Protecting Your Brand During A Recession
It’s all over the media and is the overwhelming consensus among financial analysts that the United States is heading for another recession. For small business owners in particular it’s tough news. So how do you protect your brand and maintain your livelihood during an economic downturn?
Despite what may feel like an obvious move, deep price cuts and reactive marketing are not the answer.
Great Harvest is known for scratch-made, handcrafted whole grain breads made with pure-and-simple ingredients like daily milled whole grain flour and honey. It’s a product unlike what you’ll find at a grocery store. If, during a recession, we offer deep discounts are we communicating our bread is not worth the honest price?
Retailers that rush to provide deep discounts during a recession can run the risk of placing their brand into a discount brand category. Ask yourself if your loyal customers may start migrating to another establishment because they place other values above price, even during a downturn. And think about how difficult it will be to turn around a “discount brand” perception when the economy recovers.
So what should retailers of unique and premium products do during a recession?
#1 Keep the brand relevant. Great Harvest offers life-enhancing products that do not break the bank of those within our target market. Day-to-day we strive to remain relevant by providing foods close to nature, packed with flavor and nutrients. During difficult economic times, we can take that a step further by helping our customers use our products to create wholesome, great-tasting affordable meals.
#2 Over deliver on your brand promise. It’s often hard to remain an upbeat and innovative business owner during a recession, but it’s vital. Focus limited resources during slim times on better products and customer service. Be the best part of someone’s day/shopping experience. People seek out positive experiences during hard times.
#3 Be thankful . Customers have lots of choices and when they take the time to stop into your retail establishment, thank them for their loyalty. How often are you thanked for your patronage at a local shop? It’s a gesture that stands out. Show your gratitude with acts of kindness and special offers that are positioned as gifts, not discounts.
#4 Remain visible and connected to your community. A central tenet of the Great Harvest mission statement is giving generously to others. During and after a recession, customers remember and reward retailers that are connected to activities and causes that speak to their values. Seek out opportunities to be active in your community.
#5 Evaluate your marketing modes and messaging. Pay close attention to what messaging draws your best customers in the door and how those messages are delivered. Often an exciting exclusive product can get customers in the door just as readily as a discount. Or win hearts and loyalty by giving a small portion of proceeds to those particularly impacted during hard times. Messaging and actions that speak to quality of life issues are particularly important during a recession.
Also look at which marketing “vehicles” are connecting with customers most cost effectively. Is it the ad in the community arts & entertainment weekly? Is it your Facebook page and/or Twitter postings? Do you see a jump in sales when you send out your electronic newsletter? Which combination of tactics work best? Ask your customers what makes them shop your store rather than another. They appreciate being heard. A simple survey can help you collect awesome information.
#6 Stay on top of trends. There’s no excuse in today’s connected world to be in the dark about trends that impact your business. Use Google news alerts and apps like Flipboard http://flipboard.com/, Pulse News http://www.pulse.me/, or StateNewsLine http://www.statenewslines.com to see what’s going on in your business sector. Subscribe to the top online trade publication. Subscribe to local blogs and offer content when appropriate. Sign up for your competitor’s e-newsletter. Knowledge, of course, is power. A top food trend that Great Harvest loves is “knowing where your food comes from” because we can trace every whole grain kernel to a family owned farm.
#7 Emphasize what makes your business unique correctly. It’s not enough to say “Great Harvest uses freshly milled flour in our products.” Does that statement answer the customer question “why should I care?” Instead, it’s better to say, “we use freshly milled whole grain flour to ensure your products taste amazing and are packed with nutrients.” So tell your customers or clients what you do differently/better in terms of how it makes their life better.
#8 Have a local focus. There are still segments of consumers who will always choose a local retailer over a large chain store. It feels good knowing our dollars stay in the local economy. If you are using local products, let customers know about it. Great Harvest owners love letting customers know about yummy local honey, jams, dipping oils, and fruits and herbs used in products. They also take pride in showcasing the works of local artists and photographers in their lobbies.
As in past recessions, staying the course with smart, well-informed business decisions is vital. It’s doing what you do best and then some. These are just a few things to consider in protecting the strength and relevance of your brand during a recession.
Let’s keep this conversation going. If you are a business owner, share how you’ve weathered economic challenges and maintained the integrity of your brand. Or, from a customer perspective, share a thought about a brand you would never abandon during a downturn and why.
