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Making the most in a down economy means focusing on your customer.
©2009 Mickey Hager No part of this article may be reproduced without permission of the author.
Let’s skip the gloom and doom and understand that everyone is tightening up. Maybe it’s a trend—a reckoning and refocusing that was long overdue—or maybe it’s a phase that we are all learning to adjust to. Either way, the balance of getting through day-to-day means paying attention to the little things. The devil—and the profit—is in the details.
As consumers box in their dollars and spend less, the effects can be felt at all levels. The local bar and restaurant sees less traffic as consumers eat out less. The mega-computer retailer drops profits as companies slow up their expansions. Still though, understand that the brands that are winning are the brands that have continued to show value to their consumers. It isn’t always a battle for dollars, but a battle for value.
In a survey by MTV for young adults ages 18-24, buying decisions were focused on quality and trustworthiness (MTV Networks, “A Beta Life Youth,” eMarketers, May 5th 2009). With a definitive 75%, survey respondents rated “Good Quality” as their number one reason to select a product. Second at 55% was Trustworthiness. In the same survey, when asked about buying decisions reflective of brand, 68% of US respondents reported that the Internet makes choosing brands easier. And what about the quality equation (based on the 75% respondents for wanting Good Quality)? According to the survey, being on TV gave the demographic the bump in quality assessment. The survey showed a 64% response in that appearing on TV gave an appearance of quality.
This is not to say that everyone should be on TV. Not all products or services need to target to such a broad audience. Wherever you are targeting, the survey indicates that Message is the key. Consumers want value but value does not have to mean big discounts and cheapened product. Value and a value-based message will steer the customer to your solution.
There are three ways to focus your message and meet the needs of your customer. First, think promotion. Promotion can be as simple as getting the word out through placards, line ads, posters, or Tweets. Think about offering a promotion of revamped product offerings in better, easier, or faster consumables. If you are a bar or restaurant, maybe you can offer discounts to larger groups. Perhaps you can steer your customers to more purchases—or more frequent purchases—through family packages, take home packages or discounts on appetizers with larger purchases. Remember though that the customer still wants value, as voiced in the Good Quality survey. You don’t have to cheapen your product in order to squeeze profit. Give them quality and they will be willing to pay for it.
The second method to focusing your message and meeting the needs of your customer is to open the lines of communication. Consider surveying your customers. Ask them what they want. Ask them how they doing. Ask them how you can help. If you’re a business that can set up an online survey, direct your VIP customers to your web and invite them to tell you what’s happening. If you don’t have a web page dedicated to feedback, use a simple questionnaire through an online service such as Survey Monkey (surveymonkey.com). You may find that a part of your product line is unnecessary to your consumer. Perhaps their tastes have changed or evolved (think Big 3 automakers here). You can eliminate a great deal of margin by reducing your inventories, reworking your profit system or by focusing on items that mean the most to the customers.
Along with improved communication, remember that customers want tools that help them make decisions and help to ease their decisions. If your competitor makes it easy to place an order online and 60% of your customers shop online, you are losing sales. If your competitor can deliver faster, your customer may be willing to pay them more to do so. Think through your entire value persuasion. How are you helping your customers overcome their resistance and helping them to ease into your solution. Ask them.
Third in the suggestion box for focusing your message is to promote yourself or your business. Don’t forget to remind them that you are still there. Often the success of a business, in the eyes of a consumer, is merely the fact that you’ve managed to keep the doors open and to keep delivering even as times are hard. Prove to your customers that you will still be there by reinforcing your brand. Get the word out. A little investment in yourself, in the long run, is a great benefit to your business. Tweet them. Email them. Invite them to be a part of your extended community. Post messages for your repeat customers that keeps your brand top-of-mind. Remind your customers that you are here and that you are here for them. If you’ve done your survey work, remind them that you understand their needs as well.
Budgets are tight and buying is down, but consumers still consume. A downturn in the economy effects everyone from the local bar and restaurant to the mega-computer retailer. Ultimately, the best defense is to focus your attention on the needs of your consumer. Offer your customers a good value, remind them that you are there to help and continue to ask them what you can do better.
Mickey Hager is a freelance advertising consultant with over 20 years of experience in brand, interactive and traditional media. He is the owner of the newly formed Hager Design and Advertising in Kansas City.
Sneak Peek: Kelso's Pizza, North Kansas City
©2009 Mickey Hager No part of this article may be reproduced without permission of the author.
Kelso's Pizza is going through a remodel, in some respects. The interior will change over within the next couple of months to reflect Jeff Kelso's sports heritage. So too will the website for this North Kansas City favorite. For a sneak peek at the redesign, click to this link:
The change comes as a means to showcase the atmosphere of the space, as well as the food selections. This redesign will take another turn as the interior of the restaurant takes shape and elements of that new space are added to the site. Ultimately, the site redesign is slated to make ordering online convenient, to promote the frequent specials and events and to reflect the fun of drinking and dining at Kelso's Pizza.
The Brand of Playtime
©2009 Mickey Hager No part of this article may be reproduced without permission of the author.
To personify a children's activity center in Wilmington, North Carolina, Mickey Hager worked with the owners to first establish a brand name. The owner's first selection turned out to be a previously used tradename. With the hopes of one day expanding the concept to other locations, the suggestion was made to find a unique name that ultimately could be trademarked and protected. After reviewing a set of researched options, and reviewing the viability of trademark protection (see www.uspto.gov for more information about tradename protection), Power of Play became the brand name.
The final mark illustrated the fun of the space—putting children in the spotlight and allowing them to learn through playing.
