Wednesday, 3 December 2008

Spend or Save? - Tactics to Survive a Recession

Spend or save? – what are your tactics to survive an economic downturn or recession?

History shows that at times of economic down turn or recession, one of the major impacts to business is either a lack, of or slow down of decision making – particularly in terms of marketing spend or customer communications.

Clearly it is important at any time to understand the value and return on investment of your spend and also the potential impact of hesitation or the ‘Ostrich Syndrome’ – but when things are tough it’s not just important, it’s essential.

Through Customer Insight, we can examine trends in customer behaviour and most importantly value – this enables critical decisions to be made about where and how to make the best use of potentially limited spend to positively influence customer actions and decisions.

How much do you really know about your most profitable customers?

What proportion of your customer base contributes limited or no profit to your business?

Which customers are ripe for development – and when?

How much do you understand about the customer journey, your interaction and the touch points – by individual?

What impact are your communications having on customer behaviour and spend?

If you can’t answer these questions accurately – the chances are your spend isn’t working hard enough for you and at worst your messaging and communications are confusing, unrewarding, impersonal, and have little or no impact. The good news is that the answers probably lie in your data – all we need to do is find them.

Now is not the time to postpone or cancel your interaction with your prospect or customer base – but it is absolutely the right time to pay much more attention to whether your communications add any value to your relationship with the people that can influence your business future – it costs surprisingly little to find out!

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