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Driving
Sales & Profits in a Tough Economy
The state of our economy is a source of
great debate. Is it rebounding, double dipping, or just vacillating? The
answer depends on the economist. So how does one grow a business in an
economy that apparently no one understands?
Focus on the basics
–
service, value, and fiscal responsibility. Every marketing and operational
decision should be prefaced with three questions:
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Does it provide service to our
customers? Service is filling a need defined by the customer. Define
business by needs rather than product and it will evolve with the
marketplace. For example, a company selling videos and players is in
the entertainment business. When technology evolves from Beta to VHS
to DVD the business evolves. Market based businesses also have room
for expansion. The company could expand into books, music, games, and
more while remaining true to the business definition.
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Does it provide value? Products must
provide value to the customer by filling a need at a reasonable price.
Marketing must provide value to the company and should provide value
to the customer. Promotions that include information such as helpful
hints will increase the shelf life and value of the mailing.
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Is this a fiscally responsible decision?
Every decision requiring resource utilization should have ROI
analysis. The ROI should include both tangible and intangible benefits
and not discount intuition. Some decisions cannot be justified with a
ROI, but need to be made. Having the ROI provides a reality check for
those gut feelings.
Stay on course.
Continue implementation of the marketing plan presuming it was based on
accurate analysis and reasonable projections. Adjust it as needed when
results become available.
Monitor attrition.
Do
not stop prospecting. Natural attrition is 3-5% so if everything else is
perfect, the customer file is still shrinking. Prospecting is needed to
replace the attrition and grow the company. If attrition is trending up,
increase prospecting to offset the loss.
Improve efficiency.
When sales fluctuate down, utilize the time to review processes,
procedures, and clean house. Everything will flow better when the sales
volume increases.
Partner with non-competitive companies.
Improve
service and profitability by creating a partnership. Joint promotions will
offset expense and keep customers attentive.
Don’t panic!
Reactionary solutions almost always fail.
10 Tips for Driving Sales &
Profitability
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