Many brands can come under pressure during a recession. As the market changes, the motivation for purchasing a specific class of goods can dramatically change. Brands that are sluggish to respond will fail to take advantage of the potential opportunity and even worse, they may become non competitive and irrelevant.
Brands can help protect your markets and drive your revenue
Good brand management will prepare the brand and the organisation for this kind of volatility. The brand manager will ensure they are close to the customer base and the wider market, looking for opportunities and making sure that the internal structure of the company is flexible enough to meet and challenge or exploit any opportunity that the team identify. Successful brand management will help retain customers through the development of brand loyalty and also protect profit margin by establishing a robust position in the market. This will help your company steer clear of some of the worst price cutting wars and the devastating effects this can have on your business model.
Making sure your brand is adaptable and agile
It is important that your brand is connected across the business. Often, the brand is expressed through customer service and it is important that all aspects of your business understand the part they play in developing and delivering the brand promises. These structures need to be connected and a simple communications channel must be maintained so information and feedback can be fed up and down the corporate structures. This deliberate and focused internal structure will ensure that your brand is picking up on customer feedback from the service teams and is also aware of the market conditions from the sales departments. It is important not just to listen but also to act; the simple changes can have significant effects on brand performance.
Listening to your customers and keeping an eye on the markets
During a recession, competition is fierce. Your current customers are sure to be approached by a bewildering array of competitors, whom will offer discounts and special deals in order to entice them away from you. It is important that you establish and maintain a method of staying in touch with your customers, making sure that you understand what they think about your service and products. Some companies establish client reviews or incentive schemes for obtaining feedback, and it is important for you to do this! If you do not establish a robust method of obtaining feedback, the first time you find out about your customers’ dissatisfaction with your services, will be when they move their account to a competitor!