Surviving a recession

As the recession affects every part of the economy, businesses are struggling to maintain profits in the face of low consumer confidence and spending. Four experts give tips on surviving the current economic climate by using marketing budgets to build lasting relationships with consumers.

MediaVest's David Reid sees the downturn as a time to solidify your customer base and take business away from brands that have cut budget. This will put you in a strong position come the recovery.

Author of ‘The Momentum Effect’ Professor Jean-Claude Larréché, who also holds the Alfred H Heineken Chair at international business school Insead, identifies the problem as a crisis in customer trust and warns against increasing marketing spend to compensate for a poor offer. Instead,  improve your marketing efficiency by gaining genuine insights into consumers’ needs.

David Miller from digital and response marketing agency Ruby points out that new acquisitions are harder in a downturn. He recommends brands focus on retaining the highest-value customers by demonstrating empathy and rewarding loyalty while looking to medium-value customers for growth opportunities.

Simon Thompson of Lastminute.com also believes businesses should concentrate on existing customers and give them a reason to buy. This means creating strong sales communications which state clearly product or service features and resisting the temptation to discount.