The recession through rose-colored glasses

04/16/09 Paste Interactive

By now, you’ve probably heard that we’re in a global economic recession. The International Monetary Fund has projected that the world’s economy will shrink by around 1% in 2009. Around now you might be saying to yourself, “Well 1% isn’t that bad.”, but think about the scale of those numbers for a moment. Global GDP for 2008 amounts to around $69,490,000,000,000 (yes, that’s $69.5 Trillion), so one percent of that equates to, roughly, the combined GPD of Japan and India (who have the third and fourth largest economies in the world, respectively). No way around it, that’s a pretty bad prediction. But the doom and gloom spouted by 6 o’clock news can be a good thing. You’re a small business, not a mega-conglomerate car manufacturer or a giant bank who’s facing a balance sheet full of toxic assets, which means that this recession can work in your favor, you just have to know how to work it.

Shaken, not stirred
In good times, it’s easy to get funding for new ventures. VC’s and Banks are dying to give money away and new companies are rushing to market to get a piece of the action. All of this adds up to a market completely saturated with companies of every conceivable form; some of them good, most of them crap. But during a down-turn companies that were barely squeaking by are culled from the roster, and many of the top companies in any given industry will fall from their perch high up the ladder, victims of their own successes. Down-turns will always shake things up and so long as you’re not a small business that falls into the “squeaking by” category this is fantastic news. The room gets a little quieter and it becomes easier to reach potential customers. Yes, you’ll probably have to launch your app from your closet to get it started, but since when was that a bad thing? Remember that saying about your necessity, mothers and inventions? Stay lean, stay flexible and stay in business.

Recession Proof Fence
I know we’ve said it before and this is continuing proof that we’ll say it again, but customer service is the single most important place to invest your time once your app is up and running. That said, good customer service doesn’t mean you have to dote all over your customers and grant ridiculous requests; heck, you don’t even have to grant reasonable requests, but you do have to genuinely listen and genuinely respond. Remember, web app marketing isn’t a sprint, it’s a marathon and it’s all about nurturing your tribe. If you’re saying no to a customer request, especially if that request is even remotely reasonable, take the time to give a short explanation of why your hitting them with the big rubber “Rejected” stamp and thank them for taking the time to suggest it. It’s not hard, it doesn’t take a long time, but it goes a long way towards building an evangelical following that will fight ‘til the end in order to remain your customer.

Give it away, but don’t forget to hustle
No, I’m not talking about giving away your app for free. Becoming a company that gives product or services away for free will not help you become the next Google. It won’t even help you become the next company acquired by Google. In fact, the only sure thing that it will help you become is out-of-business. I’m talking about giving away your thoughts, your words, your ideas, your creativity. The more quality content you set free into the world, the more traffic your site will draw, the more discussions you’ll start and the more people will see the things that you are charging money for. But don’t forget to hustle: Use all of that content to make sure people know about your app or service. It doesn’t need to be used car salesmen-esque, just a mention will do, but make sure you’re raising awareness every step of the way.

Remarkability beats Marketability
Remarkability means that your product or service is worthy of remark. Worthy that someone would take time out of their day and pass along your message. Many companies get into the weeds during an economic downturn and quickly confuse what it means to be remarkable in their market. Throughout the golden age of the Madison Avenue advertising firms the principle goal of any product designer was to create something that was marketable. Something that the advertising people could spin into a beautiful campaign with bold headings and glossy images of happy housewives cleaning their already polished kitchens with your product. The game has changed. Marketability doesn’t mean anything anymore. The speed at which information travels and the absolute transparency of the internet mean that people are far more likely to be tipped off to a new product by a trusted friend than they are to click through a flashing banner ad to your glossy campaign. Spend that marketing budget questioning conventions and working hard to create something that is truly worthy of a remark. It is the only way you are going to stand out in the slightly quieter room of this recession.

Just because the news and the IMF are painting a grim picture doesn’t mean you have to accept your fate with a stiff upper lip. The internet is an incredibly resilient industry and, given their low startup costs and minimal overhead, web apps are uniquely positioned to continue doing well, recession or no recession. All it takes is a little optimism and a bit of extra hustle.