Looking back over 1st half of 2009 we see that the current economic downturn was on most everyone’s mind. This brought us to the realization that every business owner is desperately seeking an answer to the slow-down. So, we thought we would put some thoughts online.
Marketing in an Economic Down-turn:
1. Don’t believe the hype – Turn off the evening news. The economy is never as bad (or good) as it seems. Regardless of where you get it (ABC, NBC, CNN or Fox News) the Evening News is exploiting your worst fears and fear sells. It’s a never ending Soap Opera that keeps you tuning in night after night to see what happens next. The only way left for them to increase the “bad economy” hype is to hire Billy Mays or that “Sham-WOW” guy to deliver it to you. TURN IT OFF. When my friends and clients ask me “How is the recession effecting your business?” I simply tell them “We have decided not to participate in the recession this year”.
2. The Good News – Now that you have turned off the “Bad News”, here’s the good news. Economic recovery is on the horizon and it’s time for you to position your company for it. This is not the first slow-down the US economy has seen and you’re not the first business to go through one. Keep working on your business. Find a business owner that has taken his business through the recession of the 70’s, this man has a lot to teach you. Pick up a book on building a better company. This will get you in the right frame of mind to work on your business. My personal favorites are “From Worst to First” by Gordon Bethune and “Nuts” by Herb Kelleher.
3. Keeping What You Have – Keep marketing to your current and past clients. This is the cornerstone of marketing regardless of the economic situation. Everyone likes to think they have a 3rd Degree Black Belt in customer service, but are you really working hard to build and maintain a relationship with them after the sale? Just because someone did business with you and was happy, doesn’t mean they are automatically coming back. Your current clients are your competitors’ prospects and you’d better believe they are working hard to reach them and convince them to make a change. Remember, It’s less expensive to keep your current clients than to find new ones. Maintaining a relationship with them is much cheaper than trying to rebuild it later on.
4. People Forget FAST! – As much as we like to think our customers will never forget us, THEY WILL. How many times have you heard the name of a restaurant and said, “I haven’t eaten there in months!” Why? It’s not because the last time you were there the food was bad, or that the service was lousy, it was because you forgot, plain and simple. That restaurant did not get any advertising in front of you to remind you to come back. “Out of sight” equals “out of mind” and out of mind equals out of business. Keep marketing to your current clients. Your current clients are your competitors’ prospects.
5. Cutting Your Way To Victory – Cutting your way to Victory, is like spending your way out of bankruptcy. It’s not going to work. Managing your expenses is a part of business regardless of what the market is doing. Cutting your marketing expenses in bad times is a BAD IDEA. You need to be in front of consumers and remind them to come to your business. If your business is slow now, wait until you stop advertising!
6. Preparing for the Upturn – You know it’s coming, so let’s be the first ones in line to greet it. For decades, Toyota would keep their advertising to a minimum waiting for GM, Ford and Chrysler to declare a “slow market” and pull their advertising from the airwaves. Once they did, Toyota came out with guns blazing, grabbing up a huge share of the car buying market because they were the only ones asking for the business. What are your competitors doing right now? …Strap on your Six Shooter…
7. Building Your Brand – In an economic downturn your competitors are cutting back their advertising and that gives you a perfect opportunity to build up your brand. Are you the top restaurant in town? If not, here’s your chance! Best financing options for Carpet and Furniture? Cars and Trucks? Consumer goods? Now is the time to let people know. You may be the only one of your competitors advertising. And, with fewer advertisers out there asking for business, your message will stand out easier.
8. Bargains, Bargains, Bargains! – If you are hurting, rest assured – so are the local media outlets, making it the perfect time to bargain for ad space and time, both in price and position. In most cases the more advertising space you buy, the more it is discounted. So, if you’re considering placing long-term advertising, place it all now. Over the next 6 months, the economy will rebound and advertising prices will rise, so see what you can do to lock in the prices for the long term.
9. Capture Your Clients – Do you have the address and/or email address of your current clients? If not, GET IT. And, remember this information is not free! You have to give them something in return for the information or they will not give it to you. Getting this information will help you coax their prompt return.
10. Give Them Something Real – I can’t tell you how many times I’ve heard people say “I sent out a coupon for 10¢ off their next $100 purchase and no one brought it in”. Well, no kidding. Give them something real. Own a restaurant? Tell them you’ll send out a voucher for a free meal. Own a Golf Shop? Send them coupon for a dozen balls. Maintenance Shop? Send them a voucher for a free oil change. Your offer has to have NO STRINGS ATTACHED. This list is crucial to your future business. Don’t be afraid to spend a little money to get it and use it as a tool to build and strengthen your relationship.
11. Go forth with Faith. Make a plan and stick to it. We all know this economic slowdown will not last forever. Historically, the average downturn lasts 14 months. That puts us just past the midway point. Now is the time to position your company and focus on the good economy that’s on the horizon. By grabbing market share now and not waiting (like your competitors will). This will send them scrambling to catch you this fall.
I hope this information has been helpful to you. If there is anything we can do to help you through this slow-down please give us a call, we’d love to help!