From The Art Director — Bobby Lee
At a recent seminar for direct mail put on by our local Postal Customer Council, the former Postmaster for our city introduced the agenda with three things to do in a down economy, and then followed that with a list of things businesses should concentrate on for the best return on investment (ROI). It reminded me of a few printing trends I’ve noticed in the past as our country came out of recessions, so I thought I might share a glimmer of hope with you as we move toward the new year, and hopefully, a better economy.
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Three Things To Do In A Down Economy
1. Be nice
2. Be flexible
3. Find new opportunities
Pretty basic, right? Some might even consider them a bit obvious, but in a panic it’s sometimes easy to lose track of the basics. Here are a few things to consider about these three points before we get to that ray of hope regarding the economy.
Being nice is all about PR, but it takes on more significance when people are worried. In times of uncertainty, people seek out assurance. They want to shop where they feel comfortable and do business with people they feel they can trust. Setting up friendly conditions for your customers to do business in is vital. In fact, it’s just as important for B2B as B2C. Ask yourself the following: How does your receptionist (or how do your salespeople) treat incoming traffic? How are potential clients greeted on the phone? Should a live person be answering your phones these days instead of an automated system…or should your system at least lead the caller to a live person quicker than usual? Does your sales force wear a happy face and ask questions that show they care? Are you evaluating comfort levels in the reaction of your customers?
Being flexible is probably even more important than being nice. Finding creative ways to reach new customers while holding on to current ones is paramount in a down economy. Locking in your client base with excellent service, flexible terms and competitive prices when things are tight generally yields loyal customers when the economy improves. They can be the bread and butter to keep your business alive as you experiment with clever ways to attract new customers, expand profit margins and maintain your workforce.
Finding new opportunities can be a challenge, but it’s absolutely necessary for most businesses in a down economy. It’s only natural to structure a business to maintain a steady workflow based on optimized procedures, prices and manufacturing paradigms, but if sales drop or supply prices go through the roof, new avenues and ideas may be the only thing that saves your company. Tossing around new ideas may be an alien exercise for all but the more entrepreneurial among us, but in reality those ideas can be like lifelines if properly executed. And that brings us to the list of ideas I mentioned at the beginning of the blog.
Four Things To Concentrate On In A Down Economy
Beyond what a company should do during a down economy there are four things a company should concentrate on, four things that have shown the best return on investment.
1. Referrals
2. Relationships
3. Repeat Business
4. Direct Mail
If you’ve been wondering why an Art Director of a printing company would write a blog about things to do in a down economy, now you know. The answer is something I know a lot about and something I observe closely…direct mail.
The first three things on this list are the constant mantra of any sales director, the drumbeat any salesperson hears as they start a career in sales, and they are the key points of success they will hear repeated again and again when sales are down. But from a business owner’s perspective, the one thing in this list most often neglected is direct mail. It’s easy to lose track of its potential because it involves the extra effort of design and marketing. These days, it’s the one affordable area of extra effort a company can take to make the difference between getting by or getting ahead.
Interestingly enough, direct mail effectively incorporates all three of “The Things To Do” in a down economy. It also effectively generates the first three of the “Things To Concentrate On” in a down economy. And it can do all of these things more successfully and more cost-effectively than any other means of advertising. With variable data, it can even be more effective on a personal level and yield higher rates of return than average mailings.
"Direct mailing is a great way to increase ROI"
It’s a smart move if you think about it. With digital printing, it’s economically feasible to target as few as 200-500 households at bulk rate prices to fine-tune marketing concepts, product ideas or even product colors. For example: a local pizzeria could do a small targeted mailing to find out which of two new recipes local customers prefer before splashing one or the other on TV, the radio and especially before mailing out coupons all over town. In a down economy, that simple kind of testing to assess risks can make a difference…and it does…all the time.
Those of us in the commercial printing industry are often the first to notice trends in direct mail business, and the increase we’re seeing now is very encouraging. I personally noticed similar trends during past recessions, and most recently as the economy grew out of its slump following 9/11. In fact, some of us in the industry actively encouraged clients not to wait for the economy to get better but to begin growing their own economy with tools like direct mail. The results were very effective.
Over the past few weeks we are once again seeing huge increases in direct mail, well over and above the typical increase of holiday greeting card mailings. These days, we’re sending out direct mail by the millions, and it’s a good sign that companies across the nation are taking the reigns to control their own destiny. Direct mail, digital printing and variable data are proving to be great tools for growth…even in the face of adversity.
For more information on fine-tuning your marketing efforts and for helpful ideas to stimulate sales, contact one of our national sales representatives.
