1. Increase your marketing spend but do it smartly

Many companies reduce their marketing spend in a recession which is counter-productive, to say the least. Make sure you don’t. In fact, I recommend that you increase it,  but increase it smartly.

Let me explain …

First, ensure all your advertising and marketing is measurable. Then - rigorously test and measure all your advertising efforts – all your promotional offers, your sales copy, your headlines, your sales copy, your landing pages, the media you advertise in, the list you market to, the timing and more.

Measure the cost per lead, cost per click through, cost per sale, profit per sale. Identify the approaches that are most profitable then expand on them. Run those ads more frequently. Test increasing the size slightly. Test those winning ads in other publications. Use those winning marketing pieces as the control and continually focus on beating the control.

2. Change consumer perceptions

When the economy is thriving, people love buying – that’s a given. It’s an adrenalin-rush. Consumers justify purchases as a well-deserved reward. We buy for pleasure.

In a downturn, the thinking shifts. Buyers think more about buying to avoid pain or because something is a ridiculously low price and they buy just because it is a bargain. Or we buy to reward themselves, but with small indulgences that give us an instant buzz like gourmet chocolates instead of a new piece of jewellery.

The companies that thrive in a recession are ones who know how to adapt their service/product offering (price, range, appearance, features, positioning) so consumers see their product differently … so they “perceive” that you have adapted your product to meet their changing needs.

Note, I highlighted the words, “perceive” in the above.  It isn’t about completely overhauling your product and destroying your profit margins in the process. It’s about creating a perception in the consumers’ mind … a perception that your product has changed with the times and continues to meet their changing needs.

It’s then about artfully communicating your marketing message so customers see that your offering IS a fit for where they are at.

3. Build stronger customer relationships

In a downturn, companies often cut costs and unfortunately, one of the costs that they often cut is in the area of customer relationship management. You may have heard the statistics that it’s at least 6 times easier to generate repeat business from an existing customer than it is to attract a new customer. That’s why it’s so very important to build strong relationships with your existing customers. It’s more cost effective. It’s more powerful. And it will lead to a dramatic increase in highly profitable word-of-mouth. So – develop a customer loyalty program.

Communicate more frequently with your customers. Show them how much you value their business. Add value to them. Make a difference to their lives. Ask them to purchase again on a regular basis

And – if you’re already doing that, see what you can do to do it better. Make them feel even more valued.

This isn’t about paying lip-service to CRM and doing a 5/10 kind of effort. It’s about doing a 10/10. It’s about creating a WOW experience.

4. Offer amazing customer service

Now, more than ever, people are craving “connection”. They’re craving experiences or those little highs to take their minds off the economy. The companies that continue to give customers an amazing, a REALLY amazing customer service experience, are the ones that thrive during a recession. Know what the “moments of truth” are in your business.

What are the customer touch-points and what kind of experience are customers having at each point in the transaction with your business. How can you do things much better? How can you put a big grin on your customers’ face at each and every step of the way.

Sure, it may cost a little more to train your team … to go that extra mile … to add in little value-added extras with each purchase but you’ll be repaid ten-fold … especially considering that this is an area where many of your competitors will be cutting back.

5. Increase market-share in your existing market segment

As we all know, during a recession, the size of the market shrinks but don’t react by focusing on developing a new market (not yet anyway). Focus first on increasing your market-share. In other words, win customers away from your competitors. Do that by offering better service, better marketing, a more attractive brand, more effective sales process.

Global Financial Crisis sorts the men from the boys. It’s often the companies that are less effective at marketing that lose market-share and maybe even fold during a recession while the savvy marketers hold or increase their following.

6. Study the market and look for new market segments that are growing

A downturn stimulates the emergence of new markets - consumers looking for different types and differently priced products. What are you noticing in your industry? Is there an opportunity to adapt your product to meet the needs of that market? Is it possible to introduce a new product to that market in a cost-effective way?  Is there an opportunity to create a Blue Ocean Strategy like Cirque du Soleil or the paint repair people or Bikram Yoga did, like I mentioned in last week’s article.

A downturn stimulates the emergence of new markets - consumers looking for different types and differently priced products. What are you noticing in your industry? Is there an opportunity to adapt your product to meet the needs of that market? Is it possible to introduce a new product to that market in a cost-effective way?  Is there an opportunity to create a Blue Ocean Strategy like Cirque du Soleil or the paint repair people or Bikram Yoga did, like I mentioned in last week’s article. http://www.wordsthatsell.com.au/marketing/marketreinvention/

Where to now? We’re running a free tele-seminar on “Words that Sell in a Recession” on Thursday 4th June (June 3rd – USA). To find out more go to http://www.wordsthatsell.com.au/copywriting-teleseminar/ . Or – email us about specific ways we can help you recession-proof your marketing (in each of the above areas and more).

Kristina Mills - Transformational Marketer and Direct Response Copywriter

CEO - Words that Sell

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