Joseph P. Kennedy, American executive, businessman and father of John F. Kennedy once said, "When the going gets tough, the tough get going". These are words of inspiration for all of us as we face an economic environment that is unstable. As Americans, we have been through tough times before but with perseverance, hard work, attitude, and the love of the American Dream, we have endured as a nation. The cost of energy, the upcoming presidential election, the war, a volatile stock market, and a downturn in the housing market are all factors that are causing American businesses and consumers to operate in an environment of fear. But my challenge to all the readers of this newsletter, and there are thousands of you, is to seek the opportunities in all of these factors that, on the surface, can be perceived as negative operating conditions. Opportunities exist all around us if we only take the time to think creatively. As a market research firm, Market Viewpoint recently did a survey of consumers to find out what factors contribute to the decision to make a purchase. The top factor, constituting 20% of the responses, was price and value. This comes as no surprise as more of our income is being put into our gas tanks. Consumers are being more discriminating when it comes to spending and they want to be assured that they are getting the most for their dollar. Companies who take the time to point out the value added component of their products or services in their advertising and sales presentations will do well. Seventeen percent (17%) of those responding in our survey want variety and choice, with 13% craving convenience and access. The remaining 50% of the responses fall into the smaller categories of cleanliness, security, comfort, atmosphere, etc.
From this survey, we also came up with the top 7 best practices for challenging times:
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7. Freebies - People love getting free "stuff" - Some of the things you give away may be things from your stock room that would not sell but customers might appreciate getting them for free. Don't forget to make use of coupons and discounts.
6. Consumer Pampering - Develop an entire campaign around the economy and let your customers know that you understand what they are going through with activities that pamper. One of our clients in the retail industry offered coffee and donuts in his store in the morning and chair massages in the afternoon on his weekly "Day of Pampering". Sales jump on the day he offers these little extras.
5. Exchange Service and Cooperative Advertising - Many companies are engaging in cooperative advertising to help cut marketing costs. Consider working with a firm that offers complimentary services and design a marketing campaign that benefits both organizations.
4. Mystery shop - Rapidly changing times call for constant monitoring. One client of ours increased the number of telephone mystery shops they do each month knowing that more customers will be making use of the phone to get information as a way to save on gas.
3. Go Green! - More and more customers are looking for ways to do business with and invest in companies that are environmentally aware. Develop a plan and communicate your approach to your target market. One of our clients uses a catchy little "green" tag line on all of their email signatures to let their customers know they are doing their part against global warming.
2. Be aggressive with your marketing - This is no time to cut back on the marketing budget. Studies have been conducted that show businesses that cut back on marketing during economic downturns make less revenue that businesses that don't.
1. Hire and maintain a staff that is knowledgeable with people skills - Consumers want to feel respected. If your staff rates low on product knowledge, you will lose consumer confidence. Hire creative, talented people who can connect with your customers one-on-one.
True leaders emerge from difficult situations. Be innovative and creative. Manage wisely what you can control and you will ride the wave to the next upswing!
Difficult Times in Business - Best Practices to Survive and Thrive
Angela V. Megasko is the President and founder of Market Viewpoint, LLC, a market research firm specializing in professional mystery shopping. Her organization has been helping clients see their operations through the eyes of the customer since 1996. Angela has helped clients in all industries increase their profitability through the power of customer retention. She believes so strongly in the idea that our clients can make us profitable that she recommends having a solid customer service plan as a part of your firm's overall Marketing Plan. To learn more about her services, go to http://www.marketviewpoint.com
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