Results Driven Marketing in a Down Economy

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Results Driven Marketing in a Down
Economy Gabrielle Hulan Business Solutions
Specialist USPS
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Todays Conversation

• The Landscape
• Recession Spending in Action A Look Back in
  History
• Survival Guidelines
• Direct Mail The Marketing Workhorse
• Where to Turn

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Todays Economic Landscape

• GDP growth turns negative
• Job losses accelerate
• Housing market stalls
• Families feel the pressure
• Wages still up due to low inflation

Source Economic Snapshot, Center for American
Progress, April 2009
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Consumer Attitudes

• Economic downturns instill anxiety
• Energy and food prices are on the rise
• Frugality is standard operating procedure
• Pragmatism and escapism are not mutually exclusive

Consumers are saving more, spending less!
Source Tuning Into The Recession Mind-Set,
Forbes, February 2008
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The Marketing Snapshot

• 69 are reducing advertising budgets
• 63 are reducing production budgets
• 63 are being challenged to reduce expenses and
  cut costs
• 61 eliminating or delaying new projects
• 63 restricting travel

Source Economic Conditions Forcing Marketers To
Reduce Advertising Budgets, ANA Survey, 2008
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In fact, SPENDING MORE during tough times when
competitors may be scaling back is a good way to
STRATEGICALLY BOOST MARKET SHARE
Source Bob Liodice, President and CEO of the ANA
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The Great Depression

• Many companies benefited from aggressive
  marketing
• Consumers looked for better deals
• When spending picked up, loyalty was established

Source How Brands Thrived During the Great
Depression, Strategic Marketing Concepts,
February 2009
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Depression Spending in Action
Chart PG New and Improved How A.G. Lafley is
Revolutionizing A Bastion Of Corporate
Conservatism, Business Week 2003
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Depression Spending in Action
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Survival Guidelines for Businesses
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Examine Your Costs
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Make Strategic Cuts
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Stay Close to Your Customer
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Explore New Opportunities
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Monitor the Competition

• If theyre cutting back, its the opportunity to
  consider increasing your marketing budget

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Stress Benefits and ROI
Whats In It For Me
Source Facts On The Value Of Marketing During An
Economic Downturn/Recession
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Focus on Metrics

• Test
• Know the behavior of your segments
• Adjust
• Watch spending

Source Facts On The Value Of Marketing During An
Economic Downturn/Recession
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Re-examine the Marketing Mix
Source Facts On The Value Of Marketing During An
Economic Downturn/Recession
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Direct MailThe Marketing Workhorse
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• PERSONAL
• Use the customers name
• Provide relevant information
• 55 of customers look forward to receiving
  their mail
• TARGETED
• Focuses on a specific group
• Strong ROI

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• FLEXIBLE
• Choose from a variety of formats
• Include special offers, samples or coupons
• TANGIBLE/ CREATIVE
• Places your message in their hands
• Your piece can be passed along
• MEASURABLE
• Easy to track the results
• Calculate price per lead

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The Challenges

• Generate reservations for opening of 135
• luxury guest rooms and offer discount
• Cut spending on mass advertising media
• Attempt to gain market share when sales
• are down
• Advertise to promote iconic brands
• otherwise risk losing customers

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The Results

• In total, 3,000 ROI from the campaign. Length
  of stay increased by 10 fromprior years, online
  revenues increased by 40, call-in revenues
  increased by 20
• Mailing more next year based on the
  positive ROI generated from this years
  mailing campaign
• Early access to a sales event generated a
  200 ROI
• Positive ROI is the indicator for each given
  market around the country

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Summary

• Listen to the market
• Invest in your customers
• Offer value and demand greater value
• Increase communication
• Step up your advertising
• Make smart decisions

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Resources

• People
• Postal Customer Councils
• USPS Sales Force
• USPS BSN
• Places
• Brains on Fire
• Brand Channel
• Duct Tape Marketing
• Things
• Deliver and www.delivermagazine.com

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Any Questions??

• Thank you for your time!