Marketing During Slow Economic Times
The economy has slowed and so has business for many companies because they have slowed marketing during slow economic times.
As owners examine their P&Ls for line items to reduce or cut, marketing often rises to the top of the list.
The reason is simple.
A company believes it can get along without running ads and having a strong public relations program in place.
On the other hand, they need employees, equipment, vehicles, and have to pay rent.
Marketing budgets will most likely shrink along with staff size.
History shows this is a mistake.
In the long run, those who are most successful keep their services in the minds of customer and prospects, despite the economy.
Consumers don't stop buying during tough economic times.
They may become more selective, but they are still going to buy most likely from a brand they know.
The more visible you are, the more confident your customers and prospects become.
By reminding them of your stability and staying power, they will put more trust in your business.
Nothing could be worse than cutting marketing if you're trying to save your business.
According to an article published in the Harvard Business Review, "It is well documented that brands that increase (marketing) during a recession, when competitors are cutting back, can improve market share and return on investment at lower cost than during good economic times.
" A recent survey that asked more than 250 service companies about their biggest marketing challenges revealed that 42% answered "Spending my marketing budget effectively" and 22% answered "Knowing what attracts customers.
" Cutting marketing may produce short-term results but will negatively affect long-term profits.
It's those companies who continue to market aggressively during the slow times that will be on top once the economy turns around.
Word of Mouth Many service companies rely on word of mouth as their primary means to generate new businesses, even in tough times.
Unfortunately, customer spending is so constrained that relying exclusively on word of mouth isn't sufficient for many businesses.
In the past, word of mouth (referrals) automatically came in, but without a structured referral generation program, many companies are seeing a decline in this "automatic business.
" So what's a company to do? Reallocate marketing dollars into areas where you get the most ROI.
In addition, have the people in place to get the most value from your marketing.
If your marketing is successful and you don't have people in place, then the dollars spent on marketing are wasted.
Tracks all leads and calculate cost per lead and cost per closed sale so you know exactly how your performance based marketing is performing.
Another effective method is clover-leafing the neighborhoods where a service company works.
Some service companies have incorporated technology throughout the company, including marketing.
For example, after every phone call with a customer or prospect - whether or not a sale has been made - email a flyer listing all the service packages you offer to the caller.
Because people buy from those they like and trust, reinforcing relationships with current customers is key to effective marketing during a down economy.
Each of your current customers is a company asset so maximizing the value of those assets can help a company through tough economic times.
Other companies are saving on printing costs by targeting fewer vs.
more prospects by focusing on high-value customers and printing smaller numbers of targeted flyers.
In these difficult economic times, don't take the hunker-down and wait-it-out mentality.
Clients still need your service! View this downturn as a positive and evaluate your marketing and continue what's working for you.
Try these ideas
It's the worst thing you can do.
As owners examine their P&Ls for line items to reduce or cut, marketing often rises to the top of the list.
The reason is simple.
A company believes it can get along without running ads and having a strong public relations program in place.
On the other hand, they need employees, equipment, vehicles, and have to pay rent.
Marketing budgets will most likely shrink along with staff size.
History shows this is a mistake.
In the long run, those who are most successful keep their services in the minds of customer and prospects, despite the economy.
Consumers don't stop buying during tough economic times.
They may become more selective, but they are still going to buy most likely from a brand they know.
The more visible you are, the more confident your customers and prospects become.
By reminding them of your stability and staying power, they will put more trust in your business.
Nothing could be worse than cutting marketing if you're trying to save your business.
According to an article published in the Harvard Business Review, "It is well documented that brands that increase (marketing) during a recession, when competitors are cutting back, can improve market share and return on investment at lower cost than during good economic times.
" A recent survey that asked more than 250 service companies about their biggest marketing challenges revealed that 42% answered "Spending my marketing budget effectively" and 22% answered "Knowing what attracts customers.
" Cutting marketing may produce short-term results but will negatively affect long-term profits.
It's those companies who continue to market aggressively during the slow times that will be on top once the economy turns around.
Word of Mouth Many service companies rely on word of mouth as their primary means to generate new businesses, even in tough times.
Unfortunately, customer spending is so constrained that relying exclusively on word of mouth isn't sufficient for many businesses.
In the past, word of mouth (referrals) automatically came in, but without a structured referral generation program, many companies are seeing a decline in this "automatic business.
" So what's a company to do? Reallocate marketing dollars into areas where you get the most ROI.
In addition, have the people in place to get the most value from your marketing.
If your marketing is successful and you don't have people in place, then the dollars spent on marketing are wasted.
Tracks all leads and calculate cost per lead and cost per closed sale so you know exactly how your performance based marketing is performing.
Another effective method is clover-leafing the neighborhoods where a service company works.
Some service companies have incorporated technology throughout the company, including marketing.
For example, after every phone call with a customer or prospect - whether or not a sale has been made - email a flyer listing all the service packages you offer to the caller.
Because people buy from those they like and trust, reinforcing relationships with current customers is key to effective marketing during a down economy.
Each of your current customers is a company asset so maximizing the value of those assets can help a company through tough economic times.
Other companies are saving on printing costs by targeting fewer vs.
more prospects by focusing on high-value customers and printing smaller numbers of targeted flyers.
In these difficult economic times, don't take the hunker-down and wait-it-out mentality.
Clients still need your service! View this downturn as a positive and evaluate your marketing and continue what's working for you.
Try these ideas
- Reactive lost accounts.
- Provide superior service to current customers.
- Create a structured referral program and incentivize your current customers to refer to your company.
- Re-evaluate your marketing spending and reallocate dollars from large expenditures (like Yellow Pages) into several other efforts.
- Get out there! Be a vigilant networker.
Join an active networking group and make the most of it! - Don't stop marketing.
It's the worst thing you can do.
Source...