More than a decade ago, the American writer George William Curtis (1824-1892), was prophetic when he said: “It is not the ship so much as the skillful sailing that assures the prosperous voyage.” Little did he know that in 2009, his comments would hit the retail industry head on.

In these turbulent economic seas, when customers are not spending, new customers are harder to recruit and operational costs are rising, retailers face unprecedented challenges today and uncertainty tomorrow. If you feel like you are shooting the rapids in a rubber raft, you are not alone. There are a lot of companies in the same type of raft. But is it too easy to be hypnotized by all the hazards in the water, to the threat of capsizing your business’s ship? The short answer is yes. As I read once, “If you focus on the rocks, that’s where you will go…[instead] look for and steer to the high water and paddle like a fiend.”

To find that high water, owners and managers alike have to remember that the goal of any business is thriving, not just surviving. And the means by which it survives is to invest in “C-worthy” marketing instead of waiting for a change in market wind conditions. As contrary as this may sound, it is a time-worn strategy that is supported by a variety of studies showing that organizations who maintain or increase their marketing activities in down times average significantly higher revenues during the recession and recovery period than those who did not.

So just what are these C-worthy strategies that can steer you on that prosperous voyage? There are seven of them that will allow you to paddle like a fiend. So grab your two oars and start rowing.

Cost. Over the past decade or so, there has been a fundamental shift in how customers define the cost of buying. It used to be that cost meant dollars, but in today’s highly paced societies, cost is also measured in terms of time. So here is where another “C” enters the equation—convenience. How can one make it easier for their customers to spend time and money? It may mean partnering with area businesses to offer additional customer services that complement what you sell. It may also mean developing a LinkedIn type network for customers who may be experiencing career challenges. In other words, look for ways in which you can position your business as a “go-to” concierge convenience center for customers.

Customization. George Orwell’s 1984 is here. In this digital age, people are becoming digitized. We are known by our numbers—social security, credit cards, phone and fax, mobile and so on. Customization simply means altering something in order to make it fit somebody’s requirements better. It means personalizing. It means adding little touches that say, “You are a very special individual customer.” For example: if you are a restaurant, birthday desserts could be served on a rimmed dinner plate with the celebrant’s name written in chocolate script around the rim. If you are law office, or an accounting firm, an employee can be assigned to scan local papers and magazines for mention of a loyal customer. When an article is found, it is cut out, laminated and sent to the customer’s home via snail mail with a congratulatory note.  

Connectivity. It’s no secret that customer retention is at the heart of every business’s marketing efforts. When customers begin tightening their belts and reevaluating every dollar they spend, smart businesses remember the 80-20 rule: 80 percent of your business’s business generally comes from 20 percent of your customers. So invest your energies in strengthening the connection with your best customers. What I’m about to advocate may sound like heresy to you, but it is the truth. Segment your customers into three groups: gold, silver and hit-the-ball-drag-Harry.

For your gold customers, divert more attention to them. Jump through hoops for them. Design unique services for them and use customized communication frequently. These are the customers that will stick with your business and help you paddle through the turbulent economic waters.

For your silver customers, maintain what you are doing but also try to develop niche products, programs or services that can move them into the gold category. These are the customers who need an extra oar to help you paddle.

And then there are the Harrys that every firm has. These generally are those who, in addition to complaining about anything and everything, spend very little money with you and want you to reduce commissions and/or prices. Naturally, you have to offer them your traditional attention, but don’t waste your valuable resources trying to get them to paddle.

Creativity. There is a Broadway choreographer who, when given a new show to choreograph, puts all the notes, steps and dances she used in previous productions in a box. These past works then become off limits, prompting her to literally think out of the box.

While this may seem a little corny, it is her cue to fight the tendency we all have to replicate what we did in the past. While there is a certain value in tradition and heritage, the reality of today’s customers is that they have a passion for things that are new and different, that are innovative—in programs, services and special promotions.

Community. Every customer survey I’ve seen finds that a big reason customers stay customers is a sense of community; in other words, a sense of belonging built around others who share common interests and values. This is a golden opportunity because the whole notion of community is in flux. It used to be geographic in nature, but today communities can be virtual; we can connect through the Internet and may have more in common with someone living in India than the person next door. Yet, interaction at the in-person level is a basic human need. The more a business can do to foster the sense of a human community, the more it becomes positioned as the customer’s home away from home. BIGGBY COFFEE does a wonderful job in this area, both in-store and through its website. Futurist Alvin Toffler coined the phrase, “high tech-high touch,” meaning that, the more technology invades and controls our lives, the more we need human interaction. Innovatively strengthening your company’s human community is a sure way of paddling towards that thriving shore.

Compelling. All customers want a compelling experience and younger customers need it. At every customer touch point, a business brand’s experience must have a powerful and irresistible effect. And such experiences are contagious; it is what makes advertisers and recruiters out of customers. But what is a compelling experience and how is it delivered? Only customers can answer this question, through focus groups, one-on-one interviews, blogs, comments cards and surveys.

But please don’t just do one of those, “Are you satisfied?” surveys. Satisfaction doesn’t equal compelling experience and honestly, satisfaction doesn’t cut it anymore. Research shows that 85 percent of people who say they are satisfied will walk away to a business’s competitor—spending their time and money there. In addition to the more traditional research, a business can also have recognizant missions, like send employees on a mystery-shopping excursion to competitive stores to evaluate the compelling quotient of the experience.

Change. To say that there has been a lot of turbulence in the every industry during the past decade is an understatement. In fact, turbulence is the new normality, according to famed marketing guru Philip Kotler. The key to guiding your ship through these waters comes from hoisting three sails. First, make sure your business’s radar is up and working to monitor what is going on in the community—demographic, social, economic, technological and political—all of which can affect your marketing Second, rather than developing just one plan, imagine several possible future scenarios and develop a plan for each. This is playing the “what if” game and helps keep one from being caught off guard by unexpected changes.

Finally, remember that alert leaders can find opportunities in turbulent waters, not just danger. As Kotler would say, alert marketers understand that customers change their needs and preferences during economically challenging times. The key will be to move in the same direction as your customers by re-valuing services and revising the promotional messages sent.

		Bonnie J. Knutson, PhD is a professor at The School of Hospitality Business and Broad College of Business at Michigan State University.