Seems everyone I speak to has to ask, "Is the economy hurting you?" Fortunately, my answer has consistently been "Nope. Not at all." That's right, I'm staying busy. Very busy. I credit this to my client base.
Don't get me wrong. I am certainly seeing the effects of the economic downturn. Some of my clients have stopped advertising. Some have cut budgets. Some just seem to be behaving erratically. However, Catch Light Productions has a diverse client base — financial, hospitality, industrial, education, retail, wholesale. There are enough in the mix who understand that maintaining strategy even during tough times will help them pull through the recession and come out on top. Some even get more aggressive with their marketing efforts. This keeps things in balance for me.
Unfortunately, not everyone has the benefit of such diversity. Many of you serve a very specific niche market. I've always been a big fan of catering to a niche — at least when it means finding and capitalizing on an untapped market. But, this can also leave you feeling high and dry if things go downhill in that specific market. So, how do you deal with that sinking feeling?
Consider this: Consumers do not go away — their buying habits simply change. They become more focused on how they spend because money is tight or they fear it will be soon. They are more focused on value than brand. They are doing more research before they buy. They are putting certain purchases on the back burner for now.
You should respond by reformatting your offerings. Introduce a lower cost product line. Offer a rewards program to keep loyal customers coming back. Stay informed about new business trends. Use social media like Twitter and FaceBook to form relationships — not to sell. Remember, it's not about you — it's all about the customer. It's about responding to consumer wants and needs. Get feedback. Ask what they want, then tailor your strategy so that you can give it to them.
I'll get more specific about recession-proofing your business in future posts. For now, step back and think less about where you are now and more about where you want to be heading. Post Cereal led their industry for years. As the United States sank into the Great Depression, Kellogg's responded by doubling their ad spending. Post cut theirs. Kellogg's became number one.
Until next time,
Howard Theriot
Catch Light Productions
Advertising is what you do when you can't go see somebody. That's all it is.
— Fairfax Cone
