NASCAR Loyal, Gas Poor

Every business craves loyal customers: They buy more, they cost little, and they spread word of mouth. So we work hard to keep our customers and clients happy and therefore loyal, with incentives, corporate access, and superior customer service. However, is that enough when the economy is down and gas prices are up?

Few can argue that some of the world's most loyal customers purchase the NASCAR experience. But an AP article today says, Gas prices have race fans rethinking trip to the track. That loyalty may be sacrificed to the price of a gallon of liquid gold. According to the article, "officials with one major track ownership group, International Speedway Corp., said the company was seeing a high-single-digit percentage drop in ticket sales over last year."

As a NASCAR fan, I can tell you that the drop in ticket sales is not due to declining interest. However, when an average fan drives more than 250 miles, many of them in RVs that can cost $300 or more to fill up, the price of a ticket represents a substantial hit to their wallets.

But is NASCAR the only business impacted by run-away energy prices, increasing the cost of loyalty for consumers. Of course not. And when consumer spending declines, those of us serving b2b are challenged to maintain customer loyalty, as well, and we, too, suffer losses to our bottom lines. What to do?

This is not the time to go into hibernation and think only about cutting costs. While some cost-cutting may be necessary, none of it should come out of getting noticed or customer service, unless there is fluff or things that are not working. Naturally, you must eliminate those things. (And, by the way, why are fluff and ineffective strategies part of your business structure?) Now more than ever, we need to work harder at getting the word out about who we are and why we are needed. Furthermore, we should increase the effects of our customer's daily experiences, not decrease them.

I ask: What impact on your business are you feeling today? Any? None? Lots? And what is your advice to survive down economies?