By Claudio O. Pannunzio
Using the "R" word—recession—was once considered impolite, unprofessional, even taboo. But today, as the economy is teetering on the edge, many economists have cast aside the stigma, and the "R" word has entered our daily conversations. As we're entering a recessionary cycle, many financial advisers have decided it's time to duck and cover and have cut back their marketing and publicity efforts at the very time they need them most. This is shortsighted, given that historically, most recessions have not lasted longer than 18 months.
This time is an opportunity to gain visibility, credibility, name recognition and market share, and when the economy is stronger, to be positioned to take advantage of it. As in investing, when you want to buy low and sell high, you want to be visible when others are hiding. Take advantage of there being less competition. The most viable course of action you can take to recession-proof your business is to remain proactive and continue to market and publicize your services. During a recession, consumers don't stop buying products and services, particularly financial advice. This is the time they need it most and seek it out.
Potential clients are more likely to buy from a business they have heard of. The New York Times' Stuart Elliott, in an article published January 28 titled "Is It a Recession Time? Marketers Seem to Think So," reiterates this notion by writing, " … many marketers spend the same—or even more—during hard times as they do during booms, on the theory that they must make sure to be remembered by any consumers who are still shopping."
A Period of Opportunity
There are two key advantages to aggressively publicizing during economic recessions: 1) a business' "share of voice" multiplies, as the overall advertising noise subsides, due to the fact that competition is refraining from publicity; and 2) "share of mind" remains for months uncontested among consumers. It is during these times that financial consultants are presented with an opportunity to expand their client base, by taking away business from less aggressive competitors and positioning themselves for future growth during the recovery phase.
The March 2008 issue of Fortune Small Business magazine ran an article titled "Slump-busting Strategies," which featured insights from business owners who have devised effective strategies to thrive during an economic deceleration. The piece quotes John Pearce II, a professor at Villanova School of Business: "Recessions are a period of opportunity; during recessions large companies abandon marginally profitable customers, and small business can get those customers." How can financial advisers capitalize on this opportunity and gain those customers through marketing efforts? More importantly, how can you promote yourself without having to spend a fortune on marketing communication efforts to ensure that you will effectively reach out to your key audience? There are two primary ways:
Think strategically. Achieve an intimate knowledge of your target market. It is imperative to understand the thought process of your clients and prospects and the challenges they face. This knowledge will enable you to craft a series of messages around your constituencies' pain and clearly convey to them how specific products and services will relieve that pain. Be proactive. Devise a strategic plan to effectively leverage the media to achieve maximum exposure. In addition, increase your networking activities in your community through business associations, affinity groups and trade shows. Sponsorship of community events is also important, as evidence shows that consumers are more likely to purchase from providers who support the community during tough times than from those who do not.
Zero-Cost Initiatives
Leveraging the media during recessionary times is a powerful and cost-effective way to build your credibility and your book of business. But how can you get media attention without incurring the expense of engaging a PR professional? The good news is that there are many public relations efforts that any financial adviser can employ on his or her own at zero cost. These include:
- Write bylined articles. This is an article that an executive of a company writes in a publication read by his or her clients. A bylined article enables the author to: demonstrate his or her expertise, focus on clients' challenges, offer proven solutions and tell stories by using examples and anecdotes; that's what readers will remember. In addition, this is a powerful marketing piece that can be mailed to current and prospective clients, posted on your Web site, used as a leave-behind at conferences and speaking engagements, as well as sent to existing clients as a referral tool.
- Become a media maven. One of the most effective ways to successfully capture the attention of the media is to position yourself as an expert source. By being quoted in an article, the media act as a third-party endorsement. You can't rent out Yankee stadium, but you can be in an article that reaches 50,000 potential clients. Reporters are in the business of keeping the public constantly informed, especially during difficult financial times. You can help them do their job by taking a clear position on a topic that you feel strongly about and presenting it to the reporter in a positive way.
- Broadcast interviews on radio and TV. TV follows print. Very often a story covered in the newspaper makes its way to the tiny screen. TV producers constantly look for sources in print stories to have as guests on their programs. Use your print articles to pitch your ideas and insight to TV stations.
- Volunteer your expertise. Breaking financial news provides a great opportunity for you to let the appropriate reporter at your local newspaper or trade publication know that you have a newsworthy point of view and can provide an easy-to-understand recap of how the event will affect people or businesses. Once an ongoing relationship with a specific publication is established, you should volunteer to write a weekly or monthly column. Local newspapers and trade magazines operate with limited staff and often welcome outside authors.
- Send out newsworthy news releases. A news release is a one- or two-page (maximum), tightly written announcement about a person, product or service you are offering and that is disseminated as a news item. This is not an advertising piece but a tool to provide valuable and timely information/story ideas to journalists. It needs an eye-catching headline and must convey a core news item written in plain English and in a non-selfserving manner. Above all, it must answer the five W's of journalism: who, what, when, where and why.
It is important to remember that financial planners who cut back on marketing and publicity during a period of economic slowdown will take longer to expand when the downturn is over. A proven strategy to recession-proof a financial planning business and reach out to key audiences is to continue to market and publicize during recessionary times when the rest of the competition has headed for the hills.
Claudio O. Pannunzio is a public relations consultant with more than two decades of experience working with financial services firms, advisers and consultants. He's a partner at Blue Chip Public Relations and can be reached at Claudio@bluechippr.com .
