Tough economy….no one is spending any money. Merchants all over the country are forced to devise ways of doing more with less. Preservation of capital is key. Survival is everything. Keep your head above the waterline – don’t change anything and ride this baby out. This is what you’ve heard if you’ve tuned into any business advice floating around the Internet, television and radio airwaves.
My advice? Start spending money….and do it IMMEDIATELY!
THE TIME HAS POSSIBLY NEVER BEEN BETTER
I don’t mean to suggest you should go out and buy that $40,000 food preparation/fryer/freezer combo-unit for your sandwich shop. I’m talking about loyalty marketing – those programs that keep you going back to a particular grocery store, restaurant, car wash or dry cleaner. If you REALLY understand the purpose of this marketing initiative, you may agree that the time to launch a new program – or advertise an existing one – may not have been more favorable since the Great Depression. And few merchants truly understood the value of a free veggie wrap in 1929. The reasons for this favorable marketing environment: less competitive pressure and value-hungry consumers.
YOUR COMPETITORS ARE HIDING TOO
Much has changed since the economic downturn began in 2008. Merchants – large and small – closed the doors, paying the ultimate price for not having a viable Plan B. But the vast majority of merchants are still out there, bobbing on the waves, and waiting for bluer skies that we all know are coming. Yet these merchants are in widely varying states of economic health. Now please don’t misunderstand me – DO NOT spend your last $1000 on loyalty marketing. And don’t fire your assistant manager in order to buy those free burrito cards. Ultimate survival is the prevalent goal here. This message is directed to those businesses that have actually budgeted for these things. If you normally spend money on such programs because they have a tendency to work for you, it is not the time to put your head in the sand. That’s what the other guys are doing – and it clears the deck for your message.
THAT VALUE MESSAGE REALLY WORKS IN TODAY’S ENVIRONMENT
There is no question that consumers are tightening up and that’s a good thing. Yet restaurants and bars are still open. Families still go out to dinner, albeit a little less frequently. All those folks eating at home still need groceries and they need gasoline to get them to the store. Believe it or not, the American public is still spending money. It just has become a little more prudent in doing so. And this is where you come in.
If you have a loyalty program now, consider ramping up your advertising to let your customers know. If you don’t have one, maybe its time to strongly consider the value of your existing customer base. There is a reason you’ve somehow survived in this environment and it’s a good bet your customers have had a hand in that. Put something back into theirs. You’ll be surprised how much attention it may get you. At the very least, it prompts one of your best customers to come back to you at the expense of your competitor down the street – ALWAYS a good thing.
ACT NOW – THIS ROTTEN ECONOMY WON’T LAST FOREVER
This is a limited-time offer. We’re Americans. We don’t stay down for long. The economy WILL recover and merchants – who have been patiently waiting on the sidelines while their unspent marketing money gains interest – will decide to re-enter the game. And when they do, YOUR program will be established with consumers. YOUR program will be performing. YOUR program will be growing as theirs is just beginning.
Less competitive noise and consumers out there looking for every deal they can find. If you understand that, let your loyalty program work for you. And do it soon.
Al Duggan is an expert in gift/ loyalty card marketing and the VP of Business Development for Valutec Card Solutions, LLC, an FIS (NYSE:FIS) company, the country’s largest provider of gift card programs to small merchants. To get additional details, please visit their website today.
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