Today, the news raised the threat of deflation. While this is especially troubling to the cyclical and seasonal businesses, they have many options to counter the downturn including seeking bailouts. Smaller firms must look to other means to protect themselves. A natural reaction is to protect the home turf and marketing can be a powerful tool to accomplish that. While customers have been assaulted with a barrage of negative news and an outlook that it will continue at least through 2009, all businesses need is to look for ways to separate from the malaise.

Defense Wins Games

Protecting the business revenue is a primary goal in an economic downturn. However, not all revenue is equal – some revenue comes with so much expense, it’s almost not worth earning. Knowing the factors that make up great revenue helps to decide which activity to invest in – and market for new customers.

Marketing isn’t limited to reaching out to new customers. It should also consider the choices that the current customer base made at their point-of-purchase. Marketing can give current clients a sense that they’ve done something right, hopefully to the point that they’ll keep doing it again and drive more business.

Gathering information on customer sentiment and satisfaction is usually best accomplished through a market research firm. Many belong to the Marketing Research Association.

Results of market research can be leveraged into action items for current customers to improve satisfaction, but also to expand the relationships into new areas. Sometimes, new areas of growth can arise from marketing into existing customers for new products and services and is usually an easier prospect.

Growing Through a Downturn

The results of the market research can help determine the list of factors that the best customers have in common. These are the “sweet spot” factors for current customers and should form the baseline for any new customers.

In a tough market, new customers need to feel that they are making a smart choice when each decision may be scrutinized later. Successful firms take control of the messages to the market to ease the decision of the buyer. One way of doing this is to separate the business from the negativity in consumer sentiment by increasing demonstrations of financial strength and growth.

A few good examples are:

1. Announcing new wins to the customers in some manner. Showing success regardless of the economy turmoil in providing services that are important now is important to both new customers, but also for existing customers. It shows the business has stayed relevant and forward-thinking. The important thing is that the customer receives the knowledge of the new member to the family, the delivery mechanism must work for both types of customers and may take the form of email, printed newsletters, lunch with sales, a roadside bulletin board, or all of the above.
2. Actively introducing new products or services increases the “buzz” and may slide into a viral marketing situation. Some media outlets are looking for positive news to counter the negative news. One method is to offer limited-time trials or samples to buzz-makers. A public relations firm can help manage the message, especially in advance of holiday shopping, even if the product isn’t seasonal as this recent launch of the new Blackberry.
3. Publishing a case study of a customer highlighting the factors referenced above adds credibility and practicality to the messaging, such as this study by Akamai measuring the ROI.
4. Starting a loyalty program can also galvanize best customers against competitor products, especially the types of competition that isn’t obvious, i.e. energy drinks vs. coffee. Starbucks recently introduced the Gold Card.

These programs should accomplish two things: they can remind customers why they made the original choice and create buzz for new customers of the products and services The over-arching objective is to capture the best customers while looking for “like-best” new customers.

What new ideas do you have to manage your message to the market?

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Kevin Flavin has almost 20 years experience in the financial services industry. Balancing the first half of his career as a buyer, he has spent the last ten years as a vendor in a range of roles from sales, product management, but always marketing. He is based in the Boston area. He is also a monthly contributor for the AMA Boston blog.