Storytelling in Uncertain Times: The Questions That Really Matter for Your Business to Succeed
The r-word (Recession!) is on the tip of everyone’s tongue.
Are we in one? Is one coming? Can we avert it?
Although the market responded positively to the recent news that the Fed signaled a slowdown on interest rates, by the time you read this, other news may send markets downward.
But this potential recession is just one in a series of major events that have rocked our globe in the past several years—each with devastating human consequences: the pandemic, the war in Ukraine, inflation at a 40-year high.
We live in uncertain times.
But that’s nothing new.
Recession or no recession? Consider the source.
“It was the best of times, it was the worst of times…”
The prospect of a recession is unsettling. It’s a force that shapeshifts based on who’s defining it. On 12/1/22 whitehouse.gov announced:
“…official determinations of recessions and economists’ assessment of economic activity are based on a holistic look at the data—including the labor market, consumer and business spending, industrial production, and incomes. Based on these data, it is unlikely that the decline in GDP in the first quarter of this year—even if followed by another GDP decline in the second quarter—indicates a recession.”
That’s all very well and good, but what does this mean for businesses, and more importantly, consumers? Are we in a recession or not? And if so, what can we do to weather the storm?
What works today, won’t work tomorrow
“The secret of change is to focus all of your energy not on fighting the old, but on building the new.”
Consumer-centric organizations crave to understand their customers’ needs but must be nimble during particularly rocky times. Looking at your customer base, it’s important to understand whether your business is insulated from economic downturns or not. Strategy often needs adjusting during unstable times.
Consumers = the stability in the storm
“Don’t know why, There’s no sun up in the sky, Stormy weather.”
Storms come and go. Each a force of nature, hard to define and contain.
One way to find stability during stormy weather is to understand its impact on consumers. The storms themselves may be complex and undefinable, but how they change consumer mindsets and behavior is measurable.
Many of us can easily recite behavior shifts that come with recession (or the threat of one): travel less, buy down, dine out less, postpone durable good purchases, etc. And these behaviors are driven by an unsettled feeling—one that permeates people’s lives—fear of job loss, struggling to pay bills, shrinking or non-existent raises and bonuses.
Some are able to ride out economic uncertainty because they’re insulated by financial security. Others live paycheck-to-paycheck. All this to say that every one of us is in a different situation when it comes to an economic downturn.
Organizational resiliency is directly related to our willingness to understand consumer needs as they shift due to extraordinary circumstances. Knowing your customer in times of crisis is critical to safeguarding your business. It provides a roadmap to re-align your strategy to weather the storm.
Crisis requires swift action
But what often slows us down is the tsunami of data we cling to during uncertain times. This often makes us sluggish. Understanding and developing the story behind the data, the why behind the what, is essential to strategic nimbleness.
Looking at the data points, deeply thinking about them within the context of a particular storm, helps inform strategy.
Understanding where your customers are at—in terms of mindset and attitudes—will guide you. It allows you to revisit and finetune strategy based on shifting consumer needs, balanced against your organization’s goals and resiliency.
Shifting needs require shifting focus
The overlap between consumer needs and product/service benefits will shift during times of upheaval. And understanding and aligning with those changes to stay relevant and of use is critical.
Every business is different. Asking yourself if the product or service you offer is essential, nice-to-have, or a luxury guides strategy. For example, during the pandemic the apparel industry took a hit when fashion retailers were closed and people stopped buying go-to-work clothing. Cosmetic purchases, specifically sales of lipstick, also dropped. Why put on lipstick when you were wearing a mask over most of your face? But despite declining sales, marketers focused on the part of the face that the mask didn’t cover. The eyes. This was where people continued to be able to express themselves, even when masked in public.
Wrap Up
We know that change is inevitable. Whether it’s war, recession, inflation, rising energy prices, the impact on every human story is different. And as marketers, advertisers, and researchers, we strive to meet consumers where they are at.
But unless we know how economic and worldwide storms impact their day-to-day lives, we do them a disservice by providing what we think they need rather than what they truly need.
So, the questions we must ask ourselves are:
How is this particular storm impacting our consumer’s mindsets and needs?
And within that context, how do we change our strategy to serve them in the best possible way?
Ready to truly understand where your customers are at and build a winning strategy for your organization? Let’s chat – hello@ignite-360.com
