Wednesday, May 21, 2008
- Justin Boeckman
With US inflation at a 26-year high and no end in sight, the economy is setting off alarms for businesses and consumers. Both have to be more mindful of how and where they invest their dollars. Most everyone is thinking twice before going to the lake, driving across town to spend time with friends or family, or even buying groceries at the supermarket. All aspects of our lives have been altered due to the rising cost of fuel.
This economic crunch gives businesses two paths to follow:
Pinch those Pennies - The penny-pinching company shovels all the money it can into savings, hoping they can ride out the downtimes and live the good life again soon. These companies cut back on all marketing dollars and slow the efforts put forth to grow their business until the economy stabilizes. The majority of companies that will use this tatic are larger companies or those that have a large base of returning customers.
Capitalize and Innovate - However, the greatest rewards await the company that decides to capitalize on new, innovative ways to reach their customers. These leaders have the vision and focus to build a customer loyalty base by capturing a percentage of the penny-pincher's audience.<