Increase your profits in a down economy- Part 2

Where do you want to spend your marketing dollars in a “down economy?”  In my last post, I wrote about how the media plays a big role in the perception of the economy.  If you believe them, the entire world is now broke and living in boxes underneath highway overpasses.

Business owners start to believe that there are no longer clients willing to buy from them and they enter a hibernation mode, hoping they will make enough sales to survive.

Have you been to a department or grocery store lately?  If so, you may have seen what I have been seen.  People are buying things.  Have you been to a restaurant lately?  Did you notice that people were buying meals? Have you noticed a dramatic decrease in rush-hour traffic because nobody has a job any more?

Hey, I believe there are some serious problems with the economy but the fact of the matter is that people are still making and spending money. The wise business is not retreating. Instead, they’re spending marketing dollars wisely. They are throwing useless “brand/image” advertising out the door. They are demanding accountability from agencies and others selling them media.

The way I look at it, if your marketing isn’t delivering a measurable return, either get rid of it or figure out how to measure it. There are companies out there that do detailed ROI projections for capital investments but often spend the same amount of money on marketing with no strategy to measure return.

The bottom line is that this is the worst time to cut back on your marketing. Your competition is probably doing it so why not take advantage of the situation to strengthen your presence? When things turn around, there will be a lot of your competitors who may be great buyout targets.

You also need to spend some serious time strengthening your relationships with your clients. Be sure you are maximizing revenue from each transaction. Be sure your sales reps are well-trained in selling skills and product knowledge. Be sure your service staff knows how to up-sell and cross-sell.

Finally, quit listening to the media and chart your own future.