No matter how you look at it, we are in a challenging and unpredictable economic climate. While economists avoid uttering the word "recession" until necessary, 62% of consumers believe the U.S. is in a recession, according to a report by First Insight, which surveyed 1,000 people in April. And businesses feel the pinch.
Inflation, retail spending leveling off over an abundance of inventory, high food and gas prices, supply chain problems, rising interest rates—all of this creates a perfect storm that makes business leaders ask themselves, "How do I protect my business when the economy is volatile?"
We need to create efficiencies. Maintaining and controlling cash flow is critical during economic instability. When a business faces financial difficulties, customer relationships are affected. Cost-cutting, upcharges and anything to make up for lost revenue can impact your base. However, loyal customers are less likely to stray. You've already got their trust. In 2020, when it seemed things couldn't get any worse, 57% of consumers admitted to staying loyal to a brand amid the chaos.
A flexible channel strategy is key to protecting your business and your brand and retaining loyalty. It allows you to move products efficiently and diversify opportunities to reach the consumer. It also allows you to maintain and control your cash flow. Here are three reasons why it works:
at Forbes.
