I saw more than one headline on Monday that stated 3/4 of Americans think our economy is in a recession. So now what?
It has been five years since the last economic recession ended (2003) and seventeen years since the one before than finally turned upward (1991). This means, most of you have not had to ride through a real economic downturn as a decision maker.
Many of you who are experiencing a slow time are wondering if this is just the season or will this slow down last a while. For small businesses, it does not matter if you are marketing properly. Wouldn’t it be nice to feel like your marketing infrastructure can help you ride out a slow time? I speak from experience when I say, yes it feels great. All you need to do is have the right database marketing programs in place. The fact is, when there is less business available, the trick to not slowing down is knowing where that business is. So, how do you do that?
In a recent first coaching meeting with a new client, I explained how we approach budgeting for an annual marketing plan. Our budgets are based on the fact that several kinds of marketing strategies are in place, not just major expenses for mass media. We recommend marketing expenses for the year equal a certain percentage of your gross income (Sorry, have to be a coaching client to get all of this. I can’t give it all away free!). The new client was surprised at how low that percentage was compared to what he expected. Then, I had to explain that to achieve this number a practice needed to keep mass media advertising in check by investing time and effort into numerous one-to-one and database marketing initiatives. It is great advice.
The practice that has many active data-driven strategies is the one that best weathers slows downs, slow seasons and recessions. Why is that?
Slow downs and yes, even recessions, do not indicate a stop in the economy or purchases. If it did, we would all go out of business and we all would be keeping our money in mason jars under the bed. Instead, slow downs simply mean that there are fewer more willing buyers immediately available. In other words, to keep growing you actively have to find more leads, rather than simply taking orders. In other words, whoever knows where the most business is, usually gets there first. To manage the kind of knowledge that yields this power, one needs a database and excellent strategies to keep learning... every week if necessary.
Unfortunately, most professional services (like cosmetic surgeons and cosmetic dentists) are much more comfortable gathering what we call “low hanging fruit.” Those are the people that are right there for the picking.
But what happens when there is no low hanging fruit or, more accurately, if the low hanging fruit is harder to pick off the tree. This situation does not mean that there is no fruit on the tree. It just means more effort or different tactics must be used to get to the fruit. The important fact here is that there is fruit on the tree. The change in tactics is where everyone usually seizes up or come to the party way too late to be effective.
The best tactics to use in an economic slow down are database marketing tactics. The strategies we recommend are, for the most part, inexpensive thanks to the Internet. That always makes people feel better about using them in a slow down. Basically, the theory behind what we suggest in this situation is to increase your influence on the people who are within your influence. It is a proven fact that it is easier and more cost effective to sell another service to an existing customer. Trust is already established and that is the expensive part of finding new contacts. To take this one step further, it is easier to acquire new, qualified leads by leveraging the circles of influence of the people in your circle of influence. Done properly, you have an army of foot soldiers out there primed to make referrals to you. (Highlighted and bold for a reason)
This is a viable database marketing process that is designed to network your practice exponentially. Remember the old ad.. “They told two friend, and they told two friends and so on, and so on...” This is possible for you if you know how to do it and it costs a fraction of what one mass media buy costs. Plus the impact often reaches far beyond the results of one ad placement.
It is these kinds of strategies that make it easier to reach the fruit that is higher up on the tree. That is because this is a selling strategy. If you employ these database strategies in your practice, you go from being a full-time order taker to someone who is actively working their network. The patient or client conversion process is the same, but by being active, you will reach more people directly.
Normally, in my blog, I discuss things that we offer and let you make your mind up about if they might interest you. At the very least, I offer something you can use on your own. However, this time, I am going to set my rules aside and call those of you to action who are worried about times being slow.
If, after reading this, you realize that you are
1)Overspending on advertising and your results are being affected by the slow down,
2)Unable to mount a networking campaign because you rely too much on advertising or the Internet for new leads or
3)You realize that you are not working the all-important concept of your Circle of Influence.
then you need to email me about my coaching program. Just do it right now. Here is the link: donald@dogstarmedia.com. My coaching program is only $300/month and it comes with free perks throughout the year. Enroll and I will tell you everything and show you how to do it. I will tell you how I maintain an active network marketing program that bring in new business of various kinds every month for us. And, most importantly, I will show you how an ongoing database marketing program can be like a warm blanket in the cold days of a recession.
