Cheaper to take market share

The Finance industry roller coaster offers new turns and twists. A few weeks ago, the interest rate was on its way up to counteract inflation, and now it turns the other way. Suddenly everyone is talking about deflation and draws parallels to Japan, where not even zero interest can bring back the consumers shopping mood.

Deflation is not primarily about falling prices but about the mental effect the state has on us humans. Nobody wants to make a bad deal and as long as we believe that the car, computer, skis will be a little cheaper if we just wait, we will. Waiting means reduced demand leading to reduce production, which ultimately leads to unemployment.

Now when it comes to psychology, economists obviously have no sharp-edged weapons to assemble. Lower interest rates, lower costs, lower…? It is time to let the CFO rest for a while. Perhaps one of the others around the oblong table is to bare the solution. What was it the marketing Director was talking about again?

Falling prices will make it cheaper to take market share and strengthen the relationship with consumers – those who are sulking and now want to be comforted.

You can comfort them! The opportunities to do so cost-effectively via the internet has never been better, so aggressive efforts no longer equals a deep hole in the pocket and shoddy methods of evaluation. Focus on the customer’s Return On Attention - give them hope and brighten the gray recession weekdays with offers that help them to act.

The difference between those who are now only on a diet and those who instead focus on investing and building will appear when we get out of the tunnel. Well out in the light, we are guaranteed to familiarize ourselves with a lot of strong new brands.

Those who built at low cost.