1. Relationship Pricing

    May 4, 2010 by admin

    Segmenting Your Customers As A Profitable Strategy 

    It pays to give your customers what they deserve—EdgeMark Partners can show you why. Our relationship pricing marketing strategy helps banks specifically target customers according to profitability, offering considerable potential benefit for your organization.

     

    What is relationship pricing?

    Experience shows that the top 20-percent of customers can generate a whopping 150-percent of profits, while the bottom 20-percent of customers can drain profits by at least 80-percent.1 Relationship pricing guides you in dividing your customer base into value segments, allowing targeted relationship-building strategies to be developed for the more valuable households and up-sell/repricing strategies for unprofitable ones.

     

    Segment your customers by household

    Motivating customers to act in ways that improve profitability requires getting to know your customers as households. Benefits such as fee waivers, best rate incentives, free services or trips can motivate high-value customers to maintain or enhance the banking relationship, while up-sell incentives and the opportunity to avoid fees can motivate mid-tier as well as low-value customer relationships.

     

    The benefits can be substantial

    Precision targeting and relationship pricing can help you encourage higher value household relationships, enhancing your ability to: strengthen customer loyalty, grow accounts per relationship, increase deposits, improve profitability per household and reduce resources expended on low-profitability households.

     

    Take 5 steps to improved profitability

    In summary, a relationship pricing marketing strategy can help you… 

     

    1) Identify your most and least valuable customers.

    2) Plan a multi-tiered marketing strategy.

    3) Invest in your most valuable customers.

    4) Divest yourself of profit-draining households.

    5) Build relationships; build profits.

     

    In the long run, precision targeting can generate balances far in excess of any incremental costs.2 For a more detailed look at relationship pricing or to receive a free implementation guide, please contact Scott Highfill at 804.967.2000, ext. 103 or shighfill@edgemarkpartners.com.

     

    Works cited

    1 Larry Selden, Angel Customers and Demon Customers

    2 Josh Hyatt, “Playing Favorites,” CFO Magazine

     

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  2. Snail Mail in an Internet World

    March 4, 2010 by administrator

    In an age where the Internet rules, companies may be unsure about how to use direct mail to their advantage. The truth is, when done well, direct mail is a viable and affordable way to reach customers. For maximum results, utilize a direct mail campaign in conjunction with Internet marketing.

     

    Barack Obama’s campaign for the presidency is a success story of using both Internet and direct mail marketing to reach customers—or voters in this case. In addition to launching a targeted direct mail effort, Obama used powerful Internet marketing tools including e-mail marketing (Obama was rumored to have over two million people on his e-mail distribution list!) and social media tools like Facebook and Twitter.

     

    Each of these marketing techniques has specific benefits…

     

    Tried and true direct mail

    Direct mail has been around for a long time, and it remains one of the most cost-effective forms of marketing. There is ample space to tell the whole story, with multiple sales surfaces for highlighting offers and benefits; plus, virtually every consumer has a mailbox.1

     

    One of the most potent advantages of direct mail is the opportunity to develop highly targeted mailing lists. When it comes to targeted marketing, good mail lists are easier to build than substantial e-mail marketing lists. A segmented and highly targeted customer database helps in pricing and positioning the product uniquely to each household—which lifts response rates, enables better cross-sell and ensures more satisfied customers. Interested in hearing more about enhancing your database? The experienced database marketing team at EdgeMark Partners can help.

     

    Innovative, fast Internet marketing

    E-mail marketing is inexpensive, fast and eco-friendly. Using the Internet is a great way to conduct test offers and get answers to survey questions. Also, important downloads, such as white papers, can be made easily and instantly accessible on the Internet to your customers.1 E-mails can help drive people to Web pages, which in turn lifts customer response rate.

     

    Getting personal

    A great way to get the best of both worlds is Personalized Web sites (PURLs). These valuable tools combine direct mail with Internet marketing, and they are a simple way to engage the customer. Customers receive a direct mail piece containing the PURL, which they use to log onto the personalized site and which captures their information for future print or Internet marketing efforts.2

     

    For example, when a bank was having trouble getting customers to convert to online banking through their direct marketing efforts, they switched to variable data printing, a form of on-demand printing that allows for mass customization, and PURLs. These changes helped highlight the benefits and security features of Internet banking. Eight out of 10 customers who visited the PURL enrolled in online banking—an increase from 0.4 percent to 2.5 percent.2 That is over a 600-percent rate of improvement.

     

    Avoiding the spam issue

    Where there’s e-mail marketing, there are pesky spam filters. Getting around these filters presents a challenge to marketers and communicators in their e-mail marketing efforts. That’s why the Obama campaign sent out pieces of full-color direct mail in South Carolina—ensuring that an important message ended up in the hands of actual voters and not in the e-mail spam folder.3

      

    Sources: 

    1 Businessknowhow.com “E-mail Versus Direct Mail: Which works better?” 

    2  eZinearticles.com “The Power of PURLs”

    3 hotcards.com “The Obama Direct Mailer Debate”

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  3. Marketing to the Baby Boomer Generation

    January 18, 2010 by administrator

    As we enter a new decade, marketing to the largest, wealthiest and most diverse generation in the country, the Baby Boomers, may seem an intimidating task. That doesn’t have to be the case. We want to provide you with some tips for reaching this group, whose members no longer qualify as young Americans but are not yet senior citizens either.

     

    Boomer background

    When World War II ended in 1945, many countries experienced a boom in births. Nearly 78 million Americans today were born between 1946 and 1964. Three years ago, the oldest boomers turned 60 years old, and approximately 8,000 people turn 60 every day.

     

    Boomers are a diverse group comprised of empty-nesters, parents and grandparents. Probably the most significant fact about this group for your business is that they remain the wealthiest and most educated of purchasers.

     

    Why do boomers require special attention?

    This famously non-conformist group reportedly has around $2.3 trillion1 in hard-earned cash to spend. Blaine Branchik, a marketing and advertising professor, told the New York Times2, “Baby boomers each believe they belong to a market segment made up of exactly one person. Many believe the only thing they have in common is that they are all so unique that they have nothing in common.”

     

    Marketers are faced with the dilemma of how to reach millions while making Boomers feel as if they’re speaking to them individually. Some marketers may opt to categorize and label Boomer consumers to make this task easier. For example, the consulting firm Age Wave has categorized post-retirement consumers as “Ageless Explorers,” “Comfortably Contents,” “Live for Todays” and “Sick and Tireds.” As Boomers move up in age, their sense of individuality may make categorizing them more of a challenge.

     

    It is important to be cognizant of Boomers’ needs because they represent big bucks in potential sales. Rix Quinn, author of a syndicated column about Boomers, suggests that there are 10 things this generation will need most within the next 20 years: affordable health insurance, housing, low-cost transportation, travel options, communication options, fitness solutions, advice on care giving, advice on parenting, investments and more education.3

     

    When marketing to Boomers, don’t even imply that they’re “old,” for the same reason you wouldn’t call young adults “kids”—they simply don’t like it. One optimistic Boomer stated, “When I look at myself in the mirror, I don’t see a 50-year-old. I see a 35-year-old.”1 Many Boomers will even purchase an item targeted to a younger group simply because it reminds them more of their youth and less of their current age. For example, despite being marketed to a younger audience, the Honda Element has been popular among retirees who appreciate that it is low to the ground and can easily hold items like gardening gear.

     

    Get in on the opportunity

    A careful, targeted effort to reach the boomer audience can pay dividends—and it’s likely many are already your customers or clients. After all, they have the cash; we just have to earn their respect. To do so, be sure to keep these things in mind:

     

    1) Speak to Boomers as individuals.
    2) Be mindful of Boomers’ needs and their perception of their needs.

    3) Never label Boomers as “old.”

     

    Works Cited

    1 MSNBC.com, “Baby Boomers create new marketing frontier”

    2 New York Times, “Six Decades at the Center of Attention, and Counting”

    3 eZinearticles, “10 Things Most Baby Boomers Need”

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  4. Marketing to Generation X

    November 16, 2009 by administrator

    We last wrote about ways to market your brand or product to Generation Y. Now we’ll highlight the importance of reaching the next demographic

    —Generation X.

    Getting to know Gen X

    Comprising over 50 million Americans (nearly 20 percent of the U.S. population), Gen X includes those born anywhere from 1965 to 1978, give or take a few years. They are often referred to as the “Baby Bust” generation due to the drop in births following the baby boom. Many members of this age bracket come from divorced-parent and/or working-mom families—hence the term “latchkey kids”—making them generally independent, adaptable and often skeptical.

     

    Now moving into their mid-thirties and forties, they are established in their jobs and have families and homes. The good news: most are in the prime of their purchasing power.

     

    Getting past the obstacles

    According to Christopher Bachler1, there are a few difficulties you must overcome to reach this audience. Gen Xers are…

    • More pessimistic about their financial futures,
    • Accustomed to inexpensive, imported goods and less averse to buying them, and
    • Suspicious of slick conventional marketing approaches.

     

    It’s always best to opt for a straightforward approach with evidence to back up claims when marketing to Gen X (or to any age group, for that matter).

    A recession-plagued generation

    Vivian Manning-Schaffel2 says, “Skeptical and saddled with recessions, the members of this age group never really had a chance to embrace shameless consumerism like Gen Y.” Gen X experienced a recession in the early 90s that produced a bleak job market for then-recent college graduates. In the late 90s they had a prosperous job environment with the Internet boom. Unfortunately, many were forced back into unemployment with the recent recession. The up-and-down economy has made many of them wary of parting with their money.

     

    Take the direct mail approach

    Direct mail is an effective marketing approach for reaching Gen X. According to a 2005 study conducted by the U.S. Postal Service3, 70% of this group sorts through their mail immediately. Sixty-seven percent read advertising mail every week. Also, 70% of study participants prefer financial direct mail, such as credit card offers, to e-mail or Internet solicitations.

     

    Michael Fleischner4 suggests the following tips for getting the most out of direct mail marketing to any generation…

    Ø Know your audience. Really get to know your audience—what motivates them, what annoys them, what they are in the market to buy, etc.

    Ø Get the timing right. Have the right offer at the right time. For example, if you’re selling tax software, be sure to market the offer during tax season when it’s on their minds. Also, be sure to leave enough of a window to respond to the offer.

    Ø Have a great offer. It goes without saying that a dull offer elicits a dull response. Most people, especially Gen Xers, need to be given a reason to buy. If you have a great offer, place it prominently on the outside of the carrier to entice the recipient to open it.

    Ø Present a message that resonates. Be very clear about the value of your product or service to your potential customer. Try different methods of reaching your audience—from lengthier letters to punchy postcards to eye-catching self-mailers.

    Reach Gen X using Gen Y tactics

    When marketing to Gen X, Manning-Schaffel suggests reaching this group by way of marketing tactics aimed at their siblings, Generation Y. Their younger counterparts grew up in a culture of “pure consumerism,” and their approach to life is “buy, buy, buy.”2 While Gen Xers are more wary, they have the same easy access to the Internet and like Gen Y, they carefully research their options before purchasing. The difference between the two is that Gen Y has always had multiple forms of media at their fingertips, which means that advertisers have had more venues to reach them. For more tips on marketing to Gen Y, view our last issue here.

    Works Cited

    1Christopher Bachler, homebusiness.com
    2 Vivian Manning-Shaffel, brandchannel.com
    3 United States Postal Service, usps.com
    4 Michael Fleischner, powerhomebiz.com

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  5. Marketing to Generation Y

    September 24, 2009 by administrator

     Marketing your brand or product to Generation Y (also referred to as “Millennials” or “Echo Boomers”) presents unique challenges. However, there are also unique opportunities to reach them.

    Who are the Millennials?

    This opinionated and technologically savvy generation encompasses over 25% of the U.S. population—those born anywhere from 1977 to 1994. They are a generation of e-commerce, Britney Spears, the OJ Simpson and Monica Lewinsky scandals, and the Columbine and September 11 tragedies.

    Millennials average $100 a week in disposable income—a staggering $150 billion or more a year! “For sheer spending power and cultural hegemony, this consumer group is unrivaled in American history,” says small business and marketing author Joanna L. Krotz1.

    The Internet Generation

    Perhaps most importantly, Millennials and the Internet have grown up together. They’ve embraced the comparatively recent wave of social media tools, including Facebook, YouTube, MySpace and Twitter. Research shows Millennials get more of their information from each other via social networking than they do from businesses or traditional media. According to Scott Monty, a social media blogger, Millennials utilize social media to2:

    Get news or product updates (67%)

    Have access to promotions (64%)

    View or downloading music or videos (41%)

    Submit opinions (36%)

    Connect with other consumers (33%)

     A Millennial Opportunity

    Successful marketers are finding ways to win over the Millennials. Attractive and informative Web sites, the utilization of social media tools and e-mail marketing campaigns provide big opportunities to reach this generation:

    Engage with appealing, information or benefit-rich Web sites.

     This group can see through dramatic presentations that are an attempt to hide the truth. They’re notorious for their short attention spans. If they become uninterested in a presentation, they will simply forget about it.

    As with any market segment, engage them or lose them! An appealing Web site is the first step to reaching Millennials. Skip the fluff though. A whopping 91% of this generation sees the value in companies or products that support good causes1. A majority of Millennials would even switch brands to the one associated with the good cause3. A company’s charitable support should be displayed proudly, like Yoplait’s dedicated section on their Web site to the “Save Lids to Save Lives” campaign for the Susan G. Komen foundation and breast cancer.

    Get the social media advantage.

    Marketing through text messaging (also known as SMS, or short messaging service) is a perfect fit for Millennials. It’s inexpensive and allows marketers to create customer databases for future announcements or advertisements. Many large companies like McDonalds and Dunkin’ Donuts have deployed successful text message campaigns4, and the opportunity is large for small business, too.

    A great opportunity to reach this generation lies in having a social networking presence like a Facebook or Twitter page. With Facebook, a company can have a page where “fans” will be updated with any announcements. Microblogging site Twitter allows for simple company updates to “followers” in 140 characters or less. Innovative companies like Whole Foods, Jet Blue and GAP provide their loyal followers with frequent company updates through “tweets.”

    Embrace e-mail marketing.

    E-mail marketing is a natural for reaching this audience when specifically targeted to this group’s interests. For example, when Arista Records was releasing a new album, they sent an e-mail to 10,000 fans (600 were Millennials) of the artist to allow them to pre-order the record. Sixty-two percent of recipients then forwarded this e-mail to friends, growing their Gen Y recipients to over 20,0005.

    Works Cited

    1 Krotz, Joanna L. “Tough customers: how to reach Gen Y.” Microsoft Small Business Center.

    2 Monty, Scott. “Advertising to Gen Y on Social Media networks.” Social Media Marketing Blog.

    3 Northcott, Geoff. “Cause marketing driving sales growth.” Supercollider.

    4 “Small Businesses Marketing with Text Messaging” All Business.

    5 Horovitz, Bruce. “Gen Y: A tough crowd to sell.” USA Today.

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  6. How to Get Results with Direct Mail

    July 2, 2009 by administrator

    Research has shown that you have a mere 2 to 3 seconds to get your direct mail message across to the customer before they trash it. How can you get your message to cut through the clutter and get noticed? That’s the million-dollar question. While there’s no right answer that applies to every situation, there are strategies and tactics that can deliver the response rates you’re looking for.

     

    Offer, Audience and Creative…the Three-Legged Stool of Direct Mail

     

    Dozens of considerations go into any DM campaign, but the three “load-bearing” factors that’ll make or break any campaign are offer, audience and creative. If one of these is weak, the entire campaign can collapse like a two-legged stool! Let’s look at a couple of scenarios where the offer, audience and creative work together to get noticed and get results.

     

    Challenge #1

    An established Toyota dealership seeking to expand its footprint and product line opens a Lexus dealership 30 miles away. The priorities are to lift awareness, encourage showroom visits, and generate sales.

     

    3-Point Solution

    Offer: A free portable DVD player for taking a test drive is offered, plus a free installed entertainment package in a new Lexus purchase.

    Audience: The audience consists of high net worth customers of the existing dealership, plus a purchased list of similarly modeled prospects within 20 miles of the new dealership.

    Creative: A 3D package with a video catalog and the free DVD player offer on the outside gets the piece opened and drives the audience to the new dealership. An inserted card provides variable messaging to customers and prospects. To further lift response, an oversized postcard repeating the offer is mailed as a “last chance” reminder two weeks later.

     

    Why it works

    The carefully targeted audience has propensity to purchase and ability to pay. The offer is appropriate to both product and audience and is likely to encourage dealership visits. The creative suggests value, gets attention and will probably be opened. The highly attractive offer encourages the desired response. The second-touch postcard also typically lifts response.

    Challenge #2

    A developer is selling waterfront home sites in a new gated golf community in the coastal southeast. Creating awareness among qualified prospects, generating leads (reservations) and closing sales are priorities.

     

    3-Point Solution 

    Offer: Accommodations, golf, seafood, helicopter rides and other activities are offered at a free grand opening weekend, plus “VIP preview discounts” available that weekend only.

    Audience: An audience of golf, travel and vacation enthusiasts living in the northeast, having a high net worth and with children at home is carefully selected.

    Creative: A multi-panel self-mailer with full-color property photos and attention-piquing headlines draw readers inside for details. The “free” offer is prominent to generate qualified leads through toll-free reservation calls.

     

    Why it works

    The multi-layered offer creates excitement. Language like “be among the first” and “for two days only” adds a sense of urgency. Sending this in February offers the northeastern audience an added incentive to book a free warm-weather trip. The creative uses photography on every panel of the self-mailer, showing the property and the surrounding area drenched in sunlight to appeal to winter-bound prospects. The copy features sumptuous details to create a sense of luxury and positions the offer as an “exclusive invitation to a select few” to flatter.

     

    The creative challenge—effective communication

    The purpose of your custom creative is to get your message read and drive your recipient to action. When it’s done effectively, it’ll lift your response rate. Take a look at your DM creative with a fresh eye and determine how well it passes the AIDCA test:

    Attention – make an impact; grab your reader’s attention

    Interest – present your proposition

    Desire – build up the benefits and introduce offers

    Conviction – overcome doubts and objections with proof (or testimonials)

    Action – call-to-action, with an expiration date to create a sense of urgency

    Category: Marketing News | Comments (0)

  7. Postal Rate Hike—3 Ways to Save

    May 1, 2009 by admin

    Are You Ready for the Postal Rate Hike?

    The rate hike countdown is on. The United States Postal Service (USPS) will apply new postage rates on Monday, May 11, 2009. Postage rates will increase across the board. So now’s the time to anticipate your direct mail needs and make the most of today’s lower rates before the increase.

    New rates will be:

    First Class Mail (1 oz. and less)
    Single Piece = .44 each (each additional oz. = .17 each)
    Presorted = .414 each (each additional oz. = .125 each)

    First Class Automation
    Mixed AADC = .382 each
    AADC = .360 each
    3-digit = .357 each
    5-digit = .335 each
    (each additional oz. = .125 each)

    Standard Class Automation (3.3 oz. and less)
    Commercial Non-Profit
    Mixed AADC = .270 each .169 each
    AADC = .253 each .152 each
    3-digit = .251 each .150 each
    5-digit = .233 each .132 each
    BMC discount = .034 each
    SCF discount = .043 each

    * All rates above are Letter rates and do not apply to Cards and Flats.
    ** These prices are not comprehensive. Please refer to the USPS website for complete information.

    We have provided for more information below.

    3 Ways to Save
    While postage increases are inevitable, careful planning and evaluation of your direct marketing and other mail programs can help you make the most of your postage budget.

    EdgeMark Partners may be able to save you time and money by:

    1. Leveraging Bulk Mail Center (BMC) and/or Sectional Center Facility (SCF) drop shipments for large bulk mailings to get a reduced postage rate.
    2. Commingling with other mailers’ shipments to potentially lower postage costs.
    3. Utilizing the most up-to-date NCOA (National Change of Address) sorting, resulting in more pieces that qualify for automation discounts.

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  8. Customers Can Be An Information Gold Mine

    February 1, 2009 by admin

    Wouldn’t it be great if you could clone your best customers? That scenario is probably best left to science fiction writers, but there are some high tech tools that can help you find new customers who behave remarkably like your current top customers. Better still, they can help you hold on to and grow the customer relationships you have.

    How well do you really know your customers?
    Think about your top five customers right now. You know your customers’ names. You can probably look up their addresses. You know what they buy from you, how much they spend, and how often they purchase.

    But do you know why they buy from you and not your competitor? Do you in fact know that they DON’T buy from your competitor? Do you know how your customers feel about current events? What their favorite pastimes are? What worries them?

    Discover a rich, new vein of customer information.
    Opportunities for learning more about your customers–and finding similar prospects– through data-driven segmentation are evolving. It’s long been possible to target customers by geographic segmentation (urban, suburban, rural address) and by demographic segmentation (age, income, ethnicity, etc.). But today’s technology provides opportunities to model your current customers in greater detail, which can give you a competitive edge both in targeting like prospects and in retaining and growing current customer relationships. These modeling methods include:

    Psychographic segmentation: lifecycle, lifestyle, activities, interests, opinions, attitudes, values, political affiliations, preferred communication channels. (Will an email, direct mail piece or incorporating a PURL–(personalized URL)–get the response you want?)

    Behavioral segmentation: behavior toward products, benefits sought, usage rate, brand loyalty, readiness to buy, occasions that stimulate purchase (such as holidays or birthdays).

    Online behavioral segmentation: capture of specific, defined online behaviors that can be appended to mailing lists to further differentiate customer behavior patterns.

    Turn that gold into profits.
    Once you have a list with segmentation appropriate for your product or service, you can create tailored and relevant messaging for each segment. And with eDM and some forms of DM, you can change copy and images economically for each segment, or even each individual, for true one-on-one marketing. The result?

    1. Higher profits from existing customers
    2. Lower costs to attract new customers
    3. Higher return on marketing campaigns
    4. Improved retention and less churn

    The year is young…why not investigate smarter, more affordable marketing tools in 2009.

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  9. Because Every Dollar Counts: Five Reasons to Use Direct Marketing

    November 1, 2008 by admin

    The Direct Marketing Association predicts that 2008 will be the first year that direct marketing (direct mail, e-mail, and Web) spending will outpace mass media (print and broadcast).

    1. TARGETING: It’s hard to sell prime rib to vegetarians
    Why advertise to people who don’t want your product or service? Direct marketing lets you target only those who want what you sell. Using increasingly sophisticated data analytics, regression and predictive modeling, as well as other techniques, a direct marketing agency can find those who are highly likely to respond to your DM message. You can also apply modeling and analytics to your current customer base to help predict future purchasing behaviors and plan cross-selling strategies. With 98% of consumers bringing in their mail the day it’s delivered, and 77% sorting through it immediately,* a well-targeted direct mail campaign can deliver your message to highly qualified recipients within your chosen time frame.

    2. PERSONALIZATION: Speak their language
    Now that you know who you want to reach, you can focus on what you want to say. One of the many advantages of direct marketing is the ability to customize your message for different audience segments. You would want to speak differently to men than you would women, to Gen Xers differently than Boomers, and to customers in a different voice than you would prospects. In fact, direct marketing is an ideal customer retention tool, as it helps you sustain a dialog with your customers—especially when you include surveys and other feedback channels.

    3. TESTING: What you don’t know can hurt you
    With direct marketing, you can take the guesswork out of what makes a campaign successful. How? By testing various elements so you know exactly what works and what doesn’t, such as:

    • Lists – Do age, income or other demographics affect your response rates?

    • Formats – Does a postcard out-pull a self-mailer? Do follow-up e-mails lift response?

    • Response channels – Is a postage-paid reply card needed? Or will phone and web response channels do the job more cost-effectively?

    • Offers – Will a 15% discount out-pull a 10% discount in sufficient quantities to justify the bigger discount? Or does a free premium offer work better than discounts?

    • Creative – You can test short copy vs. long copy, colors, photographs— virtually all the creative elements to find just the right combination to grab attention and get results.

    • Timing – Does your product or service sell better at the beginning of the month? At certain times of the year? Does seasonality effect your sales cycle?

    4. AGILITY: Battle ships vs. jet skis
    With each DM campaign, you learn what works and what doesn’t, so you can fine tune for the next campaign. Trying to change your mass media campaign once it’s launched is like trying to turn a battleship on a dime. Direct marketing, on the other hand, gives you the speed and agility of a jet ski, so you can change course almost instantly, and get increasingly better results. And this agility is possible only because of testing and the relatively low cost per acquisition of direct marketing.

    5. ACCOUNTABILITY: When every dollar counts, DM gives you the measurable response and results you need
    Dr. Peter Johnson, the DMA’s Research Strategy and Platforms Vice President, says it best. “Marketers are moving dollars into direct marketing because of its higher ROI (return on investment) relative to other forms of advertising. This makes DM a more reliable engine for sustaining sales, incomes, and jobs at a time when the mortgage and energy markets are heightening economic uncertainty.”

    * United States Postal Service

    Category: Marketing News | Comments (0)

  10. Marketing in a Recession: Five Budget-Friendly Marketing Strategies That Can Help Grow Your Business

    September 1, 2008 by admin

    Whether the U.S. economy is in an actual recession or not, the picture isn’t as rosy as it was two years ago. With the current mortgage crisis, and unsettling news about IndyMac, Fannie Mae and other financial institutions, confidence is down. And costs are up. You may be feeling the pinch, and maybe you’re thinking about scaling back or reallocating your marketing budget. But, as marketing is a necessary component of both short-and long-term business plans, now is a great time to reevaluate your current strategies and make the most of unexpected opportunities to market smarter.

    Five Recession-Proof Marketing Tips

    1. Keep your current customers near and dear
    You’ve probably heard this before, but it bears repeating: It costs 10 times more to acquire a new customer than to sell to an existing one, so do all you can to solidify your customer relationships.

    • Send your customer’s emails on a regular basis—to thank them, announce a special offer, or share tips and hints.

    • Mail postcards with an invitation or a reminder. Consider including an offer, redeemable at your website. When your customers log on you can capture current email addresses.

    • Keep your customers engaged—and bring in new customers—with a “refer-a-friend” program, offering a free gift or a discount for referrals.

    2. Go for measurable results
    When you want your marketing dollars to work as hard as possible, choose media that let you measure your results. And according to the U.S. Postal Service, 30% more dollars are spent by multimedia shoppers than single-media shoppers, so consider a mix of direct mail and email, which let you:

    • Target only the people who want your product or service.

    • Customize messaging to different audience segments.

    • Test offers, messages, timing, even size and colors to learn what elements generate the biggest response rates and return on investment (ROI).

    3. Share the costs, increase the sales
    Get creative, reach out to friends and associates and combine marketing efforts and costs. For example…

    • At your brick-and-mortar locations, organize partnership marketing events with your business neighbors.

    • Raise awareness through community service programs. Partnering with other organizations in support of community programs has advantages for the community and for you.

    4. Brush up your social skills
    If you’ve got some time on your hands, ramp up your networking to create top-of-mind awareness for you and your business.

    • Attend Chamber of Commerce and other business breakfasts, socials and forums.

    • Volunteer for community and charity work.

    • Explore some of the new social networking websites geared for businesses, such as Twitter, Plaxo, Yelp and LinkedIn. Most are free to join.

    5. Put your expertise to good use
    Remember, you’re not just selling a product or service. At some level, you’re selling yourself. So position yourself as THE expert in your field.

    • Write articles or white papers and offer them as free downloads on your website or include them as part of mailed newsletter—an affordable and effective marketing tool in any economy.

    • Start a blog, accessible from your website. Keep it light and interesting; let your personality shine through.

    • Host a webinar, which gives you the added benefit of tracking who attends.

    Category: Marketing News | Comments (0)

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