For some business owners, sales can be a challenge during the best of times, but in Q2 of 2021, serving up products and services for a profit is a matter of survival. Current studies report between 800 and 1500 small business closures have occurred daily in the US between February and September of 2020. While Senator Amy Klobuchar of Minnesota says this is “unacceptable” and has carried the mantel of more pandemic relief for small businesses, as Women in Business what can WE do to keep our businesses open and afloat?
One answer is to take a look at the psychology of consumer spending during past recessions to understand how to continue to market and sell now.
According to Harvard researchers John Quelch and Katherine Jocz, customers and clients unnerved by an economic downturn react by placing goods and services they consider purchasing into one of four categories.
Action Step One: Take a look at the list of categories below and determine where your businesses products land.
Essentials. These are items that consumers need to purchase for survival. Goods and services in this category are central to well being. Food, housing, clothing are a few essentials.
Treats. Items that fall into this category are not essential to well being, but they do provide immediate gratification. Consumers can justify their need to have these goods and services now. Beauty and spa services can fall into this category. Restaurants and dining out may be considered treats as well.
Postponables. When belts are tightened, consumers look for purchases which can be postponed. Getting an appliance repaired instead of spending for a new one is an example of a postponable.
Expendables. Goods and services which may be higher ticket items and are perceived as unnecessary and an unjustifiable expense. The purchase of an expendables can be put off indefinitely. During past recessions luxury items and travel fell into this category.
Action Step Two: Your core marketing message needs to shift to “You need this for the long term, for your ‘new normal’.” And with the dream of a new, less chaotic, more predictable lifestyle etched firmly in their heads, consumers and clients will be more likely to purchase items from the postponable and expendable categories.
Action Step Three: Use optimistic, upbeat, positive language to tell the story of how your goods and services will enhance and support the ‘new normal’ lifestyle your clients are creating. If you are selling postponable kitchen cabinets, hook harried customers in by telling them a story on social media with beautiful new cupboards with plenty of effortless space for everything they need to store now and in the future.
Action Step Four: Connection is king! Haven’t heard from a key customer for a while? Pick up the phone and give them a call just to check in and see how they are doing. This is not a sales call, it is a “connecting with you” call. Be positive and upbeat-its not the time to commiserate but it is a time to express gratitude and bring joy into a client’s day. Remember when we used to send and receive cards in the mail? Another effective connection strategy is to send a card just to say “thank you” or “thinking of you”. Writing a personal note has become a lost art which your business can capitalize on to make an impact and stand out from the crowd.
Action Step Five: Reach out to your local Chamber of Commerce to be sure that you are taking advantage of all of the marketing and networking tools available through your continued membership. The staff members are experts at connecting members and services with community resources such as the Small Business Administration.
Action Step Six: As I mention in my “Navigating Personal and Professional Change” presentation, a way to keep your own spirits high is to “Remember-Now is not forever!” Practice gratitude by counting your blessings everyday. And make an effort to do something kind for someone else everyday. Focusing on helping others will help you in more ways than you can possibly imagine.
Cheering you on to success!
©Rita Perea 2021
Do you ever end the work day and, in a befuddled sort of way, ask yourself where your time went? If your answer is yes, you are not alone. One of the biggest challenges to creating wellbeing in our work and in our lives is our habit of letting time slip away without really knowing where it is being spent. The old saying is true: “The more you do of what you are doing, the more you’ll get of what you are getting”.
