By Ronald Hanser, APR

I returned this week from a meeting in Washington where some of the world’s top communicators discussed best practices in recession-era communication. We reviewed several economic cycles and shared enduring strategies that are serving companies well as they communicate inside and outside.

Three proven strategies
Here are strategies that help companies retain the loyalty and confidence of their customers, employees and other stakeholders – and prepare for growth – during a recession:

1. Focus on core values
Companies should fight recession from home base by communicating and re-focusing upon their core values, which should include…
• Insist upon transparency. Keep channels open and actively communicate inside and outside your organization.
• Elevate customer service. Talk with your customers more often and more intimately; understand their needs & review services. Utilize the insight to enhance services.
• Build new relationships. Reach out to build and improve relationships with potential new customers; those who will be more likely to purchase when their financial situation allows.
• Innovate and plan for future sales. Use any downtime to innovate and stay fresh during the recession; companies that don’t development new products/services during a recession must play “catch up” during the recovery.

2. Lead and treat people well
• Customers, employees and business partners want to know that you consider them important. Remember, your success depends upon theirs. So, avoid bunker mentality; talk with people!
• People crave communication and leadership during a crisis. This is especially true in a global recession as those inside and outside your company are asking “What does this mean for me?”
• Leadership from the CEO is essential, and transparent communication at moments like this builds trust – and strengthens relationships and loyalty.
• There is reason for optimism found in new Web tools for getting closer to people — internal/external social networks, etc.

3. Increase marketing efforts
Rather than marketing cutbacks as a way to endure an economic recession, several studies point to the wisdom of doing the opposite:
• Public relations ascends. American companies said they intend to continue investing in PR in 2009 according to a nationwide survey released Feb. 24 by Council of Public Relations Firms. The survey predicts that corporate spending for PR will remain at 2007 levels overall with increased great investments in social media (79 percent) and digital content creation (55 percent).
• Aggressive increase. For well-positioned companies experienced in successful marketing, a recession should prompt an aggressive increase in marketing spending to achieve superior business performance both in the short and long term, according to a February 2008 report from Penn State’s Smeal College of Business. “Firms entering into a recession with a pre-established strategic emphasis on marketing; an entrepreneurial culture; and a sufficient reserve of under-utilized workers, cash, and spare production capacity are best positioned to approach recessions as opportunities to strengthen their competitive advantage,” said Penn State.
• Win in a recession. McKinsey says some companies emerge from a recession stronger and more highly valued by making strategic choices that sometimes defy conventional wisdom. In studying the U.S. companies between 1982 and 1999, they found successful leaders traded lower short-term profitability for long-term gain, refocused rather than cut spending during the 1990-91 recession. While most companies tightened their belts, these companies spent significantly more on selling, general, and administrative costs than did companies that lost their market leadership. In short, recession can be an opportunity to press their advantages.

Ronald Hanser is president of Hanser & Associates; a West Des Moines-based national public relations firm that helps companies build and manage relationships. Contact him at rhanser@hanser.com or 515-224-1086.

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Posted: February 28, 2009 at 2:42 pm by sarag