The recession is changing the Internet...again.
The Internet is constantly changing. Old truths become new untruths. Now we have just started a new era on the Internet again. What are we up to now? Internet 6.0? 7.0? In any case, it is not user habits that are changing the Internet today, but companies' need to quickly churn out goods in an increasingly bleak age. Inflation, interest rates, and reduced purchasing power turn the Internet into a pure marketplace where whoever shouts the loudest wins. Or?
Bad times for those seeking information
There are several factors that influence development. Companies need to sell to survive. Margins decrease and the need for quick decisions increases. Everything must be sold quickly and with as little information as possible. Partly this is an effect of having had so much information for so long that we can't bear to do research anymore. Today we need to grab attention in less than two seconds in social media. Slightly longer, four to six seconds on a web page someone actively searched for.
Therefore, the market for quick, clear messages with a simple offer has grown. And businesses that need to be explained have difficulty getting attention. It is about packaging the message as briefly and clearly as possible. Regardless of whether you sell sweets or business-critical control processes. The information is hidden further down, terms are forgotten, customers get stuck and the time of the brand is over.
Is Growth the Holy Grail?
Because it is difficult to sell complicated services and products with simple means, expertise is needed. Today, growth is the new black. Data-driven work methodology. Examine behavior patterns. Change the CTA. Move buttons. Change color of buttons. Search for the answers among the visitors. Ask what visitors want and change websites. Remove all the fluff and steer towards closure as quickly as possible.
But if everyone does the same thing, everything becomes more and more alike. Today, many companies opt out from distinction, uniqueness and positioning in favor of data-driven design. Of course, growth and data-driven methodology must be used. But it must be done together with a basic branding and positioning strategy. Don't throw away all the details that make you unique and popular. Then you risk ending up in a price competition with constant discounts, short-term offers and a shish-pitched tone of voice. Long-term work and growth work best in synergy with more short-term cash flow-driven choices.
When does the pendulum swing back?
In a recession, businesses do what is necessary to survive. But it's important not to throw out everything that makes one unique. Soft values that make you feel appreciated. Popular. Selected. Sooner or later the pendulum swings back. Purchasing power is increasing and it is time to take care of your customers again. Not just selling at any price.
Then, as always, the winners are those who chose to keep their identity, their brand, their soft values and everything that makes you like them. Likeability. Not just sellability. Positioning is long-term. You are not just competing for attention with your industry colleagues. But also with the latest TV series from the streaming services. A new edition of some computer game. One billion cat and dog videos on YouTube. Including. It's hard to stand out.
But we know that better margins, greater loyalty, higher profits are effects of solid brand work.
Want to know more about how to build a brand in a recession?
Get in touch with klas @ kip.se
