People often say that marketing is one of the first things to be cut in a recession – but I have to say that from experience, that hasn’t been the case.  Heading into a recession, many businesses invested in their marketing to boost sales on the way into the downturn.  Some have since cut back a little, but most are now investing again and confidence seems to be taking a postive turn.

If your budgets have been cut, please don’t think that signals an end to your marketing campaigns – it simply signals a start to your creativity.  And it might force you back to basics.

There are many marketing tools you can use which are free or very cost-effective.  Here are our top seven, based on the methods we believe offer the best returns:

1. Follow-up.  I’m like a broken record with this point – but follow up is free.  It generates sales.  And most people never follow-up properly.
2. Keep in touch.  Yet another method which is free or cheap.  Keeping in touch with old customers can generate income very quickly – we just proved this with one client; selling a £250,000 property off an email newsletter (without so much as a viewing).  The newsletter cost us very little and generated a great return!
3. Positive Attitude.  This one definitely doesn’t have to cost you anything, but you’d be amazed at the difference it can make to your profits (or your wages, if you’re employed).  If you believe you will sell more products today, you will.  It’s a fact.
4. Referral Marketing.  Helping others promote your product, or offering affiliate schemes can be incredibly cost-effective and can generate amazing results – just look at the network marketing companies, Amazon’s affiliate scheme and others for some great examples of this marketing method.
5. Networking.  This can be a great marketing tool, if you set targets and know what you want to achieve.  Networking with the right people who offer complementary products to yours is the place to begin.
6. Up-selling and Cross-selling.  Offering customers additional products or upgrades at the point of sale can generate incredible sales.  It’s suggested that up to 30% of people will accept an upgrade at the point of sale – would you like to go large?  I certainly would!
7. PR.  If you have a story share it.  And use it in as many places as possible – your newsletters, your website, in the local press… The key is making sure you have something newsworthy and interesting.  (Tip – your customers don’t really care if one of your staff is pregnant or if you have a swanky new office.  They care what you can do for them, so keep on track.)

I’m sure there are more and I’d love to hear your thoughts.  I’ve deliberately left social media out, as everyone’s talking about it at the moment and I believe there are simpler methods that deliver better results right now for the time you need to invest.  Comments are welcome though if you disagree.

Happy marketing!

If you’re looking for more business, here are some of the ways we would select the best marketing methods for your business:

1. First is a decision about time or money
2. Second is about what you want to achieve – for some companies, it’s about building awareness, but for most it’s about generating enquiries.  For the purposes of this article, I’m going to assume you want more leads (and sales), so we’re looking at direct-response marketing (marketing that generates a response).

If you have time and little money, pick from the following:

• Targeted networking
• Up-selling to existing customers
• Incentivising referrals
• Exhibitions / Events
• Social Media
• E-newsletters (targeted)
• Posters and Flyers
• Increase your prices (where the market allows)
• Incentivise repeat purchases

If you have money and no time, these methods might suit you better:

• Training staff in up-selling to existing customers
• Incentivising referrals from existing customers
• Highly targeted telemarketing
• Appointment setting services
• Search Engine Optimisation and Adwords
• Postal mailings

Fundamentally, every marketing method works…to a greater or lesser extent.  But you must action that method consistently. Try any method for at least 90 days and monitor the results before you swap and change things – you have to give them a chance to work.

We always suggest that customers have at least four or five marketing methods working for them at any one time.  This can even out the peaks and troughs in a business and ensure a stable forward-order book.  So choose a few and monitor them all.

They will all work for you (to a greater or lesser extent).  But if you want to know which will really work for your specific business, that’s when you need to take advice.  And that’s the value added by consultants.  They can save you time and work and make you more money more quickly, but you have to pay for that expertise; as in any industry.  The choice, as always is yours, but hopefully the post gives you a starting point.

As usual, your comments and feedback are welcome.  I’m sure there are methods I’ve missed, so please send in your own experiences and give others the benefit of your knowledge.

Referral, or word-of-mouth marketing is one of the most cost-effective forms of marketing there is.  The theory goes that if you provide a good product or service to a customer, they are likely to recommend you to colleagues and friends who need a similar thing.

But, do you know who’s recommending you?  If you aren’t measuring where your customers are coming from, you can’t be sure – and you can’t thank the person doing the recommending.

Do you think that if someone recommending your company received a ‘thank you’ from you, they might recommend you again?

Could you also perhaps incentivise people to recommend your company, providing they are happy to do so?

This is how business has been done from the very beginning – if you are looking for a plumber, you’re likely to ask your friends who they know, rather than call someone cold (and risk them letting you down).  If they know they’ve been recommended, they’re likely to do an even better job, as they don’t want to let two people down.

If you could increase you referrals by just 10% in 2010, what difference would that make to your business – and profit margin?