Beat The Recession By Going Back To Basics
by Alf Nucifora
This is not a column about gloom and doom. There's enough of that
going around already. But, based on my 100+ days on the road this
year and the avalanche of resumes that I continue to receive from
formerly well-paid, recently laid-off job seekers, what we have
on our hands is certainly as bad as if not worse than 1990-1991.
Can't see most of '02 being any better.
It strikes me that we have two available options
fear or be imaginative, aggressive and fight back. The clarion call
is for common sense, not panic. In football parlance, it's the fundamentals,
the blocking and tackling, not the long ball.
The Basics As We Forgot Them
Revenue is the door opener: In most environments
today, particularly B2B, the demand is for more sales. That's what
they want to hear. If you have a legitimate, credible story as to
how you can help a company generate revenue, management will clear
the calendar with great haste to hear what you have to say. This
message is a particularly strong door opener for consultants and
Don't cut marketing: Particularly advertising support.
It's the first thing that most companies do in an economic downturn
because it is the easiest course of action. But all it does is concede
the playing field to the competition. Statistics clearly show that
marketers who increase their spending during a recession experience
sustainable long-term gains in market share and profitability.
Market to your base: Revisit your loyal customers,
the ones you have probably taken for granted and ignored of late.
And now is the time to consider instituting a workable CRM system
that will help you identify and nurture that loyal base by maintaining
an on-going communication channel with them.
Start sponsoring: In times of stress, consumers gravitate
to the familiar. Your job is to be there as a touch point. That
means event promotion, cross- promotion, cause marketing, all of
the in-the-trenches, one-on-one, hard-working marketing labor that
many companies forsake for the ease of an advertisement or commercial.
It's not a matter of either/or, but both.
Try something new: Consider test markets, new products/service
introductions and any new revenue stream that got put on the back
burner when times were flush. If the old revenue streams are drying
up, where is the risk in experimenting? Remember, no guts, no glory.
Think vertical: For small businesses in particular,
understanding and mining a vertical segment makes good sense. Dig
in and dig deep. Capitalize on the credibility that you have built
up and sell it aggressively, particularly through referral and word
of mouth. Don't be afraid to leap frog from segment to segment when
you think you have a translatable story to tell.
Client retention is key: The importance of "the
relationship" with the customer never diminishes. For most
small businesses, developing and exploiting the relationship is
the one major advantage they have over the big players who don't
have the time and energy for it in the first place. And, don't forget
the added value. Customers crave it but don't get enough of it.
When was the last time you gave serious thought to providing the
value-added premium in a customer transaction? (Customer service
comes to mind.) It's a failure that comes from taking our customers
and clients for granted. And, on that point, the best way to gauge
the value of your customer relationships is to seek feedback, anything
from third party evaluations to mystery shopper programs to written
Be the "Terminator" of new business: Now
is the time to undertake that aggressive, long-term new business
program. Segment the prospects; maintain a disciplined follow-up
program (monthly touches, telemarketing, e-newsletters); and remember
that it is a process of water torture
consistent and persistent
approach and attack. Don't hesitate to contact prospects out of
the blue with an idea as to how you can legitimately impact their
business. In focus groups, prospective buyers quite often remark
on how little they get called on or approached with a legitimate,
new perspective about their business.
Don't forget self-promotion: When times are tight,
most small businesses tend to give up on self-promotion. Now more
than ever we should be super-aggressive about telling the world
how good we are by seeking high visibility clients, taking on select
pro bono assignments, hitting the speech circuit and chasing "ink."
The best line on the subject comes from Kevin Roberts of Saatchi
& Saatchi, "Consumers don't stop buying when economies
go through down cycles. They look harder for value." The job
of the survival marketer in '02 will be to identify that value,
proclaim it loudly and go after the thinning customer herd where
others show fear and give up. To keep the sports analogy alive,
now is the time to know the playbook and never, never take your
eyes off the ball.