One of the first thoughts that crosses a business owner's mind when facing an economic downturn is "How can I cut costs?"

Unfortunately, one of the first things that is traditionally cut is the marketing budget.  Although reducing costs in a down economy may seem like a good idea, this could be a costly mistake.  Marketing is one of the primary vehicles used to generate growth.  Instead of slashing marketing dollars, pet care facility owners should consider the weakened economy as a chance to revisit their marketing strategy.  Opportunities will exist where competitors have cut back on marketing, enabling your facility to have greater impact in a far less cluttered market.

Professor John Quelch of Harvard Business School affirms "Successful companies do not abandon their marketing strategies in a recession; the adapt them".  (Harvard Business School Working Knowledge, March 3, 2008) Effective marketing in a down economy is possible; and, pet care facility owners and operators can follow these simple steps to stay afloat in turbulent times.

Focus on your existing customer base.  In a recession, your facility may have less money to spend on acquiring new customers.  Instead, you should invest in marketing to and strengthening the relationships with the customers that you already have.  Take this time to promote additional or new services to those that have trusted your facility with their pets in the past.  You may want to also implement a customer loyalty program that demonstrates your appreciation for their continued business.

Increase your level of service.  While many will be focused on price, ensure that your service level is higher than that of our competitors.  If possible, even provide add-on services, such as a free bath with every visit.  Your clients should be convinced that they are getting much more than what they were expecting.  This will pay off during and after the recession; because, satisfied clients are sure to recommend your facility to others.

Utilise electronic marketing tactics.  As a business owner, it is critical to make the best use of your budget. With electronic marketing, your pet care facility can launch targeted, personalised campaigns that are more cost effective and measureable than traditional advertising methods.  In fact, Web sites and email campaigns can be tracked and data captured on your prospects' needs, preferences, and desires to help you understand what messages to deliver and to whom to drive traffic to your facility.

Invest in growing market segments.  In every downturn, there are market segments that grow faster than others.  It is important that you identify and understand how to communicate with these market segments.  In turn, your facility may want to consider reducing your marketing investments on the segments that will be impacted most during the downturn.

Adjust pricing methods.  During a downturn, consumers tend to shop around for the best deals.  Without cutting list prices, consider offering temporary price promotions or frequent customer discounts.  In tough times, price cuts tend to attract more customer support.

Maximise the value of each lead.  Given the tight economy and the importance of acquiring new customers, each staff member should be trained to convert each lead into an appointment or at least a site visit.  Your objective is to get each prospective customer that contacts the facility into your doors.  Each employee should fully understand the value that your pet care business offers and be able to communicate this in order to convert more leads into business.  In addition, implement and utilise a lead tracking tool or database that captures the sources of your leads.

For many businesses, an economic slowdown means a tendency to cut back on marketing spending.  However, the key to marketing in a down economy is to remain consistent and focused.  Pet care facility owners and operators that focus on getting the most out of every dollar spent and on demonstrating marketing's impact on revenue will be positioned t survive the economic downturn and come out of the slump ahead of the competitors.

Source: Pet Care Services March/April 2009 The Third Eye Group The Marketing Resource Centre