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Surviving the Recession while Preparing for Recovery
Associates Interactive provides five courses of action for retail businesses to emerge as post-recession leaders
Recessions are ugly – from layoffs and uncertainty to the urgency retailers face in persuading consumers to part with their limited discretionary income. Yet retail training expert, Associates Interactive believes recessions can be an important phase of an economic cycle for companies with a clear, bold vision in place.
Observing history and being sensitive to the current trends, Assocaites Interactive recognizes five key courses of action that can help companies redefine themselves to be among the leaders in the post-recession upswing.
1. Preserve Your Brand Promise. While recessions cause companies to strive toward becoming smaller and leaner, they cause consumers to strive toward getting more for less. The most successful companies will respond to this increased customer need without compromising brand expectations. Lowering prices while undermining consumer knowledge and product perception may cause customers to question a product’s expected value. This may also undermine the trust a customer has in the brand once their discretionary income returns. Since consumers are increasingly buying ‘experiences’ rather than just merchandise, contradicting brand promises should be avoided.
2. Get Variable and Scalable. One benefit of recessions is that the sense of urgency created puts every option back on the table. In the search for ways to become leaner and more efficient, companies that provide products or services on a variable cost basis stand to reap the greatest benefits. Replacing fixed cost with scalable, variable cost that gradually increases as the economy recovers will help companies survive the recession and help them prepare to responsibly grow as volume returns.
3. Re-assess Partnerships and Joint Ventures. In a recession, it’s certain that some things must go: not every function, process, product or service can survive. However, completely abandoning non-core competencies fails to prepare companies for the future. Instead, selectively separate core competencies from other company strengths to focus on the areas that must survive the cuts. Furthermore, identifying and creating partnerships with other organizations that have competencies in eliminated areas preserves business opportunities for the future.
4. Reconnect with the Customer. During a recession, consumers change. Their outlook is different; their preferences are migrating; and new influences are vying for their attention. If companies are distracted by the crisis-mode of a recession, they may unintentionally lose the connection they have with their target consumer groups. To be sensitive to consumer changes, companies should take extraordinary steps to reconnect with their customers where they engage most with their products – namely, in the retail store. Strengthening personal interaction with the customer helps the company prepare to capture growth when it returns.
5. Manage Expectations and Deliver. The current economic crisis does not prevent companies from raising consumer expectations. This is evident from the frequency of ads in recent months that encourage consumers to expect a consultative sales experience while shopping. While it’s extremely important to set expectations, it’s more important to deliver on them. Set moderate expectations then focus on delivering those realistic standards, rather than implementing expectations that can no longer be met.
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Executive quote
“A recession is the economic equivalent of a wildfire in nature. Although destructive, it provides the ingredients for a more fertile business climate,” said Bob Richardson, President and CEO of Associates Interactive. “During a downturn, changes in consumer priorities greatly impact customer loyalty. Recessions have the power to remake industries. The companies that will survive to become the clear winners will be the ones that re-position themselves before the full impact is seen.”
Richardson added, “While it is important to be in tune with the recession, it is crucial to balance awareness of the now with a keen eye on recovery. As the retail industry braces itself for the worst that the recession can bring, companies that acknowledge the presence of a paradigm shift will be best positioned to survive and emerge even stronger.”
About the company
Associates Interactive develops training content, courses, exercises, tests and certifications used to train retail sales associates. The company is addressing the market demand for effective training material that has an immediate and sustained impact on associate behavior and sales results. The independently developed training program, called RetailAI™, better integrates products from multiple manufacturers in the sales discussion, ultimately increasing overall sales for the retailer and manufacturer. More information on Associates Interactive can be found at www.associatesinteractive.com.
Contact details
Melanie Wehrman
LEWIS PR for Associates Interactive
408-573-3665
associatesinteractive@lewispr.com
Technorati tags: Associates Interactive | economy | recession | post-recession | training | retail |
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