Communicating in an economic downturn – a delicate matter

Communicating in an economic downturn – a delicate matter

Rebecca Graham

Rebecca Graham

The last couple of years have brought what has felt like near non-stop economic turbulence. Brexit, Covid-19, the outbreak of war in Ukraine and now the spiralling cost of living and energy prices have all created shockwaves to global economies. At a time where the pinch is being felt by businesses and consumers alike, communications – both internal and external – must be approached delicately.

Communicating how a product or service can genuinely help customers during this period – whether it’s through cutting back IT costs, speeding up internal processes, reskilling talent quickly, and so on – is important, yes. But it is also important to recognise that this may not be the time to apply huge amounts of pressure to existing and prospective customers. Consumers and businesses alike are being cautious with their spending. There are nerves, fear even, about what’s to come. An aggressive sales and communication strategy might seem the way to go, but it’s certainly not the most empathetic.

At times like this, the art of communication becomes more nuanced than ever. It’s vital to show your customers that you see them, that you understand the challenges they’re facing as well as their fears and reservations. It’s important you don’t adopt a blanket approach but instead understand how the economic downturn might be affecting each of your key target industries differently, and what the different needs are. Businesses can show this understanding and expertise through website content like blogs and whitepapers, email marketing, and social media that adds value – sharing relevant insights and advice. Thought leadership pieces from a company’s experts and executives is another great way of communicating value and advice. A renewed focus on customer advocacy could also earn you more loyalty as it allows existing or potential customers to see the value of your product or service through the eyes and experiences of others.

Of course, communicating with customers or external stakeholders is only one side of the coin. Internal communications during an economic downturn are also crucial. Staff must be made to feel safe and valued in their roles. And, if redundancies do need to happen, your internal communication plan needs to ensure that transparency, empathy and consistency are incorporated. The manner in which layoffs are carried out can truly make or break a company’s reputation, as demonstrated by SnapChat’s CEO saying layoffs were a way to weed out the company’s ‘haters’.

Having communications partners by your side to share their expertise and help guide you and your business through these coming months – or even years – is hugely valuable. Brands and reputations don’t stop in an economic downturn. In fact, these are the very moments in time when they are moulded.

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