The economic news throughout the world has recently become a big threat to small business. Lending has tightened, customers are holding their funds close to their chest. For many businesses, the next order of business is to cut costs. AIC, a mutual fund company cut their staff by 20% this week. In the article it is mentioned that this isn't as big a deal as it appears because most of the staff cuts were to IT and marketing.
And there's the rub. So often, the first that gets cut in a recession is the marketing team and the marketing budget. And without either of these, how do you get your message out?
Recessionary times are about being smarter with your money. Quite frankly, in my book being smart all the time makes the most sense but so many business people and even in-house marketing teams take the money for granted in the good times.
So how do you use your money wisely?
First, get to really know your audience. Mass marketing isn't economical if you sell a niche product or your audience represents a specific market. Find ways to fine-tune your delivery mechanisms. Stop talking to the people who will never be your customer. To use an example from last week's blog, if you are selling something that costs $30,000 stop talking to neighbourhoods with high unemployment or low incomes. You may have to get out of your office and actually sell your message in person.
Second, stop buying message delivery systems just because they seem inexpensive. If you spend $125 to reach no one who responds it is actually more expensive than spending $250 to reach those who will. Of course, you can only spend what you can afford, but if you resist the urge to spend that $125 that seems so inexpensive you can add that to next month's budget and actually reach people who care.
Third, and while I've come to hate this expression, think outside of the box. Be creative in how you reach your audience and how you spend your money. For some US readers, this could mean thinking about getting a Canadian marketing team to craft your messages. The difference between the Canadian and US dollar right now means you get more for your money. But it doesn't mean to resort to your nephew to do your creative development just because he happens to have a design program on his computer.
The companies that stay in the customers' minds during a recession are the ones who survive and grow more quickly after the recession ends. Which it will. It always does.
Sunday, October 26, 2008
Sunday, October 19, 2008
Relevant messaging - what if your customer doesn't care?
The Canadian election on October 14th had the lowest voter turnout in Canadian election history. And yet, for many of the people who voted, it was considered the most important election in their lifetime. What went wrong?
Apparently the majority of the population just didn't care. (I am a firm believer that if you don't vote, you don't get an opinion about the state of the government later on.) They were getting mixed messages from the media, backtracking from the politicians, irritating telemarketers and door-knocking canvassers.
There was too much negative commentary from the parties as well. And here's a very important point for small business that would have put a different tone on the election. Spend your time and your money telling me what is good and unique about you; don't spend my time just yapping about the things that are wrong with the competition. Yes, yes, each of the parties purchased advertising in which they spouted their positive attributes, but we all know that media coverage gets more attention and belief than any paid advertising. In the end, all the political leaders looked lame and some even looked childish.
I had a conversation right before the election with my local MP. We had a great chat about how the Conservatives are their own worst enemy when it comes to messaging. What they mean to say and what gets published in the media are often two very different things. And I can't help but think that if they actually had a marketer, instead of just a whole slew of public relations folks, their messages might be a little tighter. Sure they use a marketing firm to produce their lovely paid advertising, but where is the marketing guidance for the every day mess?
The complicated stories that were the underlying issues of the election were too complicated to resolve in speeches or one-minute ads. The environment, the economy and leadership abilities all require a consistent, understandable message - one that isn't up for media interpretation.
And small business needs that relevant, clear message as well. You can spend a lot of money uselessly if your messages aren't relevant to a person's life. You can help people care through education and exposure, but neither one of these things is an instant return. Are you selling a $30,000 item to an area with high unemployment and a fear of job loss? You might want to check in on the relevance of your messages.
Politicians are fun to watch because they have to educate, get exposure and convince people their "product" is the best, all in a short period of time. Jack Layton hasn't changed his "product" in years - so if it wasn't relevant to people before, why would it be relevant now? Elizabeth May personifies what everyone feared of the Green Party - fanatical extremist. That has a pretty limited relevance. Stephen Harper obviously had the most relevance for the voters - a calmness in the face of economic explosion, a leader who admits mistakes rather than blaming others. He has his flaws but he came closest to being relevant to Canadians. And Stephane Dion? Well, poor Mr. Dion just didn't have a clue. And all the Liberals are equally to blame. They voted him into the leadership position and supported the Green Shift. Don't let any of them convince you that Mr. Dion did that all by himself. Relevance, gentleman ( and lady). If you want voters out, you better find out what is relevant to your customers. And that's us. Every single person in Canada is your customer.
Apparently the majority of the population just didn't care. (I am a firm believer that if you don't vote, you don't get an opinion about the state of the government later on.) They were getting mixed messages from the media, backtracking from the politicians, irritating telemarketers and door-knocking canvassers.
There was too much negative commentary from the parties as well. And here's a very important point for small business that would have put a different tone on the election. Spend your time and your money telling me what is good and unique about you; don't spend my time just yapping about the things that are wrong with the competition. Yes, yes, each of the parties purchased advertising in which they spouted their positive attributes, but we all know that media coverage gets more attention and belief than any paid advertising. In the end, all the political leaders looked lame and some even looked childish.
I had a conversation right before the election with my local MP. We had a great chat about how the Conservatives are their own worst enemy when it comes to messaging. What they mean to say and what gets published in the media are often two very different things. And I can't help but think that if they actually had a marketer, instead of just a whole slew of public relations folks, their messages might be a little tighter. Sure they use a marketing firm to produce their lovely paid advertising, but where is the marketing guidance for the every day mess?
The complicated stories that were the underlying issues of the election were too complicated to resolve in speeches or one-minute ads. The environment, the economy and leadership abilities all require a consistent, understandable message - one that isn't up for media interpretation.
And small business needs that relevant, clear message as well. You can spend a lot of money uselessly if your messages aren't relevant to a person's life. You can help people care through education and exposure, but neither one of these things is an instant return. Are you selling a $30,000 item to an area with high unemployment and a fear of job loss? You might want to check in on the relevance of your messages.
Politicians are fun to watch because they have to educate, get exposure and convince people their "product" is the best, all in a short period of time. Jack Layton hasn't changed his "product" in years - so if it wasn't relevant to people before, why would it be relevant now? Elizabeth May personifies what everyone feared of the Green Party - fanatical extremist. That has a pretty limited relevance. Stephen Harper obviously had the most relevance for the voters - a calmness in the face of economic explosion, a leader who admits mistakes rather than blaming others. He has his flaws but he came closest to being relevant to Canadians. And Stephane Dion? Well, poor Mr. Dion just didn't have a clue. And all the Liberals are equally to blame. They voted him into the leadership position and supported the Green Shift. Don't let any of them convince you that Mr. Dion did that all by himself. Relevance, gentleman ( and lady). If you want voters out, you better find out what is relevant to your customers. And that's us. Every single person in Canada is your customer.
Saturday, October 4, 2008
Part II - Be careful how you say hello
Last week, I took a look at the dangers to your brand that a badly handled dismissal or layoff can create. This week, I'd like to spend a moment with how ignoring the importance of your brand when hiring new staff can have long term effects.
The brand outline is rarely one of the things that is contained in the welcome package for an employee (and some companies don't even have a welcome package and, okay, they don't have a brand outline either). New staff learn about the human resources policies, benefits packages and history of the company. But there is an absence of indoctrination into the brand and the importance of upholding it.
Lots of senior management believe that upholding the brand is the duty of the marketing department but in reality it's the responsibility of everyone who works at the company.
Basic brand ideas, such as the appropriate font for emails, can be shared with new staff easily. I've lost count of the number of emails I have received from customer service staff using wonky fonts. And the language in emails needs a certain tone depending on your business and your brand. There's a big difference in how the staff talks and writes at Virgin Mobile compared to a stuffy insurance company.
And then there's the evil creature - the PowerPoint presentation. When staff outside the marketing department are called on to do a presentation, their imaginations run wild. Colours, images and language that have nothing to do with the brand creep in; no one stops them because, as I mentioned, there is a belief that brand protection is the job of the marketing department. Heaven forbid one of these presentations gets out of the building and in front of the customer. Any strong brand presence is whittled away.
Your staff needs to be engaged with the brand and have enough knowledge of what it represents to uphold it. This includes not just the visual and verbal entities mentioned above, but the philosophy of the brand as well. Companies who have brand support throughout their staff are strong companies. And they're believable companies because their message never falters.
The brand outline is rarely one of the things that is contained in the welcome package for an employee (and some companies don't even have a welcome package and, okay, they don't have a brand outline either). New staff learn about the human resources policies, benefits packages and history of the company. But there is an absence of indoctrination into the brand and the importance of upholding it.
Lots of senior management believe that upholding the brand is the duty of the marketing department but in reality it's the responsibility of everyone who works at the company.
Basic brand ideas, such as the appropriate font for emails, can be shared with new staff easily. I've lost count of the number of emails I have received from customer service staff using wonky fonts. And the language in emails needs a certain tone depending on your business and your brand. There's a big difference in how the staff talks and writes at Virgin Mobile compared to a stuffy insurance company.
And then there's the evil creature - the PowerPoint presentation. When staff outside the marketing department are called on to do a presentation, their imaginations run wild. Colours, images and language that have nothing to do with the brand creep in; no one stops them because, as I mentioned, there is a belief that brand protection is the job of the marketing department. Heaven forbid one of these presentations gets out of the building and in front of the customer. Any strong brand presence is whittled away.
Your staff needs to be engaged with the brand and have enough knowledge of what it represents to uphold it. This includes not just the visual and verbal entities mentioned above, but the philosophy of the brand as well. Companies who have brand support throughout their staff are strong companies. And they're believable companies because their message never falters.
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