When the Going Gets Tough, the Tough Get to Marketing
By Phil Glover
Now that we are coming to the end of what has been a very tough year for business, it is
time to begin to think about how to increase your revenue in 2010. Marketing is always a
sure-fire way to get people excited and knowledgeable about your products or services.
You must always remember that marketing activities and the expenditure of resources is
an investment in your enterprise’s growth. It is an investment in your business. It is not
an expense that you can afford to cut-out or ignore. It is really the life blood of your
business and the engine that makes it grow. Marketing expenditures can help you
increase revenue by keeping the customers you already have and gaining new customers
you want. However you must spend the money to do this and on tighter budgets you
must spend it wisely.
Focus on your best customers. Common wisdom says that in general 80% of the profits
come from 20% of the customers. In tough times that rule can be replaced by a 90/10
rule. Your most loyal customers also spread the word about your brand and create new
customers for your business. So now is time to rethink marketing efforts with your best
customers to make sure that you do not lose them but rather maintain and grow that
relationship. Commit to staying in touch with these customers on a regular basis by using
email for newsletters, creating webinars, and using the internet to write articles (blogs)
that allow you to communicate valuable information about your business and why your
customers should be using your products and services. Don’t forget, phone calls work as
well, there is nothing like talking directly to your customers.
Always maintain your marketing frequency. Research has shown that businesses that
increase advertising during tough times, when competitors are cutting back can improve
market share. You can usually get better advertising prices when times are tough because
the advertisers need the business and not as many businesses are advertising. If you are
currently advertising and need to cut-back, here are some tips to making sure your
customers still see you: move from 30 second spots to 15 seconds, switch from television
to radio, or use smaller ad sizes. The key is not to change the frequency in your
advertising, but rather find ways to save money in the budget. Now is the time to
increase mindshare among the customers of the differences between you and your
competition. The campaign shouldn’t bash the competition but educate the customer.
Talk about how your products or services reduce costs, are made of better quality, and/or
last longer.
Temporary price promotions work. While customers are shopping for the best deal,
don’t go straight to slashing prices, instead offer temporary price promotions. Reduce the
thresholds for quantity discounts, extend credit to long standing customers or price larger
pack sizes more aggressively. Offer incentives that build a goodwill relationship with
your customers. You can offer a frequent buyer discount, use older inventory as a
giveaway, or you might offer a buy three get one free promotion. You can also offer free
estimates or use promotional items such as pens, water bottles or other items when they
pay for your products or services. They will remember and it will result in more
business.
Lastly, remember that the more you put yourself in front of your customers, the more
likely they are to use your product or service. In tough times it is usually the marketing
budget that gets cut first. If you are still actively marketing, this will be your opportunity
to set yourself and your business apart from the rest.
Phil Glover is the Marketing Advisor at the Long Beach Small Business Development
Center (SBDC). Hosted by Long Beach City College, the SBDC is a group of successful
small business owners helping fellow entrepreneurs start, sustain, and grow their
business through low-cost workshops and free one-on-one consulting in business
planning, finance, marketing, and various other specialty areas (Spanish speaking
consultants available). To make an appointment call: (562) 938-5100, or email:
sbdcinfo@lbcc.edu.