WHAT COMPANIES ARE DOING RIGHT WHILE THEY ARE DOING IT TOUGH
Tuesday, 14 July 2009 12:25 PM
WHAT COMPANIES ARE DOING RIGHT, WHILE THEY ARE DOING IT TOUGH.
CREATING BUSINESS STIMULUS
By DANITA MURDOCH
Recent conversations with senior managers found them all saying "times are tough, the market is dead, things have changed drastically and some said, things are never going to be the same" .
When asked what are you doing about it, many duplicated responses such as; riding it out, cutting costs, operating lean.
Ultimately, there are many businesses that are agitated, lost or adrift in the churning sea of economic decline and revenue depletion.
Sadly, there are some complacently waiting for the storm to subside or for some dramatic change to come around the corner. They may be waiting a long time.....
Australian GDP is predicted to slow to 0.5%, unemployment took a 0.5% decline in just one month and the analyst are forecasting continued economic decline through 2011-12. So what does all this mean? Are companies doing it right while they are doing it tough? For those that have gone astray or adrift, all is not lost, there are good prospects for change. There are many ways that companies can follow suit in line with the concept of 'stimulus'. Creating their own business stimuli should turn out the same results that many global governments are hoping for. The US,UK and Australian governments have successfully introduced stimulus packages with significant results over the past 6 months. So, if it is working to stimulate consumer spending then it should work for your business. After all, consumers classify as your customers.
How many companies are shifting their focus and talking to their customers? How can they change their businesses to respond to customer's changing needs and look for new ways to innovate in customer interactions? What is the stimulus customers are looking for? It sounds pretty simple doesn't it?
Successful companies are being smart whilst cutting costs and redirecting some of their savings into ways to learn more about customers and how to engage with them so that (a) they don't leave and (b) they can continue to acquire new ones.
During what the US are now calling Depression 1.0, many companies were floating on that sea of desperation and thousands failed. Companies like Ford lost their market positioning because they focused too internally on how to administer cost cutting through out their organizations and all 9,000 banks failed. However, companies like General Motors (history does not always repeat itself), Proctor and Gamble and Camel Cigarettes took their new positions as market leaders and found growth. They did this by focusing on their customers and responding to their changed needs and perceptions. It is important to be able to engage and connect with your customers on both emotive and practical levels.
Take McDonalds Corporation, who just released their first quarter results. Their return to shareholders was up 4.3% globally. Their net income rose $979.5 billion and the return to shareholders was $1.4 billion. You might say consumers are spending less and shifting their place of purchase and they are, but there is a lot of competition out there and McDonald's are doing it right while they are doing it tough. How are they doing it right? They invest in knowing their customers and how to respond to them during any economic change. They offer 'business stimulus' in the form of two for one offers, or FREE fries with that burger. They innovate in their menu and offers.
Tips to Create Business Stimulus
The secret formula is to understand what is going on with your customers at any given point in time. The only way to gain the understanding is to ask them. There are many ways to do this cost effectively.
- Technology has moved a long way in delivering new ways to engage with your customers or potential customers. I recommend to partner with good technology and software providers that can deliver effective programs economically.
- If you have a database then there are highly effective methodologies to employ and ensure that you are getting statistically significant information that can help turn your business from a drifting mass to a racing vessel. If you don't have a database then there are ways to retain and obtain them.
- Once you have the new and desired knowledge, you must then look for ways to innovate it. Sometimes it is easier for companies to cut through the mounds of information by outsourcing this to experts who can analyze and synthesize the information and bring fresh ideas and strategies into the business.
All this will cost, but the return on investment will create the needed stimuli for the business to sail forward and do the right thing while doing it tough!
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