Repositioning Your Business for the New Normal

My business partner and I attended an Agency Management Roundtable (AMR) meeting in early November with some pretty savvy marketing and public relations professionals who own small agencies across the country.  These entrepreneurs meet semi-annually to share best practices designed to improve the performance of their businesses.

After two days of swapping new ideas and advice about their agencies and doing business in a recession, it became clear that most of these agency owners face many of the same business challenges I do. Our discussion also reaffirmed that we need to plan for what likely will be the new “normal” way of doing business, even long after an economic recovery.

Here are a few of what we marketing types call the BGOs, or “Blinding, Glaring, Obvious” takeaways from my AMR experience. Many of these BGOs are not new concepts. But all are worth revisiting as we adjust our business plans for 2010:

How Do Your Customers Really Feel About You?

It’s pretty common knowledge in the business industry that building on existing customer relationships is more cost effective than trying to attract new customers altogether. But before you start trying to upsell your existing customer base, it might be a good idea to find out how they really feel about your business. Such information could help you come up with a winning strategy that entices them to buy more of your services.

However, asking a customer at the counter what they think of your business is kinda like asking your significant other if he or she thinks you’ve gained weight. Some couples have the kind of open and honest relationships that allow them to successfully navigate such a sensitive topic. Other couples might squirm and feel awkward.

Business down? Give away money!

I’ve experienced two great marketing campaigns in the last two days – both resulting in money for me!

First up, my favorite local lunch destination when I need fast, comfort food: eegee’s. They’re giving away coupon cards for every $5 donation customers make. The coupon card gives you half off your lunch purchase once a month for a whole year.  Not a bad exchange rate since I paid around $7 for my lunch yesterday. And in two months – my coupon card will have paid for itself.

And the icing on the cake? The $5 donation benefits the CareGiver Training Institute, a nonprofit that trains individuals to be nursing assistants and caregivers. So not only do I get a once-a-month lunch discount, I get to feel good for helping pay for someone’s education.

The second impressive marketing campaign arrived on my Blackberry via e-mail yesterday – Starbucks credited $10 to my Starbucks Gold Card for being a valued customer. Now granted, I probably spend more than that in a week at Starbucks and should really have stock given how much I’ve single-handedly held up this company.

But you can bet I felt great using my Gold Card this morning to buy a chocolate chip cookie and a venti Zen tea. I also felt, well, valued.

So how much does it cost to give something away for free? Probably nominal compared to the potential profit from a customer who will now choose to eat at eegee’s once a month and will probably upgrade that venti Zen tea to a grande iced mocha come Friday morning. And I’ll be going back as a customer because I know it’s likely if these businesses find their campaigns successful, they may repeat them. And that’s more for me, Jane Q. Customer.

Don’t Think Customer Service Counts?

Desperate times call for desperate measures. And good customer service (see our earlier post from account director Dana Robbins-Murray) is one of the easiest ways to market your business.

These customers went to great lengths to track down the help they should have received on a first phone call to the business.

http://www.cnn.com/2009/LIVING/personal/05/28/lw.customer.service/index.html