At Lawrence & Schiller, it’s always been our mantra to go 5280, the Extra Mile, for our clients. So in today’s flighty economy, why not go even farther…to the Extra Smile?
We get it – the economy stinks. But let’s get some perspective. Things are far from horrible. In fact, what’s making them worse are the pessimistic attitudes and unwarranted, sky-is-falling forecasts that surround us. At L&S, we believe times like this hold new opportunity and have the potential to change our world for the better.
So let’s relax. Reboot. And for crying out loud, smile a little.
Wondering how to skirt the effects of a recession?
Take a page from Sioux Falls’ book. The city (and entire state of South Dakota) was featured in this week’s LA Times as a rare U.S. community that’s thriving despite a floundering economy.
Some highlights:
The region from North Dakota to Texas includes five of the six states that analysts at Economy.com have classified as not yet in recession.
Sioux Falls has an unemployment rate of 4.8% - less than half that of Los Angeles.
Despite the pummeling the financial sector has taken, banks have only made limited cuts in Sioux Falls because it is so much cheaper to operate here. Citibank, for example, has slashed 53,000 jobs around the world but only 122 here.
The state is aggressively pro-business, which some also credit for its resilience amid the recession.
Sometimes a good kick in the pants – like a recession – is exactly what we need to get us moving in the right direction. Think about it. Just one year ago we were all complaining about:
Low personal savings rates
High credit card usage
Soaring oil and energy prices
An inflated housing market
Today, a lot of these problems are on the mend.
The personal saving rate has risen to over 3% from a negative percentage in 2005.
Consumers are learning to spend more wisely as budgets tighten.
Oil prices were below $35 a barrel in February; today, they currently sit below $50.
Falling housing prices are making homeownership a new reality for many.
No one’s saying this recession has been painless; a lot of people have lost their jobs, homes and savings, facing difficulties none of us want to deal with. But there’s a silver lining to every situation. And sometimes focusing on the bright side can make coping that much easier. Just something to think about…
After several years serving on the board of the South Dakota Symphony and most recently as board president, L&S President and CEO Scott Lawrence has been named as the chair for the Sioux Empire United Way 2010 campaign drive.
Campaign chair is an honor reserved for some of the most well-respected leaders in our community who have expressed a strong devotion to helping those in need.
“Getting involved and having the opportunity to give back to our communities is a priority for myself and the agency,” Lawrence said.
“I am extremely honored to step up as this year’s campaign chair. Many people have said to me, ‘what a terrible time to lead’ because of the economy. I say just the opposite. I believe this will be the Sioux Empire United Way’s finest hour.”
An unsteady economy has not stopped the campaign from reaching and exceeding its goals in the past; last year, the Sioux Empire United Way saw a 3.2% increase in giving, raising $9.3 million for those in need.
As an agency, Lawrence & Schiller has a legacy of extra-mile support for the United Way with 100% participation in employee giving and more than 30 Heart Club members.
Lawrence & Schiller is also helping to develop marketing materials for the upcoming campaign, titled “Live United.” You can learn more or get involved with the Sioux Empire United Way at www.seuw.org
In 1979, the U.S. was facing an economic crisis not unlike today’s. The Dow Jones plunged as low as 742 and our dependence on foreign oil led to swelling inflation and unemployment.
Sounds familiar, right? Today, we’re right back in 1979 with the same problems and dire outlook. People have lost jobs, homes…and basically their hope in the American dream. Failing banks and businesses. Failing consumer confidence.
But take a look at this:
In 1979, inflation was 12.5% with unemployment at 11.5%. The same numbers today? Inflation is around zero, while unemployment currently sits at 7.6% and even lower in Sioux Falls. Now imagine you’re an alien who’s just landed on Earth. Would you hope it was 1979, or 2009?
There’s definitely a lot of fear and uncertainty out there right now. But not a lot of perspective.
We’ve been through tough times like this before, and the main thing making this recession more severe is our perception that it is.
But you might know all of this already. What you don’t know is how to communicate it to your shareholders, employees and customers. At L&S, we believe in leading by example. We’re investing more in new business efforts and self-promotion than ever before. Why? Because we know it’s the smart way to react in a recession, and we’re telling our clients to do the same.
Here are six other areas where you can take the lead:
Guard your most valuable assets – customers. Instead of resting on your laurels because you’ve already won them, keep and increase their business through CRM programs, product improvements and value-added services.
Find the people who are ready to buy and give them everything they need to purchase. That means detailed online product information and e-commerce, responsive customer service and open, accessible businesses that invite you to buy.
Optimize your budget allocations. This has nothing to do with the size of your budget, but how resourcefully you’re using it. Pick the right media to do the heavy lifting, backed up by supporting media to complete the circle and guide customers.
Protect your core brand. It’s who you are, and having an identity is even more important now when other brands are losing sight of theirs. Keep who you are and what you have to offer at the heart of all you do.
Deliver a value proposition. We’re all scrimping and saving. So pump some value and relevance into your brand.. Cable television isn’t a luxury – it’s an affordable alternative to nightlife and movies. Baking soda is more than a cooking ingredient – it’s an air freshener, cleaner and facial exfoliant. That’s creating value.
Spend more. Or at least consider it. Market share can be gained more quickly and with less effort during a recession. So while your competition is pulling back, you can pull ahead by leaps and bounds.
The reality is, this recession won’t last. But if you play your cards right, what you do during it can.
Two weeks ago my infinitely more intelligent and better looking wife made the suggestion to me that we acquire a handful of Citi stock. Having been over $50/share in late ’07, Citi’s stock was trading at less than $1.00. “The Government is too deep into Citi to let it fail, we the taxpayers own not just preferred but common stock, it is a sure thing, it has to go up.” Seemed like a rationale argument, but as any good conservative Dutch boy, I had to think through it. What if it goes down and I lose my money? Was it worth the risk? Well…now a short two weeks later, Citi stock is back on the rise trading at nearly $3.50/share at the time of this post. Through the string of “I told you so’s” and “we could have tripled our money”, I find myself reflecting on the action of inaction.
As marketers, this recessionary time is one of great opportunity. The silence in media spaces today offers more opportunity for those that choose to strike, getting in while the cost of entry is low, and reaping the benefits on the backside. Let’s not get caught sitting on the sideline weighing the pro’s and con’s. Sometimes we just need to jump in, choose to act, and be rewarded for striking while others do nothing more than think about striking.
I am a shopper. It’s kind of my thing. I enjoy going to the grocery store, buying toothpaste and paper towels at Lewis, and above all, scouring the racks and online boutiques for the hottest piece of fashion. I wouldn’t call myself a bargain shopper, more the type that considers a bargain a bonus. It’s been exciting and a little dangerous racking up the credit card balance here and there. But life has really shifted in the past 6 months and it’s caused even me to change my ways.
I’m pregnant with my first child in “our country’s worst economic conditions since the Great Depression”. It’s tough as a consumer to sift through how much of this is media hype and how much trouble we are actually in, but now I’ve got a little doozer to worry about and I’m finding myself responding not only to the hype, but to creative messaging that helps make the simple things seem a little less boring and a little more special.
As discussed in our Food for Thought luncheon last week, it’s common during a recession that messaging stresses quality and value, as well as new uses for old brands. Just paging through one issue of In Style magazine, there are several solid examples of this:
- Lowe’s You popped in for a gallon of paint. You walked out with a new living room.
- General Food International Coffees Indulge for 20 cents a cup!
- Champion yogawear at Target Train within your means
- Target : Offering a coupon for $1 off Glade candles with the message Indulge every day.
- Oscar Meyer Deli-Creations A great lunch shouldn’t require a financial plan.
- Lean Cuisine We believe in food that’s good for you and good for your wallet.
This kind of creative is catching my eye and influencing my shopping behavior. Instead of indulging in the most breathable, tush-flattering bamboo lycra blend yoga pants that all the stars are raving about, or even buying the newest, extra whitening and enamel-strengthening toothpaste that comes in a slickest new container, I’m going back to basics and finding out that a little frugality isn’t so bad after all.
Despite a droop in the nation’s economy, there was no shortage of creativity at this year’s 43rd annual Addy® Awards. Lawrence & Schiller took home two Best of Class awards at the February 21 event, with 11 gold and silver awards total.
L&S swept the Non-Traditional Advertising category, taking home the group’s only two awards, including a gold Addy for DAKOTACARE’s “Body Cast Guy,” campaign. Showing up at sporting events and community festivals, street team participants wheeled around a man in a body cast to let consumers know how not having health insurance can cost you. “Body Cast Guy” went on to win Best of Class in the Non-Traditional category.
The agency also took home Best of Class in the Out of Home category with Augustana College’s “Viking Logo Reveal” billboard campaign. For four weeks, the college’s new Viking logo was slowly revealed in a teaser billboard campaign. These efforts culminated in a logo reveal celebration on the Augustana campus and exclusive announcements to alumni and the Sioux Falls media.
The downturning economy doesn’t mean that your customers will stop spending money – they’ll just start spending it smarter.
Here’s some smarter ways to reach them:
1. Research.
The better you know someone, the more likely you are to be able to reach them. Now is the time to find out as much about your customers as you possibly can.
Monitor the online conversation and research what people are saying about you and your competitors.
Implement online surveys – they’re cost effective and provide guidance for deeper exploration.
Double down on user and focus groups to stay in tune.
2. Digital Strategies:
With $4.00 gas, it’s safe to say that people will be utilizing online tools to research and shop, meaning it’s probably time to reevaluate how you are using technology.
Update your web site copy to focus on value and trust. Make sure that your search engine optimization is consistent with current events.
If you don’t have an email database, build one. E-mail marketing is inexpensive and measurable.
Dive into social media and be a part of the conversation – it’s free.
3. Public Relations.
PR is one of the most affordable and effective tools in the marketing mix. Consumers are looking for assurance and guidance from the companies that they choose to do business with. Make sure you are telling your story effectively.
Get involved with your customers through experiential marketing and invite dialogue with promotions, events and sponsorships.
Develop a cause marketing campaign that shares a mutual interest with causes that matter to your customers.
Give the media insights into your industry and how you are helping people during uncertain times.
If you’d like to talk through how you could implement these into your marketing plan, give us a call.
