In any recession, customers get stingy. It's natural.
But is there something different this time; that is, are customers becoming long-term frugal?
Perhaps. With an unemployment rate at 10.2%, it will likely take several years for it to get to normal levels. What's more, consumers are saddled with debt and have experienced drastic reductions in wealth (especially with the fall in the real estate market).
In other words, when it comes to selling your products or services, you might need to take a different tack. If not, your business may just waste away.
What to do? Here's a look at some strategies to get the business of long-term frugal customers:
Rethink Marketing: While social media has been hyped up, it is still critically important. Let's face it, customers typically first go to the Net before making a purchase. And, if you're company does not show up, you're certainly in trouble.
To this end, you need to get savvy with search engine marketing, blogs, Facebook pages, Twitter and so on. They will not only engage potential customers but also build a growing digital footprint.
Some excellent books on the topic include The Social Media Bible and The Facebook Era: Tapping Online Social Networks to Build Better Products, Reach New Audiences, and Sell More Stuff
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Value Message: Who doesn't like a bargain, especially for a good product or service? Even those who are looking at luxury goods are trying to get a good deal.
But, when crafting your value offer, you need to put much thought in the message. Just look at Stuart Frankel. He operates several Subway shops in southern Florida. Desperate to drum up business, he came up with a simple idea to sell $5 footlongs on Saturday and Sunday.
Interestingly enough, the result was stunning, as sales spiked. At the same time, profit margins remained stable.
Customer Feedback: During tough times, your customers may be looking for alternatives. This means you need to communicate more and perhaps even provide enhanced offerings. In fact, this may help increase "word of mouth," which could result in getting more customers.
Also, ask your customers some questions, such as: What do you value the most? What else would you want?
This can be extremely valuable in terms of targeting new customers, as well as fine-tuning your marketing.
Be Upbeat: In light of the negative media, it's not easy to be positive. But you need to. It's critical for motivating your employees and building confidence with vendors and potential customers.
Tom Taulli provides a variety of financial services to business owners, such as business plans, cash flow management, and taxes. You can reach him at taulli.com.











Reader Comments (Page 1 of 1)
11-15-2009 @ 6:43PM
Jeremy said...
People don't seem to full understand this situation that we are in. Halfway service will not cut it. You have to be better and cheaper than the next guy and that is it. Everybody needs to be in emergency mode right now and I think it is really going to clean things out a bit. The rip off companies, the ones that lack good customer service and to those people that don't care enough to do a good job - their day is coming. All this advise about poor economy when the best advise is to take pride in what you do. No Matter What It Is. If you dig holes for a living, you better have dug the best hole around because a lot of people will want to take your place.
11-16-2009 @ 12:04AM
Jose Brienza said...
111-15-2009 @ 6:43PM
Jeremy said...
==
well said Geremy
==========
Jesus is Lord and He has done a Good work and Finished it!
11-15-2009 @ 9:03PM
Peter Van Schaik said...
Consumers are going to buy the bargains. There are too many temptations on the shelves for consumers to resist forever but the precedent has been set: Retailers have slashed prices to lure customers and now the customers expect it. Sales will come, but at the expense of growing profits. That, simply stated, is why we are expecting the economy to improve while the stock market continues to tumble. http://jpetervanschaik.googlepages.com
11-15-2009 @ 10:28PM
Jeremy said...
Peter, very interesting page you have there. I learned a lot, thank you.
11-15-2009 @ 11:29PM
Jon said...
Great article, but I have a problem with the difference between companies that cater to necessities versus consumer discretionary. Take the Joseph A Bank commercials recently, you know their margins have to be hurting by giving away the free suit and accessories. With subway, it was already a value product and a subtle price cut (and marketing blitz) was all that was needed to give it the boost in sales.
11-16-2009 @ 8:02AM
TEXAN said...
Spot on...profits are going to suffer to merely maintain any level of gross sales revenue....so the push back will begin against all suppliers to retail...including especially commercial real estate rent, cleaning and maintenance services, utilities, and there will be push up on normal "at cost sevices" to try to find some margin...like shipping, gift wrapping, concierge service, etc.
11-16-2009 @ 8:25AM
Jackie said...
Customer service has long been gone. Good employers who treat their employees well, are few and far between. And there is the reason employee loyalty no longer exists. Employees will always jump to the next employer who will pay more, and treat them better.
Treat your employees well, and they just might want to do a good job.
11-16-2009 @ 10:09AM
Shelley said...
"And, if you're company does not show up, you're certainly in trouble."
Learn the difference between you're and your and maybe people will take your advice seriously.
11-16-2009 @ 6:57PM
Myrna said...
Good for you Jackie!!!, you hit the nail on the head. I like what you said. My employer treats me really bad and there is nothing I can do about it. I'm a senior and have been looking for another job for months and I'm not having any luck. I'm going to open up a catering business and hopefully, I will have some luck in that.
Gammy
11-16-2009 @ 10:39PM
Frosty said...
In business you try not to give up quality, however when the next business will do the job for near to nothing, you have to make some type of adjustment to stay alive, above message very good, yes if I do not dig deep enough my comp. will and I will be down the road, I am a Fence Builder. Keep trying to bring out the best materials and labor you can, this will turn and when it does you need to have a customer base.
11-16-2009 @ 11:19PM
Watermelon Farmer said...
We are in the Closeout merchandise business and its even tough for us to maintain order volume.
www.closeoutdirect.com
Advice is welcome thanks Joe
11-16-2009 @ 11:32PM
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