Winning in a recession

We’ve been in the communications business for over 16 years and have seen our share of highs and lows. Here are our top five tips to get your business through the current slump.

Look after existing customers

Keeping existing customers is easier, more profitable and less costly than attracting new ones. While figures vary, reports show that it typically costs between five and twelve times as much to attract and win a new customer as it does to retain an existing one. Increase the level of engagement with your existing customers and even offer low-cost extras such as improved credit terms, discounts or loyalty schemes.

Understand customers and their needs

Against the current backdrop it is vital that you know your customers inside out, and use this knowledge to drive your marketing approach. View your customers in a new light as they start to tighten their belts. Understand how customer values might have changed and what they expect from your business. Survey current and potential customers to find out what matters now – is it lower price, more flexible service, or something else entirely? Your customers will tell you how to beat the downturn, but you have to ask them in a manner they can understand.

Step-up your marketing

Resist the temptation to cut marketing; market smarter rather than less. Marketing is a revenue generator, so use the downturn to grow market share. Customers need the reassurance of brands, take advantage of lower media rates and lock them in for as long as possible. Increase the use of direct marketing, particularly online, which tends to give a more immediate sales impact.

Trade your position

Luxury brands tend to ride out difficult periods more easily than most. This is because those who can afford super-luxury items are less likely to compromise or downgrade. Similarly low-cost brands also gain during harsh times as consumers look to cut costs. It is brands aimed at the middle classes that will be hardest hit, as these consumers downgrade their products and services. If your brand targets this segment consider your position and how trading up, or down would increase your business prospects.

Spread the word

If you have something news worthy to say make sure it gets heard. Too many companies fail to send out and follow up genuinely interesting stories with the local or national press. When sending out press releases always follow them up with a phone call. Produce a communications calendar and contact editors in advance to negotiate editorial space and gauge interest in your article.

- In the UK traffic to social networking sites has grown by over 112%. This now makes social networking sites the second largest source of traffic to other websites after search engines such as Google, Msn and Yahoo. As a relative new channel, those brands that have already experimented, tested and invested in social marketing already are likely to achieve the worthwhile success. Blogs, twitter feeds, webinars, forums and podcasts are all great ways of actively engaging qualified consumers seeking the services you offer, as well as drawing in new ones. It is worth remembering though that in the world of inbound and social marketing content is king.

When operating in a slump, It is important to ensure you tackle the challenge head-on, remembering an economic slowdown is not necessarily bad news – inertia in customer spending has been shown to make companies just as often as break them. Carefully managing the effects of the slowdown on the business and planning for the future will give your business the best opportunity to not just survive the slowdown, but to thrive.

For more information or advice on how you can help your business beat the slump, contact us on 01953 851513, or alternatively email mail@presspoint.co.uk

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