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August,
2009
Greetings
and welcome to the August edition of Servant-Leadership
Solutions. It's been a busy and productive few weeks as
we prepare for the Second Annual Foodstock Fall Festival.
I am very much looking forward to the event for several
reasons. First, it's our major fundraiser for the Danville
Area Food Pantry, and they sure could use the help. Second,
it's an opportunity to work with numerous local businesses
that are committed to helping their community. And, third,
it's always great to look back at the all the work and the
fun, and know that we've done something to improve the lives
of thousands of our neighbors.
If
you'd like to know more about Danville Foodstock, or perhaps
make a donation, please visit the Danville
Foodstock web site.
And
now, without further ado, let's move on to some thoughts
on advertising in a downturn.
Don't
Pull Back
When
the economy takes a tumble and business falls off, it's
virtually automatic to cut back wherever possible. Unfortunately,
while it's true a business must respond to shrinking sales,
companies often cut back drastically on advertising, which
can harm sales even more. This can create a downward spiral
that leads to premature death.
Obviously,
a business cannot spend money it does not have, but there
are ways to avoid slashing your advertising and marketing
budget or, at least cutting back the right way. Before cutting
back on the methods that can bring in business, ask yourself
the following:
Where
else can I cut expenses? - This is the first question
and only you can answer it, but there are always answers.
You might reduce travel expenses by staying in less expensive
hotels and eating more economically. Perhaps you can save
on landscape maintenance or other nonessential services.
Whatever the answer, it's there if you dig deep enough.
How
can I cut advertising expense and still market my company?
- Before making cuts, carefully review the results of every
ad program. Review each method or program in as much detail
as possible. Then ask yourself these (and other) questions:
-
What
was the response for each ad, whether it be radio, television
or paper media?
-
Did
one outlet deliver better results than others?
-
What
about ad timing? Did ads placed on Wednesday pull better
than ads on Friday?
-
What
was the cost per new customer for each ad? (If a radio
ad is four times as expensive as a print ad, it should
pull at least four times as many customers.)
-
Would
reducing the size (or length) of the ad save money while
continuing to produce results?
The
result of this research may be that you continue your radio
ads, but cut back to placing them only on the stations that
produce the most traffic. Or you might reduce the size of
your print ads from half-page to third-page.
Another
strategy is to speak with your ad manager for each media
outlet. Armed with hard data, you might be able to negotiate
an additional discount, especially if you make a return
commitment to a large block of ads.
If
you must cut back the advertising budget, ask yourself how
you will replace the programs. Many businesses find that
there are low-cost alternatives they have not considered,
such as a flyer campaign, or a targeted direct mail piece.
Others may launch a newsletter or web-based marketing.
Yes,
times are tough. And that makes running a business even
tougher than it usually is. Yes, you may need to cut expenses.
But don't stop doing the things that can help bring in more
business, especially your marketing efforts. With a little
effort you, like many others, may find that you can do at
least as much for less money.
Resource
- Book
David
vs. Goliath: Guerilla Media Buying for Small Business, A
New Way to Win, by Robert D. Geskey.
Geskey
offers excellent advice based on three decades at the top
of the corporate media ladder. In this book, he teaches
the reader how to increase their presence in the media market
at a huge discount.
Quick
Tip - Recapturing Lost Business
Another
way to bring in more business is to go through your old
client files. Most businesses will have clients that haven't
done business with you for some time. Reach out to them
and reconnect. If necessary, you might offer a discount
to encourage them to hire you again.
Don't
limit your search to satisfied customers. Many years ago,
I helped a client reach out to dissatisfied former customers.
By engaging this group proactively, they were able to repair
more than forty percent of the relationships, which resulted
in a significant amount of "new" business.
You've
Got Questions
Q:
I'm going to follow your advice and start tracking my ads
more carefully. I new at this, however, so how should I
start?
A:
One of the easiest ways to track an ad is to offer a coupon
or discount. In paper media and on the web, the customer
brings in the ad or coupon itself. (Include a Print This
Coupon link on your web site. It's easy.) For radio and
TV, tell the listener (near the end of the ad) to mention
the ad. (Tell them you heard about it on KXYZ and get a
special discount!) Your staff must be very careful to note
all responses and keep all coupons.
Side
Note: Whenever a new potential customer comes in with their
coupon, it's a perfect time to capture their contact info
for your mailing lists (paper and electronic). Have them
fill out the back of the coupon, or take their information
as part of the registration process for the discount.
Thought
for the day
To
be courageous means to be afraid but to go a little step
forward anyway.
Beverly Smith
End
of Servant-Leadership Solutions V2009, #6, a publication
of:
Lane Baldwin Servant-Leadership Solutions
My business is improving yours.™
Copyright
by Lane Baldwin Servant-Leadership Solutions, 2009. Reprinting
or republication of Servant-Leadership Solutions is prohibited
without prior approval.
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