Tough financial times? Now is NOT the time to cut your marketing budget.

Early this week I found out about yet another friend in the marketing industry that has been retrenched.  Not just herself, but the entire marketing team of 4 people - one of which has been with the company for 20 years.

It's a topic that affects me personally having recently been 'let go' from my dream job - marketing a museum on a World Heritage Site (yes, I'm a bit of a museum nerd.)  Trust me when I say that I didn't go quietly.  I wrote every report and pulled every figure that I could think of to convince the company that getting rid of their marketing department (i.e. me) would not benefit them in the long term and would quite possibly be detrimental.  But to no avail.  The decision had been made.

Something people often forget is that marketing is an investment of both money and time.  Marketers often spend weeks and months developing strategies and relationships to benefit the business that many only come to fruition a few months down the line.  By not committing to these relationships and strategies or cutting them entirely, you've not only lost out on the reaping the benefits, but also all the hard work that you've already paid for.  

I know times are tough, but whatever you do - Don't Stop Marketing!  I know that technically we're supposed to be out of the recession, but many businesses are still feeling the crunch and will continue to do so for a while so I've written this post with tough financial times and recession in mind.

"Consider this - if you in fact cut (stop) your marketing budget, how will your consumers find you? You have severed your business lifeline and future hope of potential growth," says Laura Lake, About.com's marketing guru.  

We're not the only people who think so.  Take a look at some of these online articles :

•  In This Recession, Would You Buy From Your Company? 
• The Importance Of Marketing During A Recession
•  KM Marketing Communications - Smart Marketing in a Recession 
• “Turning Adversity into Advantage: Does Proactive Marketing During a Recession Pay Off?” 
  
  

"It is well documented that brands that increase advertising during a recession, when competitors are cutting back, can improve market share and return on investment at lower cost than during good economic times." says Professor John Quelch of the Harvard Business School.  

One strategy is obviously not going to suit every size and type of business.  Small and medium sized concerns don't usually have the cash reserves to keep them going that larger ones do, but this doesn't mean that all is lost.  You'll just have to learn to get smarter with the money you have.  And remember :  the money you spend on marketing is not an expense, it's an investment.


I've found some wonderful online articles and resources for small businesses which I will list below, but some things I wanted to point out are :

• Social networking is not "absolutely free" : It may not cost you rands and cents, but you will certainly have to put in a lot of time - especially if you're new to it.  Decide whether you really have the time to spend on it or if it would make more sense to outsource. Everyone is feeling the pinch and you can probably find someone to manage it at a pretty reasonable price.   

• Know what you want to accomplish :  Spending a few minutes setting specific goals will save you hours (and cash) in the long run.  Do you want more followers on your Facebook page?  Do you want more people to visit your store on Saturdays?  Do you want to sell those last few items in a discontinued range?  Your campaign strategy will be far more effective when you have a clear idea of what you want your result to be.

• Always calculate your ROI : How do you know if your marketing has generated hard cash?  You have to regularly assess your return on investment to make sure that you nip under performing campaigns in the bud before they cost you too much money.  What about print advertising?  Create ads that include a response from your customers. For example, ask a customer to clip a coupon, present the advertisment to get the deal, or something that gets you a physical piece of your advertisement. Instruct your sales staff that when customers turn in their "Ad" or coupon, they must write how much money the customer spent on the back of those ads and coupons.
  
  At the end of the promotion, gather up all the ads/coupons turned in, and add up the sales generated.  Did it cover the costs of the ad design and printing?  
  

  How to calculate ROI

      

• When in doubt Google it :  You'll be surprised how much free expert advice and information you can find online.  Be smart about it of course - don't take one article as gospel - research your topic over a couple of sites and forums.  You can save a lot of time and money using tools and advice that people like me are giving away for free. Use it! That's what it's there for.

And last, but certainly not least - if you absolutely have to make some staff cutbacks, do it gently.   Have you really reached your last resort? Employees will often be willing to cut back to working part time or even take a pay cut in order to keep their jobs.  (Always make sure you follow labour laws and conditions when negotiating changes in employment contracts.) Empathise. We're all weathering this tough economic climate together.

P.S. (And if you're really decent they probably won't write "I told you so" blog posts like this and make you look like the guy who told Elvis he couldn't sing. Doh!)

My top Articles on Marketing for Small Businesses :

Top 10 Social Media Tips for Small Business Marketing 

Ten Powerful Marketing Tips for the Small Business

Five No-Cost Marketing Tips

27 Low to No Cost Marketing Ideas for Your Small Business

You are also welcome to join my Facebook page where I post daily articles on Marketing and Social Networking for businesses or follow me on Twitter (@firebird_rising) 

Hello, it's me! Your customer?

I've been so busy starting blogs, designing logos and 'Facebooking' all my new clients that I've taken ages to get around to starting my own, but after reading a post in a marketing forum today I thought "I have to write something about this today!"  So here we are.

The post was made in a small business forum and asked the million dollar question - 'how do small businesses and start ups market on a limited budget'.  If I had a penny ...

Now before impart my great wisdom (said with humour) to the cyber universe, I'd like to say that I don't have a marketing degree. I have never worked for a huge multinational with hundreds of thousands to spend on flash marketing campaigns.  I've learned what I know from a career in the hospitality industry (where you engage with your customer 24/7).  It slowly progressed into a career helping businesses learn to market themselves, not just their products.

One of AVIS Rent-a-car's old campaigns said it beautifully - "To us, people will always be more important than cars."  That slogan was so wonderful I almost wanted it tattooed on my forehead. I mean 'duh!'  Everyone is always asking how to gain new customers, what's the best way to advertise, how will people learn about my business?  MY first response is "how are you treating your existing customers?  Are they advertising your business for you?"  Have you created "brand loyalty"? It makes complete sense doesn't it?  Your existing customers have bought/used your product or service before and if they were happy, it makes sense that they would buy from you again.  Often owners and managers are so focused on grabbing that new prospect that they forget that it's far cheaper to get someone to use your product/service again.  You've got them to cross the line already.  Now you need to keep them on your side.

I was looking for a groomer for my Siamese cat about two years ago.  There are only two parlours who are able to care for Siamese cats in my neighbourhood so I phoned both of them.  Both charged the same, but The Groom Room offered a pick up service for an extra fee.  Sold!  My (rather spoiled) kitty came home looking gorgeous and I was really happy with the service I received.  I was pleasantly surprised when four weeks later I received an SMS reminding me that Pepper was due for a groom and I would I like to make an appointment. Of course I did and I've never had to put 'make an appointment for grooming' on my calendar since.  Karen greets Pepper and I by name and she's always very understanding if I'm stuck at an appointment and have to delay having him dropped off again. Nothing is too much trouble. Now THAT is good marketing. They've made it so easy for me to use their services again and again that I don't think twice any more.

Here are a few good ways of getting those return customers and word-of-mouth referrals :

Personalisation - get to know your client on a one-to-one basis. Think quality not quantity. Rather spend a few minutes on the phone with one client developing a real relationship, than hours sending bulk e-mails to people who have never heard of you. They'll begin to trust that you honestly care about their needs and be more likely to recommend you.  

In a business environment where we are all expected to do things faster, customers place a higher value in brands willing to take time out to get to know them.

Courtesies - Christmas/eid/kwanza cards, birthday cards, anything that demonstrates their value to you.
  
Redirecting and Upselling - suggest additional products that a client may be interested in based on what you know their needs are.  Explain WHY you're suggesting them (make sure your reasons are legit.)  Offer accessories that go with the product they are buying.  Remember that it's a suggestion - don't hard sell.  Don't be obnoxious.  When performed correctly, upselling is a powerful sales tool that often gets a positive response. 
 
After sales service - sms/e-mail reminders, informative newsletters, helpful tips on your social networking sites, a follow up phone call to ask if your customer is happy with what they've purchased (and follow up if they're not).  If you're afraid of making a follow up phone call then clearly you know that there was something wrong with the service/product you delivered - fix it.  Be proactive, not reactive.  How can you save your customer time and make it as easy as possible for them to use your product/service?

Give a little more than you promise - Under-promise and over-deliver. What value added services/gifts can you add to your product that customers will appreciate? People love getting gifts that they don't expect, no matter how small.

Train yourself and your staff to handle complaints effectively -  I'm going to make this the topic of a separate blog post because it's such an important subject.  People tell their friends about bad experiences more often than they tell them about positive ones.  Indisputable fact.  What most businesses don't seem to realise is that by dealing with a complaint effectively and demonstrating your commitment to ensure that your customer walks away happy, you can gain some of your most loyal clients.  Consider complaints as an opportunity to show how GREAT your customer service really is.

As a parting thought I leave you with this quote from Laura Wheeler, co-owner of Firelight Business Enterprises: 

"Marketing to existing customers should be based on principles of appreciation, courtesy, consideration and personal touches.  It should never be motivated out of greed on your part - no matter how you think you hid it, if you hit them up again out of greed, you'll give yourself away, and they'll know it.  Think about things from their point of view."