Five ways to beat the crunch

Recession is here. This means people are starting to act in three ways. They’re losing confidence – in banks, in big companies, in governments, in their employers, even in themselves. They’re trading down, looking for value. And they’re staying put, playing a waiting game, not venturing into new things. This all sounds like bad news.

But it also creates three huge opportunities for organisations prepared to swim against the tide. First, to be an organisation that builds people’s confidence and wins people’s trust. Second, to be different – to offer something unusual that people will pay a little more for. Third, and most important, to get people out of inertia by inventing something great and new.

All three depend on brand. A big enough brand, totally clear what it stands for, gives an organisation the commitment of its employees and customers, gives it sustainable differentiation, and gives it a platform on which to innovate.

So here are five things to ask of your brand.

1 Are you clear what you stand for? And would your customers agree? if not, now’s a great time to simplify your brand model, strip out  complexity, cut out sub-brands, and be crystal clear. A brand rationalisation could cut costs too.

2 Are you confident? And do your employees share that confidence? To keep the good ones, and keep them upbeat, involve them in building your brand. In particular, involve them in steps 3 to 5 below. Confident employees breed confident customers.

3 Do people trust you? The only way to build trust is to do what you say. Measure the gap between what you say you stand for, and what customers actually experience on the ground. And improve that experience – you’ll get a much better return than just spending on communication.

4 Are you amplifying your difference? Be absolutely clear what makes you special, and why customers will want to pay a little extra for it. By all means offer low-cost variants, but don’t abandon your high ground. Identify the one biggest thing that makes you different, and increase that difference.

5 Are you inventing your way out of recession? Drop 90% of your innovation projects, but keep the 10% that most closely deliver your brand – they’ll deliver the most value. And use your brand to inspire new services, new products, even new businesses that can stimulate demand, wake people up, get them out and spending.

28 October 2008, posted by Robert Jones and Paul Worthington