Understand how customer behave during economic downturn

It is important to understanding how customers behave during  economic downturns in order to key keep afloat.

The article “How to market in Downturn” published by Harvard Business Review (HBR) during the great recession in 2009 is an interesting read for Business Owners and Business Executives in Curaçao now. Though the article is old, its content is still relevant and insightful.

I have witnessed often that the most common strategy that companies apply to survive in tough financial times is to cut costs starting with marketing expenses. In my experience cutting cost without a clear strategic vision might affect a company adversely in the long run. It is, therefore, eminent to understand how different customers behave during economic downturns to adjust your strategy accordingly.

HBR identifies the following customer categories:

1) The slam-on-the-brakes consumers

2) Pained-but-patient consumers

3) Comfortably well-off consumers

4) The live-for-today consumers

These customers behave differently during recessions when it comes to the following product and service categories: 

1) Essentials

2) Treats

3) Postponables

4) Expendables

Read more: https://lnkd.in/gFQ8YaU.

By Rochelle Monte, November 2018