FRAM SYSTEMS ^blog

Things still work when they’re slow.

OK, no one can say the world economy is booming. While I won’t discuss the factors that created the situation, I will give you some ideas about how to think about it and more importantly, what you can do about it.

First off, slow is slow, not stopped. You may think your business has stopped. No new orders or canceled orders may be hard to deal with. You may think that the gig is up and that your business is bleeding cash without any income. If you have adopted that mindset it may already be too late.

Take Control

Take control of the situation. Is there still a need for your product or service? If so there is hope. All we have to do is identify who has the need and go after their business. So how do we go about identifying who needs your product or service? I say we start who we already know. Reach out to those who already have done business with your company. They needed you in the past. If you serviced them well and delivered the benefit you promised when they first bought from you, then they are already familiar with the value you company provides. To maximize your existing relationships you need to communicate directly with the decision makers.

Talk to them about their situation. They are likely to be in the same situation as your business. Ask directly what you can do, with your expertise and resources, to help them improve their business. If they say for example, that they would buy more if your price were lowered, study the feasibility of accommodating them in the short term for concessions in the long run. This could look like a 10% discount if they will contract for certain volume over three, four or five years. The key is to be creative. The number of tactics you can use to build sales is limitless.

Helping your customers build their business will help you build yours. Keep this in mind when talking with your current client base.

Keep up your Marketing Efforts

When Penton Research Services, Coopers & Lybrand and Business Science International studied the 1990-91 recession, they found that all the higher performing business they surveyed conducted a strong marketing program during the period under study. They concluded that those businesses were able to solidify their customer base, take market share away from less aggressive competitors and position themselves for future growth when the economy improved.

This study is corroborated by McGraw-Hill Research who analyzed 600 companies in 16 different SIC industries between 1980 and 1985. Their study showed that companies that maintained or increased their advertising budgets during the 1981 - 1982 recession averaged significantly higher sales growth during the recessionary period and for the three years following it. In fact those that were the most aggressive advertisers during the recession experienced sales increases over 2.5 times those who failed to maintain their advertising efforts.

New Leads

If you are investing in your marketing efforts you will generate new leads. The problem is, during economically difficult times, it will take longer and require more effort to close the sale. It’s natural that your potential clients will weigh all their options carefully and do more and deeper research when every penny they spend counts. Help them by providing them with pertinent information and relevant news about the product or service they have inquired about. Here testimonials are invaluable. Have your clients talk about the benefits of doing business with your company. Engage you new prospects slowly, politely and unobtrusively and help them in their quest.

Develop a system to evaluate your new leads. rate them on their level of interest and nurture them along the path from suspect to prospect to purchase. Remember that your advertising will only bring them to your door with their needs. It is up to you to followup in manner that will bring them through the door and build a strong, enduring and profitable relationship.

It certainly helps if you can find the prospects that are ready to buy now. You need to make sure that they find you and you find them. One way to get your message across is to offer free advice or consulting. Focus your advertising on things that will draw out those ready to buy prospects like free reports, whitepapers, buying guides and checklists. Offer the time of an in-house analyst or expert. One client of mine even said “We will help find you the right solution to your compressed air needs, even if it comes from our competitors!” Of course during the discussion they showed as many of their competitors systems as their own and clearly spelled out the features and benefits of their equipment over their competitors.

The Road Ahead

I enjoy bicycling. Where I live there are lots of hills. If I want to ride I have to go up as many hills as I go down. Naturally it is much more difficult to climb the hills then to zoom down. The point here is that an economic downturn is just another hill to climb. Get in shape, redouble your efforts and don’t give up. Even the highest hills have a top. You can rest a little on the way down but don’t stop pedaling! You marketing effort is just like that. Shift into a lower gear, push harder and climb to the top. Your effort will pay off.