Features and tRends

(June 2009)

Putting Your Customers First

The DOs and DON'Ts of Marketing to Today's Cautious Consumers

By Steven Kleber, President and Founder of K&A

Many businesses and organizations -- whether small or large -- are facing new realities in today’s economic environment. Consumer behavior has changed dramatically and virtually the entire population has reconsidered their spending habits.

There has been a return to the basics where people are "nesting” in their homes, being judicious about their spending and buying only if they perceive a real value with minimal risk. With this new scenario, it is important for companies to communicate and market to customers by showing empathy. This can be accomplished by investing time enhancing your relationships with customers -- listening to them and acting on what they are saying and feeling.

An empathy-based approach may sound relatively simple. But how can you execute well with all the current changes affecting your company including reduced budgets, postponed projects, and fewer employees? Start by remaining focused. Develop a course of action that positions the customer first.

To help your company survive these tides, K&A has outlined several of the latest “DOs” and “DON'Ts” of marketing to today’s cautious consumers:

The DOs

  • Do continue to market your company products and services. In a recession, it is critical to keep sending your messages out to usurp market share from competitors -- some of who may not be marketing at all. According to MaryEllen Tribby, publisher and CEO of Agora Financial’s Early to Rise newsletter, “You don’t have to spend a lot of money to ensure that your marketing message is heard loud and clear.” Instead, develop an affordable, measurable marketing strategy.
  • Do put customers first. Now is the time for businesses to reassure their customers before trying to plunge into their wallets. Provide your target markets with value and demonstrate how you care for their needs. Learn what motivates them and tailor your messages accordingly.
  • Do send out a bi-monthly or quarterly e-newsletter. All businesses should be aggregating email addresses of every customer or potential prospect. By consolidating this information, you can better provide special offers, coupons as well as upcoming news and events. Retaining your existing customers and getting repeat business from them should be one of your company’s highest priorities.
  • Do focus on direct marketing where you can clearly measure your return-on-investment (ROI). Of course, K&A suggests using recyclable paper for your direct mail programs, especially if you are promoting sustainable products and services. The BSI advises the use of FSC-certified paper and the inclusion of messages to persuade users to recycle on their end.
  • Do develop target marketing strategies aimed at reaching multicultural consumers. The U.S. Census Bureau states that by 2050, multicultural ethnic groups will represent 50 percent of the population.
  • Do utilize online public relations strategies. And don’t forget to announce all company news online. For example, if you have a new product introduction in the next few months post the news online and link back any queries to your company’s Web site.
  • Do embark upon social media campaigns. These programs can be achieved inexpensively and can also serve as an efficient method to find out what people are saying in the marketplace. First, you want to listen and learn. From there you can engage with potential or existing customers about your company, products or services.
  • Do consider organized pay-per-click (PPC) search strategies online. This is a low-cost way to advertise online where you can set a monthly budget cap to avoid over-spending. Plus, your business can target ads to specific geographic areas.
  • Do test everything you are marketing so you can determine the methods and tactics that are producing positive results and best practices for your company.

 

The DON'Ts

  • Don’t over constrict. In this environment, companies should be flexible and learn to adapt to new situations frequently. Consider your marketing plan as an evolving communications tool that will enhance your brand for the future.
  • Don't ignore your existing customers. Arun Agrawal, Internet Marketing Specialist states that, “new customer acquisition is considered almost seven times more expensive than retaining your current customer.” Therefore, it is important to not let that investment go to waste.
  • Don’t think of marketing as a cost. Think of it as an investment.
  • Don’t rely solely on your own ideas. The market will tell you what people want to buy. Remember to always place your customers first…and know that they love to talk about the good and the bad experiences with products, services and companies.
  • Don’t concentrate solely on price in your marketing materials. Instead, focus on value as consumers are more prone to messages that provide a value proposition.
  • Don’t overspend. Partner with an integrated marketing firm that will give you more proven, bang for your buck.
  • Don’t let a first year employee or intern handle your social media strategy as this representation of your brand will live on the Internet forever. Instead, employ a seasoned team who understands what is involved with social media and branding.

With a shifting marketplace, it is important to remember that your customers are maintaining desires, albeit shifting. They are now much more cautious and sensible about their spending. Learn to think from their perspective. K&A suggests following recommended guidelines and spearheading a marketing program that fits your needs. The bottom line will be to put your marketing dollars where you can observe growth and earn the best return on your investment.

For more information on the DOs and DON'Ts of marketing to today’s cautious customer, contact Steve at sk@kleberandassociates.com, via twitter @stevekleber or by calling 770.518.1000 x 203.

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