Recession Strikes, Interfax Information Services Group Steps up to the Plate with a Nimble Business Plan

One doesn’t need to look much farther than their neighborhood bar or restaurant these days to see the signs of the recession in New York City.  Two for one deals, “recession specials,” and inexpensive prix-fixe menus at popular, high-end restaurants have become the norm.  The once impossible reservation is now just a phone call or even an OpenTable click away.  Case in point- I recall a recent New York Times article regarding Thomas Keller’s renowned Per Se restaurant where the reporter essentially said their value proposition was out of touch given the current economic environment.  Per Se responded with an updated menu.

Thriving at OfficeLinks New York Officespace

The lesson from what’s happening in the restaurant world is one that can be applied to many businesses.  In order to navigate the difficult economy, companies must be humble and adjust to the times.  This was one of many important pieces of advice I received from Roddy Salazar of Interfax during a recent interview.  Interfax provides essential news and other information products, focusing mainly on Russia, countries of the former Soviet Union, China, and Central Europe, for decision-makers in politics and business.  Roddy opened his company’s first New York City office at OfficeLinks’ 40 Wall Street location in July 2007.  With a nimble business plan, Interfax is prevailing despite the obstacles.  Roddy, like many NYC restaurant owners, knows that client retention is key.  Here are some of Roddy’s pointers for client retention:

*Lose the arrogance.  Be humble.

*Move with the environment. Ensure your strategy is agile and adept to the current marketplace at all times.  

*Engage your clients.  Roddy shared with me that he pre empts the “we’re canceling our account” discussion by providing his clients with a powerful value-add.  Further, he went to each of his clients and assured them that there would not be an increase in the cost of their subscriptions.

*Provide a superior value proposition. People are extremely selective with their money.  Therefore, businesses must provide a superior value proposition (remember value proposition=benefits/cost) in order to have the edge over their competition.  Per Se recognized that the recession wasn’t going to stop people from eating but they needed to enhance their value proposition to beat out the competition at their particular price point.  Roddy knows the need for information is just as crucial as ever.  His challenge, and it appears that he has stepped up to the plate, is to create a powerful set of benefits that outweigh the cost.

With client retention in the front of their minds, Interfax is positioned to grow and capture opportunity.  My guess is that its competitors who struggle the most will be the ones who remain too rigid in their approach.  Right now, Roddy’s tips are extremely timely.  In fact, the interview made me think about what my own company, OfficeLinks, is doing lately to adjust to the current marketplace.  Similar to Interfax, we are focused on client retention.  OfficeLinks is continually inventing creative ways to improve our value proposition.  A good example is the recent launch of our CoWorking program, which enables mobile workers to take advantage of our state-of-the-art work environment.