Growing in a crisis means caring about customers

A crisis is a great time for investments. But while some may consider buying companies on the cheap, they are cheap because their business was not good enough. So that is not a smart way to expand. Better wait until they go broke and buy their customer relations and equipment.

Instead, a recession is a great way to grow organically. If they have a hard time, companies and customers will consider a bit extra how they invest their money. That means making sure you as a company add value to customers, so they come back and eventually bring more customers, growing the business. It means making sure that the existing stores, restaurants, or wherever your business is can handle some extra business. It means encouraging customers to be flexible, for instance by creating special offers for families in the early afternoon, and after-work on Friday evenings, if you run a restaurant.

A recession also means nobody is surprised if you do not make a profit. In healthier times, you would; now, you may be down by half. Use that as a resource, and invest until you break even (if you are running at a loss, you need to rethink your financials anyway, so take it as a lesson). Give back to customers, especially repeat customers. If you can give them something which they feel means you care - a small gift when they buy something extra, a cup of coffee if they have to wait - that means they will care for you. Of course, this means knowing them beforehand, and if you did not try to remember and get to know them, it may not be too late now, even if it is late.

Also take the chance to rethink your marketing. Buying ads just because you always did is not a good reason; put it in the perspective of how it communicates with your customers. Does it bring it new customers? How oes it reach your potential customers? Does your marketing make your existing customers come back? Try different ways - and use it as a reason to communicate with your customers. If they come into your store, ask them if they saw your ads (or website, or podcast). Ask them what would add value to them - for most businesses, there are some crisis-related tips that enhances your business. It can be tips on how to use the office paper more efficiently, or how to cook the doggie bag at home. Whatever it is, as long as it has to do with the crisis, it will probably be apprieciated.

So caring for your customers means investing in them; and like all investments, that means you should expect a return. The return, of course, is more business. You may think about changing your business accordingly, as well, if unexpected activities brings new business (like organizing a family event might increase your sales in categories like coloured paper and marker pens, if you are in the office material business).

And, if you can not make your business come together, maybe you should rethink it. Perhaps the back street behind the warehouse on the other side of the tracks from the station was not the greatest location for a coffeehouse? Perhaps by offering something different (like ethnic coffee) you can make customers discover you. Or you may have to bite the bullet and close the shop. Do not wait too long; a recession is not the time to run at a loss, and even though the interbank rate may be zero, borrowing in a crises becomes only more expensive if you continue to run at a loss.