We are living in a more uncertain world than ever. War, tolls and hard-to-predict markets are only a few things that make many companies scrutinize their marketing budgets. Research shows that it pays to invest more, not less, in marketing when times get tougher. That is the time when it is simplest to take market shares and build strong position for the future. Yet few do. It is of course difficult to justify a maintained or increased marketing budget when all other costs must be reduced. But there is actually always an opportunity to do both: that is, to both be frugal with marketing money and win new customers. It is, as so often, about prioritizing the right things. The simple advice we give to all our customers are:
1. Invest in communication that focuses on changing behavior, not attitude
It is easier to change a behavior than to change an opinion or attitude. Getting people to buy a cheeseburger for 25 SEK is easier than getting them to think that a cheeseburger is good food. People rarely try a product because they have been convinced to love the brand. They are more likely to love the brand after trying the product. Thus, you need to get them to try your product. Give your advertising agency the task of communicating tangible reasons why your target group should buy your product here and now. But make sure that the agency, in its eagerness to create selling communication, does not jeopardize the position of the brand!
2. Focus to win the big customers in your category
Marketings main role is to win new customers. And of course customers that will generate an interesting revenue. It is not unusual for 25% of the total number of companies in a category to account for 75% of a category’s total turnover. When times are tough, it is mainly these customers that you should focus on winning. They are also struggling with financial challenges, which means that they are prepared to reconsider their habits and their suppliers. The worse the economy, the lower the loyalty. So now is an excellent opportunity to get them to test you. Identify who they are, find out what problems they struggle with and adapt your marketing communication accordingly.
3. Develop a smarter offer
In economically tough times, it is often the investment budget that takes the first hit. Consider if you can develop your offer so that the cost instead ends up in the operating or maintenance budget. Can you, for example, lease out the product? Or charge per unit consumed? Another smart strategy is to change the way the market compares prices, for example by arguing about and proving the total cost during the product’s lifetime – and help your potential customers see the difference through examples and calculators.
4. Invest in smart communication
If possible, rethink your communication tactics to meet your customers in a smarter and more cost-efficient way. Are trade fairs, for example, the most cost-effective way to reach the big customers if the alternative is to gather them for an expert webinar. Within digital marketing today there are a multitude of channels and controls that allow you to reach exactly the people you want to talk to. From single companies through ABM to cost-effectively reaching out widely in the world. Very effective for business. And your budget.
5. Invest in digital business
The company website is probably the most important channel for turning prospects into new customers. When up to 70% of the purchase decision is made before the first personal contact, the web must function and interact as your best salesperson. And why not try e-commerce? Today, more and more B2B customers are used to the fact that all the world’s products can be bought at the touch of a button. This means that e-commerce within B2B is growing at a record pace and today you can even buy an airplane online (free transport to you is included). A good advice is to start with standard products, supplies and spare parts, but today it is possible to configure reasonably advanced products in an efficient way.
The essence of our advice is that you don’t necessarily have to invest more to succeed. What we are saying is that you should invest, but invest in a smart way. Choose the right target group, choose the right message and choose the right channel to reach your potential customers. And you will most likely succeed.
Do you want to know more about how to win new customers in turbulent times, just reach out to ulf.vanselius@comprend.com