The following is a summary of the original article published in WARC.
The much talked about cost of living crisis means that many businesses are now in recession planning mode. But the evidence shows that the companies that cut the fastest and the deepest are the least likely to pull ahead of the competition when times improve. Instead, they need to master the delicate balance of cutting back in order to survive today, with continued investment in order to grow tomorrow. The best approach is three pronged: revise your horizons, improve what’s already good and plan to exit recession well.
Revise your horizons, by which we mean unearth what is working and what is not, re-prioritise, decide what to save and what to let go, based not just on a pragmatic desire to survive, but also on how to compete and innovate to ensure future growth.
Improve what’s already good, look more closely at what you already know about your customers, analyse how the cost of living has already had an impact and assess what further effects an impending recession will have. Get smarter in the use of your data, pinpoint the best experiences for your customers. Identify weak links and leverage what makes the good points good.
Plan to exit the recession well. The recession will end and when it does you need to be in good shape. Don’t shut down your innovation. Continue to take risks and invest in Research and Development. Speculate by identifying areas with the most potential, work with external partners to develop new ideas. Keep looking forward.
If the recession comes, it will bring change: changes in behaviour, in technology and in customer needs. Surviving and thriving will mean adapting to these changes, investing in the future and looking forward, rather than cutting back.