The Best Time to Buy Customers
A recession could be the very best time to acquire new customers. Many businesses use a recession as an excuse for cutting back marketing expenses. Taking this approach to outlast a downturn in the economy is a very poor choice. At a time when you should be beating the drum louder, knocking on more doors, and ensuring customers discover your products... many businesses are waving the white flag of surrender.
While the consumer may be tightening his belt, there are still plenty of ways to enter into a lasting relationship with your target market. In the end, any business that chooses to engage customers during a recession will win a larger market share than his competitor. How you decide to face a recession will determine if your business will live long enough to enjoy the booming economy in the near future.
In the late 1920's, Kellogg's and Post dominated the packaged cereal market. At the time -- packaged cereal was still a new market. Ready-to-eat cereal had been around for decades, but Americans didn’t see it as an alternative to oatmeal or cream of wheat. Usher in the Depression. No one knew what would happen to consumer spending. Post did the predictable thing, and cut marketing expenses and advertising.
Kellogg took a different approach by doubling its ad budget. Kellogg moved aggressively into radio advertising, and pushed its new cereal - Rice Krispies. Even as the economy was tanking around 1933, Kellogg’s profits grew by almost 30%! At that moment in history - Kellogg took the lead as the industry’s dominant player - and Kellogg remains at the head of the pack today.
It would stand to reason that every company would want to mimic Kellogg’s success. However, when hard times hit most companies take the path of Post. Those companies reduce spending, and wait for the return of better times. Fewer acquisitions are made, even though advertising prices are significantly cheaper. They cut advertising budgets. And many often invest less in research and development as well.
Companies like this do all these cost cutting procedures to preserve what they have. But there is a major down side to this decision! Studies have shown that when you keep spending on acquisition, advertising, and R&D during recessions - you do significantly better than those that make big cuts.
Certainly, one way to analyze these studies is to decide that recessions make the strong stronger and the weak weaker. Yes - the strong can afford to keep investing while the weak have to devote all their energies to staying alive. But - even if deep pockets help in during a downturn, recessions really do create more opportunity for small challengers - Not Less!
When everyone is advertising, it’s hard to separate yourself from the pack. But when ads are fewer and farther between, the returns on your investment seem to rise steeply. That may be why during the recessions in the 1990's, twice as many companies leaped from the bottom of their industry to the top!
Use low cost marketing methods to increase customer traffic, reduce costs
Review these Magnificent Seven: Maverick Marketing On a Dime tips. Putting any one of these outstanding, low-cost marketing methods to work for your business will reduce costs significantly. Combine all seven and you will be able to rocket any promotion well ahead of your competitor. Even if you can’t start with a costly marketing campaign during a recession – take these tips and use them to their fullest. These Magnificent Seven Tips are the building blocks and foundation for real customer service, and lasting customer relationships.
Magnificent Tip No. 1 - Press Releases – Use Newsworthy information about your company to write press releases. Distribute the press releases to Editors at newspapers, magazines, and television & radio stations. Cross your fingers – and hope at least one media outlet runs the story. Or – invest in one of the popular Press Release tools online that get the hottest stories into the hands of the most eager Editors.
Magnificent Tip No. 2 - Trade Shows – Going to a Tradeshow and setting up a booth can be very expensive! Visiting the best shows covering your industry are often free – and a sure fire way to connect with others interested in your services. Take enough promotional materials to feel comfortable handing the pieces out to anyone who is interested. After the tradeshow, make sure you follow up with a Call, Email, or Letter. Continue the conversation you started at the tradeshow – and you will soon build a long list of prospects.
Magnificent Tip No. 3 – Online Advertising – Setting up a Website to promote your business is very inexpensive today! The Internet is one of the best ways to reach lots of people quickly. Beyond your own space on the Web, you can visit newsgroups, forums, chat rooms, and job posting boards that focus on service areas your business fulfills. Be certain to clearly display your phone number, email address, and website address on all of your posts. This way – anyone interested in following up knows how to contact your company. And since the Web never sleeps – you will be generating leads while you sleep!
Magnificent Tip No. 4 – Freebies, Handouts, SWAG - Joe Girard, The World's Greatest Salesman, would attend Major League Baseball games and release a cloud of business cards into the crowd from the highest bleachers! Business Cards, Cheap T-Shirts, Hats, Stickers, and other SWAG are chap and effective ways to begin branding your company. These items can be traded for prospect contact information, and used as bundled bonus items. Think how happy your customers would be to find a free t-shirt with the delivery of their next order. Even if it doesn’t fit – someone will wear the shirt – and your business will get free marketing!
Magnificent Tip No. 5 - Classifieds, Print and Digital – Even with the advent of the Internet – many newspapers and local print publications are a household standard that will not be easily replaced. Contact your regional, or local newspapers and get your classified ad in the next edition. Talk with the Editor about the best ways to cross-reference your classified ad in different service areas. Try to get your ad to stand out by using highlights, large italicized & bold text, or with the purchase of a larger ad space.
Magnificent Tip No. 6 - Public Service – Get out in the community and make a difference in the lives of your customers! Search the local paper for current events at some of the active local civic organizations. You may consider being a Sponsor to the Special Olympics, helping at the Rotary Club Christmas Tree sale, or volunteering time to teach at the Boys & Girls Club. Any of these community groups would be grateful for the help. And you will be pleasantly surprised at the level of networking, and amount of opportunities opened to your business.
Magnificent Tip No. 7 – Contests, Parties, and Premium Bonuses – Holding a prize giveaway from time to time will help generate interest in your business. Hosting an Open House at your office provides a networking opportunity to all your guests. Packaging your services with premium bonuses will also draw more attention to products that may be suffering from a sales slump. Whatever you choose to do – have fun – and enjoy being in business for yourself!
Hopefully you now realize that a recession could be the very best time to acquire new customers. Your business can leverage the low costs of buying from other businesses in a recession to increase your market share. Take this approach and you will walk away from any downturn in the economy with a bright outlook on the future.
You've discovered some ways to beat your drum louder, knock on more doors, and ensure customers discover your products. Your competitor may already be out looking for another job if he chose to wave the white flag of surrender earlier. Even with your consumer tightening his belt, you've put cost effective new methods to work which will help you to enter into a lasting relationship with your target market. In the end, your business will truly engage new customers during this recession - and as a result will win a much larger market share than your competitor.