I am just summarizing a project about “Effects of the Downturn” – hundreds of weak and strong signals were collected* that are – directly or indirectly – related to the recession.
Reading through these observations has a depressing effect: Millions of people are losing their jobs. And those who don’t are worried about losing their jobs. The feeling of insecurity and uncertainty leads to frustration, sometimes to riots, sometimes to mental problems. The way of life that was taken for granted has become fragile, and as an effect we see downsizing and reduced consumption.
A lot has also been written about the opportunities that the downturn brings, and this is something I definitely believe in: There is an upside to every downside. Depression is not the only possible reaction.
Yet, one opportunity, one way of responding to the crisis is very often overlooked, also by me. That is surprising because it is actually about a very simple, very human reaction: Responding with compassion and empathy.
When a friend is worried and frustrated, you care for her, listen to her, cheer her up. Now we see many signals pointing to the same friendly, compassionate behavior – but coming from companies, employers and governments.
For instance Dunkin' Donuts, a restaurants chain in Florida, are offering customers a free cup of coffee every Wednesday throughout February. "We appeal to the consumer that earns a hard day's wages and wants a real, down-to-Earth, quality product," Dunkin Donuts announced. The new Chevrolet Aveo was advertised in credit-crunched London this month with a billboard advert made entirely from one-pence coins. The installation only lasted 30 minutes as hundreds of passers-by seized their moment to pick up a penny or two.(see a video here)
The fashion retailer Anthropologie (U.S.) is giving away styling tips in free “reinvention workshops” to help women get the most out of their existing wardrobe. “We wanted to share something really personal,“Anthropologie’s chief merchandising officer, Wendy Wurtzburger explained.
Coca-Cola is is launching a new global ad campaign with the claim “Open Happiness”, “hoping to appeal to consumers' longing for comfort and optimism at a time when the weakening economy is sapping soft-drink sales.” (WSJ). BusinessWeek reports today that “Indian CEOs take voluntary pay cuts to avoid layoffs.-“We will lead by example in taking the initiative,” an Infosys director is quoted. Besides showcasing leadership, such actions could help restore confidence among employees, the article confirms.
Of course, companies are under cost pressure and may not think they can afford to show compassion. But for one thing, showing compassion does not necessarily translate to giving away a free lunch. A message that simply acknowledges that “we’re in this together” can go a long way. And secondly, this is not a time to make big profits, but it may well be the time were companies can form lasting emotional bonds with their clients and employees and establish a level of trust that was hard to reach in the not so far away era of conspicious consumption and career hopping.
Coca-Cola’s Open Happiness campaign reminded me of a research project that the New York Times wrote about last December: A long time survey found that happiness is contagious and therefore, even strangers may cheer you up. Or in other words: You and I can influence how deep the depression is allowed to go. :-)
*at Finpro we use Trendwiki to collect weak signals and turn them into applicable foresight.
