Nicole Rodrigues is the founder & CEO of NRPR Group, and a strategic publicist & digital marketing pro with over 20 years of experience.
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As federal officials warn us of a potential economic crisis and a rising unemployment rate, preparation is needed to mitigate some of the budding side effects of these changes. Strategic and proactive recession game plans become mission-critical business initiatives.
The Bureau of Economic Analysis reported in May that in the first quarter of 2022, the U.S. economy shrank 1.5% year over year, the first drop in GDP since the second quarter of 2020 at the height of the pandemic-induced lockdowns. During these times, it’s common to hedge bets by laying off staff or pulling back on budgets. But, in many cases, such “doomsday” reactions damage the overall economy.
Rather than throwing your business, partners and employees into a tailspin when facing economic uncertainty, a much more fruitful response is to double down on communication—internally with your teams and externally with your clients and target audiences. Strategic communications experts will be needed, whether from an in-house public relations team or an outside agency. These experts can help answer difficult questions about the state of your business without harming morale or the overall culture of the company. There are also several steps that you can take today to help your company withstand a storm:
Ensure that internal communications come first.
During times of economic uncertainty, you will likely talk to your CFO about ways your company may need to cut spending. Typical actions include reducing travel expenses and company-sponsored gatherings and cutting down marketing spends.
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It’s also important to talk to other executives about how you will communicate changes to company employees. This will be an essential part of your strategy and is a step that cannot be taken lightly. More than anything, you’ll want to make sure your team knows that you are doing everything you can to preserve their jobs and livelihoods. Taking a look at your team’s capabilities to ensure they align with your business’s current offerings will help you determine where you can find optimal value, even during times of economic uncertainty.
Companies have a tendency to shy away from change during these times, but as the pandemic has shown us, sometimes change is the key to staying afloat. For example, my firm helped our clients pivot during Covid by offering new (delivery) services or by adopting new strategies throughout the pandemic. We helped brands deepen their digital footprint during a time when people were unable to meet in person. We started offering content production services during a significant digital media boom. However, none of this would have been possible if we hadn’t had internal discussions and brainstorming sessions about how we can improve our and our clients’ businesses.
Whether or not you choose to hire a PR agency or lean on an internal communications team, bolstering internal communications will position your business for future success, even during uncertain times.
External communications should stay consistent.
Most public relations experts would agree that radio silence is not the right strategy to employ during a potential or actual financial crisis. Studies have shown that companies that are able to maintain a steady online presence and marketing strategy, even during an economic downturn, are more likely to increase sales and/or business levels despite nationwide financial difficulties.
Now more than ever, what your executives do or say will influence your corporate reputation as well as perceptions formed by employees, partners and investors. Now is the time to engage with these various audiences and let them know how you will be strategizing for the next few months. It’s time to put your company’s leadership at the forefront of the discussion, giving them an opportunity to offer commentary on the events impacting your market and society at large.
For example, one of our NRPR Group clients, an expert on the real estate market, has appeared on radio and television interviews offering expert insights on changes in the American and Canadian housing markets. This helps consumers stay informed about important developments in the real estate industry, while also establishing a sense of trust in a spokesperson who delivers insights with transparency, honesty and poise. Remember that your company’s leadership team has the opportunity to shine during these times. If you stay consistent and unwavering in your external communications, you are more likely to weather the economic storm.
Develop a plan for after the storm.
Company leaders should always be looking ahead, considering various potential scenarios and developing actionable plans for the future. You’ll need a thorough marketing plan to determine how to position your company and executives after the crisis passes in order to either retain or increase your market share. For example, organizations currently focused on Covid testing can start marketing other health services such as Covid-19 treatment, telehealth consultations or other types of testing.
If your company did suffer from a decline because of the economic downturn, consider less expensive marketing communications tactics that will still engage with your target audiences. This is why you will need experienced communications experts: Our job as PR, marketing and crisis communication managers is to amplify your efforts and stay within your budget. A good PR team will proactively engage with media who will write about your company’s developments without having to pay for a single ad. Whatever strategies you decide to employ to increase sales at the outset of a financial crisis, make sure you strategize and work closely with your marketing and communications experts.
It’s important to keep in mind that your business is not alone in experiencing uncertainty. If you’re feeling uneasy about managing your brand strategy during these times, lean on the experts that will help keep your ship, team and image afloat until the economy bounces back. Your communications team will help you find confidence in your business decisions and will clearly, consistently and concisely communicate your updates to internal and external stakeholders in a way that won’t sound off any alarms.
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Author: Nicole Rodrigues, Forbes Councils Member
