When long established businesses were asked at the start of the year for their top tips for surviving a recession*, diversifying products and customer base ranked among the top ten.

The companies questioned had one thing in common; they had traded their way through previous recessions and come out the other end.

They agreed that looking at ways to adapt or broaden the appeal of a product, or finding new markets, may be a way of maintaining and growing a business in hard times.

"The companies that are reacting in this way appear to be the ones that are netting the fish in the small pool of opportunity that currently exists," said Doug Mackay, Managing Director of specialist headhunters, Collingwood Search and Selection Ltd.

Few industries have suffered like the retail sector in recent months but as quickly as high street stores have been closing their doors, their online competitors have been emerging to take up the slack.

Research from Google shows that UK consumers have significantly altered the way they shop as their disposable incomes have fallen. Searches using the term "luxury gifts" are down by 29% while searches for "voucher codes" rose dramatically, with over a fifth of online shoppers only buying when they can get a discount.

Matt Brittin, Managing Director of Google UK, said the smartest retailers are investing in their websites to ensure the shopping experience online is as seamless as on the high street.

"The recession is accelerating changes in consumer behaviour and shoppers are hunting for the best possible value by searching for sales, special offers and discount vouchers," he said.

According to the research company, TNS, the businesses staying afloat are those who are scrutinising customer data far more than they were in the past and acting on the information to give people what they want.

 Headhunters at Collingwood believe their own success during the downturn is the result of hard work, listening to clients and adapting to their changing needs.

"We've been completely flexible in the way we operate, spending more time with clients, offering a more bespoke service and different payment options," said Managing Director Doug Mackay.

"Our approach is paying off and we have won some prized business as a result."

Getting the basics right and delivering great customer service were also among the top tips issued by industry stalwarts earlier this year. As companies cut back on advertising, "word of mouth" recommendations are becoming more valuable than ever.

This is a trend that the online retail site Shop Direct has noticed with customers posting more than twice as many product reviews than before. The company believes consumers want honest opinions on goods, services and value for money.

It's a trend which seems to be reflected across the business sector.

"It may sound odd, but there have been some very positive business lessons to come from this recession, such as focusing on customer service, building stronger relationships with existing clients and learning to take a more flexible approach," said Doug.
(*Survey by O2.)