Studies prove: IT PAYS TO PROMOTE DURING A RECESSIONARY PERIOD
Smart marketers will not sit back during an economic downturn. Because studies have proven: Aggressive promoting during a recessionary period will actually increase your profits in both the long- and short-term.
In a study of U.S. recessions, McGraw-Hill Research analyzed 600 companies from 1980-1985. The results showed that business-to-business firms that maintained or increased their promotion expenditures during the 1981-1982 recession averaged significantly higher sales growth, both during the recession and for the following three years, than those that eliminated or decreased spending. By 1985, companies that were aggressive in their promotion throughout the recession had sales 256% higher than those that didn’t keep up their promoting.

MORE FACTS:
· A series of six additional studies conducted by the research firm Meldrum & Fewsmith validated the McGraw-Hill findings, concluding that promoting aggressively during recessions not only increases sales, but also profits.
· This fact has held true for all post-World War II recessions studied by The American Business Press starting in 1949.
Material Sources: McGraw-Hill Research, Meldrum & Fewsmith, American Business Press
REASONS TO PROMOTE DURING A RECESSION:
· Studies show that businesses that promote during an economic downturn produce better short- and long-term sales and profits.
· If you’re not asking for customers’ business, they’ll go somewhere else that is.
· There will be less clutter in the marketplace (as others pull back), making it a perfect time to be heard and reach new customers.
· You’ll be positioned for success when the economy turns around.
PROSPECTING FOR NEW BUSINESS?
We’ll help your salespeople get more appointments with a creative “door opener” direct mail campaign that gets buyers’ attention and increases your odds for success. Compare:
· A cold call has a 1-50 chance for a meeting.
· Our prospecting campaign has historically delivered a 1-4 chance for a meeting.
PROMOTING DURING A RECESSION—
HOW DO I GET THE MOST FOR MY MONEY?
The answer is: Invest where your dollars can produce big impact!
Your Sales Force: In tough economic times, your sales force will likely be dealing with more rejections from customers—with a corresponding dip in morale and performance. If your salespeople are used to getting calls for orders and not having to prospect for new business, the problem intensifies. To keep performance on track, we suggest a sales incentive program called Steps to The Sale, adapted to your specific needs. The program motivates and rewards follow-through in completing these important sales steps: (1) initial phone contact; (2) gaining first appointment; (3) presenting first proposal; and (4) winning the sale.
Your Employees: Economic stress impacts everyone, and can be directly reflected in workplace attitudes and performance. A recession is a perfect time to focus on and reward productivity. Our Work Perks employee incentive program provides an effective “pump up.” It recognizes employees for job-related excellence and rewards them in areas such as customer referrals, personnel recruitment, on-time attendance, workplace safety, and other behaviors important to your business.
Your payback from programs like these can be significant. As a whole, an engaged workplace is characterized by*:
· 50% lower turnover
· 56% higher than average customer loyalty
· 38% above average productivity
· 27% higher profitability
*Source: Contented Cows Give Better Milk by Bill Catlette and Richard Hadden
Contact us for more information on these programs and other promotional resources to keep your business growing in good times and bad!
