Pop quiz: What should you do with your marketing budget in a recession?
A. Cut it
B. Increase it
C. Keep it the same but use it wisely
If you answered A, you’re WRONG. Marketing is the last place you should cut when faced with an economic downturn. Whether B or C is right for you depends on the nature of your business and who your customers are.
For one woman, Carolyn Warrick (pictured on the left) of Carolyn Does Quickbooks (CDQB), cutting her plans for putting on a Customer Appreciation Breakfast was never an option. Smartly, she knew that when the times are tough, you need to pull your assets even closer. For her, that means her clients.
A couple of weeks ago, Carolyn and her daughter Cheree (pictured, on the right), who is the author of “7 Ways to Grow Your Business Using Quickbooks” (and who is joining the company full time in July), hosted 30 of their clients to a full breakfast along with a paid keynote (by me) on how to grow your business in a down economy. In my speech, I couldn’t help but refer to the very event we were at when speaking about the difference between customer loyalty and customer satisfaction and how to drive loyalty. Didn’t know there was a difference? Consider the following:
I am happy with my Ford Expedition. It’s a decent car, it has held up well, and gets the job done for me. Our next car might be a Ford, or we may look at other models. It will depend solely on the economics of it (price vs. meeting our needs).
I am THRILLED with my Lexus. The car do the ‘job’ I hired it to, but it certainly isn’t perfect. But I just got a letter in the mail from their service department. Apparently I still have a free oil change I haven’t used even though I bought my car 3 years ago. When I take my car in for service, they give me a free loaner (another Lexus!). Oh, and after my car is serviced they personally call me to ask me about the service. I would absolutely buy another Lexus.
I am satisfied with my Ford. I am loyal to my Lexus.
By taking care of her customers and going beyond the service they’re paying her for, Carolyn is building a loyal customer base that doesn’t hesitate to refer her to others. She still has to perform and do a good job to satisfy her clients, but taking that extra step to keep them loyal really pays off both personally and on the bottom line.
What do you do to build customer loyalty? Is everyone in your company engaged in that mission?
