When times get tough, the burden lies on the individual business owner to develop a sales and marketing plan that not only helps retain existing clients, but also attracts new ones. Here are five strategies to incorporate into that plan right now:

Acknowledge the recession: Don’t pretend it’s not happening. Instead, take a page from companies such as Hyundai, which offered new automobile lessees a chance to return the car should they lose their jobs, and Jet Blue, which is reimbursing ticket purchase prices without the $100 cancellation fee in certain circumstances. “Create a program that acknowledges the recession,” suggests Liz Goodgold, author of Red Fire Branding: Creating a Hot Personal Brand to Have Customers for Life and CEO at San Diego-based marketing consultancy, The Nuancing Group. A pool service provider or a graphics design firm, for example, might offer a risk-free, one-year contract that can be cancelled if the customer loses his or her job.

Instill confidence:  We all read the headlines and know that even America’s largest firms are being hit hard by the recession. Let your customers know that you’ll be around long after its over and you’ll have a much better chance of retaining their new business, says Goodgold. “You need to instill confidence in your clients,” she says. Do that by advertising the fact that you’ve been going strong for 10 years and by developing a “state of the business” report. “Come up with a list of your customer industries that are doing well,” Goodgold advises, “and share it with your prospects to let them know that your company is solid.”

Use e-mail: It is by far the least expensive and most direct manner of reaching new customers, so make use of it. Using a service such as Swiftpage, for example, companies can develop targeted promotions, create attractive templates, and distribute e-mail newsletters for free (or, for a low cost, depending on the number of recipients and the features used). “If you keep your distribution lists to 50 recipients or less, e-mail marketing can be virtually free, and very effective,” says John Nolan, adjunct professor of marketing at the Pepperdine University Graduate School of Business and president of the Tustin, Calif.-based marketing agency CORE Marketing

Reduce customer costs: All companies are reducing costs across the board, so why not help them reach that goal by packaging your products or services in a less expensive manner? A mobile disc jockey who typically charges $750 for a 3-hour wedding could consider reducing that price to $500 for two hours. “It’s about lowering the client’s out-of-pocket costs, while still maintaining your company’s price integrity,” Goodgold says.

Increase your advertising budget: When companies slash their advertising and marketing budgets, they create clear paths for their competitors to gain market share, Goodgold says. The firm that increases its advertising dollars (by creating a new direct mail campaign or taking out a half-page magazine ad) by just 10 percent, for example, could easily see a 50 percent increase in business. “Your message will cut through the clutter and reach your target audience simply because there is less clutter right now,” says Goodgold.

WEB RESOURCES

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“We believe in networking and getting out into the community, so meeting new residents is high on our priority list,” says Deborah Mobley, co-owner of Perfect Choice Hair and Beauty Supply in Des Moines, Iowa.

“Even if you intend to market to the entire country, it’s important to start at a granular level and market to the people who are in your own neighborhood,” says Lamar Childs, an account representative with Backyard Marketing in Blue Bell, Pennsylvania. It doesn’t take a lot of effort to reach the people who are new to town. Here are some ways to find them and get them to visit your establishment:

Create direct mailing with a free gift offer. Mailings are an effective, inexpensive way to reach new neighbors. The cost for design and postage is often less than one hundred dollars. Costs can be further reduced if you join in with other companies for a package mailing. “We belong to our area chamber of commerce, and we partner with other businesses who want to reach new residents, so we usually participate in a joint welcome packet,” says Mobley.

Craft your direct mail piece with a call to action so your new neighbor will have an incentive to come to your store instead of throwing the ad in the trash. “You always have to ask yourself, ‘How can I get this customer to visit my business?’” Childs says.

A good way to create a call to action is to offer a free product. “In our welcome packet, we offer a complimentary hand lotion,” Mobley says, adding that the freebie is especially effective in bringing in new customers.

Whenever possible, try to send your mailing during the middle of the month. That way, it’s less likely to get lost in the paperwork that comes with an end- or beginning-of-the-month move.

Ask real estate agents to recommend your company. Another important way to generate new neighbor business is to get a third party to tell newcomers about you. “Find a real estate agent who can be your partner,” suggests Le’Kisha Stevenson, a broker and owner of Metric Realty Co. in Charlotte, North Carolina. If you own a restaurant, you could let the agent give their clients a coupon for a free home-cooked meal at your establishment, welcoming them to the neighborhood.

“Business owners can also sponsor an agent’s client newsletter,” Stevenson says. This has the added advantage of keeping your company name in front of the new resident for an extended period of time.

Evaluate your efforts. “Make sure you have a system in place to track your results,” says Childs. “If you send out 1,000 pieces of mail, know how many resulted in customers visiting your business. That should also translate into sales.”

A good response rate for direct mail is about 5%. A successful response rate, however, is anything that allows you to recoup your investment.

The “new neighbor” audience is small but lucrative. It is an excellent marketing investment for companies who have a tight advertising budget. If you gain these customers today, your company could enjoy their loyal patronage for many years to come. “When I get customers to come here for the first time, they’re pretty much hooked,” Mobley says.