+1 212 318 2000
Europe, Middle East, & Africa
+44 20 7330 7500
+65 6212 1000
You have no control over the state of the economy or the potential loss of revenue and profits that may occur when times are tough. You do, however, have total control over the way you respond to an economic slowdown. Many companies pull back and reduce overall spending in an attempt to preserve the bottom line. In my experience as a consultant and coach, I have found that in many cases the process of reaching out to customers stops dead in its tracks during tough times because of the preconception that consumers aren’t buying anyway, so why waste the money?
I am convinced that in tough times, your outreach program to your top existing customers needs to kick into high gear. It is said in business that 20% of our customer list provides 80% of our sales revenue. You need to strengthen the value of the existing relationships within that 20%. If people are going to exercise more frugal spending practices, then you surely need to be top-of-mind when they decide to purchase. And remember that what you do creates images in the customer’s mind of your products and services. If you disappear for all practical purposes, some of your customers will determine that you have gone out of business. Customers don’t typically sit around at night and discuss all the potential vendors for products and services like yours—unless they are in need. The question is, if they are in need, are you on the list? Are potential customers aware of your range of products and services?
Charlie Fewell & Associates
Want to improve the way you run your business? Entrepreneurs, academics, and consultants from diverse industries offer practical advice on a variety of topics each business day.
To submit a tip for consideration, first check our archive of previous tips to make sure you're not repeating a tip someone has already contributed. Then send the tip to Small Business channel contributor Michelle Dammon Loyalka. Because of the volume of material she receives, she may not respond to each individual.