Because I have a few clients who have taken to heart my advice that challenging business conditions actually present economic opportunity, I've become a bit of an expert on how savvy businesses can actually gain market share during these dynamic times.
See below for excerpts from the Worcester Telegram and Gazette and the Chicago Daily Herald in which I have been quoted for my expertise in this particular area.
Rather than choose the traditional (and cowardly) path of cutting their marketing, communications and sales staff and budgets, some of my savvier clients are working with me on campaigns that simultaneously expand their market share and strengthen relationships with their current clients.
One of our campaigns involves distributing gas and "food" bonus credit cards (or gift certificates) when customers make certain purchases, achieve certain spending (or visitation) benchmarks, and/or refer new customers.
These initiatives have been extraordinarily successful because they're what marketing guru Seth Godin refers to as "genuine". These initiatives convey the sense that "I feel your pain" and I am going to help you during these tough times. These initiatives afford businesses a rare and unique opportunity to connect emotionally with consumers when consumers are looking for emotional connections from increasingly distant (and seemingly contracting) businesses.
Businesses that lay off their marketing and communications staff and cut their advertising and promotional budgets are cutting their proverbial noses in spite of their faces. NOW is the time to be aggressive. Your aggression today will establish and strengthen enduring relationships with customers who will stay with you when the economy improves.
Overlook the power of the emotional connection and you will continue to lose market share. Now more than ever you need to find ways to connect with your customers. When you do, you'll set yourself up for success when the economy bounces back.
Worcester Telegram & Gazette (July 20)
http://www.telegram.com/article/20080720/NEWS/807200340/1002/BUSINESS
... Such is the power of gas promotions. As average gas prices in Massachusetts hover above $4 a gallon, an array of stores, employers and charitable organizations are offering free or discounted gasoline to attract consumers. Grocery shoppers are building up points on store loyalty cards and then redeeming the points for discounts at gas stations. Those who take certain jobs or donate blood are winning gas gift cards. Some churches are even holding drawings among parishioners for gas gift cards.
The promotions aim to attract new consumers, reward existing consumers and shine a bit of light on entities that want to be seen as sympathetic and compassionate, according to marketing experts.
It can seem counterintuitive to step up promotions when times are tough, but those who do so can capture consumers who remain loyal when things improve, said Bruce R. Mendelsohn, principal of The Hired Pen, a marketing communications firm in Worcester.
“You have an opportunity to steal customers from your competitors by offering them an incentive that shows you care about the issues that are affecting them,” said Mr. Mendelsohn, who has clients that are offering gas promotions.
Chicago Daily Herald (June 16)
http://www.dailyherald.com/story/?id=209104&src=4
Bruce Mendelsohn, Principal of The Hired Pen, a communications consultancy in Worcester, MA, notes that "substantial anecdotal evidence" indicates the more scarce the resource, the more likely companies are to use it in marketing and promotional campaigns. This is especially evident when the resource ties into the company's line of business, Mendelsohn said.
"We think it's another example of the incredibly creative ways some businesses are adapting to challenging economic circumstances," he said. "As market researchers, we're always studying and evaluating consumer behavior; we're curious to discover how successful businesses will be by using gasoline as a marketing and/or promotional tool."
Using gasoline in a contest or promotion isn't unique. Similar contests, although not as sophisticated, happened during the oil embargo in the 1970s.
On alternate rationing days, some companies conducted "Are you odd?" or "Are you even?" campaigns, seeking to draw consumers to their respective stores, Mendelsohn said.
"While there's no doubt the exponentially increasing gas prices are depleting consumers' wallets, businesses that find ways to relieve the pressure on consumers are certain to be viewed favorably by consumers and generate some media attention," Mendelsohn said.
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