It is said that the economy is going to get worse before it gets better. I believe it, but have a hard time believing how much worse it can get...everyone and every business owner I know is struggling already! What I do know is that old marketing strategies are not going to work. TV and radio advertising are too expensive for most small businesses and frankly don't create enough revenue to offset the expense. In order to survive and
thrive in this economy, we need to find effective marketing that will actually save your business money:
1. Customer Service: I have always said that a smile doesn't cost anything! Giving great customer service is the least expensive way to set your business apart from others. Over deliver on your product, your offer, your time frame. Make sure any problems are dealt with quickly and effectively. Create customer loyalty by being loyal to your customers...make sure you have helped them as much as you can. Make a written "Customer Service Commitment" that you and all of your employees embrace.
2. Create a Customer Appreciation Program: Invite top customers to a private viewing with refreshments to show them your new line of products. Start a club for customers that will receive special offers not available to everyone. Make it fun! Allow customers to earn points towards a great prize like a limo ride to dinner for two.
3. Up-sell and Add-on: In order to increase income immediately, figure out what other services you offer that your clients need and then show them the benefits of adding them to their current purchase. Design tiers of good/better/best offers to give your clients more choices. They may not go for the "best" offer, but it could upgrade the sale to the middle tier. Figure out if there are any products that you could start offering that compliment products/services you already offer. Ex: I just finished a website for an elevated photography company that takes photos from 40 feet in the air for real estate agents to help their home listings stand out. While I was working on the site, I found all these great photos of the Shenandoah Valley and its farm life. I suggested that he sell these generic photos as prints or downloads from his website to create extra income.
4. Joint Ventures: Now is the time to join with other small businesses to create marketing opportunities. Remember the limo ride and dinner for two give-away? You can give that away for free by getting a limousine company and a restaurant to offer their services in exchange for advertising their business to all of your clients. Another great fit is pizza and a movie. Both the pizza place and the movie rental store advertise each other with special offers. If you buy a pizza from ABC Pizzeria, you receive a coupon for a free movie rental...if you rent a movie, you get a coupon for $5 Off a pizza. Use your imagination! Joint Ventures also mean that marketing costs can be divided between all companies involved, saving you money!
5. Referrals: It is vital to set up a systematic way to get and keep track of referrals! When is the best time to ask for a referral? At the time of payment for a job well done. The customer is feeling good about their purchase and will want to help you. Don't just give them a couple of business cards and expect them to send customers to you. Ask them for names and contact information, then let them know that you will be contacting that person in a couple of days. If possible, get them to call the prospect to let them know you will be in touch. Make sure you are capturing names and contact information on every single person who comes into contact with your business! If you have a website, have a compelling FREE give-away (a restaurant might have a small recipe book customers can download) if they leave their name and basic information in order to receive it. Keep these prospective clients organized and get in touch with in some way (email, phone call, send postcard) at least once a month. The secret is to make sure you are giving them something that will help
them!
In short, getting through this tough economic crisis will take planning and vigilance but if you keep putting the customers needs first and utilize money saving marketing, your business can thrive!
My next post will continue with more Penny-Pinching ideas.