the future.”
Share these thoughts with your current
and potential clients as it will demonstrate
a difference between you and
just another spot schlepper. It will endear
you to them and help define you as one
to whom they can entrust their business.
Happy days will come sooner.
Our worst misfortunes never happen,
and most miseries lie in anticipation.
— Honore de Balzac
“Nothing in life is more remarkable
than the unnecessary anxiety which we
endure, and generally create ourselves.”
— Benjamin Disraeli
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