- Neha Verma
- 950
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Retail
Image Courtesy: Pexels
In both the B2B and B2C markets, unemployment can increase during a downturn, and economic uncertainty can be widespread. Even though what they consume is probably going to change, consumers and businesses will still spend money. Businesses will adjust their purchasing based on supply chain availability and their selling based on the need. These changes may only be momentary in some cases, but they will almost certainly become more pronounced once business picks back up.
Even though a slow economic recovery is almost a given, your company needs to be prepared for revenue growth now to seize opportunities as they present themselves. How will your company profit when the economy once again begins to grow?
Do you understand how to proceed after a restart? Think about the following:
- Do you know how to keep your spending under control without stifling growth?
- What steps will you take to maintain vital client relationships?
- Are you able to generate income in novel ways?
- Do you know where new business opportunities can be found?
- Can you adapt your thinking to suit the situation?
Never forget that practical business readiness transcends all economic downturns. A company can be ready for any kind of restart with the right plan in place, whether it be due to an upswing in the economy, a change in national policy, a change in ownership, or even a corporate rebranding.
Analyze spending carefully
When a downturn is over, the biggest losses will be in the rearview mirror once you have navigated the toughest parts. So, if your company has survived this long without making significant cuts, now probably isn’t the time to reduce spending.
Continued cuts must be implemented carefully to avoid impeding the economy’s ability to grow once it has recovered. Determine whether budgetary decisions are wise by analyzing their potential effects over a longer time frame. Invest in your company’s most important revenue generators, including its employees. To avoid missing out on low-hanging fruit, analyze your current revenue base by customer type, product line, channel, and region before pursuing significant opportunities.
Before making any cuts to sales or marketing, consider the possibility that you won’t have any business to save. Consider John Quelch and Katherine E. Jocz’s warning as a timeless recessionary lesson.
Maintain Relationships
Before pursuing new accounts, allocate resources to maintaining current accounts. Concentrate on cross-selling and customer retention, especially with strategic clients. Communicate proactively with all customers honestly and openly. Keep in mind that it is simpler to control the conversation when you initiate it than when you are responding to it, particularly if the response is in response to a complaint or a cancellation request.
Emphasize producing value in a way that appeals to your core audience. Determine how you can modify your products or sales strategy to appeal to recession-era consumers. Consider adding a free trial option, extending the length of your current trial, enhancing customer service, raising service tiers for better customization, and rewarding loyalty, for starters.
Differential marketing
The typical business customer has a different outlook when the economy is down. How to Market in a Downturn, a timeless article from Harvard Business Review serves as a reminder that
“Marketers may forget that rising sales aren’t the result of clever advertising and alluring products alone during frothy periods of national prosperity. Consumers must have disposable income, be optimistic about the future, have faith in the market and the economy, and adhere to lifestyles and values that promote consumption to make purchases.
The same holds for commercial customers. Addressing your audience’s concerns and present limitations will help you align your brand and offerings with their evolving needs. Reposition your offerings to meet the “essential needs” of your customers and plan how to entice the spending that companies are less likely to freely offer.
Reframe what intelligence is
Do not rely on your outdated knowledge of the market or the level of competition. The recovery approach “the way we’ve always done it” is ineffective.
Market research is still crucial, but, likely, historical data won’t help guide decisions in a recession. Consider how your team will adjust if there is less data available than you are used to having and developing new skills for conducting competitive research.
Ask your target audience what they need, where they are thinking of getting it, how much they are willing to pay for it, and when they want it, if possible. Recognize your strengths and weaknesses objectively and use this knowledge to inform your future offerings.
Make a road map
The business will determine whether you completely redo everything or just tweak your plans. Inquire about opinions from others, especially those who have more knowledge than you. To successfully pivot, the entire team must be on the same page.
When developing your plan, consider the viewpoints and priorities of the entire organization. It will be simpler and quicker to implement if there is widespread support. Additionally, it lessens the possibility of leadership disagreements over priorities. During a restart, think about asking a consultant for unbiased advice and using that strategic direction to develop a roadmap that will keep you flexible and prioritize your tasks.
Utilize the Revenue Action Development Plan to generate long-term revenue and meet your B2B sales objectives.
