It is a huge mistake to do the same things while expecting different results. Often times, company leaders use the same management tools in times of prosperity and hard times. In this article, I will tell you exactly what steps will help keep your business afloat, survive the crisis and prepare for future growth.
Everyone around you is talking about the crisis, but how does it affect your business?
Is the number of new customers decreasing? Are regular customers returning less and less often? Is the average check decreasing? Have suppliers raised their prices? Has the logistics become more expensive? Is it getting harder to get a loan? Are employees demoralized, discouraged, gloomy moods hover in the team?
If all this is about your business, read the article to the end. Perhaps you will find something useful for yourself, you can apply some of the recommendations that I give in it, and correct the existing situation.
So, 6 steps for surviving a crisis:
1. Cost optimization.
No wonder they say: "I did not spend - I earned!" What you can and should save on:
On ineffective staff. Indeed, a crisis is a time when a business gets rid of those employees who do not develop and strengthen it, playing the role of ballast. The workload of the dismissed employee is distributed among the remaining employees for a small increase in salary. The bulk of the salary of a dismissed employee remains in the company's budget. Additional savings are taxes and other deductions that the business no longer pays for it. On current expenses. The introduction of strict control over expenses (transportation costs, stationery, household chemicals, utilities, etc.) brings quick results. At staff awards. If premiums in your business are tied to sales or bottom line, a decrease in these rates forces you to refuse to pay bonuses. On the procurement and transportation of materials. In times of crisis, it is worth expanding the usual boundaries and considering the possibility of finding other suppliers, carriers, more budget materials of the same quality. At corporate events. Do not give up the holidays altogether, this will further undermine the morale of the team. But it is quite possible to replace a trip to an expensive restaurant with a trip to nature, a visit to a bowling club or a party at the workplace.
2. Staff remediation.
In the literal sense, reorganization is healing. In a crisis, it is necessary not only to get rid of careless employees, but also to activate those who remain.
This goal is achieved through: - corporate training, - revision and strengthening of the motivation system, - constant search and recruitment of the most valuable, effective employees.
The time of crisis leads to the closure of companies and releases such personnel, which could only be dreamed of in more calm periods of the economy. Do not miss the opportunity to attract them to your business.
Personnel training is always effective, but in times of crisis it is especially necessary. Your employees should have the most effective techniques for attracting and retaining customers, and have the skills to apply them.
The motivation system is a very difficult topic to cover in this article, but one thing is for sure: in a crisis, the stick should be longer, and the carrot should be sweeter!
3. Amplification of advertising!
The most common mistake executives make is cutting their ad budgets when times are tough. What does this policy lead to? The number of new customers has already decreased, the profit has decreased. Lack of advertising will lead to the fact that your company will be forgotten, and the customer flow will dry out altogether. And this threatens to destroy the business.
If you've tracked the effectiveness of your advertising media, reallocate your advertising budget. Invest more in the media that brings you the lion's share of customers. Get rid of ineffective advertising sources. Increase guerrilla marketing if advertising funds are inadequate. The main thing is not to let customers forget about you!
If no accounting has been taken, it's time to start doing it. Correct advertising is not only about costs. This is your investment in future profits.
4. Improving the quality of goods and services.
Easy to say, hard to do! Yes, I understand that. But being one of the many in a crisis is a losing strategy. All resources should be activated to become one of the best companies in its segment. Quality is provided mainly by goods and people. Attracting the most effective personnel to your business, training employees and finding the best materials and resources is the minimum from which you can start striving for excellence.
Take a closer look at your business processes: what can be improved right now to provide a higher quality product or service?
5. Improving the quality of service.
High-quality service is no less important, and maybe even more than a high-quality product. The client can forgive you for the lack of goods if you apologize, replace the goods and give the buyer a bonus for moral damage. But he will not forgive the rudeness and indifference of your employees.
Good service is a clear fulfillment of their obligations to the customer, compliance with agreements on terms, price, subject of sale. This is the hospitality and courtesy of your staff, the desire to make the buying process comfortable, and the result surpassing their expectations. This is attention to the client and after the transaction has taken place. This is an emphasis on every little thing, because in the matter of high-quality customer service there are no trifles.
How satisfied are your customers with the service you provide them? The crisis is the time to find out and raise your bar!
6. Introduction of a customer loyalty system.
This point directly follows from the previous one. But I specially highlighted it in order to emphasize the need to implement the SYSTEM, and not one-time measures for the mood of a particular employee. Think, talk to your customers: maybe they want something more than your banal discount card? Perhaps those who have been using your services or buying products for a long time would like personal courtesies for their dedication to your business?
If you have segmented regular customers, then you know which of them comes back to you more often than others, who leaves the most substantial amount for a visit, and who recommends you to their acquaintances and friends. An established loyalty system in a company is a civilized way to encourage and thank these people!
I hope this article was helpful to you. If you find some valuable ideas in it, implement them right now! I wish your business not only survive the crisis, but also achieve success and prosperity!
Elena Trigub.
