Marketing in a Tough Economy

I'm taking a break from my Persuasion Series to discuss an issue that's on everyone's mind right now. "What is going to happen to my business if the economy keeps spiraling downwards?"

There's a lot of shocking financial news recently. The two major mortgage lenders, Fannie Mae and Freddie Mac, were just taken over by the federal government, the brokerage Lehman Brothers is in bankruptcy, foreclosures are at an all-time high, the stock market is plummeting and consumer prices are up all around.

Add to that a couple of major hurricanes and the uncertainty of the presidential elections, and a lot of people are reacting with fear, uncertainty and hesitation.

Are you finding that your clients are reluctant to pay for professional services right now? Are contracts not being renewed? Are referrals drying up?

Perhaps it's not that dire for you right now, but when the economy tanks, professional service businesses are often hit hard.

Are there specific things you can do to market yourself in a down economy? Yes there are. Let me share a few with you.

1. Have an actual marketing plan. That is, a plan to carry out specific marketing activities. Most professionals have no plan at all. Nothing! We wait for referrals and perhaps call up past clients to see if the have any work. A plan is a definite strategy developed for the purpose of connecting with new prospects and converting them into clients. What's your plan? This will help:

www.actionplan.com/infoguru.html

2. Accelerate and multiply your marketing. Most businesses cut back on marketing when the economy slows. If you accelerate your marketing, you will be more visible than ever. You don't have to do expensive activities, you just need to be out there more. Networking, speaking, events and teleclasses are all relatively inexpensive. Get out there, don't hide!

3. Deliver programs, not services. The best way to market and sell an intangible service is to make it tangible. Don't just sell "management consulting services." That's too vague. Create programs that have very defined parameters and promised outcomes. Sell this program at a fixed price with clear deliverables and guarantees. Increase your perception of value.

4. Be willing to negotiate. It's always better to sell "something for less than nothing for more." Your clients are going to be looking for deals as well as great value. For instance, let them know that you've re-structured your services so that they will need to invest less if they are willing to do more of the implementation.

5. Go to the bottom line. All professional services need to be seen as an investment, not an expense. But that needs to be more than a cliché. How exactly will your services pay for themselves? If you can document increases in revenue or decreases in costs, you'll get the attention of prospects. But you need to prove it. Do some case studies of past clients showing the bottom-line value of your work.

6. Work on your mindset. This might be the most important of all. Negative external circumstances tend to trigger "Constrictive Marketing Mindsets." That is, you start buying into the bad news and you start to panic, avoid taking action, and retreat to a place of worry and paralysis. Question those negative mindsets and find your place of power and innovation. I invite you to download this "Getting Unstuck With the Work Worksheet" below:

www.actionplan.com/pdf/getunstuck.pdf

These are just a beginning. Above all else, don't stick your head in the sand and hope the economy will change. Things may get worse before they get better, and those who are proactive about their marketing (and their thinking) will do better in both good times and bad.

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The More Clients bottom line: The key to marketing in tough times is to work at adding more value. Prove that your services are a wise investment. Communicate about your services in more depth and with more clarity. These are things you should be doing anyway, but when the economy is suffering, these marketing approaches are more important than ever.

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What are some ways you market yourself when the economy is bad? Please share on the More Clients Blog.

Comments

[Bea Tsola]

"Tough times" present an opportunity to any business to put in place structures/systems/business ideas that we may have shelved (read: procrastinated on) for a long time. I know i had to do that when the economy in Kenya was badly hit at the beginning of this year and being a start-up that was such "bad timing" but it was quite an opportune time to re-think my business, who i am and who am not. I agree with Robert's comments about having a strategic plan on how to market your business as tough times call for different measures.

[Corrina Gordon-Barnes]

Thank you Robert for addressing this issue.

My belief is that we need to start questioning the fundamental premise of our economy i.e. that continued economic growth is possible and desirable. We actually can't go on forever in that direction. The change in climate warns against it, the end of cheap oil will prohibit it.

As we help our clients move in directions which are more sustainable, we are offering genuinely new solutions and maps along unchartered territory. It's a different direction from that of most service providers, so we will automatically stand out from the crowds.

The economic so-called 'crisis' could be our greatest impetus for societal change. Offer THAT as the bottom-line our clients will be investing in. They get to be an integral part of that change, with us supporting them.

http://www.doingthingsdifferently.blogspot.com/
http://www.youinspireme.co.uk/