In reading some articles this morning I was struck by a trend that I see in many of them. Now, I’m not talking about layoffs, declining stock prices, or other operational considerations that are widely reported. Instead, this question is central: “What are companies doing to speak to consumers who are gripping their paychecks tightly?”. Many restaurant types like Starbucks and Qdoba are certainly speaking to me with their new value menu pairings. McDonald’s might be the biggest star in this area by cashing in on its dollar menu and by providing much less expensive alternatives to what other QSR and fast casual restaurants are offering. McDonald’s has effectively capitalized on this and is experiencing some relatively large sales growth.
If your company is experiencing difficulty because of the economic downturn, instead of just focusing on ways to cut costs and ride through the recession, spend time understanding your customer and their needs and wants. You’ll not only benefit by generating some extra revenue, but you’ll also be better prepared for future success while protecting and expanding your existing customer base.