Well, aren’t they? Can you think of a situation where an across-the-board cut was the wise thing to do? In today’s newsletter, Steve writes, “The worst kind of spending reduction– one you should avoid yourself and be suspicious of in others– is the across-the-board cut.” Read on for Steve’s advice on avoiding the behavior that leads to cutting without care.
Cockroaches? (Ok, I’m in a provocative mood.)
We always imagine that after some sort of mega-disaster cockroaches will still survive to roam the earth, no matter what happens to us poor humans. We believe that they are resilient, and can’t be crushed.
You just watch. When our current economic mega-disaster is finally behind us, see who you’re still doing business with. Will it be those that you dealt with due to price, special offers, and exciting promotions? Or, will it be with those with whom you have cultivated strong “We” relationships?
Economic turmoil invites price slashing and rich promotions. But, like caffeine, the energy from these activities only lasts a little while, and then it disappears. No matter how bad the economy gets, no matter how much pain you suffer, your strong business relationships will prove their resilience, and will survive tough times. They can’t be crushed.
Outside forces can’t destroy a great relationship. In fact, tough times give you many opportunities to strengthen relationships. (Go ahead, try it.)
Today we heard official news that we already knew: We are in a recession. So what are you going to do?
My newsletter today, It’s Time to Invest, encourages us to invest in our most valuable asset, the loyalty our customers have for us. There are many things that we should cut back on, but our customer relationships and the loyalty that comes from those relationships are worthy of more attention – and investment – than ever.
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In addition to writing, I spend most of my work time helping companies unleash their potential by creating better connections with their customers. This happens through my speaking events and through Yastrow & Company consulting engagements, where my team and I help companies figure out who they intend to be in the future, and then engage the entire company in creating that future through strong "We" customer relationships.
Before starting Yastrow & Company in the mid-90s I was vice-president of resort marketing for Hyatt Hotels. My experiences in the hotel business showed me clearly that most marketing doesn’t happen in the marketing department. Customers are paying attention to all interactions with a company, not just the promises made in traditional "marketing communications."
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