Death to "Band-Aid" Marketing & Advertising

The Sky is Falling...The Sky is Falling!!!

Alas, was Chicken Little overreacting or prophetic in his frantic ranting? Well, if you are looking at (and who isn't) the recent economic blunders it does appear as if something is falling...mainly consumer confidence.

So, what's a merchant to do? You could apply a "Band-Aid" fix and start rampant discounting or you can apply a more strategic approach a la John Deere amidst The Great Depression. What did they do? Glad you asked, with business at a standstill they emphasized product development and actually extended credit to farmers (who had no money by the way). They must have been crazy...like a fox!

Today, John Deere is stalwart in terms of brand loyalty and extends through multiple generations. Can you imagine telling your grandpappy that you are reading a Blog about loyalty programs and cite John Deere as an example? He'd probably wash your mouth out for saying the word "Blog".

But I digress; what can today's businesses glean from John Deere? Several key items. First is to apply a strategic approach to current conditions (all things come to pass). And, secondly, be creative on how you foster loyalty with your customers.

With the great database marketing tools available today (insert plug for our product here ;) www.dataRM.com) and the low barrier to entry to offer a loyalty program you can speak to your customers in ways that defy thinking even 20 years ago. Use what is available to you today and if you don't know how, contact us. We can help rip off the band-aid and offer a cure!

How Will Retailers Fight the Recession?

75 % of Americans polled say we are in a recession, according to a recent study. Big-box retailers typically have the resources to withstand the slowdown but even they have to be inventive.

The real question is how do entrepreneurs and small & medium sized businesses creatively build their companies in a slow economy? What proactive, low-cost, "guerilla marketing tactics" will they use in order to keep their customers coming in? And how do you communicate with your loyal customers?

Time to wake up and smell the fava beans (maybe with a nice Chianti)! Businesses who rely heavily on print advertising, and other difficult to measure media, are doomed to diminishing returns. We've all heard the 80/20 rule where your top 20% of customers generate 80% of sales (thank you Mr. Pareto for that little pearl!). The problem is most companies, large & small, have a very limited view of who those top 20% really are, let alone the next 20%, the 20% after that and so on. Customer segmentation is the key!

So, we extend a question to the blogosphere - what guerilla marketing tactics work best in a bad economy? Come one, come all and make your voice heard!

No More "Pay & Pray" Advertising!

Ok, boys and girls...quiz time!  If you went to Las Vegas and you kept throwing your money away playing craps or any other game, would you still keep playing?  Ok, so it is a ridiculously rhetorical question, but I'm going somewhere with this.

As a business owner, executive or entrepreneur how do you measure the effectiveness of your advertising?  Can you put an ROI on your advertising dollars?  If not, you are merely gambling!  You are involved in "pay & pray" advertising, where you pay and pray that people respond to your ad.

Loyalty programs are very popular and they offer companies the ability to track customers, eliminate "faceless customers" and understand the value each customer. Stop blowing your budget on untrackable campaigns and start mining the value of your existing customers.  

So, let me pose a question to all you business owners, execs & entrepreneurs - as recession fears loom, how will you use marketing & advertising to enhance your position in the marketplace???

$4.00 A Gallon...Holy MOLY!!!

Today we heard gas may reach $4.00 a gallon by summer.  Now, we aren't math prodigies but that's 400 pennies 0r 40 dimes...hmmm maybe my children's piggy-banks hold a gallon or two worth of pocket change?

What does this have to do with customer loyalty programs you might ask?  Well, my dear bloggers discretionary spending drops when consumers have to decide between fuel and their favorite hoagie, latte or that nifty high definition Blu-Ray DVD player (I hear they're awesome, by the way.)

So, if consumer spending decreases, how do you keep your business moving forward?  The answer lies deep, ok it's not that deep, it is right under your nose...YOUR EXISTING CUSTOMERS!  Breath taking isn't it, hold the applause please...no really, we couldn't have done it without all the little people.  

Levity aside, your existing customers and their value to your business hold the key and by knowing who your most valuable customers are you can use that information to sent precise marketing messages.  If you are not segmenting customers you need to be!

How Does My Business Keep Customers? Take a Look Inside!

dataRM is a powerful customer retention & segmentation tool designed to increase profits and decrease wasted advertising dollars. It gives you a clear picture of your best, average & "not-so-good" customers so you can focus your marketing spend on your most profitable customer segments. It can also help you keep customers with a latency module.

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The Faceless Customer

How many customers enter a typical retailer anonymously?  Most I would presume...these are "faceless customers" and without knowing who they are how can retailers serve them best?

ADVERTISING IS RISKY - we call it "pay & pray"...you pay for it & pray customers come in.   With all of the available technology out there it is time to put a face on your customer and communicate with them on a highly personalized basis.  

How? 

• Step 1 - Mine your database (if you don't have a customer database it's time to step out of the dark ages and establish one (those Gieco cavemen would use one!).  
  
• Step 2, use customer data from your database to send your customers precisely targeted marketing.  
  
• Step 3, Measure your results & maximize your highest returning marketing efforts.
  

Sounds simple and it is but action is needed to take your business to the next level.  Wasted time is wasted opportunity!

Is Traditional Advertising Dying?

We continually hear from our clients that the existing economic woes are resulting in slower sales. With gas prices being high, the housing market crashing and fears of recession looming, consumers are keeping discretionary spending to a minimum.

That begs the question - how are retailers communicating with customers today? And, with growing online & social media options becoming more popular do falling response rates among traditional advertising methods forecast a dismal future for newspapers, magazines & broadcast direct mail?

A highly targeted approach focused on specific customer segments could be the answer.

Sound off below, by responding to our survey. Looking forward to seeing the responses.