A global study, Don’t Stop, The Future is Now, released by Media Frenzy Global in partnership with Arlington Research shows 31% of U.S. consumers worry businesses who fail to share company news or content during the pandemic are in financial trouble and because of this will likely not spend money with them!
This is huge news because there is a likelihood all companies will lose customers as a result of Covid-19. There is a running list over at Cheapism of companies that have filed already and the names include Hertz, Pier 1, J. Crew, Neiman Marcus and more.
Customers hear bankruptcy news daily and in the absence of news to the contrary, they haven’t a clue who is doing well and who is not. Meanwhile, companies need to replace the customers they lost as a result of bankruptcies or business stoppage – for example at many retail locations, bars, etc.
The message here is companies should not only communicate as if they normally would but actually increase their communications, advertising, webinars, email campaigns, etc.
Spending is still happening. Certain sectors are actually booming like delivery, ecommerce and almost all of tech.
The most important takeaway here is your customers are not all the same. Those in retail without strong ecommerce revenue as well as restaurants may really be hurting but some others are doing better than they were before the pandemic.
The key to getting the growing companies as new customers is being visible and projecting strength.
After all, companies will not make an investment in you and your brand if you aren’t investing in their market and where they spend their time.
Since we have been in the business world we have seen these dramatic market pullbacks/recessions:
- Late 1970s to 1981 or so – high inflation and insane interest rates as high as 22%!
- 1987 stock market crash
- 1991 Iraq war (a terrible time for tradeshows as there was fear of airplane-related terrorism)
- 1991 recession which continued thereafter
- Two IP communications/VoIP bubbles burst in the late nineties
- in March of 2000 the dotcom bubble burst was huge
- In November of the same year, the communications companies were hit with a massive bubble burst
- We can thank Vonage for helping to pull tech out of the recession as their consumer TV ads for phone service got the rest of the industry investing in IP communications
- 2008 housing bubble
This recession is very different but not at all. There are macro trends that will change – massive shifts to teleworking and ecommerce. Retail and commercial real estate values may see a major recession/depression.
Otherwise, tech spending will continue to accelerate and many new businesses will be launched for the post-pandemic world.
Investment in new companies is approaching historic levels once again as is the stock market in general.
The companies that are visible have the best chance of serving the current growing companies as well as the new ones which are emerging.