Recession Marketing…There are things you can do!
Monday, February 23rd, 2009As the grim reality of a recession is upon us, organisations are being forced to streamline their operations and cut costs, while at the same time maintain performance and managements’ growth expectations. Although, all divisions are expected to pull their weight, only one division is more ‘customer facing’ and more exposed than others – The Marketing Department. Marketers now find themselves on the frontline; with their budgets cut they have no choice but to rethink how they previously engaged their target audiences.
Without thinking about the possible pitfalls, in a recession marketers may be tempted to boost their results and profits in the short term by sending more email, buying more email addresses and following aggressive list growth strategies. However, this may result in a backlash from subscribers due to a lack of relevance and not conforming to expectations, thus ending with high SPAM complaints and list fatigue. In the long run, this exercise will have an adverse effect on credibility and deliverability reputation.
The latest DMA Email Benchmarking Report Q2 2008 shows that the majority of marketers state that the main barriers to creating more targeted mailings are ‘Resource & Time’ (58%) and ‘Insufficient Actionable Data (14%). This is a common misconception because nowadays most ESP’s offer marketers an abundant amount of campaign statistics that can be used to target subscribers based on their location on the customer lifecycle.
With the use of a little ‘Strategic Planning’ and by using ‘Standard Reporting Metrics’, marketers should be able to concentrate on those ‘Cash Cow’ subscribers that contribute the most to online revenues. This can be achieved by;
• Losing Some Dead Weight
Recoup some extra budget by sending a reactivation campaign to those subscribers that have not opened or clicked on your emails over a period of time, i.e. 6 – 8 months. Give them the option to update their preferences, so that you can tailor future communications more effectively. Those subscribers that still do not react to this campaign I would suggest removing them from your core list.
• Influencing a first-time purchase
By sending an enticing message to those subscribers that have opened but not-clicked, clicked but not purchased, added to basket but not purchased – send a compelling offer/incentive to buy now.
• Promoting a Repeat Purchase
Use conversion tracking to enable cross-sell and up-sell opportunities based on purchase activity and behavior. Alert customers to new offers and product releases from similar product lines as previously purchased items.
• Increasing Customer Retention
By sending personalised ‘We Miss You’ messages to customers that haven’t purchased or reached the later stages of the customer lifecycle after a certain period of time, lets them know that you care! Offer a credible motive for a subscriber to come back to your site by engaging their interest with new products and VIP offers.
To be successful and maintain momentum in today’s market, marketers need to respond accordingly to subscribers’ behavioral actions, be as relevant as possible and ensure that it is their brand that the subscriber recognizes and remembers when the need arises. Loyalty is king…..
Daniel Murphy, Commercial Account Manager.