National Clothesline

Drycleaners are desperate for short-term solutions to their companies’ financial problems, which is understandable in this economic climate. But that desperation has a real chance of leading you off course.

While the U.S. economy continues to create troubled waters, drycleaners are learning to navigate their ships through these dire straits by finding short-term marketing solutions that address current needs and also contribute to long-term brand identity.

When times are tough, there’s a tendency to panic; given the severity of what we’re going through now, it’s not surprising what some drycleaners are resorting to.

One of the first and most prevalent tactics that many cleaners try is an aggressive price cut.

While I do advocate short-term discounting to encourage new customers and reward existing customers, it would be foolish to permanently lower all of your prices across the board. This has never been shown to build long-term customer loyalty.

In fact, it has just the opposite effect. Customers are least loyal to the “dollar” cleaners. As soon as a competitor offers a lower price, these customers jump ship.

Although discounts prompt a temporary boost in sales, frequent price cuts can alter consumers’ perceptions of the brand’s quality and the product’s overall value, and can therefore cannibalize future sales.

The key word here is frequent. Many drycleaners tend to think that frequent is two to four times a year. It’s not.

As a former drycleaner and a professional marketer, I can safely say that offering price incentives every three months or less to the same groups of people is not considered frequent.

This coupled with the fact that the average consumer only sees one out of every seven advertisements you direct towards them makes it even less likely that you’re overplaying the discount card.

Other experts agree that discounting may be unavoidable in this economy and consumers have come to expect it.

“I challenge the idea that temporary price reductions are a bad thing for brands,” says Andy Bateman, CEO of Interbrand New York, a global branding company that has worked with clients such as BMW, GE and Samsung. “If it allows you to retain market share and come out of this with a bigger footprint, then it’s worth doing.”

He contends that discounts are part of overall marketing and won’t damage the brand if the company is clear in communicating its brand value beyond lower prices.

He says, “You need to present and preserve your long-term strategy even in the face of discounting and market the whole enchilada.”

Improve your customer service by investing in training for employees who work directly with customers. Work hard to retain your current customers by investing more time in relationship marketing. Think about moves that might prove to be profitable long after the economy mends.

Promotions that relate to both your customers’ needs and your brand identity will add value to your brand and to your bottom line.

When consumers are watching their wallets, they’re reconsidering every purchase decision they make, so drycleaners should be working on customer acquisition strategies as well as customer rewards. The Golomb Group has developed marketing programs that accomplish both of these goals, simultaneously.

Some tactics created to foster loyalty during a recession can last well beyond their intended expiration dates, and with great effects.

As Ad Age marketing magazine recently reported, both American Airlines and United Airlines started their frequent flier programs to induce customer loyalty during the recession in the early 1980s.

These programs are now a staple of the airline industry. Promotions and tactics set in motion today might have the same advantageous sticking power.

Tough economic times offer opportunities to increase your brand awareness and market share, because other, weaker businesses begin to contract and advertise less. Businesses that increase their marketing during a recession invariably expand their footprint and surpass their competition in the long run.

Marketing during this recession might seem like uncharted waters, but successful drycleaners have already been through similar situations. This one’s just super-sized. Shifts in consumer behavior and adjusted financial expectations are part of the new economic reality.

Drycleaners should be asking themselves: “Where do we stand? What are our chances for growth? What will success look like in this new economic reality?”

To chart a course to success in this economic climate, drycleaners must be confident that their compasses are accurate and their goals are clear. Remember that the moves you’re making now — even actions prompted by pure self-preservation — will affect what your company looks like when it emerges from this recession.

The wind shifts all the time when you’re sailing and you have to tack many different ways, so it’s crucial that you keep the buoy you’re heading toward in your sights. Whatever happens, just keep heading toward that goal.