It’s no secret that TV and media often drive consumer behaviour, and with the past few years being particularly unsteady and unpredictable, it’s natural to get drawn into worrying about the ever-looming recession.
It’s easy to listen to the evening news and feel like your business is completely doomed after having one slow month. However, the truth is that (particularly in times of struggle) there are always going to be opportunities to grow and to thrive.
I know that sounds ridiculous, but hear me out!
During times of struggle, humans like to find things to help pick them up; we want to find more ways to get our dopamine hits. At the end of the day, we are emotional and reactionary creatures; we like to feel good!
I recently learnt about a phenomenon known as the Lipstick Effect. It explains how, during times of economic setbacks, people will still choose to purchase luxury items to treat themselves in order to feel better. But rather than buying the ‘handbag’, they’ll just buy the ‘lipstick’ – same great dopamine hit, much less money.
So, how can you apply this to your business?
If clients are cutting back on their big spending, you need to find ways for them to spend less, but more often. People tend to always justify these small ‘allowable’ treats (they’re also usually not doing the maths when it comes to big items versus small!).
Remember, it’s not necessarily the big-ticket items that produce the most revenue over the year. A client that comes in once a month and spends £60 on a scalp treatment and blow-dry is actually worth more to your business than someone that comes in once a year for a £300 service.
By realising that humans will always seek out dopamine hits in times of financial hardship (and that dopamine is addictive, hello sugar addictions!), you can ensure you’re offering your clients something that they can’t resist coming back to.
So, how do you do that?
No matter how small the service you’re offering, make sure it’s big on the ‘all about them’- ness. Give clients the Ritz-Carlton customer service, even if it’s just a fringe trim! When they step into your space, it’s all about THEM. The salon needs to be flooded with sensory treats – think scented candles, brewing coffee and relaxing music. You want clients to feel like they’ve stepped into another dimension for the time they’re with you.
Rather than blame the economy, look at how your clients are starting to behave and work out how to tailor your services to that. Recessions are the time to go back to basics and get to know your business again. Who are you? Who are your ideal clients? What are they looking for from you?
During a recession, you have only two choices: complain and blame or adapt and grow. If you choose to adjust and evolve, you’ll always have the tools to weather any economic storm – that is the difference between the businesses that last a decade and the businesses that are passed down through generations.
It’s not survival of the fittest, it’s survival of the most adaptable.
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