The recession is over so what next for consumer facing businesses?
2009 was challenging to say the least for a lot of businesses as the grip of recession took its toll. The new year has started with signs of recovery but a lot of the same challenges remain – a recent report stated that in certain areas of the UK one in five shops on the high street are now empty. So despite the green shoots of recovery that exiting the recession brings, there is still a long way to go. The question now is what are the tasks for businesses that have survived the recession and now face a transition period? Are marketing options such as sales promotion through rewards and discounts or loyalty and membership programmes going to lead the way or will there be yet more changes in the way consumers spend money? What next for the marketers?
Integrating campaigns
Integrating the effective low budget marketing options such as sales promotion which were utilised heavily during recession, into wider campaigns is now a strong option for businesses. More and more companies have been using sales promotion techniques including rewards and discounts, in store, online and through third party loyalty and membership programmes or discount clubs. Culturally, consumers have changed the way they shop and in line with this are unlikely to change any time soon. To abandon sales promotion altogether could be a mistake, when driving loyalty has to be the focus for business. At the same time all forms of marketing/advertising have their merits so a well rounded campaign that takes into account the mindset of the target audience would surely be the winning strategy?
Adapting to the environment
The way in which consumers spend money is not the only cultural change in recent years, there are many elements that need to be taken into consideration, including the growth in popularity of social media sites such as Twitter and Facebook. The rise of social media means that people of all ages and backgrounds can communicate freely on a worldwide platform; this has strengthened the prominence of word of mouth advertising which can work both ways for businesses. Predominantly this means that excellent customer service and value for money can now hold as much weight as any marketing/advertising campaign. The world is changing around us and keeping in touch with consumers needs can make all the difference, maybe now more than ever.
Generate incremental revenue
As consumers expect more from brands it has also become increasingly important to think outside of your normal consumer offering. Is there something more you can be giving your customers so they develop an affinity with your brand and at the same time help the business to generate incremental revenue? One way to do this is to upsell loyalty and membership programmes or discount clubs to your existing consumers – this not only drives loyalty and retention as you are providing them with exclusive discounts, but it also generates incremental revenue for the business.
The conclusion has to be that whilst the recession is over, the culture remains. Anything companies can do to maintain a consumer sensitive marketing campaign can only help, but it is time to start moving on and influencing the nation to look beyond the credit crunch. Integration to the transition out of recession is the key - a balance of consumer and business focussed marketing agendas.
The Rocket Marketing Group operates a number of loyalty and membership programmes or discount clubs which are used to market brands to a substantial loyal customer base. To be included in the loyalty and membership programmes or discount clubs all a partner has to do is offer an exclusive and compelling discount. Businesses can aquire new customers, generate incremental revenue plus drive retention by upselling these products to their existing customers. The Rocket Marketing Group is a sales promotion agency specialising in developing, implementing and managing loyalty and membership programmes and discount clubs plus incentives to drive acquisition and support retention of customers, members and employees. Contact Us to find out more.
