MARKETING IN A TOUGH ECONOMY
Unpredictable. Slow. Bleak. Grim. Gloomy. all words that have been used to describe the economic outlook for the balance of 2008, and depending upon who you talk to, the scenario for 2009 as well.

There’s no denying the economic slowdown has made a significant impact upon your business. The most important thing is to keep your wits about you. A bend in the road is not the end of the road… unless you fail to make the turn.

Remember, there can be some positive effects of a slower economy. Many REALTORS® are trimming their so called “marketing fat” which in reality is trimming their “muscle”. A recession will weed out the competitors, leaving more business for you. The housing market will adjust to more realistic pricing, bringing you a broader target audience and more clients. Customer service and client satisfaction will become even more important, making us stronger, more patient and compassionate. We will begin to focus on the really important things in life.....our relationships, both personal and professional.

As you already know, when the economy slows your target market shrinks. Since your pool of potential clients will be reduced, you have to maintain, or increase your marketing in order to keep your competitors from moving in and taking your valued clients. A strong competitor will view tough times as an opportunity to grab a new slice of the market share and increase sales. Don’t give them the opportunity.

Your marketing is more critical now than when the market was gushing with eager buyers and sellers. Now is NOT the time to reduce your marketing activities, but that doesn’t necessarily translate to spending more money. Those who fail to market themselves adequately, or properly in the tough times risk losing their clients to the competition; leaving them badly exposed when the market picks up -- as we all know it will.

Marketing should be seen as an investment not a cost! So be brave out there and loosen your “marketing belt” a little; while everyone else is putting their business on a diet, you should be feeding your customers the right marketing mix and watch your business expand.

I encourage you to not buy into the recession rhetoric or mentality...be proactive. This is your opportunity to reinvent your business and yourself. Assess your advertising, your networking and the time you are investing into projects. What is working and what is not working? Change anything that is not getting results for you. Stay positive when you’re talking to everyone you meet. What we have control over is how we react to the situations that we have no control of.

Focus on the customer.

Keep in mind that most of your customers, and prospects, are facing tough times too. They are looking for reassurance, expert guidance and advice on how to navigate this market slowdown. Be there for them. The more visible you are, the more confident they become in your legitimacy and staying power, especially in tough times. It is especially true now…your best customers are somebody else’s best prospects! This is a great time to show your existing customers how much you appreciate them. It is imperative that, at a minimum, you maintain your existing relationships and use this period to build even stronger bonds.

Your previous buyers and sellers are often your best source for new business. They are a captive audience and you have plenty, no-cost opportunities to market your products and services to them. Deliver more value to your existing clients than your “desperate & discounted competition,” and give them a reason to remain loyal. While we often account for our marketing efforts in terms of attracting new prospects, we seldom calculate the cost of losing an existing customer and what we should be investing to retain them. Sometimes sending a personal note, making a phone call, sending them an email, direct mail piece, or inviting an old customer to lunch is all it takes to rekindle a business relationship.

If you think you're the only one who's a little nervous about our business climate… you're not alone. To set yourself apart in the marketplace, go out of your way to conduct business in an especially trustworthy and kind manner. If you achieve (or strengthen) a reputation for being trustworthy, that can be the most precious marketing asset of all.

Business is always a two-way street. Some of your customers, whom you've helped in the past, will be glad to return the favor. Often, all you have to do is ask. Two things you can ask for: testimonials and case studies you can use in your sales presentations and advertising. Another way they can help you: by giving you referrals. And if you have an influential customer, who's appreciative of what you've done, ask that customer to write and send an endorsed letter to others recommending your business. Offer to pay for the printing and postage, and help with the writing if necessary.