Wednesday, July 30, 2008

Watch the details when you cut costs

In time of recession what do most businesses do? They cut costs, they drop marketing and stop the ads. What kind of signal does that send out to hard pressed customers also in the recession?

  • It says that you probably went under with the recession.
  • That you have no new products.
  • That you don't care about service.
  • That you don't care about them.

That last one's a bit of a tough one but let me explain. If you have a friend for years and you've been through the good times together, they got what they needed from you and you made a nice profit out of them too. How will they feel if you suddenly don't talk to them anymore?

They feel hurt and find someone else to talk to or buy from.

Changing your friendship hurts too. A friend who suddenly stops offering you coffee when you visit changes in your eyes.

Business is the same, when the little things change customers are upset and look for others who can give them what they were used to.

So when you cut back, be careful what you cut back on and ask yourself how would you feel if your friend did this to you?

Here's a great post on watching what you cut back on.

Take heed! Customers really do care!

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