"I am working against the recession!" You too?

I am quite a regular LinkedIn visitor, and I have noticed that some people let others know that "they are working against the recession". There is even a recession group! I consider that as very worthwhile. And also, I ask myself the question what they actually changed lately in their behavior to demonstrate their fight.

These people are in good company. I noticed as well that a number of management consultancy companies and system integrators are providing specific anti-downturn approaches. McKinsey, an impressive and reputed company, is among them, and I looked in more detail into their advice for new marketing rules.

As always when revenue decreases, the question is how to do more with less. The traditional approach is to double your sales effort regarding customers that were very profitable in the last years. Those companies spend more on advertising in traditional media as television, newspapers and sport, they hire more sales people, and cut costs by firing sales back-office personnel. They neglect long term investments a great deal. There is nothing new here.

But this time chances are large this approach, which helped them through the previous recession, will not work. This recession infects many traditional areas, both branches and geography. The local differences are exceptional large.

The question arises what will work! Let us start with quoting the old Peter Drucker saying: The purpose of a business is to create a customer. So it always pays off to provide real value to your customers. Customer perceived quality remains king! The idea of Hans van Nes for MyCampusCompany is a variant on this.

McKinsey can help you a little more. They executed a detailed survey, and the answers can provide you with some guidance. Currently consumers are not prepared to spend less on health care, housing, and education. Hence, those branches will not be effected as bad as the others. If you look at advertisement spendings their research demonstrates that money spend on on-line mailing, on-line banners and email marketing has a premium Return On Investment (ROI), much better than other media.

So, "I am working to create an up-turn!" And you? What are you doing? Let us discuss! Contact Hans Lodder!