They're in an awful place at the moment.
Demographics within both the 48% and the 52% are incredibly diverse, but within those groups they'll need (and want, presumably) to target the liberal remainers scared about brexit (those on the march yesterday), and could theoretically be well-placed to scoop them up if they make the right noises before the Lib Dems do.
At the same time, their biggest complaint is losing a lot of working class support in other parts of the country, and what works for the city-dwelling liberals doesn't necessarily work for for them. It's pretty obvious what, in a perfect world, they should do -- and that's provide a real voice for the working class... but that's easier said than done when a) that working class isn't homogeneous, b) the structures that bound working class communities together have been systematically broken down, and c) it's at odds with the liberal middle class (even upper working and lower middle - if we can still even think in those terms) want and Labour have been providing for the past 20 years.
The sooner we get PR the better. Split the party, get PR, let people campaign on issues rather than around fudged party lines/ideologies, and let this suddenly burgeoning and potentially positive grassroots influx coalesce around campaigns and actual work rather than duking it out in a battle for the heart of the party at the expense of the people the party is meant to represent.