Future Proof Your Brand Through Recession – the D4C way
Given the recent macro events it is not surprising that we are talking our way into a recession. But for those that have ridden out previous downturns in the economy you will know that where challenge prevails, opportunity awaits. During the Great Recession of 2009 many did not survive, indeed dozens of large retailers filed for bankruptcy and times were tough. However, for those that did not survive, there were other retailers who thrived.
Recession Proofed Retailers
McKinsey interviewed dozens of retail executives and examined the 2007-2011 performance of over 1,000 publicly traded companies including 250 retailers, to examine what it meant to be recession resilient.
“Because retail resilients had already tightened their belts and stocked cash war chests, they were able to invest when the economy soured.” McKinsey
Top Tips from those that Thrived in the Great Recession:
- Build cash reserves
- Create margin headroom
- Go on the offensive
- Move into new markets
- Reshape your value proposition
- Maintain customer service
Your Customer is King
Let’s focus on what we know. In retail, the customer is king and we need to work together to ensure we deliver valuable product in a timely and cost effective way. In return, our customers are investing in brands, deeper and with more loyalty than ever before. Smart marketers who champion the customer’s experience have a golden opportunity to make their mark in the boardroom by improving their brand’s bottom line.
The evolution of D2C to Direct for Consumer
Building for D4C has been years in the planning here at vvast. We have laid the groundwork and invested into a tech stack that ensures we can double down on customer experience. What that means for our customers is:
- Deeper data analytics to drive efficiency
- Tools that encourage quality customer feedback
- Manifesting delightful brand moments
- Propensity modelling
We can’t predict when a recession will come or how deep it will be. What we know is that the economy runs on cycles, and it is best to prepare for every eventuality. Retail is notoriously at the front-line and we all need to kit up for whatever the weather brings while supporting one another. vvast are primed and perfectly positioned to step into the fold and build out D4C experiences for our existing and new brands to deliver on the promise of D4C.