Bonus Tactics article: Reject recession — steps to ensure your company soars as the economy dives

March 27, 2008

Copyright © 2008 PRSA. All rights reserved.

By Erik Battenberg

Editor’s note: PRSA gratefully acknowledges the support of Thomson Financial in providing the Society with the webcast technology for the following offering.

Whether the U.S. economy is officially in a recession or just depressed, communicators need to make the most of marketing activities despite budget restraints said Drew Neisser, CEO of Renegade, in a free Webinar titled “What Recession?” offered March 14 by PRSA.

Neisser, who co-founded his interactive brand experience agency with funding from Dentsu in 1996, outlined nine ways communicators can improve their success regardless of the economy or the size of their business.

1. Stand for something
If you create a brand that stands for something, you’ll do a better job of attracting customers, Neisser said, citing General Electric’s “Ecomagination” pledge to create products and solutions to benefit the environment as an example.

“They put a stake in the ground and have publicly committed themselves to a greener course of action,” Neisser said. “It’s a lot more than advertising puffery. It’s profound; it’s inspiring.”

2. Fix your product or service
If you are promoting a product or service that is flawed, you’re fighting an uphill battle, Neisser said.

“There’s nothing like a great communication program to kill a bad product,” he said, but fixing a product or service, and letting people know you’re doing it, can help a company succeed.

Recently, Starbucks CEO Howard Schultz decided that service levels had fallen at the company’s 7,000-plus U.S. coffee shops. He addressed the problem by closing all of the locations for three hours to retrain 135,000 employees.

“In closing the stores, he made an enormous statement both internally and externally,” Neisser said.

3. Dance with your customers
Everyone says you need to engage in a dialog with your customers, but “Why not strive for something more intimate, more emotional, more dynamic,” Neisser said. “Dance with them.”

One way to dance with your customers is to make them your business partner, he said.

When singer Jill Sobule found herself without a record deal, she decided to ask her fans to help her finance her next album. She set up a Web site where fans could make donations in exchange for everything from a free download to a performance by Sobule. In less than two months, Sobule reached her goal of raising $75,000, Neisser said.

4. Focus on heavy users
Neisser said he’s a fan of the 80/20 rule, which says companies get 80 percent of their business from 20 percent of their customers. Focus on that top 20 percent, which are less likely to abandon a category during a downturn but might swap brands.

Apple recently said it wants to persuade large business customers to switch from BlackBerry devices, which information technology departments tend to prefer, to iPhones.

“The iPhone has a tough row to hoe given BlackBerry’s entrenched base,” Neisser said. “But if they can overcome the IT department’s resistance, they’ll end up having a lot of users lined up to swap their ‘CrackBerry’ for an ‘iCrackBerry.’”

5. New stuff for the old gang
Another way to succeed with heavy users as well as attract new customers, Neisser said, is to keep your messaging fresh with new products.

Pepsi is staying fresh by testing new soft drinks such as Diet Pepsi Max and Pepsi Raw, Neisser said.

“These products may help Pepsi bring in new users, but are just as likely to keep existing users in the franchise,” he said. “The news that they create helps the overall brand stay top-of-mind.”

6. Marketing as service
You will be more successful if shape your programs and communication around the needs of your target audience, Neisser said.

Nike, for example, launched a program designed to help runners improve. The program lets consumers participate in training runs with trainers from Nike and track their progress online. Foot specialists also will analyze participants’ running style to help them get the right shoe.

“Nike has made great hay with this,” Neisser said.

7. Keep it light
“There is a tendency among marketers to shy away from humor when the economy goes south,” Neisser said, which is a mistake, even if your business markets a serious product.

“Don’t let the somber economic mood change the tone of your brand,” Neisser said. “Humor can have a dramatic impact on the likability of your brand, particularly in otherwise unfunny times.”

8. Find a partner
Partnering with a nonprofit organization can stretch your dollars and enhance your brand, Neisser said, but make sure you choose an organization that is a good fit for your company’s products and its beliefs.

“The consumer is now really scrutinizing these commitments and is aware of what is sincere and what isn’t,” Neisser said. “Mobilize your employees and your customers behind a nonprofit you truly believe in, and you will be amazed at the goodwill and good business you will get as a result.”

9. Measure what matters
While measuring sales is important, it’s also valuable to measure the milestones along the consumer’s journey toward making a purchase, Neisser said. One of his favorite metrics is the Net Promoter Score, which measures how likely people are to recommend something to a friend.

“People only recommend things to a friend that they really like,” he said.

Net Promoter Scores can be particularly effective if you can measure them before and after people experience one of your marketing initiatives, Neisser said.

“You can measure it at any point of contact, whether it’s on your Web site, at an event or in any of your surveys,” he said.

Erik Battenberg is a freelance writer based in San Diego. He is a frequent contributor to PR Tactics.

 

The “What Recession?” Webinar will be archived until May 17. You may access it here.

Previously from Tactics and The Strategist Online:
Dollars and sense: Agency pros prepared for rocky economic times

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