Survival Tactics & Ideas
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This document provides marketing strategies and tactics for navigating a recession. It recommends focusing on customer intimacy through structured and customer-centric efforts. Marketers should evaluate how to convert leads into loyal customers rather than just focusing on lead generation. Both outbound and inbound marketing approaches are discussed, with inbound suggested as a better approach that avoids wasting efforts on uninterested prospects. The document concludes by advising marketers to devise a recession marketing framework and focus on areas where competitors have reduced presence.
Survival Tactics & Ideas
- 1. Tools, Tactics and Ideas for Marketing in the Recession January 27th, 2009
- 3. ...is about turning something which is seen as a negative... ...into a positive – more revenue / sales, greater share of voice and better consumer relationships
- 4. It is all about customer intimacy: People working together in a structured and customer centric way to create customer value and achieve results.
- 5. Result It is not just about the number of leads. It is also about your capabilities to convert these leads into loyal customers.
- 6. Structure: Gain & Retain Leads Qualified Cross-Sell and Up-Sell Opportunities Proposals New customer How many leads were converted into qualified How many opportunities in a given period? customers bought product upgrades?
- 7. Rethinking Marketing Outbound Marketing Inbound Marketing Telemarketing SEO / SEM Email blasts Blogging Print ads Social Media TV/radio ads RSS Trade shows Free tools/trials Direct mail Public Relations Interruption Permission
- 8. Outbound vs. Inbound Marketing 1) Find a “targeted” list 1) Do inbound marketing 2) Call, email, mail the list 2) Attract people to your 3) Most of them (97%) organization have no interest 3) Quality out those that 4) Those that have interest are interested but not a need to be qualified fit (50%) and sold on the company 4) Engage with those that Lots of time, effort and are interested, and a fit money spent on Don’t waste time on uninterested prospects uninterested prospects
- 9. Recession busting at Hobart Two Tactics Hobart Uses to Defy the Recession: 400 Customer Testimonials and 0% Financing Hobart gathered 400+ usable customer testimonials and case histories during the promotion, which they used to create a "great database which is a fabulous tool for selling for their distributors. This library includes testimonials from just about every industry segment we are in around the world.” The online library of testimonials is also highly popular with Hobart's site visitors. Sometimes no amount of superior marketing can make up for all the sales lost to a shrinking economy. A Hobart spokesperson said, "We've had some difficult times this year in terms of top-line sales, but we're very positioned for recovery." Which is smart thinking: Right now it is not just about surviving the downturn, it is about putting systems, relationships, and campaign tests in place so you can bounce into recovery faster the minute the economy allows you to.
- 10. Clio case study Renault launched Clio during a recession Results: They exceeded all expectations, stealing market share from their quieter / dormant competitors
- 11. Throw a party There's enough bad news circulating as it is, don't add to it. Instead, create something fun where people can get together. Morgans Hotel Group is taking the recession head-on with anti-recession themed parties at their hotels across the country. The parties are part of their larger campaign, "RecessIsOn," which includes a micro site devoted to how people are not letting the recession talk keep them down. You can stand out from all the other brands complaining about how tough things are going by throwing a party where your fans and customers can come together. Learn more: RecessIsOn The Lesson: Lift the spirits of your fans by finding a reason to celebrate.
- 12. Bail out your customers What if you could offer your customers a little taste of a bailout? Laguna Grille in New York selects a random table at every lunch and dinner to be "bailed out." The bailout covers the winning party's tab (except alcoholic drinks) and comes with a "Laguna Grille Bailout" certificate. You can bailout your customers by forgiving interest they owe, extending their payment plans, or giving them a freebie. The Lesson: Your customers will appreciate a bailout, even if it's not in the billions.
- 14. Take off the stress Buying a car is stressful enough, so how do you sell one to someone who is also concerned about losing their job? If you're Hyundai, you offer a year-long return policy where customers can return their vehicles should they lose their job or suffer some other "life- altering circumstance" such as a transfer. Take a look at your return policies, payment plans and guarantees. Do they relieve the stress of spending money on your stuff? Learn more: Hyundai Assurance The Lesson: Use your return policies and payment plans to reduce the stress of your customers.
- 15. What should marketers DO? Build cross-marketing relationships with a variety of partners Actively encourage customer referrals Take advantage of no-cost media publicity Behave, company-wide, according to highly ethical and Green principles Use those principles to demonstrate points of difference that cast the company favorably in the eyes of its customers, suppliers, employees, competitors, media, and general public Track, measure, and evaluate all paid advertising--looking both at immediate results and at lifetime value
- 16. Lasso your leads Ensure every lead opportunity is being handled and accounted for properly. What many business don't realize they get good leads, everyday, that "slip through the cracks“ If you can identify and "plug up the holes" in your customer acquisition funnel - your lead generation and sales process will become more efficient. An efficient lead gen process will free up cash and give you flexibility to put more resources into advertising and sales initiatives.
- 17. Work with adjacent businesses Leverage adjacent marketing and sales strategies. Because everybody is "feeling the heat" or worried about the changing economy develop relationships with other companies to pool resources and refer internally. Devise a strategy to offer your customers more service, special offers or other incentives to do business with you because of your relationship with fellow business owners. For Example: If you sell auto parts, develop a relationship with a service station for discounts on gas (of course only available through your store). Develop a relationship with an oil change station, etc. Workout a mutually beneficial referral system that gives each business a better shot at a customer. I guess you could call this a Co-Op Win-Win.
- 18. Keep team on task & upbeat Don't sing the Recession Blues around any staff what-so-ever. If people feel like they have a reason to fail some of them just might - don't give them the opportunity. It starts at the top. Don't ignore reality, be willing to speak candidly about the changing circumstances that impact your business, but don't emotionally "throw in the towel." With the exception of a handful of businesses...the market still exists for what you sell. Somebody somewhere is buying what you're selling. The question is, are you positioned well enough to be the one to sell it to em' and are you capitalizing on every opportunity?
- 19. Mine the gold at home Get more from what „ya got - focus on your existing client base. According to the late Peter Drucker: Your business has a 1:14 chance of doing business with someone with whom you have never done business, You have 1:4 chance of doing business with someone with whom you have had a relationship but have stopped and, You have a 1:2 chance of doing business with an existing customer. So, what does this mean? A great recession proof strategy is to communicate more with your existing customers - focus marketing and sales resources inward. Build a loyal tribe of followers and use your client base to drive referrals.
- 20. Avoid the middle My money is on strong brands with high net promoter scores who are consistently delivering genuine and perceived value. This is a bad time to be Sears and a better time to be Best Buy or Bergdorf‟s. Sears is stuck in the middle without competitive advantage on price, value or service. Best Buy offers both value and service (via Geek Squad) and Bergdorf‟s regulars are unlikely to cut back drastically. Mass consumer brands with a wide range of products would be smart to emphasize their high-end and entry-level models again with the goal of avoiding the middle.
- 21. Partner with a nonprofit Non-profits will undoubtedly feel the pinch as their supports cut back on donations. Mobilize your employees and your customers behind the non- profits you truly believe in and you will be amazed at the good will and good business you will do as a result. It may seem counterintuitive to increase your CSR (corporate social responsibility) now BUT that is exactly why it is worth considering. Your employees will undoubtedly respond with increased loyalty that will also translate into higher productivity.
- 22. Business Building Top 10 1) If you don’t have a marketing plan, create one, even if it’s really simple, to keep you focused on what‟s most important. Having a plan means having a budget, and that can actually help you reduce spending. 2) Avoid the knee-jerk reaction of eliminating marketing expenses just because your accountant says they‟re discretionary. 3) Take extra care of your current customers, because others will be pursuing them, and it costs less to take care of a current customer than finding a new one. Be creative about finding ways to show appreciation that also reinforce how good you are at what you do for them. 4) Examine your budget with a critical eye for how you‟ve allocated, looking at the expected payback of competing line items. If you must cut, do a forced ranking and delete whatever falls to the bottom of the list. 5) Sharpen your statements of competitive advantage (“Why buy from us?” answers), including hard facts and meaningful customer testimonials. Replace “We believe in quality” with “Our customers enjoy 30% less downtime.” Use that to modify your messaging for greater relevancy in the current economy.
- 23. Business Building Top 10 6) Revisit customer pain points that your business can address. Refresh your empathy for customers‟ current situations, and use that in dialogue with customers. 7) Consider incorporating more trigger marketing tactics in your arsenal, i.e. event, life-stage, or interaction-triggered promotions or offers that hit your customer when they‟re most inclined to respond (like promoting snow-blowers right after a blizzard) 8) Use social media tools to focus on topics and conversations about the role your business plays in a difficult economy. 9) If you’re a paid advertiser, try to renegotiate more favorable terms and more added value components from media sellers facing a very soft market. 10) Don’t forget to integrate public relations into the total mix, and don‟t let tight budgets allow you to lose PR momentum. PR will enhance the credibility of everything else you do. It‟s a tough world out there right now, with no safe places to hide. If ever there was a time when your decisions can make a critical difference on the vitality of your business, it‟s now. So what are you waiting for?
- 24. What should marketers DO? Build cross-marketing relationships with a variety of partners Actively encourage customer referrals Take advantage of no-cost media publicity Behave, company-wide, according to highly ethical and Green principles Use those principles to demonstrate points of difference that cast the company favorably in the eyes of its customers, suppliers, employees, competitors, media, and general public Track, measure, and evaluate all paid advertising--looking both at immediate results and at lifetime value
- 25. What should marketers DO? Devise a strategy for marketing when times are tough, so you can revisit it again in future slow downs Evaluate where your marketing dollars are going and only spend in the most effective places Create new, meaningful ways to reach out to prospective and existing clients Focus on brand awareness Increase your networking, including social networking
- 26. What should marketers DO? Think like a winner. Review their marketing expenditures and be prepared to shift dollars around at short notice. As the recession carries on, review their competitors marketing efforts and determine where they are leaving the field open. Shift marketing dollars to increase their presence slightly in areas where their competition has backed off. Encourage their marketing and customer service staff to see this as an opportunity to shine. Award them for their efforts and communicate with them, so they don't fear for their jobs.
- 29. Tools, Tactics and Ideas for Marketing in the Recession Q&A Need help after the presentation? Email dana@marketingsavant.com