Ina Opperman

By Ina Opperman

Business Journalist


Being loud during a recession important for small businesses

What can small businesses do in times of a looming recession when they have to start cutting costs to survive?


It is important for small businesses to be loud in times of the global recession that is widely seen as inevitable this year. Many organisations are already looking for ways to cut back on costs and keep their business profitable and they usually start with marketing and customer communication.

It is understandable to a degree as many executives simply do not see marketing and customer communication as core business competencies. However, it will be a massive mistake to engage in that kind of short-term thinking.

Instead, Ross Sibbald, commercial director at Tilte, says organisations should use recessions as an opportunity to be loud, focus on communicating with their customers and give themselves the best possible chance of coming out the other side of any recession poised for growth.

“With the right approach, organisations that understand the importance of being loud, even when times are tough, can actually steal a march on any competitors that take a more traditional approach and grow in spite of a broader recessionary environment.”

He says you must not expect loyal customers without communication and rather demonstrate value in difficult times and overcome industry fears.

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Communication keeps customers loyal

Sibbald says the fact remains that out of sight leads to being out of mind. “To understand why being loud in the face of recession is so important, a good place for organisations to start is to think about the very customers they should be talking to.”

Unless your business only services the ultra-wealthy, chances are your customers will feel the effects of the recession too and many of them will already have felt serious pressure on their monthly budgets over the past few months.

In the wake of spiralling inflation, coupled with rising fuel and energy costs, consumers around the world have been contemplating what they can cut back on. Should they let go of one or two of the streaming services they pay for every month? Or will it make more of a difference if they ditch the insurance they had for years but never used and find something cheaper?

“All around the globe, people are asking themselves these questions. And as the recession bites, those questions will become more and more common and affect an increasing number of businesses. The best way to ensure that your business is not among those facing the consumer cull is to keep working on the relationship you have with your customers.”

Sibblad says you must remember, just as is the case with your friends, family and colleagues, you cannot expect to build fruitful and lasting relationships in silence. You have to communicate and understand that failing to communicate makes it that much more likely that you will lose customers.          

“It takes time and resources for a company to build up their brand awareness and to achieve this, you must be constantly visible. Investing in marketing and communications will help you build brand awareness, acquire more customers and increase sales.”

He points out that when times are tough, it is natural that your sales will be down but this means you have to work harder to get back to where you were.

“Reducing your marketing spend now is going to either stagnate your efforts or negatively affect the previous hard work in building up your brand.”

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Show value in difficult times

However, it is also critical to not just communicate for the sake of communication, Sibbald says. Your communication will have real and meaningful impact if you demonstrate value, not only of your product and service offerings but also of your ability to help customers get through the difficult times.

“If you render financial services company, for example, you must not only talk to your customers about how tweaks to their portfolio can ensure they keep making money throughout the recession. Instead, you can also send out budgeting tips or even look at collaborations with major retailers to ensure that customers get as much value as possible for sticking with you, even in the toughest of times.”

Sibbald says throughout the communication process, it is also important to be even more sensitive than usual about ensuring that all the communication is hyper-personal and relevant to each individual customer.

“If you spend more time at home and very clearly spend less on fuel, for example, chances are you will not be enthusiastic about the offer of a new car loan from your bank. That kind of messaging would be like a friend telling you all about their all-inclusive holiday to Reunion after you just told them that you had to cancel your annual camping trip to the Drakensberg because your last tent got damaged and you cannot afford a new one. It is, in other words, tone-deaf, unempathetic and to be avoided.”

He points out that if you get your messaging right in difficult times, your customers will become your best advocates and recommend your products and services to family and friends, bringing you new customers along the way.

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Overcoming industry fears

The reality is that you cannot only build your brand when times are good, he says. “You also have to work hard when times are tough, but this does not mean massive budget for TV ads but targeted, personalised, affordable digital communications that go a long way to maintain brand awareness among your existing customers.”

Although it can be frightening to take such an aggressively loud approach, especially when everyone else is cutting costs wherever possible, Sibbald says a little bravery, coupled with an approach that is sensitive to your customers’ wants and needs can go a long way to ensure that you come out of the recession better off than your competitors.

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