Yes,Can,Beat,The,Recession,Whi business, insurance Yes We Can “Beat” The Recession

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While it’s no secret that publicrelations firms, like most businesses, have been hit by the economic crisis,there are keys to beating the recession, according to Curtis N. Bingham, Presidentof the Predictive Consulting Group in Littleton, MA.Bingham, whorecently spoke to Independent Practitioners (IPN) in Weston, MA, told thegroup, “It’s all happened before,” underscoring events that lead to previouseconomic downturns. Among them, said Bingham, were the oil embargo of 1974, thesavings & loan scandal of l981, the Iraq Ware in 1990 and the 2001 attackon the World Trade Center. “While these events marked the beginning of previousrecessions, in every case, the recessions lasted about 11 months.” There are signs that we areemerging from this recession – “real sales are up, the construction industryhas stabilized and people are beginning to spend on technology,” Binghampointed out.Said Bingham, a champion of thecorporate CCO or Chief Customer Officer whose mission is to build customerloyalty, warned, “During difficult times, public relations people and otherprofessionals tend to hide out from their clients hoping to avoid bad news.”As a first step to weathering therecession he stressed is to, “keep your customers from leaving by finding outwhat they want.” They often want tocherry pick services so agencies have to, “change the value proposition byeliminating costly services that clients no longer value.”He pointed out, for example, thateveryone is trading down –Wal-Mart and Dollar Store sales are up, while salesat high-end retailers Like Nieman Marcus are down. Likewise, “clients who usedto want Madison Avenue are looking to trade down.” While it is tempting to ventureinto new services or markets to generate income, do not sacrifice the corebusiness by doing so, warned Bingham. He cautioned public relations firms tochange only one thing – expand into new markets with existing products or offernew products in your existing markets. “Don’t try to offer new products in newmarkets during difficult economic times.”Bingham suggested that IPN membersscour large agency client rosters for clients who want less costly service andto collaborate on client projects with other professionals. IPN members addedways to survive the recession by pursuing green businesses, companies receivingstimulus money and those that have been awarded new patents. IPN member RickGoldberg suggested, “Position yourself as a journalist to get (free) press passesto trade shows where you can meet prospects and network.”Bingham is the author of the forthcoming book, The Key to CustomerStrategy: The Rise of the Chief Customer Officer (HRD Press) acontributing editor for Sales &Marketing Excellence and a regular contributor to the Handbook of Business Strategy. He is amember of the Institute of Management Consultants. Bingham isavailable for consulting and speaking [email protected] or tel. 978-952-0047



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