Psychological Marketing Insights

Analyzing the Psychology of Business, Marketing, and Sales ...

Posts Tagged ‘tight budget’

 

 

It’s Crunch Time: Marketing for the Holidays on a Tight Budget

Thursday, December 3rd, 2009

This is the time of year that I get a lot of panicked phone calls from potential clients about what should be sent out for the holidays.  Usually, it is about the time that the first Christmas card hits their mailbox and they realize that they had not even begun to think about what to send out.

If you fall into this category I am here to first of all say, “Don’t panic.  Take a deep breath.  It will be okay.”

Now that we got that out  of the way, let’s talk about what the next step needs to be in order to assure you are touching your clients this month…without having to dip into your kid’s college fund.  Here are a few key fundamentals when marketing during the holidays that will make sure you are getting the most from your money and still making a great impact.

1. Santa is checking his list…and so should you. Think back to your wedding or a friend’s wedding.  One of the first things most brides do is make a list of every person they have ever come in contact with in their lives.  After all, everyone will want to see just how beautiful she is that day and bring her presents, right?  Well, that may be true, but usually the next thing to happen is that Daddy gets the list and almost has a heart attack when he thinks about how much it is going to cost to feed the entire nation.  So Daddy tells her to cut her list down to maybe a couple hundred people.

Now apply that to your Christmas card or marketing list.  We know that you want everyone to know
you are telling them Merry Christmas and a Happy New Year, but that is not practical on a tight budget.  I normally tell new clients to take their top 10-20% of clients, as these are the clients that they want more of and where money is best spent.  Now, keep in mind, I am not saying to throw out the rest of the clients and not send them anything…but we’ll get to that later.

2. Stay within a reasonable budget. Now, I know that this should go without saying, but you would be surprised how many times I have people asking me to send out $100 gifts to $20 clients.  I see this most in businesses where the technicians are the owners.  (Yes, that is another E-Myth reference.)

Specifically I see this in the businesses that have a creative mind at the wheel.  The creative mind says, “Wouldn’t it be neat if we could…(insert expensive idea here).”  Now, the creative mind only sees that handmade calendars embossed in gold would be really cool and fun to make.  They do not think about the cost of all the supplies, the cost of labor, the cost of postage, oh and wait…the extra cost of postage to ship the calendars since they took so long to make that the only way to get them there in time for Christmas is to overnight them.  So, again, stay within a reasonable budget.  It is quite possible to make an impact without being extravagant.

3. Use multiple media. Okay, now this is what I meant when I said that you don’t throw out your entire list after deciding on the top 10-20% of clients.  Often times I suggest that your top 10-20% of clients receive some sort of direct mail, whether it is a greeting card or holiday letter.  Then, send the entire list of clients an email newsletter or e-postcard so that you are at least appearing before them during the holidays.  You might even include a coupon gift for your product or services for them or a friend.  I have used this technique with several clients this year, even those who are not working with a tight budget.  The reason is that email is practically free and it is quick with no waiting on post office delivery times.  (Full disclosure:  You will generally have fewer open rates with email vs. direct mail.)

4. Be early. Like I mentioned before, if you are sending any sort of packages, be sure to get them to the post office by Dec. 21st to insure that you won’t have to pay express rates to get it there in time.

I hope that this has been helpful as you plan your holiday marketing.  For more great holiday marketing tips you can check out our newest free resource at: http://holidaymarketersguide.com/.

Oh, and I would love to hear from you about some of the ways you have saved money on your marketing this holiday season!

Happy Marketing!

Sarah

  • Facebook
  • Twitter
  • Delicious
  • StumbleUpon
  • Digg
  • Google Bookmarks
  • LinkedIn
  • Plaxo Pulse
  • Share/Bookmark

 

 

 

 

Marketing during a recession, possible or not?

Friday, June 19th, 2009

Tightening the belt.

Cutting the fat.

Battening down the hatches.

Any way you put it, our nation has been trying to survive this stormy time and come out on the other side with a semblance of self-respect left.  Now, it is hard enough for the average person to survive right now just putting in the hours at the office and hoping not to make anyone mad enough to get put on the next layoff list.  But, for those of us who own our businesses, this time can be downright dangerous and incredibly taxing on us.

So, how can we still continue to market when we are merely trying to survive to the next electric bill or mortgage payment?  Is it even possible?  Should we do what everyone else seems to be doing and just duck into the nearest foxhole until 2010?  After all, the best offense is a good defense, right?  Well, I am here to say that is not always the case, and especially not right now.  Now is the time to go on the offense.

Think of it like this.  In the past almost every business out there was doing marketing.  Which means that for every postcard you sent out, your customer was probably receiving another 25 from various companies in the area, some your direct competitors and some in other industries.  But all competing for your customer’s time, money, and energy.  It was very easy to get lost in all of the noise.

But now?  Well, now people are doing away with marketing all together.  I have had so many people tell me, “We have decided that we can’t afford to do any marketing right now.  Please get back to us in 2010.”  I really wanted to grab them by the shoulders and shake some sense into them.  Tell them that they were actually doing the exact opposite of what they should be doing.  But honestly, it wasn’t worth my energy.  Those types of people won’t make good customers anyway, because they will bail at the first sign of trouble.

So, if all of these people are doing away with marketing you should do the same, right?  NO!  If your friends told you to jump off a bridge would you do that, too?

Ok, seriously, though.  How can you afford to market in this economy?  You go where you can make the most money.  That means you must, I mean MUST look at your list.  If you are going to cut the fat, this is where you should be doing it.  Which customers are costing you more money than they are bringing you?  This could be in product, service calls, energy, time, etc.  You know the ones that I’m talking about.  For every $20 worth of product or service you sell them you are spending 3-4 hours on the phone or email with them trying to explain how to use it and how not to use it.  If you only make $10 an hour, which I hope is not the case, you are already $20 in the hole with them.  So get rid of them.  You can’t afford to keep them.

Next, look at who is bringing you the most money.  This could be through direct purchases or through referrals.  Either way, these are the ones that you can’t afford to lose.  These are the people you are going to spend extra to keep.  Make these people feel like the gold they are, without seeming desperate.  Thank you cards, touching base emails, phone calls to mention the new dress shipment you got in that is just their style…and by the way you saved back their size.  And then when they do purchase or refer again, show them just how much you appreciate them again.  A night out for two.  Flowers to their wife on their behalf.   Food of some sort (one of my favorites).  You get the picture.

Now, I know what you are saying, “But I can’t afford that!”  Let me tell you something.  You can’t afford not to.  Because as I’ve said before, someone is courting your customer besides you and if you want to be the one with the date to the dance you had better step it up.

Let me also state one other thing.  If you cannot afford to “market” and you are losing money then let me say this.  It isn’t being done correctly.  Marketing should be a trackable, quantifiable, activity that produces a positive return on investment.

  • Facebook
  • Twitter
  • Delicious
  • StumbleUpon
  • Digg
  • Google Bookmarks
  • LinkedIn
  • Plaxo Pulse
  • Share/Bookmark