A significant chunk of the British economy is driven by consumer confidence.  When people feel happy, settled and confident, they spend money.  And that helps British (and other) businesses.  I’ve written plenty about the ‘science’ of understanding consumer confidence.  It can hinge on very simple, yet uncontrollable things, such as whether the sun in shining.

Business confidence is a slightly different animal.  And we sometimes forget that businesses are large spenders in our economy.  They create jobs, they buy products and services from other businesses and they have a large part to play in generating money.

Whether businessses spend money depends on things such as:

• Whether their customers are spending more or less
• Whether they think their customers will spend more or less in the future
• Whether they can borrow any money
• Whether they’re confident of the future
• Whether they can spot opportunities

I don’t need to tell you that funding is hard to come by for most businesses.  Which means they have to spend from their cashflow.  This is like you spending from your wages and not using your overdraft or credit card.  It limits how much you can do and how much you can grow or invest in the future.

And the perfect storm is that business owners have been reading negative news for the past three years.  Almost every ounce of positive energy has been tested and the European ‘crisis’ is exacerbating the problem.  Europe is a major trading area for British products.  If we can’t sell to Europe, some of our businesses can’t grow.  And if they can’t grow, they can’t spend.  And if they’re not growing, they’re not creating jobs.  As I said, the perfect storm.

But there is a HAPPY ENDING… There are many opportunities for marketers and businesses in the current economy.  As marketers we must understand what is happening and what is driving it, so we can spot those opportunities and help the businesses we work for.  As we improve our knowledge, we can better target customers who are spending and we can create better products and services for which there is a need.  Sales and Marketing have never been so necessary than right now…and we have a real part to play in the recovery.

Younger generations are rejecting corporates and demanding CSR and transparency in light of the banking crisis that led to the recession.  Simultaneously older generations are turning their backs on the banks and looking elsewhere for their funding and investments.  And, it seems, the power is really starting to sit with the people.  Bring it on!

In the past few weeks alone, I’ve read a number of articles and spoken to various clients about crowd funding sites and ideas, so it’s clearly gaining momentum.  Here are just a few of the areas we’ve seen:

• The Times reported that prviate investors are now looking to social enterprises for investment; increasing their returns to as much as 6% and knowing their money is invested in worthwhile causes.  Visit www.buzzbnk.org for further details.
• Abundance Generation is a ‘building society for low-carbon technology’ where people can invest as little as £5 into renewable energy schemes.  It’s expected these will return 5%-9% per annum.  See https://www.abundancegeneration.com/ for more
• Funding Circle matches investors and businesses; giving small businesses access to funding at realistic rates and providing a higher return for investors.  A client of mine is using this method to build up credibility and financial history in a non-banking arena – smart move I suspect.  See http://www.fundingcircle.com/ for more.
• Thin Cats operates at a more serious level; funding projects from £50,000 to £1 million and they promote themselves as ‘Business Loans without Banks’.  Visit http://www.thincats.com/

I know we all love to hate the banks.  And I love that our society is creative enough to find a solution without them.  I only hope it gains ground and attracts serious businesses and investors who can create wealth and jobs through this additional funding stream.  That’s the kind of idea that will get our country out of recession.

The first thing to realise is that both articles are factually correct – based on the related research and statistics:

• A ‘recession’ is when the country shows negative growth for two three-month periods in a row.  (A piece of information we didn’t know until the recession happened and now it seems even our pets have a grasp of this concept.)
• Consumer confidence is much more difficult to measure.  And it’s based on a diverse range of factors including ‘perceived wealth’, the weather, an individual’s mood, people’s work situations, people’s family situations, the local high street and community activities, the local Council… the list is literally endless.

The word ‘perceived’ is one of the most important both in the context of the paragraph above and also in marketing as a whole.  Perception is a very powerful thing… if we perceive we are better off, then we act that way.  And the opposite is also true.  So you have a number of people who have benefited from the recession through decreased mortgage payments, but they perceive  the country to be at risk, so they save that extra money instead of spending it (as they would have done prior to the recession).

Unfortunately for the UK, the same thing is happening at a country level, caused by the knock-on effect of the so-called ‘European Debt Crisis’.  Countries outside Europe ‘perceive’ Europe to be a risk at the moment, so they may choose to do their investing elsewhere.  If they do invest here, they expect higher returns for the ‘perceived’ risk.  Simples!

But what does all this jargon and hyperbole mean for your business?

Well.. it depends how your customers perceive themselves and their position.  If they are busy / wealthy, they probably feel OK and are willing to spend and invest their money.  If they perceive they are doing poorly, they will be saving their money and cutting costs where possible.  If you don’t know how your customers are feeling right now, you should perhaps be trying to find out.

Good luck – and shout if you need assistance.

Many senior economists are predicting that 2012 will be the year that dictates the next decade.  If it goes well, we’ll have a great decade and if not, it could be a long ten years.  But what does this actually mean for your business?

Customer confidence is currently balanced on a knife-edge.  On the one hand, we hear doom and gloom about the Eurozone ‘crisis’ and, on the other, most British people are sick of the recession and want to get back to the way things were.

There’s no doubt people are being careful about what they spend – in the main.  They’re looking for value and they’re shopping around.  And these are all trends you could align with if you want to surf the current marketing wave.  Consider the following to capitalise on the opportunities there are:

1. When people are cost conscious they look for value – adding perceived value to your product / service may mean you don’t need to cut prices.  Win-win.
2. If customers are looking for coupons and vouchers, consider offering them.  But ensure they make you money instead of costing you money (this is a fatal mistake made by the majority of companies).
3. If people are shopping around, help them.  Why be frightened of your competitors if you’re offering better value and are confident in your product?  Show customers the differences and let them decide for themselves – they’re looking anyway; with or without your help.
4. Quality is king.  People want to buy once and know the item will last.  As a result, trusted branded products are performing well, as are quality products and services.
5. Small, local, family and fairtrade are all useful buzzwords; particularly if you’re targeting the younger generations.  There has been a significant backlash against the corporate world as a result of the recession and this, along with the technology boom, has hugely assisted small businesses

Opportunities remain; as in any market.  Times are changing, as always.  And we need to adapt and remain positive to take advantage.

In my professional opinion (for what it’s worth), I believe people in the UK are sick of the recession.  The media and the Government have been banging on about it for years now and we’ve all heard enough and want to get back to ‘business as usual’.  But what will it take for that to happen?

Sunshine is a great start.  People feel better when it’s warm and sunny.  They’re happier, they see a better outlook and, crucially, they spend money. The Lake District was buzzing with tourists this weekend and it’s fantastic to see – people visiting will generally spend money, often with small, local companies.  Many of those companies were recruiting seasonal staff – who spend their wages in the local economy.  And so it continues.

What can we do as businesses to aid the recovery?

Stop being negative.  It’s easier said than done, but we have to play our part and talk the country up.  Confidence really can make the difference and the IODs Chief Economist, Graeme Leache, intimated that what happens in 2012 is likely to set the tone for the next decade.  I don’t know about you, but I want the next decade to be awesome… so let’s do our bit and give confidence the push and support it needs.

The sun in the sky really could make a difference to your bottom line, but we’ve got to back it up!

A = Audience

Everything in marketing begins with your customer.  What problem are you trying to solve for them?  Who are you trying to sell to?  What do you know about them?  What motivates them and what would encourage them to buy?

The more you know about your customers, the easier your job becomes.  So do your homework – this isn’t a section on which you should be relying on guesswork.

B = Brilliant Marketing

OK…I had to make it fit my ABC!  Your marketing mix is the step between working out who your audience is and deciding how you will reach them and with what messages.  This brings into play your product benefits, your pricing, your promotion and your distribution strategies and it flows from the information you know about your customers.

Ideally, you should have products that solve problems for your chosen audience, pricing that will be attractive to your prospects, your products/services available in places your audience shops and promotion in things they see or read using messages that are relevant to them.

C = Conversion

There is no point to marketing unless you’re converting sales… and this is the bit many marketers forget or wimp out on.  But if your actions aren’t leading to profit, someone should be questioning them.

A good friend of mine once told me that marketing is what you do to get the phone to ring and sales is what happens when you pick up the phone and it’s a great distinction.  And you need both elements to have a successful company.

So there you have it…the ABC of marketing.

I look forward to receiving your feedback and comments.

At a recent seminar, I asked my audience to stand if they watched or listened to the news in the morning.  About 90% of the room stood up.  I asked them to sit down if they felt motivated after they’d watched the news…and only a couple sat down (which I think might have been fatigue, rather than honesty).

The fact is that the news is depressing.  Especially at the moment.  And it provides you with an excuse if your business isn’t performing as well as you might hope.

I listened to a customer this week tell me how ‘sad’ it is ‘out there’ at the moment and how everyone seems to be suffering in business.  But, on the flip side, a property developer we work with has just received three reservation forms for new build properties in the past four weeks – and they only have 8 properties to sell.

The business is there.  Whatever the news and the media would like to tell you.  It may be that you have to fight harder for it at the moment, but customers are spending money.  The question is whether they’re spending it with you.

My advice…

• Stop watching the news before work and read something motivational instead
• Start your day with your marketing actions
• Do some sales and marketing activity every single day
• Think positive – you’ll be amazed at the results.

Sounds simple?  You’ve got nothing to lose, so why not try it and let me know the results?

And so to 2012…

My first prediction is that the news won’t really change.  If you want to avoid the doom and gloom, I’d recommend not watching it / listening to it at all.  It will only serve to depress you.

The perception in the British market is that money is still tight, but for many people, they’re better off than they were before the recession.  They’re often not spending their money, in many instances because the media keeps telling them times are tough.  So savings are increasing… and people’s money is earning them nothing in the bank.

Consequently, people are looking for better returns and there are some very interesting things happening in the investment market with people finding and using alternatives to banks.

As a result, the property investment market is buoyant.  Investors are spotting opportunities and buying property across the country; the only limit being their access to finance (as for everyone else).  One developer we work with has just sold 3 properties in 4 weeks… not bad considering some people think the property market is stagnant.  He did have some great marketing advice though!

The luxury market also seems to be holding steady and holiday bookings in January appear to have maintained their usual peak for this time of year.

Baby boomers are driving the wellness trend and most analysts expect that to continue for the next decade; making this a great market to be in.

We were out in Lancaster city centre on Saturday night and the city was filled with people eating and drinking.  We struggled to get tables in the restaurant and also the local bar… but they’re both great at what they do.  So I suspect the businesses offering great value and good quality will be busy.  And those offering the same as others will be quieter.

So my top tips for 2012?

1. Differentiate yourself.  If you offer the same as everyone else, you’ll melt into the background.
2. Customer service is king.  Never before has service been more important – you must remember that any customer is paying you a huge compliment if they choose you.  So look after them.
3. Make the most of mobile technologies.  Smartphones have really come of age in 2011 and 2012 and they are changing the way people search for and buy things… you need to take advantage.
4. Keep in touch.  It isn’t the customer’s job to remember to do business with you.
5. Remember that people are spending money.  Stop watching the news and feeling negative and instead get out there and meet your customers.  Your attitude will be the measure of your success.
6. Once you’ve got some momentum, do everything you can to keep it.
7. Contain your costs.  Check every bill that comes into your business – just last night I found I’d been spending £5 pcm on roaming for my mobile phone – something I added over a year ago and never removed!  It’s only £60, but that’s an extra hours work I’ve had to do to pay for it.  If I could reduce every bill by the same amount, my life would be much less complicated.

Have fun and may 2012 bring you health, wealth and happiness in abundance x

I don’t know about you, but it’s a rare day when I find a car salesman I like and really want to do business with – perhaps it’s no surprise he was so successful.

Apparently Joe sent cards every month to his customers with a simple ‘I Like You’ on the front and a relevant greeting inside.  His customers received twelve cards each year reminding them how much Joe liked them.  He had thousands of customers (making the postage costs significant,) but the resulting sales were more than worth the effort.

Joe is now a sales speaker and has his own website.  You can read his top tips at http://www.joegirard.com/13-Rules-To-Success.html.

Good luck putting them into practice.  They are very simple… and very effective.

What most business owners fail to recognise is the risk to the person who recommends you:

They put their own reputation on the line by telling their friends that you’ll do a great job. 

And most people don’t do that lightly.

We had a friend give us such a recommendation for someone to respray our campervan recently.  The business was effectively his; we just needed him to see the camper so he could give us a quote.  And that’s where the problems began.

So here’s a list of what not to do, if you want more business:

1. Make it difficult to see the client and give them a quote
2. Make the customer come to you
3. Be vague about times you’ll be there to see them
4. Leave them waiting outside your offices for 30 minutes
5. Put the phone down on them (after telling them you’re not really bothered about the work)

It beggars belief that in the current economic climate, small business owners are still wasting opportunities and damaging relationships with the people who recommend their company.

We’d love you to share if you have similar stories of people who talk themselves out of business.