25 Dec What Happen To Consumers During Economic Recession?
We don’t need to be an extraordinarily bright person to know that economic recession can really affect our business. In this situation, old advertising and marketing methods will no longer work and people simply don’t care of our advertising messages. It should be noted that people don’t watch TV because they want to see our ads.
In difficult economic striation, traditional media is often unable to exert enough power to attract consumers’ attention. Because consumers have other important things to think about, they could become immune to our ads, consciously or subconsciously.
It is interesting to understand what happen to customers during an economic recession. They may not care about our products due to changing priorities. They may have less money, so they need to purchase only the essentials. In general, people simply fail to notice our products due to a variety of reasons. This situation has caused many businesspeople to struggle and they need to do many new things.
They are often compelled to create new things that can add values genuinely. This should appeal to some people, but sadly not everyone. Finding out things that can appeal to our former customers can be really challenging. The situation can be different depending on our industry and local market. We will inevitably fail if we choose to plod through the usual marketing methods.
As an example, an entertainment-related business could change their focus by providing a variety of stress-relieving products and services that can be appealing to consumers during stressful and difficult economic condition.
This could also be a good opportunity to go for the niches that are less capitalized when the market condition was better. It is generally more important to be different and add values during this situation. This should allow us to better understand our consumers. The “Me Too” mentality is a recipe for failure in the difficult economic situation.
To better understand our customers during these times, it is better to approach them directly and ask for their concerns and new priorities. Once we understand their situation, we should try to adapt by offering something different, preferably with added values. We could stand out during difficult economic situations by adapting ourselves to the difficult situation itself. Because the situation is difficult enough, our first attempts could fail and no matter what happen, we should repeat it.
The key is to expand our market by looking for related niches and focusing on them. We could also target early adopters in the market and try to maintain relationship, by offering them impressive values. So, when the economic situation has recovered, we should be able to obtain a profitable and solid business model.
In general, we should always avoid having that “Me Too” mentality and there are things we could do to even improve our sales slightly during difficult economic situation. We shouldn’t give up to the external condition and we need to pro-actively improve our condition.