So…Looks Like We Are In a Recession. Never Fear Marketers Are Here!
Anna Barcelos, Contributor, AMA BostonLast week’s article Recession Nation: 49 States at Risk pointed out that every state in the country with the exception of oil rich Alaska is either in or at risk of being in a recession. Working for a marketing services organization, I automatically hear from customers and prospects that their budgets are being slashed. It’s a common trend I’ve experienced during my 15 years in marketing. Yet, each and every time I see a recession as an opportunity. Are marketing people delusional in feeling this way? Are we eternal optimists? I don’t think so! No matter what happens in the economy, let’s not forget our customers! How do we help them if they are in situations where their budgets have been cut? What do we do within our own organizations when management puts the pressure on us to reduce budgets? We do what we do best – get creative!
With all the latest cost-effective on-line technologies, even the smallest budgets can be used for successful marketing campaigns that yield opportunities for revenue. Here are three cost-effective ways to leverage both traditional and on-line marketing without putting a strain on marketing budgets.
Keep going with email marketing
Despite the challenges marketers face with email marketing, whether deliverability or CAN SPAM compliance, the fact is – email marketing works! 82 percent of the marketers surveyed by Datran Media indicated that they planned to increase their use of email marketing this year. There are numerous statistics all over the web about how you can use this cost-effective medium to generate leads and up-sell your products and services to existing customers. The key is to find an ESP (email service provider) that does all the leg work of ensuring that your emails make it to your prospects and customers. All you need to worry about is your message and call to action. You can send emails for pennies compared to traditional marketing efforts. Most of you are already doing it. Those that aren’t, what in the world are you waiting for!
Make your direct mail campaigns work harder by incorporating PURL technology
PURLs or personalized URLs are a fairly new application that automatically generates a separate URL for each person you’re targeting. The technology works by creating a personalized web page for each direct mail recipient (e.g. www. AnnaBarcelos.CompanyName.com) that is printed on the direct mail piece. A DMA study a couple years ago indicated that 42% of direct mail recipients prefer to respond on-line. Capture these recipients by directing them to special pages that contain offers or collect information to help convert them to paying customers. PURL technology is cost-effective at pennies per recipient, fully trackable and can double response rates. I don’t know about you, but I recycle most of the direct mail I receive. Bet I wouldn’t throw one out if it had a PURL on it. Wouldn’t you be curious to see what awaits you on a web page created just for you?
What about the good ole fashioned telephone?
It costs 8 to 10 times less to generate revenue from existing customers than obtain new ones. So why do companies still spend countless amounts of money trying to get new customers when there are plenty of existing ones that they can up-sell products and services to? Take a look at your existing customer base and their current purchases. I’m sure there are up-selling opportunities, but you won’t know until you pick up the phone and talk to them. So simple, yet we don’t do it often enough.
These are just three ways to add more muscle to limited marketing budgets. As marketers, we are smart, creative people. Let’s use that ability more than ever during these trying times.
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Anna Barcelos has over 14 years of B2B and B2C broad-based marketing experience, both traditional and on-line. She is the Director of Marketing and Business Development for BLI Messaging, a Providence, RI-based email, voice, survey, SMS and fax technologies company. Anna is currently a member of AMA, MarketingProfs, and SOCAP. She is also a monthly AMA Boston blog contributor.
Tags: Direct mail with PURL, Email Marketing, lead generation
November 17th, 2008 at 5:28 pm
Anna,
Great insights. You are right, budgets are being cut, but this is not the time to pull back into our shells. Businesses will look to marketing first to find ways to keep up lead gen, even in the toughest of times. Your ideas are great ways to do that.
The only thing I would add is to look again at every touchpoint for customers and prospects. Anywhere you can get a message to people about what you can do for them - do it! Great leads come from the damnedest places.
-Steve Halling
Brand Strategist
AMA Boston Board of Directors
November 18th, 2008 at 10:17 pm
Thanks Steve. You are absolutely right. A recession shouldn’t scare marketers because there are so many cost-effective ways to reach audiences without exhausting budgets. I’ve lived it working for small businesses on a shoestring marketing budget. You get creative by default. Thanks for the terrific response!
December 8th, 2008 at 5:15 pm
Anna,
Totally agree on email marketing being one of the best ways to go - both for reaching new prospects inexpensively, and for farming the “installed base” of existing customers.
During tough times, customers become much more risk-averse, so it’s often a lot easier to cross-sell, up-sell and go deeper with these existing customers (vs. acquiring new ones.)
One of the keys we’ve found is using email marketing to efficiently identity the “active” customers - the ones with money who are still actively engaged and doing business normally (versus the “inactive” ones who are hunkering down and riding things out - and not spending much if at all).
Being more precise and targeted is the key.
Rick Braddy
President/CEO
Conxentric, Inc.