Dayner Azzellino, MBA Thursday, October 22 2009

Many valuable inventions of the last generation had their genesis in the Great Depression. These include the supermarket, photocopy technology, car radio, chocolate chip cookie and the board game Monopoly. This is a lesson to us as we consider whether to tighten, loosen or simply trash our respective belts.

Allow me to introduce a non-typical response to hard times, which is: work with greater creativity and more practical strategy.

The fact is in the midst of bad news, there are companies that are profiting in these tight times. Some of it is due to their services’ relevance to market needs, like low cost giants McDonalds and Wal-Mart. It is possible that our own Pennywise stores, wholesale stores or markets may also have influxes of new customers nowadays. My point is people are still consuming; they are simply being cautious and seeking out value for the money they spend.

So what strategy does a company employ in these days? While Harvard Business School purports four main types: low cost, differentiation, networking and client relationship, I advocate that the most important for use in our environment is the third and fourth.

Networking is a buzzword but let us explore how it can help a company or individual in a constricted consumer environment. Then while we admittedly talk volumes about customer service, how do we use our processes — the day to day activities — to optimise customer satisfaction and “re-patronage”.

Networking Strategy

To many in the Caribbean, networking is a foreign concept assumed to involve business cards, membership in exclusive clubs, parties and, of late Facebook or LinkedIn. Yet, it is more natural than that. In another forum, I suggested that networking was simply: liming with a purpose. This was not to downplay how possibilities multiply through networking, but to highlight that we all network within our normal activities and perhaps with a little strategic direction, can turn these occasions into opportunities.

Client Relationship Strategy

In a client’s search for greater value, a company is best served by taking time to discover the real needs of the client and adjust its services and message toward the client expectation. What can be better for your company than a client who gushes about how they are treated, or how they benefit from your business? A sound client relationship culture, however, may be easier said than achieved. Frankly, some managers spend so much time talking about customer service that they inadvertently ignore the clients’ voices and what they want from the company, its team and product offerings.

Win-Win Hybrid

When both strategies are combined, a simple dynamic can be obtained. Firstly, identify a core base of customers who think your company “walks on water” and expressly enlist them to be your promoters to the people they know. Then the networking multiplier effect chimes in.

This can be done traditionally through card dissemination, flyer promotions, a referral programme or virtually through forwarded e-mails, e-newsletters and use of social media sites depending on your target market.

Why would you go through so much trouble? Well, because word-of-mouth is still, arguably, the most credible means of passing on information that influences buying behaviour. Successful viral internet campaigns are basically electronic word-of-mouth. The underlining insight is that when you are in business for the long haul, the customer relationship and how you leverage that is of utmost importance. Plus, if you genuinely take care of your customers, they will look out for you.

Guerrilla Marketing

This leads me to the final point of guerrilla marketing. Simply put, this means unconventional methods of reaching your target audience and usually involves options that demonstrate a deeper understanding of the behavioural or cultural influences of your customers. It can be used to connect your product with opinion leaders who add a brand persona that is attractive to your target audience. Telecommunications and alcoholic beverage companies in TT and the Caribbean use this strategy very well, as does the music business in the US.

However, opinion leaders come in many shapes. In each community whether social, ethnic, geographic or demographic, there are always persons who influence others and how they behave and consume. This tool therefore identifies and seeks tie-ins with these leaders to give your product promotional wings.

Ultimately, getting reacquainted with your audience can spark a fresh perspective on marketing to them. There is a place for all aspects of marketing, be it advertising, public relations, promotions, market research etcetera. However, in the same way that your customers seek out value in their lives, so should managers in 2009 and beyond. Taking the path less travelled may indeed yield greater effect for your marketing dollar.

The views expressed in this column are not necessarily those of Guardian Life of the Caribbean Limited.