Recession Strategy: Add Value

“Wow, are you serious?,” she asked. (She has learned I might be joking at the most inopportune times.)

“Yes, I replied,” not surprised by her reaction, “Giant Eagle is now giving 1% off on your grocery bills based on fuel purchases...it’s Advantage Card in reverse.” 

And it’s a great strategy. My wife immediately added in the details once she thought it through - increased grocery purchases were incentivized by the “Fuel Perks” program that lowered the price of gas when it skyrocketed last year. With fuel prices down, that is probably not as big an incentive as it was. 

I added that the cost of groceries has risen because of the passthrough of those same fuel costs. Competition is fierce in that sector, and consumers are looking for a deal now as much as ever. Checking circulars, looking for discounts, going to Walmart, etc. 

The natural response in any business to a downturn in sales is to discount. Sometimes it is unavoidable...too much inventory against slowing sales, need for cashflow through the business, etc. 

Yet a strategy to consider is Adding Value. I detail it in Marketing in a Downturn but have seen it only rarely in practice in the past few months. Giant Eagle is practicing Adding Value (by the way, I take no responsibility or credit for their strategy...it’s just a great example!). The perceived value of a rebate on the grocery bill for using the Giant Eagle gas station is very high. The real value ain’t bad either! In this environment, 1% off the total bill is a help (and beats spending hours cutting coupons).

There are many ways to add value. Extend warranties. Change terms. Offer extra customer service, support. You may be thinking 2 for 1 offers, and this is adding value (although it is also price cutting), but it is just as easy to add value to an intangible. Offer extra meetings to a consulting package, provide added phone support, deliver extra time or more information.

You’ll know your adding value when prospects and customers react the way my wife did to the Giant Eagle offer. The trick of course is figuring out what would be high perceived value that isn’t truly expensive (and therefore damaging to the bottom line). 

Let me know if I can be of help with that discussion. A fresh set of eyes on the issues can provide new perspectives and uncover opportunities. Email me to talk more, or if you see a great example of Adding Value.

SLE

Economic Outlook: Rethinking the Plan

PNC Financial recently released its latest economic forecast. Click here to see specifics for small business. Long and short - the recession is here to stay. The information also covers survey results from business owners asking about their actions in response to the recession. Good stuff. 

So what good is that 2009 marketing plan now? It may be time to revisit it, not because it wasn’t  a good plan, but even in November or December few really knew how deep the economy would fall. (I wrote Marketing in a Downturn in November...if I had known, it might be called Marketing in a Recession!)

Although according to a recent Outsell survey, twice as many small businesses (fewer than 100 employees) are planning to increase marketing spending than large businesses (more than 1000) employees. Unfortunately, that twice as many is actually only about a quarter of all respondents. In other words, one in four small businesses and one in eight large businesses are planning to increase their marketing spend in 2009. (If you are in that group, let’s talk!)

More likely, you’re in the super majority that are holding the line or cutting the budget. If so, it’s time to have a second quarter plan adjustment. There are several changes you’ll want to consider. Most important, do you know from where your sales come? What is the process? What are the yields of each step in the process and the alternate routes through it to the sales?

If you can’t answer those questions, we should really talk. You may be wasting money simply because you don’t know what works and what doesn’t.

Second big question: Where are the opportunities? Even in a recession, there are opportunities. The opportunities aren’t of equal value in every sector, but there are opportunities. Almost always there is one reality in a recession - the competition is pulling back, too. Market share is often up for grabs. Value is valued (not just price). How can you exploit these and other opportunities? 

Often it takes simply pulling back and taking a fresh look at the situation. Rethinking the plan and getting it more actionable and into a process that is tracked and corrected. No matter what the conditions.

Email me if you need help in that discussion. We’ll get you on track whether your budget is up, steady or down.

SLE

The Geek Ambassador

I am partnering with the “Geek Ambassador”. GA (as her friends call her - her name is actually Jennifer Stockdale) helps organizations figure out how and where online social marketing can fit into their marketing strategy. It is important to understand that ignoring online media is a losing battle. Here are some facts from GA:

• 500,000 people join Facebook Each Day
• 6,000 Small Businesses join Twitter Each Day
• 100 Million videos are viewed on You Tube Each Day
• Jupiter Research found that “The average consumer of blogs, RSS/XML feeds and Podcasts is male and earns big bucks

Are you missing a connection point with a target audience?

Linked In, YouTube, FaceBook, Twitter...marketers are digging around with how best to use these powerful tools. With the recession, the low costs and potential for big success from viral “pass along” impressions makes online channels that much more attractive. GA can help you work through the clutter and get to a solution that fits your organization and integrates with your “traditional” marketing strategies.

In coming weeks, we’ll be offering a series of training sessions on using online social media. Until then, if you’d like to learn more, have an introduction to Jennifer, or receive a free article from the Geek Ambassador, email me with your request. We’ll get you connected.

SLE

Be A Genius Subscription

So you want (or need!) lots of marketing help, but you can’t hire a VP of marketing. Or a high priced consultant for ongoing advice. In fact, you’re a “DIY” marketer. You and your organization do it yourself.

Then you’ll love the Be a Genius Marketing Subscription. Solid advice, tips, ideas and more, delivered each month in a variety of media. This service pulls from the successful one-on-one Marketing Coach curriculum and provides solid instruction for developing and implementing a strategic marketing plan. Webinars, podcasts, a premium newsletter and more...

You’ll receive “reviews” of latest marketing ideas and tactics. Insight into how to apply marketing tactics in your situation. Great ideas packaged for easy consumption. Thought provoking concepts that will give you insight to make you and your organization better marketers.

Plus, each month we’re including a special report from the “Geek Ambassador” on all the latest online and social media marketing news and ideas.

You can even submit your own questions regarding your marketing and situation. Your questions and issues will be answered directly or may become part of an upcoming webinar or podcast. Email me for full information on the subscription service, or go to the samples page of the website to download a pdf.

SLE