More Advice From The Trades

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The other day I was visiting with a fairly new business and the conversation centered on how they were established, the owner turned to me and said "We didn't have a job anymore, so we created a business and found the work to fund our jobs". This was a small 5 person business 4 years ago that has grown to over 30 employees that has expanded because they are good at what they do and the need is there for the solution they provide. 
Today I see every sales position charged with finding the work to fund the job.  Finding the work and providing a cost-effective solution in Radio, Television and Interactive is getting more dificult all the time but in a continuation of yesterdays post, MediaPosts' Marketing Daily Commentary with Eric Holmen focussed on The "R" Word....

"Utilize online and other new media and technologies whenever possible, as these generally enjoy a lower incremental cost than their mass-media counterparts
The Choice Generation's media savvy is eclipsed only by its facility with technology. The economic crisis is highlighting the effectiveness of marketing initiatives, particularly among this group, which is fueling the continuation of the move away from expensive, expansive mass media advertising and marketing. This move is best exemplified by the long term rising trend in online marketing. Campaigns are becoming more targeted, direct and individual, as these are the qualities that yield the highest redemption rates, increased ROI, and overall better relationship with customers. (When was the last time you ran the LPG EFS Generator in front of a client to show them how defined the ROI is for them when they understand the value of a new customer generated from a lead that your property generated? Have you strategically planned the upcoming year with the client?  Have you identified all of the profit centers and the Buyers Awareness Cycle for each center?  Are you able to quantify and qualify the results from the campaign with simple tracking devices?)

Forget spray-and-pray; build relationships
During a recession, the focus for many retailers is on customer retention- a move that resonates with established consumers, particularly among the Choice Generation. Instead of trying to identify and reach out to new customers during this tumultuous trading period, many retailers are -- and should be -- targeting their existing consumer base, particularly with high-touch online and emerging channel communications. These contacts are the most valuable assets a retailer can have, and they must be nurtured and developed with the same enthusiasm as new business development. (Do your clients have any kind of customer data base with phone numbers, addresses or e-mail addresses?  Does your property have the same tool of listeners or viewers?  Your clients have built Top Of Mind Awareness with your listeners or viewers already, they have a relationship so placing an offer to the consumers that your property reaches is much more effective than a mass direct mail campaign. Build a tool to e-mail blast your audience with that integrates the offers from your clients with information and value they want to know about. Be realistic about the results as still only 1% of your audience is in the Buying Cycle for any good or service at any particular time.)

Actively seek innovative solutions
While it may seem counterintuitive to explore new strategies and solutions in the teeth of a financial crisis, the slowdown in business activity may actually present an ideal breeding ground for new ideas, the examination of existing solutions and shopping for others. This is a great time to try a new online strategy, or to explore other tactics aimed at bridging the Choice Generation gap, as many marketing specialists and other solutions providers are willing to work more competitively for your business. (Just as the business owner I mentioned created his job, you too must create solutions and ideas for your clients. Toss ideas or needs around with the staff, it is amazing that simply talking about a problem or an issue can generate some truly great ideas from those that surround you.  Don't be afraid to take a concept from another market or medium and make it work for what you are doing)

Give customers what they crave: a discount
It's common-sensical: 67% of consumers are more likely to use a coupon during a recession, indicating a significant desire for discounts during hard economic times. On second thought, let's make that a significant need. And while it may not be a revolutionary statistic, it does present a receptive audience for businesses that have previously avoided discounting. If there was ever a time to tout value and real savings, it's now. (Your property website could contain coupons, your e-mail blast could contain coupons, your live action broadcasts could hand out coupons.  In the market I live, restaurants have partnered with the TV station and its' website to offer Double Coupons.  The customer purchases a set amount of goods or services through the property website and gets a matching amount.  They have generated good revenue with this campaign and have provided a solution to slumping sales as people purchase the coupon deal.)

Try online and mobile couponing
Online coupons are effectively replacing print coupons, as they are almost universally more cost effective and more responsible in terms of impact. Targeted, opt-in messaging yields both quantitative and relationship-building results from the online channel. Mobile coupons have also been steadily gaining traction for years, but with the slowdown stimulating consumers' appetite for money-saving tools and the explosion of mobile phone use approaching critical mass, mCoupons could be the wave of the future. In fact, 24% of all mobile users have responded to a mobile coupon or other mobile offer in the past year. Try it and you'll see the possibilities. (You could attach the mCoupon to Instant or Text Messages of your property database)

Be a pragmatic optimist: prepare for the worst, but market to a resurgence
If all the analysts are correct and this season does end up being one of the softest on record, those retailers who have optimized their existing customer relationships, embraced the Choice Generation, and engaged in cost-effective marketing tactics will be best positioned. That said, retailers cannot market from a defensive crouch. This season, like others, will favor the bold and innovative. (This is why we advise our clients to continue to market through a recession so they don't give up market share or top of mind awareness with consumers. We know it costs at least twice as much to get a new customer as it does to retain and grow an existing customer but we need to help our clients reach out to thier existing customer base anyway we can)

Once again we have a list of suggestions but turning those suggestions into solutions for your clients is what defines you and your competition.