As someone who has witnessed firsthand the negative impact of under-investing in education and innovation during budgetary constraint through my extensive work with global corporations, I understand the critical importance of focusing on such initiatives during times of crisis. When businesses cling to what has worked in the past, they risk losing sight of customer needs and falling behind in the market.
Here are three strategies that business leaders can implement to emerge stronger from a recession:
1. Pivot Your Business Model
In times of recession, it may be necessary to shift your business’s focus to better align with customer needs. Ask questions like, “How have customer behaviors changed?” or “What challenges are my customers facing now?” to identify new opportunities for delivering products or services.
For example, LVMH shifted its production focus from creating perfumes to producing hand sanitizers and face masks during the COVID-19 pandemic. By taking a cue from LVMH’s example, you can explore ways to pivot your business model in response to changing customer needs.
2. Reevaluate Your Marketing Strategies
During a recession, refining your marketing strategy is critical to identifying new opportunities and gaining a competitive advantage. Consider digital advertising to explore new search engine optimization strategies, social media advertising campaigns, and personalized content that can boost conversions.
Nike’s example is it shifted its marketing focus from in-store and sporting events to virtual channels like social media and the Nike Training Club app to create immersive virtual experiences for customers during the pandemic. By following Nike’s lead, you can explore new marketing channels to reach customers where they are.
3. Pursue Technology
To weather a recession, you may need to consider automating operational processes to achieve cost savings or implementing collaborative tools to boost team productivity. Additionally, investing in innovative technologies that align with your business growth strategy, such as machine learning, artificial intelligence, or cloud computing, can help you stay ahead of the competition. Everyone’s thinking about AI right now and for good reason, given the launch of Chat GPT.
Peloton, for instance, launched the “Peloton at-home workout app” that provides a range of virtual workouts, from strength training to yoga, when gyms were closed during the COVID-19 pandemic. Leveraging technology to meet evolving customer needs is an excellent way for your business to stay ahead of the curve.
As a business leader, it’s essential you prioritize education and innovation during a crisis, and these three strategies are an excellent starting point. As part of adopting a futurist mindset, it’s important to proactively tackle the upcoming recession by adapting to the new circumstances, and embracing it as an opportunity for growth and improvement. Your businesses will continue to innovate and ultimately thrive.
If you find these strategies useful, please get in touch to have a chat about our FutrForesight programs, designed for businesses.
