The perceived credit crunch has had a detrimental effect on the US economy specifically and the worldwide economy in general.
When this type of concern takes hold of consumers and businesses, it generates a psychological response that causes people to tighten things up and run households and businesses lean. That has happened over the last few months.
With the announcement the FED was cutting benchmark rates by 50 basis points, it gave a huge psychological boost that should be good for business and online marketers. It'll take a little time to sink into the minds of people, but it'll get there fairly quickly.
Growth online has slowed some, along with the rest of the economy, as people had concerns and fears from the mortgage crisis and how it would impact them.
The major concern for marketers now is how the weakening of the dollar will effect their businesses in any big way.
We may need to dangle some extra incentives in front of people at this time until they feel a little safer. Giving discounts in times of concern is also a proven strategy that works to loosen up people and get them to spend.
If you serve the business market, you may find yourself having to do the same thing.
Even with the rate cut, it would be a good idea to add value in some way to your online offerings and special discounts on slower moving items. Just like it takes time for negative news to get into the minds of people, it is the same with positive news as well. There is a lag we need to consider in these types of moments.
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