Why it is Important for Las Vegas to Market During a Recession
Friday, August 14th, 2009In tough economic times, especially here in Las Vegas, it is easy to eye marketing and market research as potential victims for the chopping block. However completely axing marketing can have devastating results for a Las Vegasbusiness.
Consider an analogy: A runner’s muscles need air. Even though the muscles may not have burned all the oxygen in the blood, the lungs continue pumping new air, new oxygen into the blood stream. Without the lungs continuing to pump air and oxygen, the muscles would use up whatever oxygen was in the blood and then tire quickly before failing completely Does this seem like a far fetched analogy? I assure you that it is not. Cash flow and continued patronage are the oxygen of any business. And marketing is to business what lungs are to a runner: Marketing continually pumps in new business, new patronage and new cash flow.
But if a business has worked hard to develop a loyal customer base, why can’t it rely on this base until things loosen up a bit? The answer is simple. There is no such thing as a loyal customer base. It’s not that customers are fickle and whimsical. It is that the customer also exists in a fluid environment where they constantly have to make choices in order to provide for and protect their families. In a free market system, competition is fierce. In a free market system during a recession competition is brutally fierce. Your customers need reduced prices while still getting quality products or services. If your business doesn’t provide this, it is 100% guaranteed that someone else will. Would you really expect your customer to turn down a better deal out of loyalty? Would you remain with a vendor if the vendor no longer offered your business the best deal available?
So we’ve established that there is no way to just hold your breath through a recession and hope your customers stay with you. But your business is in the red, you are dangerously short of liquid cash and marketing is as much art as it is science. How are you supposed to know how to apply your money when you need to be sure of a return? Of course, there are no guarantees but there are a few things to remember. A recession shakes things up. Some of your competitors will freeze up. They are not your worry. Your worry is the horde of competitors who are hungry, a little desperate and ready to try anything to take a bite out or your market share. Some of them are going to make mistakes, be hasty and blow their budget on ineffective marketing. Some of them will be do something different, effective, will tap into the customer’s need for comfort during a recession. You need to be one of these companies. Easier said than done?
However, there is one fundamental that is often ignored when people get scared. Keep it simple! It’s a recession. People aren’t in the mood for anything cute. They aren’t in the mood to see a company blow millions on a slick ad campaign. People want security, longevity, reliability, honesty. Those qualities are best communicated by customer service. It takes a human face. Don’t bug your customers with surveys, followup phone calls, etc. Teach your employees to always ask what the customer needs and mean it! It’s shocking to see how often companies try to pitch their customers. In good times, customers put up with it because it’s often entertaining. In hard times, customers just go somewhere else. Don’t anticipate their needs, ask them what they need. Improved customer service requires thought, energy and leadership but isn’t inherently expensive. It’s not an ad campaign but it is far more effective if implemented sincerely. And while you’re at it, if you want your employees to be sincere and attentive to your customers, why don’t you ask them what the company can do to alleviate some of their stress? What do they need to do their job well? If you tell them to be attentive, very few will comply. If you model it, most of them will be happy to imitate the behavior. Sincerity is infectious.
Dropping marketing during a recession isn’t an option. To complete the analogy: Just as it is even more crucial for a runner to breath deeply through the most demanding exercise, businesses must market, pursue customers, communicate with customers during a recession. The analogy holds true. If you stop marketing, you may as well try to run a race without breathing.