In the current economic climate (downturn), I find it extremely fascinating to observe the decisions that businesses are making to stay profitable. Many businesses are cutting staff, cutting costs, cutting benefits, and cutting MARKETING. In my opinion, now is the prime time to ramp up your marketing. Why?
In any economy, do people still buy things? Yes.
People are always buying products and services that are of 'value' to them. Value is something that is created by marketing and a desire by the purchaser for a benefit. People don't buy what they need, they buy what they want.
Think back to the last few items that you bought. Maybe it was food, a book, a car, a DVD, a gym membership. Was there another option that was cheaper that you could have chosen that would have provided you with the basic outcome you wanted?
Relating to the above examples, could you have satisfied hunger with other foods? Did you need that exact book? If you required information from that book, could you have found it elsewhere, like on the internet or asking somebody? Could you have bought a more basic car to get you from A to B? Did it need car mats and tinted windows or even a sound system built in? Did you need to watch that DVD? Did you need to buy the DVD or could you just hire it from a store or library? Did you need a gym membership or could you exercise outside of the gym?
You bought because you wanted it after a business marketed the product or service to create value in your mind.
Bringing this back to a business perspective, we need to constantly create value for existing and new customers to stay in business and thrive.
But advertising is expensive! It can be, but there are many cost effective strategies that are often more effective than expensive advertising. And why do you need to actively attract new customers anyway?
The best customer is the return customer. No advertising needed, they just keep coming back for more. Even better, they will tell their friends and family how great you are. This power of referral is the most powerful strategy for sourcing new customers.
Think back to the last time a close friend or family member shared their great experiences about a product or service that you require. Did you go with their recommendation? Chances are that you did, because belief and trust coupled together is all a potential customer needs to be convinced to go to your business.
So we need to develop strong relationships with our customers. How do you do that? Offer your client gifts. Does this need to be expensive? No.
A gift might be a birthday card (you might offer this for their person's birthday, and also the birthday of their purchase of your product or service). If a physical birthday card is too costly, maybe you can send one via email. A gift may be a bunch of flowers, a bag, a box of chocolates, a bottle of wine, a pen, a mug, a holiday, a car, and the list goes on. Your choices are infinite.
The system for offering client gifts should follow a 4 step process:
1. Decide 'when' to offer a gift to your client (eg. Birthday)
2. Decide 'who' will receive a gift (eg. every customer who has purchased)
3. Decide 'what' types of gifts to buy. You may purchase more expensive gifts for more regular clients, and you should try to tailor the gift to the individual. (eg. gift basket, indoor golf set)
4. Decide 'how' you will offer the gift to your client. (eg. handed to them at the Point of Sale)
The more personalized a gift is toward that individual client, the more value it will have for them.
Have you ever received a gift from somebody that had no thought put into it, or it was an object that you perceived to be useless and a waste of space? Did you throw it in the bin or give it away? How did it make you feel? When we receive a gift that is useless or that we dislike it can actually have a negative impact on the relationship, so choose carefully when you are selecting. Make it useful.
I have a lot of experience in the medical field and often receive paraphernalia from pharmaceutical companies, where everything is branded with a drug name. Yes these items are useful but it is almost embarrassing to have a house full of drug branded kettles, coffee machines, clocks, scales, chairs, stationary etc. When visitors see that much of your belongings are branded by somebody who does not produce that product as their core business you feel cheap because everyone knows you got freebies.
For this reason I do not generally recommend branding, particularly large size branding of display objects. If your brand is offers a sense of prestige or pride to the client when they attach themselves to your name then that is ok, otherwise I would keep branding to a minimum, maybe a small logo for example. Make sure that your gift will have only positive emotions attached to them.
If you have no money to spend, you could actually get creative and offer your product or service as a gift. For example your gift may be a discounted rate for your product or service, or a free trial period, or free postage/shipping. This way your gift generates profit directly.
If you treat your clients and staff with respect and show them how much you appreciate them, you will be able to thrive in tough times and outperform your competitors. Offer gifts to them on their magic moments, individualized to their personalities and values, and you will get far more in return than you ever imagined.
Chris Fah is a business and real estate enthusiast
http://clientgifts.hmmetro.net/
