How do you keep marketing and sales moving forward during a downturn/recession?
As more and more media pundits and economists beat the drums of recession, the question for business owners is, "What now? How do I keep marketing and sales moving forward? Where should I spend my money? What should I be avoiding?" I'd like to hear your answers. I will be sharing the results in our April 1 teleseminar on the same subject (signup available at http://www.tripledogs.com/events/9 if you're interested in taking part in the panel discussion and/or Q&A).
Good Answers (4)
Brian M
Conversion Scientist™ and Online Marketing Strategist
Best Answers in: Business Development (2), Advertising (1), Internet Marketing (1), Blogging (1)
Don't assume you're customers will participate in the recession. If you don't measure your marketing programs, you'll never know if cutting back -- or turning up the heat -- is what you need to do.
Michael S
mike@seidle.net - CEO Indy Associates - Internet Marketing - Affiliate Program Management - SEO - twitter.com/indymike
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Thomas -
- Qualify better - especially focus on financial control.
- Sell short term savings and ROI.
- Focus on efficiency - your clients are doing more with less.
- Use this time to get to know your customers better. Your deep customer knowledge will serve you well in challenging times and in good times.
- Which of your customers are hurting; what can you do to help them survive? They'll help you if you help them.
- Don't panic and make knee-jerk decisions based on short-term thinking. Take a deep breath, look at the long-term, and stay the course.
Links:
In every industry there is a silver lining. You have to find yours. Any change in the economy will cause you to re evalutate your business. I have learned that being patient will sometimes help. If you are in fact feeling a slow down in your business, it's a good time to focus internally. Sharpen sales skills, and evaluate business processes within your own company. But above all, DON'T PANIC. Patience is prudent.
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Richard K
World’s first (used to be only) marketing sociologist. Background in marketing, public relations, and journalism.
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Mr. Myer:
Contact me. I like your comment about media pundits. I have a series running in the Arizona Republic how the media is creating the recession. Sure, home sales are down, but that industry asked for it with greedy realtors and immoral mortgage brokers (not all, but that industry attracted many of them. smell of easy $).
If you were in tourism in Arizona, or Las Vegas, you would say it rains $$. Best tourist season in Arizona history, especially since dollar is worht 60% of Euro.
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Gary M
Consultant - Internet Development & Social Network Marketing
Best Answers in: Internet Marketing (1), Viral Marketing (1)
I believe the trend toward more social media marketing will do well during a recession. The cost are lower for businesses, and if done correctly, the viral impact could be significant.
I would focus my efforts on the "conversation" aspect of social media through blogging, rich content development, seo efforts etc., rather than simply placing ads in those communities, .
I would also build the effort toward getting closer to you current client base through online focus groups and customer service initiatives. Specifics of where to spend and what to build in terms of social media largely depend on the product or service, the target audience and goals, as would what to avoid.
Coming from the creative side of things, when work slows, we find this to be the best time to devote energy to self-promotion and improvement of all aspects of our processes.
This might also seem counter to the desire to save, but spending money on individual training can go along way to retaining valuable employees who might otherwise begin to get a bit nervous during these times.
That’s a good question, as that is what our firm and lots of others are looking into doing right now.
In a target market selection most businesses will have consumer segmentation such as Demographic, geographic or psychographics segments mapped out for their product or service. They also know what kind of media will get to those people in groups.
Here is the real question that depends on the above criteria, how can we carryout these marketing messages to those end consumers and have it cost less. My answer would be to focus less on those non-users who you are trying to persuade and focus first on your own loyal customers to repeat buy. My secondary target would be to find a way to help potential clients who are loyal to other brands to switch to your brand.
New product development, new service platforms and by looking to expand into new categories of business outside your core competencies. Human nature is to resist change- to stay stagnant with roots affixed rather than looking to grow. If you choose complacency and lose focus you can trip into the recession vat. Our GDP is driven by consumption- we want the newest, the latest and the greatest- new products and services should therefore be the focus. Keep charging forward- don't let yourself fail- keep primed with new technology, new style, and new direction.
Tom-
Wow! Tough question without know exactly what you include in marketing: blogs, websites, adverting in its many forms, research, etc.
I’ll stick to sales. Your product is a complex, intangible, with long sales cycle and often multiple decision makers are involved…..as hard as it gets.
The first step is understanding that more cold calls are required. Passivity, waiting for the phone to ring or email doesn’t work in challenged times. In sales of complex products, metrics, measurement of activities that produce deals is critical. For instance, in your situation the first obstacle is target acquisition, Who can I call? It appears that you have a good base of contacts in Linked in. Use it! Find other sources after this is exhausted.
Next, set measurable goals: 10 calls/day to people that don’t know you. Then, set a goal for proposals to do business, 1 per week, or whatever makes sense based on past history.
I know this not very romantic, or sexy. But this is the way I’ve programmed myself and sales people in hard times; pick-and-shovel work pays off. There is no silver bullet.
Consider this: Any fool can tally dollar volume of sales. Only great sales people have the discipline and know how to track the activities/behavior that produces revenue in the long run.
Clarification added 6 months ago:
PS: This is not intended as a recommendation for you, Tom. I'm using your business as an specific example.
Steve
I have a different take on handling this. As someone who views every problem as an opportunity, you will need to look at long term maximisation while not sacrificing efforts to stay afloat or maintain existing position.
While most organisations spend all their energy and time on staying afloat, some organisations use this as an opportunity to draw future trends,expand and be ready for the kill since any downturn in economy is not permanent.
Its best to get proactive than ride the wave.
Ron J
Gets Things Done
Best Answers in: Public Relations (3), Customer Relationship Management (2), Manufacturing (2), Business Development (1), Lead Generation (1), Sales Techniques (1), Packaging and Labeling (1)
Hi Thomas:
Recessionary times really separate the excellent from the mediocre.
Technically, we are all supposed to be selling value to our customers, but only a minority actually follow through on this while the balance don't really walk the talk.
In recessionary times, customers are uncertain about the future. Their sales volume. Their costs.
On the sales side of things, the sales people who quantify how their product (or service) can save their customers money will be one group that will succeed. The other group that will succeed are those sales people who can show their customers how using their products or services can help them grow their business.
This is something I've been able to do - whether the value-add is a tangible like capital machinery or packaging or an intangible like graphic/package design.
With one of my customers, a large international winery, I used to go in once a year and present about 10-12 new package concepts to their marketing team. While they didn't always generate an immediate sale, I would get a product manager coming back saying "I liked your idea A, but can you make it do Y?" What I really wanted from the presentations was to engage their imaginations and position our company as the one who could make their ideas come to fruition.
Of course, it also helps to be able to back up your claims with case studies or examples.
Bottom line is that, if you can show your customers how to save money (reduce their costs) or make more money (grow their business) with a realistic return on investment, you can make the recesesion work to your advantage.
Customers are looking for more than just a vendor. They want a partner.
Best regards,
Ron Jamieson
Plasmatreat North America