These are tough times and recovery isn’t eminate!  With all the news about foreclosures, high food prices and escalating healthcare cost it's taking a great deal of mindshare with our customers.  Whatever the state of our economy - our individual perception becomes our reality!  Feelings of fear and uncertainty make us go back to our basic survival instincts. You see it's all in our perception. However, in business this can be the difference between survival and growth.History has shown that during economic downturns; cash flow becomes our compass.  To best illustrate Google (” Hot Dog Story”+ Recession) to read one of the best stories of cash flow navigating during down times.

You would have to agree that the goal of any profitable business is to increase incoming cash through sales by capturing more market share.  The catch is, that by doing so, you also need to increase the outgoing cash for sales and marketing.  Therefore creating more fear and uncertainty!  You see most perceptions are based on the fact that we have complete control over cash disbursements and no control over sales. 

The fact of the matter is that increasing sales and marketing during economic downturns is one of the best investments you can make. Marketing is all about capturing mind share in your market.  If your competitors are like most businesses, they will be tightening their belts and cutting their marketing dollars.  Therefore, statistically, you can gain more mindshare for the money. With supply and demand low, you will also get better prices for your media.

 Recession Facts

Let's examine a few facts - McGraw-Hill Research analyzed 600 companies from 1980-1985. The results showed that business-to-business firms that maintained or increased their advertising expenditures during the 1981-1982 recession averaged significantly higher sales growth, both during the recession and for the following three years, than those that eliminated or decreased advertising. By 1985, sales of companies that were aggressive recession advertisers had risen 256% over those that didn't keep up their advertising.

In addition, a series of six studies conducted by the research firm of Meldrum & Fewsmith showed conclusively that advertising aggressively during recessions not only increases sales but increases profits. This fact has held true for all post-World War II recessions studied by The American Business Press starting in 1949.

Recession Growth Strategies

1.     Customer Focus - I'm sure you have heard this before - focus on your customer or your competitor will steal them away.  Well it's true and we both know it!  What is also true is that people remember bad economic times more than good! Being there with your customers during bad times can create a  bond that is hard to break.  This is also a good time to evaluate the worth of your customers.   Are they profitable? Can they become profitable?  If the answers are NO - this might be a good time to fire them!  Don't drag down your resources on customers that are not profitable.  Use your current customer base to profile the perfect customer.  Then go out and market only to those that fit that profile.  No use expending marketing dollars only to bring in more unprofitable customers!

2.    Marketing Message - ALWAYS remember that your customers perspective IS reality!  Nothing else really matters! How is your customer responding to the economic downturn?  How can your product or service help them?   Be sure to stay away from price wars during this time.  If you customers are full of fear and uncertainty - you need to increase their confidence and deliver more value.  Confidence and value perception are far more important to them than price at this time.  We know we need to make buying decisions - we just don't want to make BAD buying decisions!

3.    Guerrilla Marketing - The term "Guerrilla Marketing" was coined by Jay Conrad Levinson in his book Guerrilla Marketing. It's based on the premise that the best marketing is free marketing!  You will get more business from referrals, publications, other unconventional methods with a system and a very low budget.  I also call this MacGyver Marketing - look around and use what you have to market and sell.  For example, while golfing the other day, as we drove up to the 9^th tee box , a message popped up on the GPS screen in the golf cart asking if we were hungry?  It also allowed us to place our order so they would be ready for us at the club house upon finishing the 9^th hole.  If that's not MacGyver marketing I don't know what is.  It is also important to note that especially during down times it's important to keep a balance marketing portfolio.  Don't invest heavily into one strategy.  It's best to hit you market with multiple points of entry.

4.    Watch and Learn - If I told you that a $1000 advertisement would yield you 100 great leads ($10 per lead), you would probably buy.  However in reality it only yielded 10 average leads ($100 per lead) you might not be as quick to buy next time.  With today's technology, marketing has become a science not an art.  As a science, experiment with your marketing. Don't just stop doing it - tweak it!  But have a process to know when it's not working - but then try something totally different!