| Four Strategies for Growth | | | | starting in 1949. |
| Recession or economic downturn? Does the term | | | | Recession Growth Strategies |
| really matter? All I know is that yesterday I stopped by | | | | 1. Customer Focus - I'm sure you have heard this |
| my local gas station to fill up my car. Nothing starts you | | | | before - focus on your customer or your competitor |
| day better than a $60 gas bill and a cup of coffee | | | | will steal them away. Well it's true and we both know |
| (wow - $60 just to fill my little Saturn - it used to be | | | | it! What is also true is that people remember bad |
| $30)! | | | | economic times more than good! Being there with your |
| News about recession is an everyday event. | | | | customers during bad times can create a bond that is |
| Foreclosures, high food prices, escalating healthcare | | | | hard to break. This is also a good time to evaluate the |
| cost just to name a few! It's taking a great deal of | | | | worth of your customers. Are they profitable? Can |
| mindshare with our customers. Whatever the state of | | | | they become profitable? If the answers are NO - this |
| our economy - our individual perception becomes our | | | | might be a good time to fire them! Don't drag down |
| reality! Feelings of fear and uncertainty make us go | | | | your resources on customers that are not profitable. |
| back to our basic survival instincts. If gas now costs | | | | Use your current customer base to profile the perfect |
| $60 when it used to cost $30 - I need to find $30 that I | | | | customer. Then go out and market only to those that |
| can cut to keep my life in balance. Don't even mess | | | | fit that profile. No use expending marketing dollars only |
| with my $5 cup of coffee - I need that to stay sane! | | | | to bring in more unprofitable customers! |
| You see it's all in our perception. However, in business | | | | 2. Marketing Message - ALWAYS remember that |
| this can be the difference between survival and | | | | your customers perspective IS reality! Nothing else |
| growth. | | | | really matters! How is your customer responding to the |
| History has shown that during economic downturns; | | | | economic downturn? How can your product or |
| cash flow becomes our compass. (Google "The Hot | | | | service help them? Be sure to stay away from price |
| Dog Story" for one of the best stories of cash flow | | | | wars during this time. If you customers are full of fear |
| navigating during down times.) You would have to | | | | and uncertainty - you need to increase their |
| agree that the goal of any profitable business is to | | | | confidence and deliver more value. Confidence and |
| increase incoming cash through sales by capturing | | | | value perception are far more important to them than |
| more market share. The catch is, that by doing so, you | | | | price at this time. We know we need to make buying |
| also need to increase the outgoing cash for sales and | | | | decisions - we just don't want to make BAD buying |
| marketing. Therefore creating more fear and | | | | decisions! |
| uncertainty! You see most perceptions are based on | | | | 3. Guerrilla Marketing - The term "Guerrilla Marketing" |
| the fact that we have complete control over cash | | | | was coined by Jay Conrad Levinson in his book |
| disbursements and no control over sales. | | | | Guerrilla Marketing. It's based on the premise that the |
| The fact of the matter is that increasing sales and | | | | best marketing is free marketing! You will get more |
| marketing during economic downturns is one of the | | | | business from referrals, publications, other |
| best investments you can make. Marketing is all about | | | | unconventional methods with a system and a very low |
| capturing mind share in your market. If your | | | | budget. I also call this MacGyver Marketing - look |
| competitors are like most businesses, they will be | | | | around and use what you have to market and sell. For |
| tightening their belts and cutting their marketing dollars. | | | | example, while golfing the other day, as we drove up |
| Therefore, statistically, you can gain more mind share | | | | to the 9th tee box , a message popped up on the |
| for the money. With supply and demand low, you will | | | | GPS screen in the golf cart asking if we were hungry? |
| also get better prices for your media. | | | | It also allowed us to place our order so they would be |
| Recession Facts | | | | ready for us at the club house upon finishing the 9th |
| Let's examine a few facts - McGraw-Hill Research | | | | hole. If that's not MacGyver marketing I don't know |
| analyzed 600 companies from 1980-1985. The results | | | | what is. It is also important to note that especially during |
| showed that business-to-business firms that | | | | down times it's important to keep a balance marketing |
| maintained or increased their advertising expenditures | | | | portfolio. Don't invest heavily into one strategy. It's best |
| during the 1981-1982 recession averaged significantly | | | | to hit you market with multiple points of entry. |
| higher sales growth, both during the recession and for | | | | 4. Watch and Learn - If I told you that a $1000 |
| the following three years, than those that eliminated or | | | | advertisement would yield you 100 great leads ($10 per |
| decreased advertising. By 1985, sales of companies | | | | lead), you would probably buy. However in reality it only |
| that were aggressive recession advertisers had risen | | | | yielded 10 average leads ($100 per lead) you might not |
| 256% over those that didn't keep up their advertising. | | | | be as quick to buy next time. With today's technology, |
| In addition, a series of six studies conducted by the | | | | marketing has become a science not an art. As a |
| research firm of Meldrum & Fewsmith showed | | | | science, experiment with your marketing. Don't just |
| conclusively that advertising aggressively during | | | | stop doing it - tweak it! But have a process to know |
| recessions not only increases sales but increases | | | | when it's not working - but then try something totally |
| profits. This fact has held true for all post-World War II | | | | different! |
| recessions studied by The American Business Press | | | | |