Some straight talk about “The Recession” Part Two
I dont' know about you but I refuse to participate in any "recessions". So what is really going on out there? What are companies doing to turn the recession into an opportunity?
Based on my research and dozens of conversations with CEOs, Presidents and owners of B2B technology companies the facts on the ground don't quite align with the media's stories of impending doom. In fact, most of these companies had a great year in 2007 and continue to be optimistic about the coming year. Only a few were seeing minor slowdowns in the first quarter of 2008 but most acknowledged that it isn't unusual.
Only the larger companies seem to be cutting marketing and promotion budgets which isn't surprising since most large companies spend enormous sums of money in these areas. It makes sense that they might cut some of the more frivolous tactics and programs. (assuming they know which are generating profit and which are not). Smaller companies are staying the course either maintaining investment or in many cases, increasing spending on highly targeted, integrated marketing programs.
According to Jason Myers, publisher of Austin Business District Magazine “It only makes sense to see an opportunity when competitors are cutting marketing and promotion budgets. Strategically increasing investment in the areas where competition is cutting is proven to produce substantial returns when the cycle begins moving upward again.” The idea is to fill the void left by competitors who seem to disappear from the market when times are tough.
Be more relevant
Many smart marketers are turning back to the basics – aligning messaging with customer buying drivers or “pain points”. From fine tuning messaging to emphasis cost savings or being far more specific about the value customers can expect, marketers need to be more relevant than ever before. Increasingly companies are not assuming they know exactly what drives customer buying behavior – instead, they are going directly to customers and asking them how and why they buy.
Crank up lead generation activities
If you are closing fewer deals or the sales cycle is getting longer (as it often does during a downturn) it makes sense to increase the number of opportunities coming into the funnel. If you can increase your close rate at the same time you will most likely be able to greatly increase results. Shift marketing investments away from difficult to track tactics like branding to more quantifiable programs including direct mail email and snail mail), social media, online promotion like webinars.
Start a cold calling program
Whether you enjoy the thrill of the hunt or hate picking up the phone, the fact is: cold calling works - assuming you have a sound process and approach it honestly and with dignity. I know that isn't what the sales “gurus” and books teach. There is an art to cold calling executives and trickery will get you nowhere. Be prepared to ask powerful questions and by all means be brief and respect your contact's time. You might be surprised at how accommodating CEOs can be if you are authentic and naturally curious.
Perform a competitive analysis
Knowing what the competition is doing will help you spot holes in their marketing and sales programs that you might be able to exploit. For example, if your competitors are pulling back on advertising, you might want to step in and fill the void. If they are reducing allocations to public relations, start cranking up your P.R. Go where they aren't.
Start with your existing customer base
Talk to or meet with as many existing customers as possible. Make it clear that you value their business and welcome referrals. Don't be afraid to ask them to flip through their database or rolodex (do people still use those?) and pick out a couple of contacts that might be a match. If the customer is happy with your company they should be willing to refer you.
The bottom line is that you need to execute, execute, execute. If you don't have the manpower in-house, outsource it. But get in the game and make it happen.
Based on my research and dozens of conversations with CEOs, Presidents and owners of B2B technology companies the facts on the ground don't quite align with the media's stories of impending doom. In fact, most of these companies had a great year in 2007 and continue to be optimistic about the coming year. Only a few were seeing minor slowdowns in the first quarter of 2008 but most acknowledged that it isn't unusual.
Only the larger companies seem to be cutting marketing and promotion budgets which isn't surprising since most large companies spend enormous sums of money in these areas. It makes sense that they might cut some of the more frivolous tactics and programs. (assuming they know which are generating profit and which are not). Smaller companies are staying the course either maintaining investment or in many cases, increasing spending on highly targeted, integrated marketing programs.
According to Jason Myers, publisher of Austin Business District Magazine “It only makes sense to see an opportunity when competitors are cutting marketing and promotion budgets. Strategically increasing investment in the areas where competition is cutting is proven to produce substantial returns when the cycle begins moving upward again.” The idea is to fill the void left by competitors who seem to disappear from the market when times are tough.
Be more relevant
Many smart marketers are turning back to the basics – aligning messaging with customer buying drivers or “pain points”. From fine tuning messaging to emphasis cost savings or being far more specific about the value customers can expect, marketers need to be more relevant than ever before. Increasingly companies are not assuming they know exactly what drives customer buying behavior – instead, they are going directly to customers and asking them how and why they buy.
Crank up lead generation activities
If you are closing fewer deals or the sales cycle is getting longer (as it often does during a downturn) it makes sense to increase the number of opportunities coming into the funnel. If you can increase your close rate at the same time you will most likely be able to greatly increase results. Shift marketing investments away from difficult to track tactics like branding to more quantifiable programs including direct mail email and snail mail), social media, online promotion like webinars.
Start a cold calling program
Whether you enjoy the thrill of the hunt or hate picking up the phone, the fact is: cold calling works - assuming you have a sound process and approach it honestly and with dignity. I know that isn't what the sales “gurus” and books teach. There is an art to cold calling executives and trickery will get you nowhere. Be prepared to ask powerful questions and by all means be brief and respect your contact's time. You might be surprised at how accommodating CEOs can be if you are authentic and naturally curious.
Perform a competitive analysis
Knowing what the competition is doing will help you spot holes in their marketing and sales programs that you might be able to exploit. For example, if your competitors are pulling back on advertising, you might want to step in and fill the void. If they are reducing allocations to public relations, start cranking up your P.R. Go where they aren't.
Start with your existing customer base
Talk to or meet with as many existing customers as possible. Make it clear that you value their business and welcome referrals. Don't be afraid to ask them to flip through their database or rolodex (do people still use those?) and pick out a couple of contacts that might be a match. If the customer is happy with your company they should be willing to refer you.
The bottom line is that you need to execute, execute, execute. If you don't have the manpower in-house, outsource it. But get in the game and make it happen.
posted by Pete Monfre at 11:52 AM
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