How Brand Owners Can Reduce Costs
We understand the challenges brands are facing, and we are here to help them cut costs intelligently, without sacrificing the quality of their service.
3 Jul 2023
Read nowPublished: 17 Jul 2023
Rather than avoiding the tough subjects, Lexsynergy tackle them head on and in this article, we are addressing the recession. As the ominous clouds of a potential recession gather, cost-cutting measures become the norm. However, amidst the whirlwind of financial constraints, it is crucial to recognise the long-term consequences of reducing essential services. In this blog, we take a look back at the Great Recession of 2008, highlighting the dangers of slashing services and emphasising why maintaining a robust online presence, supported by a reliable domain registrar, is paramount.
Decline in domain registrations
During the past recession, there was a decline in domain registrations as businesses faced financial constraints and reduced their spending on non-essential items, including domain names. This led to a slowdown in the growth of the domain industry [1] however, businesses that significantly cut services during the recession faced challenges in rebuilding customer trust and recovering market share after the economy improved. In-fact the significant investment and resources required to rebuild service levels post-recession led to further issues that competitors who maintained service levels did not have [2].
Increase in domain portfolio pruning
To mitigate costs, numerous domain owners opted to trim their portfolios during the recession. They let go of low-value or non-profitable domain names, believing it would alleviate financial pressure. However, this approach proved short-sighted and consequently, businesses limited their ability to expand, explore new markets, and protect their intellectual property online [3].
Rise in domain name disputes
As businesses faced financial difficulties, the number of domain name disputes and cybersquatting cases increased. Companies sought to protect their brands and trademarks aggressively, leading to an upsurge in costs and legal battles over domain names [4]. This illustrates the importance of being proactive in your online brand enforcement, investing in the protection of your intellectual property as early as possible.
Negative impact on brand reputation
Reducing services during a recession can inadvertently tarnish a business's brand reputation. Customers may interpret these cutbacks as signs of financial instability or an inability to meet their needs. Such negative perceptions can be hard to shake off, damaging trust and long-term customer loyalty [5] Preserving a robust online presence, even in challenging times, helps protect your brand reputation and instils confidence in your target audience.
Next Steps
As we stand on the precipice of the next great recession, it is vital for businesses to learn from the mistakes of the past. The 2008 Recession taught us valuable lessons about the dangers of reducing services during challenging times. By recognising the long-term consequences of such actions and partnering with a reliable domain registrar committed to client success, you too can weather the storm, safeguard your brand reputation, and emerge stronger in the post-recession landscape.
At Lexsynergy, we understand the challenges brands are facing, and can be the compass to navigate you through the darkest of clouds. If you manage domains for your business and need guidance through economic uncertainty, then please get in contact below for a cost comparison quote to measure up the potential savings.
Sources
DN Journal - 2009 Year-to-Date Top 100 Sales Chart
Sage- How to prepare your business for a recession
Sedo - Global Domain Market Study 2009
World Intellectual Property Organization - WIPO Domain Name Dispute Resolution Statistics
Forbes - How To Preserve Your Brand During A Recession
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