Survival of the Fittest-The Reno Ad Agency Blog

Everyone knows that customer service has always been important, but in these tough economic times, we believe it’s more important than ever. Many companies that once competed on price alone are seeing that their competitive edge is being eroded.

We are seeing pricing become more aggressive, as well as added value to the products and service being offered, all in the name of increasing customer base. If you are lucky enough to have a decent amount of clientele, you’ve just become a target for your competition.

What to do? Offer outstanding customer service and you will develop lifelong customers, impervious to attack from your competitors.

You may be saying “My business already has awesome customer service, we don’t need to worry about it”. You’re wrong. Your competition is trying to stay in business the same way you are, they are refining their methods, re-structuring their pricing and increasing their level of customer service. What ever you have been doing isn’t enough anymore.

In this economy, you can’t afford to lose a customer to your competitor, so you must take steps to prevent customer loss before they ever walk in your door.

• Step 1- Survey all your current clients and ask what they LOVE about you.

  Find out what why you are their number 1 choice for X product or service. Take notes, then flaunt those attributes like never before. These are your new weapons against your competition, use them to full affect.

• Step 2- Ask your most loyal customers what they DON’T love about your services.

  Don’t take ‘nothing’ for an answer. Every business has room for improvement, and an honest critique of your operation is extremely valuable. Notice I didn’t suggest that you ask all your clients about what they dislike? Asking clients what they don’t like about your business is a little tricky…you don’t really what them to think about it too hard, they might realize that they could be better off somewhere else! Make sure you are asking the tough questions to long-time clients that won’t desert you after they realize they know all your flaws. Being a loyal client, they will appreciate that you are making an effort to improve your services.

• Step 3 – FIX YOUR FLAWS!

  Your loyal clients just gave you some very important information, pay attention to it and do what it tales to make it right. Do your best to resolve as many of the complaints as possible, and do it immediately. Even if you can’t fix them all, make your best effort to implement a few new strategies as soon as you have completed the surveys. If you survey your clients and they don’t see any change, you may have made them even more disappointed. When people respond to surveys, they are usually thinking that after the survey, their complaints will be resolved from then on. Fail to show any improvement and they may feel neglected.

• Step 4- Steal your competition’s customers!

  Chances are that you and your competition are more similar than you know. Whatever likes or dislikes your customers have with you, they probably have with your competition. For example, maybe in your industry your service is known to have a slow response time. If you can adjust you model to offer a faster response time, you stand to gain a good chunk of your competition’s base, even at a similar or slightly higher price point. The surveys have given you information not only about your business, but your competition’s too.

• Step 5 – Do it all again!

  You should be forever tweaking and refining your customer service to match client demands. The most successful companies adapt to their customers and never become complacent. In this recession, customers may be willing to give up some things in order to get a lower price. Or they might require extra incentives just to get them in the door. In a booming economy, price may not be as important as it once was and you’ll have to offer something else to make them happy. The point is, customer service needs are constantly changing and it’s up to you to stay on top of the trends.

If you’re interested in hearing about ways to implement a customer survey strategy, use the form below to give us a shout. Or, you can visit our main site at www.belosic.com

Erin Business Strategy ad agency reno, expand market share in a bad economy, Reno business climate, Reno Economy, Reno Market Share, Reno Marketing, surviving a bad economy in Reno

The economy sucks and we all know it.  There’s a lot of doom and gloom out there and business owners are looking for ways to save money left and right. Unfortunately (for us), some  of the first things to get cut are advertising budgets.  I know I’m a little biased, but I put together a few reasons to consider maintaining your advertising budget anyway.

1.  Advertising outlets are having trouble too- time to get a deal!

If the Reno business world is having a tough time, the Reno advertising and marketing world is feeling it even more. Budgets get slashed and ad revenues go down. Available advertising inventory goes up – look at how thin RGJ is lately.  You might notice fewer commercials on the radio too. The point is, it’s a buyers market, so make the most of it. Sure, the ad reps will still try to hold on to the prices printed on their rate card, but when it comes down to it, 50% is better than 0%. You just need to be firm and negotiate to get what you need. We’ve seen unprecedented concessions from some of our media partners in recent months and we’re always happy to twist some arms to get deals for our clients.

2. If your competitors are cutting back, take up their slack.

Now is the best time I’ve ever seen to gain market share.  If your competition is reducing their exposure to your target, it’s that much easier to jump in and introduce yourself to them. The target audience might be interested in hearing about a competitive service, especially if you can offer superior pricing or service.  Your audience is looking for value too, so you have to let them know that you can help them out.

3. Show your companies’ strength

Even though we’re in a recession, it doesn’t mean people completely stop spending. They still need products and services, but they will chose where to spend their money with much more consideration. Advertising your company is a show of strength and stability. Your audience is more likely to make a major purchase from a business they perceive as solid and lasting.

4. Co-op: Forming alliances for survival

If you are starting to feel the pinch, chances are your neighbors and competitors are too.  Join forces with a neighboring business, friendly competitor or related industry to share expenses for promotions or advertising.  For example, a small group of Downtown shops can combine forces to promote their stores using media that would normally be too expensive to do alone. If 4 businesses join together, suddenly an ad buy  only costs 25% of what it normally would, thanks to co-op.

5. Consistincy is key.

Cutting back now means losing any ground you may have gained in the past. Customers have notoriously short memories, so whomever is fresh in their mind is going to get the call. See number 2. As soon as you cut back, there will be someone to jump up and take your place. Be careful about giving away your share.  It might be tough, but if you your approach is consistent your audience will maintain top-of-mind-awareness and hopefully come to you first if your competition drops off their radar.

Jim Business Strategy, Traditional Media Belosic ADG, expand market share in a bad economy, Reno business, Reno business climate, Reno Economy, Reno Market Share, Reno Marketing, surviving a bad economy in Reno

Time to grab some more market share!

If your company has survived the downturn until now, you are probably in a better position than about 30% of your competition…or should I say former competition? Times are tough, but lets take a look at the big picture- Here in Reno, layoffs and downsizing is becoming more and more common, making hiring easier. Retail space is cheaper and easier to acquire, landlords don’t have much to negotiate with now that vacancy rates are approaching record highs. Suppliers are offering incentives and discounts like never before. Take advantage of it!

It’s been a year of devastating losses. More than 1.2 million jobs have vanished. The broadest measure of the stock market, the Wilshire 5000, is down more than $7 trillion, a 40 percent slide. The indicators that have increased are measures of misery, like foreclosures and demand at food pantries.

Survivors, however, should benefit as competitors disappear. Retailer Bed Bath & Beyond Inc. won’t have to contend with Linens ‘N Things, which is in liquidation. Best Buy Co. may not be fighting price wars with Circuit City Stores Inc., which is reorganizing in Chapter 11 bankruptcy. FedEx Corp. won’t scrap for market share against DHL Express, a German-owned company that is leaving the U.S.

Staying in business won’t be easy — sales declines are a given and job cuts are likely to continue. But we won’t remain in the dumps forever, and the companies that will be best positioned when the economy eventually improves may include the following:

Expanding Reno retailers

Kohl’s Corp. and Forever 21 are rare among retailers: They’re expanding. They have their pick of new locations, since failed competitors mean they can get bargains. The Bombay Co., Sharper Image Corp. have closed all their stores in the past year, leaving empty space at malls nationwide; meanwhile, Mervyns is in the process of liquidating.

As a result, landlords that once demanded tough terms from retailers — insisting, for instance, that they rent space in second-tier malls if they wanted to open stores in top malls — are in no position to negotiate, since they have so much empty space to fill. You may be surprised to see the rates inside Meadowood Mall now, and the Summit Sierra isn’t asking anywhere close to what it was in 2007.

Some local Reno retailers are in a prime position to expand as we see the competition close their doors. One example is a local lawn and garden retailer that is taking benefiting from the misfortunes of one of their competitors. The competitor was forced to close up shop, at the same time offering it’s remaining inventory, location and equipment to the other retailer at bargain-basement pricing. The out-of-business retailer was able to liquidate quickly and painlessly, while the dominant company was able to acquire market share for pennies on the dollar. These opportunities do not come along that often in a thriving economy, do whatever you can to take advantage of them now.

Cheap alternatives

Do you have a product or service that you can offer cheaper than your competition? Now is the time to take the hit on the bottom line in order to gain market share. I’m not talking about price fixing, I’m just suggesting aggressive competition. Perhaps you are already at your bottom line…what else can you offer? Same day estimates? Superior customer service? Find whatever it is that differentiates you from your competition and run with it. Buyers are more interested in saving money now than ever. You may be surprised to see customers that have been with your competition for years or decades are now open to trying something new…if the price is right.

Re-investing in your company

New gear and software is a great way to improve productivity. As a result, business’ technology spending may be postponed, but it won’t be canceled. Is there a software suite out there that you have been wanting to buy for your company? How about new equipment? Have you been postponing upgrading your storefront? How about your marketing budget? The point is- we’re all in the same boat now, and everyone is hungry. Is it time to upgrade the fryer in your restaurant? Give Resco a call, I’m sure they can make you a deal. How about that new diesel truck for your catering company? I can’t think of a better time to get a good deal at the car dealership than now. Has your marketing budget taken a beating? You’d be surprised at how far you can stretch those dollars now. Reno advertising agencies have seen their budgets slashed across the board, and everyone is starting to get creative (ourselves included!).

To summarize- times are ugly, but this may be the once in a lifetime chance to buy and expand for a fraction of the normal cost. If you are able to, get aggressive and give the completition a run for their money.

Jim Business Strategy Belosic ADG, expand market share in a bad economy, Reno business, Reno business climate, Reno Economy, Reno Market Share, Reno Marketing

Well, looks like we’re in this one for the long haul.

The economy is tanking and companies are failing left and right…which is a perfect opportunity for your business. Our strategy isn’t called ’survival of the fittest’ for nothing :)

I’ve talked to many business owners and executives in the last few months, and one of the first things I ask is “how’s business? Are you keeping busy?”. All too often, the answer is gloomy and negative- which is probably appropriate for the times. However, I’m a firm believer that ‘attitude is everything’ (thanks Dad!). If everyone is down due to the economy, then the one bright point is that it will weed out the weak.

If you’re a small business

Now is the time to go after the clients that were ‘too big’ in the past. If you’re small, you can offer services or products more efficiently than the larger companies. You can move quickly and adapt. You can offer better and more personalized customer service. Best of all, what will look like savings to your client will actually be a large account for your company. Everyone is looking to save, so it’s easier to get your proposal in the door. Just make sure that you can execute what you promise.

If you’re a large company

Now is the time to think small again. Go after the clients that were ‘too small’ to bother with when times were good. You have resources and manpower that the little guys can’t compete with. If you can get your prices inline with your smaller competition, then it’s an easy sell. Many small clients would automatically assume that they couldn’t afford the services of a large company- prove them wrong. Not only will they get the experience and resources, they also get the prestige of working with you.

Be aggressive now

…and you can crush your competition during these hard times – positioning you for even greater market share as the economy regains strength in the future. I tell all my clients- if you can survive this, you can survive anything. The key is taking the necessary steps to ensure that survival. Give us a call at 775-853-9990 and we’ll talk. contact us

Jim Business Strategy expand market share in a bad economy, Reno, Reno business, Reno business climate, Reno Economy, Sparks, surviving a bad economy in Reno