if you haven’t heard, we’re in a recession

And that translates to spending freezes, slashed budgets, layoffs, or worst of all, bankruptcy for companies small and large across this country.  The smartest companies would do well to trim the fat other departments before they begin shrinking their marketing staff and budget, and if there is an ability to increase their budget, there is no better time.  The knee-jerk reaction of every CFO is to slash spending across the board but as Barack Obama put it, it’s best to use a scalpel instead of a hatchet.  After all, if we don’t know who we’re selling to or what they want, how can we expect to sell?  Lots of companies will be spending less across the board in 2009, which means you’re at an advantage if you spend your money wisely.

If your company is pressuring you to “deal with” the measly budget you’ve just been handed, here are some things to think about before you head back to your team.

Stop amassing customers!  Acquire clients, then keep them.

Ok, well if you run to your boss and tell him or her that you’ve decided to stop taking on new customers, you’ll probably be one of those excellently-qualified executives begging for a job on a street corner somewhere.  So here’s the deal.  If the financial meltdown has taught us anything it’s that corporations have had some pretty big lapses in common sense when it comes to connecting and communicating with their customers.  Banks and their patrons had a massive miscommunication of expectations that led to a housing crisis that’s crippled financial markets around the world.  Detroit’s Big Three are on the verge of collapse because they didn’t pay attention to the needs and desires of consumers until it was far too late.  The point is that it’s your responsibility, now more than ever, to find markets and customers that are a good fit for your company and ensure that a line of communication with the marketplace exists.  It’s not about getting customers, it’s about getting clients.  Clients are the ones with whom you have a relationship, and thereby, will visit you again.

In 2009 you’re going to hear a couple of phrases over and over: “Social Media” and “Relationship Management“.  Not only will you hear them, but you will be forced to use them, so I’m here to give you a run-down of the things that you can use in conjuction with your current strategy to get you that sweet CMO title and corner office in 2009.

Be social

In past recessions, firms that focused on word-of-mouth marketing had an advantage: it’s free and it’s consumer-driven.  Today, there are new and much more powerful ways to tap into the demands of consumers and spread information.  Social media is the new word-of-mouth.

Social media (sometimes called “new media”) is an essential component of the Web 2.0 movement.  And, based on the fact that nearly all social media platforms are less than a decade old (most less than five years old) yet constitute thousands of jobs and billions of dollars, the move away from “traditional media” has already begun.

The only way to get the word out about a product or service in the past was to tell people about it via traditional media.  Like a politician at a podium, advertisers held an audience captive and explained their good to them in print, then on the radio, and finally on TV.  With the advent of the internet they saw value in having a web page where people could go to learn more and with time this process became more interactive.

Today, millions of potential clients make their interests and activities known on a streaming basis through the use of their personal websites and social networks.  Reviews of companies and their products/services, industry news, triumphs and frustrations all become public for the world to see, comment on, and interact with.  This interaction is the newest method by which companies can communicate with their audience to learn about industry news, respond to negative comments, track issues, monitor competitors, break news, ask questions, garner feedback, and more.

Social media marketing is so new that, according to the online marketing journal MarketingVOX, among executive-level marketing professionals, 80% have not yet fully integrated the core elements of Web 2.0 into their marketing efforts and 67% consider themselves beginners at using social media for marketing purposes. Yet, in spite of a lack of expertise, nearly 67% plan on increasing their social media budget for 2009.

That’s because it’s not just about having a webpage anymore.  It’s about having a web presence.  According to some, if you’re not participating in social media, you’re not really online at all.  And here’s what’s really going to make you and upper-management happy: nearly all social media platforms are 100% free.

Try something new and different.  If you think that using tools like Twitter isn’t powerful, consider this: Tweetsgiving.org was able to raise over $10,000 in just 48 hours using nothing but a Twitter account and  tweeting moms were able to bring down a Motrin campaign a couple of months ago.  This is just the beginning.

For more information about social media and how to use it, please visit my social media page.

Retain Clients by Building Relationships

Sure, I may be biased because I work for a CRM developer, but the reality is that firms are spending more on tools that will streamline processes, increase efficiency, and maximize interactions with clients.  CRM stands for “Client Relationship Management“, a set of tools whether hosted online or on-premise, that enable firms to manage and track activities with prospects and clients.

There are tons of CRM solutions, from the free www.freecrm.com to the multi-million dollar solutions provided by Siebel.  Solutions range from those designed for a sole-proprietor to those meant for global enterprises.  Some are industry-specific, some are company-specific, and so on.  So where do you see yourself?

No matter your industry, you stand to benefit from using CRM.  Whether automating marketing campaigns, managing contacts, creating follow-up activities, integrating with email or call-center systems, creating an escalation process for complaint resolution, or collecting data, analyzing and reporting on it, you won’t be able to get away with Excel spreadsheets anymore.  Many CRM solutions, including SalesPage, are custom-made to fit your unique workflow and integrate with the systems in place.  No matter what you need CRM for, there is a developer out there with a solution tailored just for you.

CRM and CSM (Customer Service Management) tools all help you, in essence, create a lasting relationship with prospects and clients.  If you’re in a business that can up-sell, these are the tools that facilitate that.  And creating a meaningful alliance between you and the client is the ultimate goal.

Analyze ROI.

If there was ever a time to analyze your Return on Investment, it’s now.  What kind of results are you getting by spending $20,000 on an online ad campaign?  Is your website getting hit as a result?  Are your corporate blogs being read?  At the end of the day, is your product or service selling?!

Remember, the idea here is to cut the fat where it’s necessary.  If you’re getting positive results with expensive campaigns, keep ‘em.  But if you’re investing in one-off events or corporate sponsorships that don’t tie into a larger marketing or advertising campaign, it might be lost money.  GM dumped Tiger Woods after spending $56 million over 9 years in a corporate sponsorship.  Johnson and Johnson withdrew $100 million in Olympics sponsorship.  Do these sponsorships sell cars or baby oil?

Google Analytics is a great, free tool that you can use to monitor all types of data pertaining to your website: how people found it, where they’re coming from, if they return, and what they’re looking for.  Facebook Ads allows a lot of segmentation and provides ROI analysis of results.

In 2009 it will be important to go into the boardroom with comprehensive ROI analysis on every marketing campaign.

Market to the least-hit

It’s inconceivable for an Enterprise Resource Planning (ERP) software developer to try to sell to GM right now–even if they may need it.  Would AIG be spending money on thousands of computer upgrades?  Probably not.  Building a luxury shopping mall in Detroit would be a disaster.  Part of your objective in 2009 will be to ensure that you’re marketing to the least-hit marketplace.

People will buy the things they need no matter what (that whole, trimming the fat thing works on the individual level too).  Sales of beer have never gone down, no matter how bad the economy.  Restaurants that do well are those that offer take-out service (Domino’s has seen nearly a 20% in sales due to this).  If you are able to focus your marketing campaigns to selling into industries that are less affected and offering an understanding message to those industries and geographic areas that are, you’ll be ina  much better position to market to your prospects.

The Message: Be Understanding, Be Transparent, Be Green, Be a Helping Hand

While we’re on the topic of the most-hit segments of the marketplace, 2009 will focus on a few key messages: understanding their pain, transparency of business, and a focus on green initatives.

Your company might be the type where you cannot avoid selling into recession-ravaged industries or populations.  But, if you can, focus your message on understanding their pain.  Let them know that you want to work with them to ensure their satisfaction and keep their business.  Make sure that they know that your product or service will aid them during the recession.  It’s not an expenditure, it’s an investment.

Thanks to the Wall Street’s greed and corruption, consumers are demanding increased transparency.  With investment and access to capital hindered, investors and consumers will demand a level transparency on the part of the company that you will need to deliver.  They will need to trust you before they will invest in your company or buy your product.

Even with gas prices at a 5-year low, consumers are more interested in green technology than they ever have been.  Corporations are augmenting their current advertising and marketing strategies with mentions of their green initiatives.  The bottom line is that right now, green is in.  Capitalize on it any way you can.

Consumers want to know you are a helping hand and a part of the solution.  If your organization donates to non-profits, be sure to include that in your marketing campaigns.  It’s better for everyone when a corporation is compassionate.

YouTube is the new Sales Funnel

You may have heard about the heads of Detroit’s Big Three pleading over YouTube for the American peoples’ support during their crisis or Barack Obama’s YouTube channel.  Companies have been looking to new mediums like YouTube to get the message out about their product–cheaply.  Instead of hiring actors, they’re looking internally for talent.  Why spend millions hiring an actor to do a commerical when you can get the well-spoken intern to do it and spread the video virally, all for free?

And while you’re at it, think about cutting down on flights to meet clients.  There are great telepresence services that allow for the same amount of interaction, albeit without the handshakes (and germs!).

Final Thoughts

The key to successful marketing in 2009 is adapting to the new tools that exist to create a dialogue between companies and consumers.  The timing couldn’t be better to utilize these resources because many of them come at a cost that is a fraction of traditional media marketing or no cost at all.  Trim the fat where necessary, don’t simply hack the budget to pieces.  2009 will be an interesting year, but if we strategize properly, the recession may make us better marketers in the long-run.

The above is merely a collection of suggestions and I’m sure I’ve left out some good ones.  Do you have any thoughts?