Cut the Fat Not the Meat

small end rib cut of beef Cut the Fat Not the Meat

It might seem natural to curt spending on advertising during a recession, but it would be madness.

McGraw Hill carried out two studies:

Advertising during a recession creates 132% more 5-year sales growth over those that didn’t advertise, or cut their budget.
Advertising during the 1981-82 recession created a 256% increase in sales growth by 1985.

It is must that you spend on advertising during this recession: you will gain by it during and after recovery.

Spending on advertising and marketing will pay. Cut spending by staying in a down market hotel and travelling coach, not by cutting out the client meeting altogether. Not meeting with clients is suicide.

Coke have just increased advertising spending. I am not advocating TV advertising like they do – be creative, and get a buzz. Word of mouth is good, and meaningful relationships are better than TV advertising.

Relationships

In his new book ‘Tribes’, Seth Godin talks about actively building strong relationships with ‘your people’. How do you do that? People don’t want to connect to companies – they want to connect to each other, so let them.

Be patient. Get in front of them frequently and wait. Word of mouth takes time, but it’s worth it.

Post your information monthly instead of quarterly. Ask for referral monthly instead of quarterly. Don’t look for customers for your products, but seek products for your tribe.

Sales & Marketing is a process not an event

You ultimately need a process. I have lately been studying consulting firms. Bain & Co. is now a heavy weight: they started with a simple 6-step model.

ID newly appointed CEO
Research the companies and work out how to help them
Procure a meeting
Use the research to get them to open up
Layout the value proposition
Get an existing customer to say how great they were.

You need a simple measurable formula – but all based on the value proposition innovated earlier.

Get out and get personal. Remember birthdays – remember their family’s birthdays. Send written notes rather than emails. Care, and always, always offer value when you call.

If you take nothing else from this, understand this point: personal relationships win. Forget brand management and manage your tribe. People who want to be part – who want to hear from your company because they want to connect – to feel part.

Cut the Fat Not the Meat