If you’ve ever been a manager or a coach, you’ve said it at least a thousand times. If you’ve ever been a salesperson or an athlete, you’ve probably heard it at least a million times. And if you’ve ever been a kid (which all of us have, however long ago), you’ve heard it from your parents more times than you ever care to count. I’m talking about that old cliché, when the going gets tough, the tough get going. Endlessly quoted by motivators of every kind, it is meant to be a slogan that inspires a higher level of performance. In other words, when situations are tough, people rise to the occasion. This often cited cliché is actually the title of a popular song originally recorded by Billy Ocean in 1985 and was the theme song for the Michael Douglas film, The Jewel of the Nile. As famous as these words are, however, there is another line in the lyrics that is less well known, but just as important in tough economic times: When the going gets tough, the tough get ready. With the current state of the economy, it is not at all surprising that consumers and businesses alike have developed a frugal mindset. Or as one person aptly put it, my wallet is closed! So just what can your business do to be tough, be ready, and get going? In a hats-off to David Letterman, here is a “half top ten list” of five approaches to help you turn your customers’ penny-wise thinking to your advantage.

Arm your front line troops.

When people become more careful in their spending, they need additional hand holding and guidance in deciding if, what, and when to buy. So this is the perfect time to invest in training for your sales force or customer service staff – especially in what I call empathy training. Most businesses do a good job of procedural training, but hand holding requires a different kind of coaching. Consider bringing in a behaviorist to school your staff in how to read body language. Understanding simple moves such as folding arms, sitting back in a chair, or tilting one’s head to the side can help employees empathize with customers so that they can more easily move them from pondering to purchasing.

Be the best in your class.

When people cut back on spending, they need to justify each purchase by making sure they are getting the best value for their limited funds. Whether they are buying a new computer system for their office or a package of paper towels for their home, the cost of making a mistake is just too darn expensive. But today, being best means more than having the best product or the best service. It means helping customers make the right decision for them, even if it means making a smaller sale, a later sale or no sale at all. So no matter where you are in the price continuum, you can enhance the value of what you are selling by infusing such best-in-class thinking into your company’s culture. It will serve you well in the long term.

Remember that the classes are reaching down and the masses are trading up.

This seismic shift in consumer spending can open your business to new market segments. Look, for example, at those fancy coffee drinks that have become such a part of the American lexicon. Even though times are tough, people don’t want to give up their cappuccinos, so they move from Starbuck’s $4 price tag to Speedway or McDonald’s. Or consider how designer brands, such as Simply Vera, have attracted new customer segments to Kohl’s, trading up from discount stores and down from traditional department stores. Your competitors’ pain can be your gain in these challenging times.

Don’t cut back on promotion.

Advertising and marketing budgets are usually the first line item a business slashes in a down economy. Yet, studies show that this is absolutely the wrong time to make such cutbacks. If you stop promoting, how can your customers know your story? What businesses need to do during a weaker economy is become a lean, mean, fighting machine and market intelligently. The key is looking for new media to carry your message. Community newsletters can often reach your customers at lower rates. There are free or affordable online outlets–craigslist, canpages.ca, bargain finder and kijiji, to name a few. And, of course, there is good old fashioned one-on-one communication. For example, every service organization–such as Zonta, Rotary, Kiwanis–is always looking for speakers, and every business or industry has something new happening. What an opportunity for you to carry that story to potential customers. As Jon Spolestra, author of Marketing Outrageously puts it, when someone wants to know what is happening in your business, your response has to be,”a lot, got an hour and a half?” We all need to remember that promotion is not a cost but an investment.

Hit the values button.

You can have the greatest product in the world, but if you can’t sell it, you still have the greatest product in the world. Here’s where the values button comes in. When people are making trade-offs, it is essential to understand which values are most important in their decisions. Security? Education? Status? According to one study, the five top motivators to buy are quality of life, pleasure, education, beauty and relaxation. Even though people weigh their decisions more carefully today, they still make them with their hearts as well as their heads. As Charles Revson, founder of Revlon, so aptly put it, “In the factory, we make cosmetics, but in my stores, we sell hope.” Make sure you are selling hope to your customers. It’s not news that businesses and customers alike are closing their wallets. Battered by a year of economic downturn and facing an uncertain future, everyone is being more cautious in what, where and when they buy. In every business sector, from widgets to wigs, consumers are looking for reasons not to buy or to put off that purchase. Guided by these five approaches, your job now is to stay connected with customers in meaningful ways today so they can reward you with their business tomorrow.

“I got something to tell you, I got something to say. I’m gonna put this dream in motion, never let nothing stand in my way When the going gets tough, the tough get going.” ~ Billy Ocean

Your bottom line will thank you!

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