How to survive a down economy

An economic downturn provides exciting opportunities for a savvy direct marketer. Many of your competitors will be cutting marketing budgets. They’ll decrease spending on traditional media and turn to less expensive methods. A true marketer will take advantage of these times.

A research study was taken by McGraw Hill after the 1980 recession. They found that the businesses who kept marketing during the recession averaged a 275% growth over the next five years. Needs and wants do not go away during a recession. Companies with top of mind awareness will win.

Where are the opportunities? Every dollar you spend needs to solidify your customer base and be able to take business from your competitors. The best opportunities lie in these four areas.

1. Nurture your best customers. Keep them happy. Provide value. Sell them additional services. Find prospects that look just like your best customers.
2. Target industry segments. Use success stories that show your proficiency for servicing an industry segment.
3. Look at other parts of the country. There are regions, states and cities that might be better off than your primary marketing area.
4. Market to smaller companies. Organizations with fewer employees can change quickly.

What do you change? Eliminate all non-selling advertising. The principals of direct marketing should be part of every ad, brochure, sales letter and communication you use for marketing. Follow the AIDA formula…Attention, Interest, Desire, Action, that includes a strong offer and multiple response methods.

Direct mail has grown during every recession. E-mail will continue to grow. The telephone can still be used for B2B prospects or for B2C customers. By combining all three marketing methods you’ll stay ahead of competitors that have backed off.

Your recipe for success will be powerful 1-2-3 multi-channel promotions. Target your database segments with relevant direct mail, followed by e-mail, followed by a phone call.

How can you improve customer value? Find out what your customers value most about you. Sell that value proposition and incorporate it into every aspect of the business. This will help with customer retention which leads to referrals which leads to new customers and continued growth. Here are ways to promote value.

• Use case studies - Prospects see them as a testimonial and customers are reminded of the value you provide.
• Win awards – Industry awards and community service awards provide FREE public relations.
• Develop creative pricing – Don’t discount to customers. Cutting prices will hurt long term. Do offer frequency and volume discounts. Provide more for the same price.
• Survey your customers – Do a third party mail or e-mail survey. Learn what customers like or don’t like. It’s a touch that shows you care.
• Maximize referrals – You’ll close 5 times more referrals than leads.
• Attend trade shows – Attendance at trade shows is down, but those attending have money to spend.
• Find a cause - Now is a great time to donate time or services to a good cause. Positive PR comes to those who give back to the community.

Thomas Jefferson said, “The man who stops advertising to save money is like the man who stops the clock to save time.” This still holds true 200 years later.

For more information (and samples) on how to develop a 1-2-3 Multi-Channel Promotion, contact A.M. Mailing at 800-410-MAIL (6245) or e-mail info@ammailing.com.