Marketing to Women in a Recession - Part 1

What do Wall Street and Madison Avenue have in common?   Short-term results at any cost.  And we now know how that's likely to turn out.

I was reminded of this when I went back to re-read Creating Customer Evangelists by Ben McConnell and Jackie Huba.

The insight and advice in this book is more relevant and applicable than ever. 

Talk about predicting the future.  It was positively eerie when I read the following passage:

Marketing must produce immediate results. Our technological society demands instant gratification. We want our food fast, and our Internet connections blazing. Why save up and pay cash for something when you can have it now on credit? So it goes for marketing.  The stock market rewards companies for growing revenues and profits quarter by quarter.

Wall Street has no interest in long-term investment.  The Street does not want to hear about money spent on customer evangelism and loyalty programs. Investment bankers are prone to care primarily about the number of new customers you will generate in the next 12 weeks. Revenue down?  The Street wants to know what ad campaigns you’re planning. It rewards layoffs with a stock price bump.  If sales are slipping, panicked CEO’s often order marketing directors to throw more money at print materials for the field sales force. Or to create a new and more aggressive telemarketing campaigns.

Marketing is desperate.

As I said, focusing on short-term results, no matter what the cost, has proven disastrous for Wall Street, and I'm not sure Madison Avenue will fare much better.

So what are marketers to do?   Re-read Creating Customer Evangelists. Customer evangelism does three things:

• It increases lifetime customer value, allowing you to get more from your current customers
• It allows you to attract new customers at little cost, letting your current customers do most of the work
• It helps reduce the time it takes prospects to make a purchase decision.

With marketing budgets being slashed, these benefits become even more attractive.

After you've read it, either again or for the first time, tell me what you think.

Comments

[C.B. Whittemore]

Holly, thank you so much for drawing attention to these points. If ever there's a time for customer evangelism it's now.

[StephanieInCA]

Excellent post. I would add that marketers should be more cautious than ever about offending their target audience. In a strong economy, there's a decent margin for error--even if a few folks are bothered by an ad, there are plenty more who aren't.

In a recession, however, you really can't afford much attrition at all. Great case in point is VW's bizarre Routan Boom ads that have gotten a fair amount of flack: http://urbzen.com/2008/11/06/routan-bust/

Would be curious to know what you think?

[Janet Engel]

Holly- just discovered your blog and really like it-- wonderful look and feel! I just ordered this book, as I have been meaning to read it. thanks!

[Forex brokerage]

In my opinion you should always invest in quality advertising! IT can make all the difference in your career if now or in the future, recession or not.