Marketing in a downturn takes nerves of steel.
Study after study shows that, tough as a downturn can be, it’s actually an opportunity. Marketers with the guts to invest when conditions look bleak always emerge from a downturn stronger than if they’d headed for the storm shelter and pushed marketing to the back burner till the storm blew over.
But how can you afford to be a take-no-prisoners marketer when you may have less money to invest? Spend smarter! Make every marketing dollar generate more revenue. Here’s how it’s done.
Rule 1. Take a careful look at available marketing dollars. Do not go overboard on customer acquisition. Acquisition is important. But remember that many new customers are one-time buyers who cost more to acquire than the revenue they generate. Our experience says you’ll lose money on 40% of them.
Rule 2. Fish where the fish are. With proper focus you can get more revenue from customers you already have. These people are on your books already. You have a relationship. Use it.
Rule 3: Remember that customers are almost never identical. They buy different items, at different times, in different quantities. Don’t fritter away precious marketing dollars by sending the same message to everyone. It’s the easy way out, but you can do better.
Rule 4: Deliver value! Make individualized offers for items customers already want to buy, at prices appropriate to their segment, loyalty profile, and market conditions.
Segmenting, analyzing, and then individualizing your marketing will improve response rates and squeeze extra revenue out of every marketing dollar. And that’s a promise.