3 design-based strategies for beating an economic downturn

Phil Barrett of Flow Interactive offers 3 design-based strategies for beating an economic downturn.

1. Innovate your way out

Innovation doesn't mean throwing money at blue sky projects and hoping for miracles. You can cut out masses of risk by using a structured design process:

• Contextual research. This isn't market research with surveys and focus groups. Contextual research is about observing and participating in people's lives to get the dirty truth about what they need, what they want and how they behave. The innovation often seems obvious when you've got the right information.
• Conceptual thinking. Get your team together. Have lots of ideas. Stay out of the details and explore the new and usual stuff - that's where inspiration comes from.
• Evaluation with target users. Make cheap prototypes any which way you can, and watch target customers try it out. Even if the feedback is not what you want to hear, it's better to face harsh reality in the R&D lab than out in the open market.
• Iteration. Your first attempt will be shaky. Keep testing and fixing your product's design until your customers tell you its ready.

2. Optimise, to squeeze more from what you have

Digital marketers make a lot of noise about acquiring new customers. That's certainly an essential element of a successful business. But keeping your customers happy when they get to you is worthy of at least as much attention. There's a rule of thumb: acquiring a new customer is 6-10 times more expensive than retaining an existing customer. So a solid strategy when times are hard is to plug the holes in your "leaky bucket," and stop website visitors from pouring out as fast as you can pour them in.

3. Cut costs by improving the customer experience

Organisations that work to improve the customer experience benefit from reduced costs. They can entice customers to the most cost-effective channels and they generate fewer negative customer experiences and fewer expensive service calls.