Ok, I get it, we’re in a recession so CSR and all those promises you made in the glory days of 2007 regarding the environment and the local charities you were going to help have been put on hold.  You haven’t forgotten, you’re just tightening your belt, weathering the storm, playing the long game, ready to lavish your time, effort and money once the future looks a bit brighter. 

The logic is there, albeit flawed: but consider this.  In many industries the hard times have encouraged businesses to look for lucrative public sector contracts where budgets have yet to be cut and are looking the most secure.  Of course public sector work demands the public money and there is no hiding from that boss, they’re everywhere, know everything and will have a tantrum to end all tantrums if they don’t feel they’re being kept in the loop.

Enter the tender process: long, laborious and sometimes disappointing, companies will spend hours making sure they are shown in the most favourable light.  You’re often competing like against like too, similar size, experience and cost structures.  So how do you differentiate yourself and generate that all important competitive advantage?

In the last few years CSR has become a buzz word in business, what you’re doing, how you’re doing it, how you can let people know that you’re ‘nice.’  But it isn’t just about nice.  It’s also about market awareness.  Globally 79% would prefer to buy products from environmentally responsible companies (Havas Global Media Survey, May 08) and recent trends have shown an increase in demand for brands to be open and honest; transparent about who they deal with and vocal about what matters to them.  As our industry rightfully evolves to become market orientated we would be stupid not to listen to our clients and respond accordingly.

So what’s this got to do with the here and now?  It’s quite simple.  Act responsibly now and reap the benefits.  CSR might have been a buzzword in the past but it is very real in the present and in order to gain competitive advantage it needs to be taken seriously.  Public sector and large corporate clients will not consider working with agencies that aren’t demonstrating a real commitment to sustainability and the effects their actions have on both their local communities and further afield. 

Do not be fooled into thinking this is an easy option.  The rapid evolution of digital technology has made communicating with clients a two way conversation rather than a single sided drip feed of corporate poomph.  If you make claims you can’t substantiate you will suffer when exposed; the commitment needs to be genuine and the action has to be real.  CSR doesn’t have to cost the earth but requires considered planning and careful management.   The ROI however will be very real and may not only help you survive the forecasted bleak months ahead but give you a real advantage to capture a sizeable market share when the casualties have been announced at the end of it.

Still not convinced?

All of it gives business strategists, marketing managers and even financial directors food for thought at a time of year normally reserved for vibrant optimism and renewed energy. But what level of optimism do you plan for?

“This time next year Rodney, we’ll be millionaires”

The vibe out there at the moment is one of cost-cutting, downsizing, outsourcing and at best consolidating. But is this the way to steer even the most unsteady ship through these rather murky waters. It might keep you afloat in the short term but is it the right long term recipe. For a minute, let’s look at the positives of the situation most of us outside Abu Dhabi are in.

Though companies are dropping like Audley Harrison, it’s generally the weaker performing ones in most sectors who are feeling the pinch. Woolworths and MFI were sitting ducks in any economic climate. Clearly there are some sectors just struggling across the board but you show me someone who has any sympathy for greedy bankers and I’ll show you a Brazilian who wants to play at Man City for anything other than money.

Closer to home, the couple of agencies we’ve heard have closed doors or run into difficult times weren’t really upto that much anyway. Wheat and chaff situation in other words. Clearly they had ‘positional’ issues as has been much cited in Woolworth’s case.  In essence, poor performers are being squeezed out, opening up market share for more efficient operators. So when the good times roll again and the total market spend increases, the companies at the top of the tree should actually be better off than pre-recession.

Secondly, it’s an appropriate reminder to all business managers who’ve been complacent about people, performance, rising overheads and so on, for far too long, hiding behind a falsely inflated economy.  If you’re only waking up to obvious deficiencies in your business model now, you’ve really only yourself to blame. It may be too late but if it’s not, you’ll probably learn a lesson or two along the way and resolve to improve in the future, whether or not you’ve had a kick up the backside.

Back to the word ‘positional’ and this is my key point. If you are going to react now by cutting costs, squeezing margins and readily entering charge out negotiation with either consumer or client…I think it’s a slippery slope to be on.

“He who dares wins Rodney…that’s my boy”

Try this. Hold your prices, review your own costs (without putting your whole supply chain out of business). Those suppliers that agree to cut costs were never really that good in the first place anyway, so find someone better. Those that say no will inspire you to do the same. Then look at your market share. If the market is dwindling clearly you need to increase share. How? Entering price wars with everyone else, offering service levels you can barely maintain when quiet, throwing in a cuddly toy. Nope. Try ‘brand differentiation’. Something that works on all levels. Elevate your offer, position yourself away from the crowd, do something different, enter deeper more meaningful relationships with your audience, start a new dialogue.

Then play safe with the most targeted and effective communications your marketing budget will allow. This is not time for wishful thinking but measurable campaign activity and brand building exercises. Those companies that differentiate themselves now and work hard at getting the right message in front of the right audience will be left standing, holding all the trophies when those rays of economic sunshine start to beam down again. Those that are intent on hiding under the nearest rock while it rains, unfortunately won’t even know when to come back out. They’ll still be there while the rest of us are slapping on the lotion.

“Lovely Jubbly”