Ready for the Recovery? Fine Tuning Your Marketing Campaign for an Improving Economy

Posted on Monday, May 10, 2010 by Bryan McCall

If the recent economic numbers have got you daydreaming about all the new customers and orders you'll soon be enjoying, you're not alone. Business owners and marketing managers around the country have been waiting a long time to hear the recent news: that jobs, prices, and even profits, are finally coming back.

Locally, the housing market is looking up, and if we keep the oil off the beaches it still may be a good year for tourism.

But before you run out to take advantage of the upturn, ask yourself: is your marketing program optimized for a recovering economy? If not, you risk wasting money and missing opportunity. Smarter managers will bide their time, realizing that buyers - like spring plant life - usually come back slowly and sporadically. Things might be getting better, but that doesn't mean that they're going to be better right way.

Because recovery periods can be such a tricky time to manage marketing efforts, here are a few pieces of veteran advice to point you in the right direction:

Think of things from your customer's point of view. Whether you sell products or services, to businesses or consumers, it's important to understand that your buyers have probably had a rough couple of years. Despite what the business press has to say, they may still have fresh memories of lost jobs, budget cuts, and tough times - not exactly the mindset for making big purchases.

Take the time to ease them back slowly. Don't run a campaign that focuses on industrial-sized investments, unless you're absolutely sure your market is ready. It's easier to sell a recession-shy customer base a lot of small solutions than it is to sell a single expensive one.

Emphasize value. One of the best ways to get them back into the buying mood is by showing them that there are still good deals to be found, now that the money is starting to flow again. Lots of companies, understandably, don't like to advertise on price, but the beginning of a recovery can be a great time to tout your savings. Your customers are likely to be torn between wanting to make investments going forward and the natural fear of seeing their available funds dry up again; low prices can be a way to spur them into action.
It's worth noting that you don't necessarily have to unveil a new product line to make this dynamic work. In fact, sometimes discounting what you have on hand can kill two birds with one stone: first, you give buyers a chance to get something they've had their eyes on at a great price; and secondly, you can clear out old inventory that might not have moved when the economy was in tough shape.

Keep one eye on the competition. You're probably not going to be the only one in your area or industry who's looking to take advantage of better days. Be sure to keep a close watch on your competitors; are they adding staff, upgrading their merchandise, or making a move to pull some of your customers away? A recovering economy can actually be a dangerous environment for some businesses - the recession has knocked a lot of buyers out of their normal routines, and now that they're returning, they may be open to trying new vendors.

Obviously, this can be both an opportunity and a challenge. You'll want to play a bit of defense by stepping up your customer service efforts and marketing small specials to existing customers. The idea is to keep them coming to you, rather than being tempted by competing firms. On the other hand, make sure your marketing materials and messages contain at least a few appeals to your competitor's customers - you might just catch a few of them willing to try something new with their recovery money.

Pace yourself. Good news has a tendency to inspire bold action. Your first instinct might be to take out a series of full-page ads, ramp up your search engine advertising efforts, or make expensive upgrades to your website. Any of these can be a great idea, but try not to jump in all at once - nothing kills your marketing momentum faster than an empty bank account, and the economy might take a while to catch up to your enthusiasm.

As families and businesses start to increase their purchasing levels again, there are going to be a lot of opportunities for astute owners and marketers. Just be sure you tread carefully - an improving economy is great, but it's your company's bottom line you need to keep the closest eye on.