Vol. 5 No. 2

Direct marketing strategies for a slow economy

Mailing during uncertain times can be challenging for any marketing director. The inclination is to wait out this period. History shows that during times of national unrest, those companies that deserted their marketing programs suffered in the long run. You don’t want to quit cold turkey. Instead, examine your core business and take advantage of opportunities that will exist in a slow economy. Here are five marketing strategies you should consider.

DATABASE MARKETING – 20% of customers will normally represent 80% of sales.

Start building a better database that identifies and qualifies your best customers and prospects. Collect their address, phone and e-mail. Append customer records with response information like buying frequency, sales volume and product or service needs. Attach any known personal information like birthdays, children’s names, hobbies and their favorite sports teams. Capture additional customer information from checks, business cards, web sites and even news stories in local papers or trade publications.

REWARD MARKETING – The word “FREE” is still the number one response tool.

Try offering free information, gifts or coupons in exchange for customer and prospect data. Give a free gift to a first time customer to strengthen the relationship. The cost of not getting a 2nd sale is greater than the cost of the gift. Offer customers a gift, coupons or discounts in exchange for referrals. Satisfied customers are your best and least expensive sales team.

LOYALTY MARKETING – Membership instills a sense of ownership.

Develop a membership program that provides special customer benefits for card-holders.

Send members an informational newsletter by mail and/or e-mail. Send members notices of new products with member only discounts. Plan special events for members and their guests. Enthusiastic customers will tell others about you and become evangelists for your business.

GUERILLA MARKETING – Keep tabs on the competition.

Have an employee or friend shop your competitors business and get on their mailing list. Use competitors advertising to your advantage by offering to accept their coupons or match their sale price. Ask customers of your competitor, what it would take to get their business….then do it.

MISFORTUNE MARKETING – Grab the opportunity when competitors fail.

When a competitor goes out of business, offer to buy their customer database. Somebody needs to serve those customers. The competitor may also want to help his former customers find a new vendor. It could be a win-win for both businesses. Make a deal with the phone company. Offer to pay a portion of your bankrupt competitor’s, Yellow Page ad. In exchange, the phone company will set up a forwarding option on the out of service phone number. It will give the caller an option to be transferred to your phone.

One of the benefits that can come from dealing with a slow economy is that we get better at identifying customer needs. By building stronger relationships with them we can weather future economy slowdowns.

Your most effective marketing tool is your own customer list. Make sure you have one. Don’t just use the list of companies you send bills to. That’s a billing list. You want a marketing list that includes the information necessary to speak one to one with a customer.