Wednesday, 29 October 2008

Financial Crisis: Your loss my gain!

The current financial crisis has sent the weak of heart into a tail spin. However, the strong of spirit have done what they always do; Get smart, flexible, fast and make money!

There are a few tips to know when looking at the financial crisis and how to exploit it for your own gain:
  • Everyone is more scared than you

  • Most businesses over react

  • Customers are desperate for confidence and reassurance

So how can you turn this to your advantage? The solution is surprisingly simple and can strengthen your short and long term position.

Everyone is more scared than you

It is true. Remember your survival is based on your ability to keep your cool and think and act smart. Don’t cut off your arm to save your finger. Make decisions that continue to keep the most profitable segments of your business vital. Additionally, you must not neglect any area of your business. Provide a strong showing of confidence for your customers.

Most businesses over react

Businesses in difficult time usually have one response or actually three that look very similar; freeze, cut and fire. Because pulling away when all your competitors are doing likewise only creates a greater gap of opportunity to be filled, and since bigger businesses are often less capable of manoeuvring deftly, smaller more flexible companies often have an advantage in filling this opportunity gap.

This is the time to strategically review your marketing approach and utilise channels that reach your consumers at the level that most touches them and provides verifiable metrics of success. That is why we have seen an immense surge in Social Network Marketing amongst smart companies recently. It touches consumers at their level, is cost effective and provides measurements of success.

Customers are desperate for confidence and reassurance

In troubled times we need reassurance. This is evident in the amount of activity of CGC in social sites. Average people are talking to each other, sharing thoughts, ideas, solutions and comfort. What is also noticeable, is that business is not sharing in these conversations. Instead, in a display of ignorance or insensitivity they continue to advertise, thereby missing the opportunity to connect in a meaningful way with consumers about issues that are relevant to them.

In summary, it is quite simple on how to gain reward in the financial crisis. You must simply ask yourself what support you would want in difficult times and that is probably what your customers want too.

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