By J. Ed. Marston

Although Moody’s has announced that Chattanooga is among the first local economies to move from recession to recovery, unemployment is likely to remain high for the foreseeable future, and many area companies have adapted the way they do business for the long-term. According to John Riddell, director of the Chamber’s Center for Entrepreneurial Growth, more effective marketing is the key to succeeding in the post-downturn business environment. "As the economy went into recession, every business that survived got a lot better at doing more with less," Riddell said. "But, reducing costs and increasing efficiency are not enough to generate sustainable revenues."

Riddell advocates combining target marketing strategies with a structured sales process. In target marketing, the goal is to specifically define your customer bases and identify the most efficient and effective ways to turn potential buyers into leads. At that point, a structured sales process provides a step-by-step method for qualifying, connecting with, and closing those leads.

To get the most from these two strategies, Riddell advises measuring every step of the process and continuously analyzing the results to identify opportunities for improvement. Riddell notes successful target marketing and structured selling are both founded on a keen understanding of the customer’s needs and the ability to build and maintain business relationships.

We asked Chamber members to share their stories of how they have successfully adjusted their marketing strategies to the new business environment. Every single one started with an insight about customers’ needs and identified new and more targeted ways to communicate their message.

Recognizing the financial impact the downturn has had on many families, David Howell and Thomas Rusk of Discovery Point Child Development Center - Ooltewah kicked off the New Year by announcing a plan to give away $25,000 in childcare tuition. "Each family that enrolls for full-time care receives a $500 credit," Rusk said.

According to Howell, a key strategy for promoting the offer is the use of an integrated campaign that includes public relations, web advertising and social networking. "Word of mouth is the most effective marketing strategy for us," Howell said. "We made existing customers eligible for a $500 credit when we enroll a child that they referred and promoted that opportunity on our Facebook page."

Scenic City Boot Camp, which provides personal fitness services for women, is also focused on generating word-ofmouth and customer referrals. They have discovered an effective way to make their value proposition more tangible. "We market two-week trials as plastic $100 gift cards for our clients to give to their friends," Kristen Harvey said. "We’ve found that the gift card approach is more engaging for our clients and makes them much more likely to generate new business, for which they receive a referral fee."

Ashley Doherty, who operates Molly Maid of Hamilton County, has redirected much of her marketing efforts to targeted direct mail. This allows her to communicate her residential house cleaning services to specific demographics in selected geographic areas. "The direct mail prompts people to call," Doherty said. "This allows me to further qualify the lead over the phone before performing a complimentary in-home consultation." According to Doherty, this structured sales process allows her to capture accurate client information for back marketing purposes.

Lectrus, an electrical integration and metal enclosure manufacturer, added a business development coordinator to its employee roster. According to Deron Austin, Lectrus is utilizing the position to target new customers and initiate a structured sales process. "The position researches sales regions for potential customers, makes contact to find the key decision makers and schedules sales meetings," Austin said. "The first new order generated by this position started as a cold call to an engineering firm in Maryland. The job was valued at over $270,000."

Webcasts and webinar technology have allowed Thinking Media, a provider of workforce development and education solutions, to increase sales while reducing travel costs, according to Sheila Boyington. "These tools allow us to expose new and potential clients to our products," Boyington said. "We also use it to further engage existing customers. Recently, we hosted a seminar on the use of our curriculum in high school settings that was presented primarily by one of our clients to over 500 sites across the country. This technology allows us to reach Alaska and many other states from our offices on Frazier Avenue."

Denise Reed of the Concierge Office Suites reports success in using social media for prospecting, gaining insight into customer needs and building relationships. "We search on key terms and glance through the posts of our followers, friends and connections to see where we can help," Reed said. "We also actively share newfound tips and tricks to help our small business customers get their names out to the buying public. Our strategy focuses on creating connections who understand who we are and how we can help."

Trust Federal Credit Union is combining social networking with cause marketing, in which customer activity prompts a charitable donation from the company. "This year, we launched Project 2010," said Kevin Perry of Trust Federal Credit Union. "For every person who becomes a fan of our Facebook page, we donate $1 to Children’s Home/Chambliss Shelter up to $2,010."

Jack Wood of Southern Restaurant utilized social media as a customer retention tool. "When the economy went south, everybody lowered their prices," Wood said. "We were suddenly competing for the same dinner dollar with restaurants that had been operating at higher price points." In response, Wood posted daily specials to his Facebook page and started seeking catering jobs more aggressively.

Michael George of Blaine Construction reports that his company is utilizing its financial strength to build goodwill with customers. "Like other construction firms, we have seen a big drop in business, but we have been able to hold on to our employees," George said. "At times when work is slow, we offer our services at lower than normal cost to past, present, and potential customers and charities for their special needs and small projects. When the economy turns, we feel our responsiveness will be remembered."