A recession is a pure Darwinian struggle. But the thing to remember about a Darwinian struggle is it improves the fitness of species. The ones that can’t survive the climate go to the wall. The well adapted ones survive. In fact they don’t just survive, they thrive. How?
It’s all down to customers. Customers are people. You may know that. Many of those involved in marketing know it too, it’s just that too much marketing activity treats customers like subhumans with tiny brains.
So how do these people make their choices? Not rationally. Not entirely rationally, anyway. Psychology has shown that without emotion, without a sense of value, people find it impossible to make decisions, because pure rationality can’t effectively assess what’s important and what’s not.
So customers decide which products and services to choose with a part-rational, part-emotional decision. They may not even realise they’re using emotion, using their value judgements, but they are.
If I’m anxious, if I’m keen not to waste money, then my emotions are right there near the surface. In a recession I use emotions more than ever to make decisions.
The emotional value of a product or servicer is encapsulated in its brand. So your brand makes the essential difference between your business thriving and dying.
Opportunity!
As other companies die, there’s more room for you. Not only that, but many companies are cutting back on their marketing, leaving more space for your messages to get through.
‘It is well documented,’ says John Quelch of Harvard Business School, ‘that brands that increase advertising during a recession, when their competitors are cutting back, can improve market share and return on investment at a lower cost than during good economic times.’
So now is an opportunity.
Cool brands or warm brands?
But what kind of brands will people turn to? Well, what are you turning to? Edgy, tricksy, cold-eyed brands that don’t look you in the eye because they’re just too, you know, cool?
Cool can easily turn to cold in times like these.
Brands that flatter you, appeal to your vanity, offer you the world?
Perhaps brands that doggedly go on shouting about ‘great deals’ and ‘unmissable opportunities’? The ones that shout so loud they don’t notice you or what you really need? You know, the brands you automatically distrust, because you know they’re only trying to extract more cash from you?
Or are you, just possibly, turning to brands that do what they say, and don’t say things for the sake of it. Brands you trust.
And how about warmth? And honesty? Maybe they matter too.
I want to trust the companies that are taking my money. I want to feel I’m dealing with an authentic brand with actual values, a brand that looks me in the eye, recognises I’m here, talks to me, and gives me something valuable.
People’s bullshit detectors become much more effective at times like these.
Your brand has to reach out and convey warmth, trust, value, honesty, authenticity. Something to believe in, something with heart. Because we’re in this together –customers and companies.
Remembering customers are people sounds so damn obvious. But it’s absolutely crucial, and so easy to get wrong.
There’s a different spirit out there. Markets are evolving fast. To thrive, your brand needs to adapt.