“You Can’t Cut Your Way to Greatne$$”

What you believe will influence how you behave – true of many things – including beliefs about the economy and how you respond in your business. Recently an informal survey asked business owners their opinion of the U.S. economy and how it’s affecting them. Approximately one half of people surveyed expect the economy to improve over the next six months. Despite the continuation of the recession, many people feel the panic seems to be over. Improving trends in unemployment, national inventory, manufacturing and housing reports have provided a glimmer of hope for better times. Puzzling, however, is the fact that even though survey respondents feel confident their business will experience stability or small growth over the next twelve months, most of them cited their top priority is cutting costs. It is wise to cut the fat in today’s economy, but business owners should beware of cutting so deep that the business will bleed to death.

This is especially true when it comes to eliminating marketing efforts to save money. Amidst loss of jobs and the dismal economy, many customers choose to postpone or eliminate big purchases. By staying in touch with your customers, the importance of your product can be reinforced. You can stay top of mind with your customers by reaching out to them a minimum of 3 or 4 times a year. Simple contacts can be done inexpensively and will have an impact on customer loyalty and may even generate referrals to help your business grow.
If you’re struggling with cost-effective ways to stay in touch, start with the obvious by sending a hand written message vs. using generic post cards. Extend congratulations to new parents. Send a note to ask customer Jones how he is enjoying retirement. Have your office assistant review the local paper for customers that have made an accomplishment and send a note card with a few sentences to let them know you’re proud of them. Get creative with ways to stay top of mind and deep in the hearts of your customers.
While some businesses may find it counterintuitive to spend money (on marketing) while making less money building a business depends on building a “brand” which is a long-range strategy, not a short-term fix.
And remember…you can’t cut your way to greatness.