Consumers and businesses alike have been feeling the effects of a recession, and this can lead to knee-jerk reactions with long-term consequences.
When customers feel the pinch, they spend less on luxury items in favour of essentials, which obviously affects businesses. Some businesses will panic at their reduced profits and make quick decisions when it comes to cutting costs. For many, they start cost-cutting with marketing and advertising.
Should Your Business Marketing During A Recession?
History has shown that the right marketing strategy combined with brand innovation is the recipe for brands to survive an economic downturn. A business that continues its marketing campaigns during a recession shows customers they are strong and stable. When it comes to marketing during a recession, businesses need to play the long game!
Remember that recessions are temporary – they will end. Cutting or dramatically slashing your marketing budget will lead to a decrease in brand awareness, search result rankings, and brand loyalty. This leaves your business with the short end of the stick when a recession eventually ends and the economy turns around!
So You Want to Know How to Save Money On Marketing During a Recession?
The truth is, there is no simple answer. It takes effort to maintain or grow profits during a recession – only you can decide if you want to put the effort in.
Here are 6 tips on how to pivot your marketing strategy during a recession:
1. Analyze Your Niche – Analysis takes time, but is the most important step to understand your position in the market. Ask yourself these questions to get started:
> How are my consumers spending money?
> What strategies are my competitors using that I can adapt?
> What has been working well?
> What needs to change?
2. Targeted Advertising – Focus on efficient marketing that shows off the value of your product or service. Build a need for your business through storytelling.
3. Be Transparent – Consumers are looking for businesses and institutions they can trust. Address the reality of your customer’s situation by altering your marketing strategy for an economic downturn.
4. Personalized Customer Service – Move your relationship with your customers beyond your product or service. Engagement and interaction are crucial to building loyalty.
5. Maintain Enthusiasm – Offer new products, special discounts and tiered services to appeal to different price points. Encourage spending with ongoing excitement
6. Cut Costs Thoughtfully – Rather than using brute force and quick decisions, avoid devastating long-term effects on your business by adjusting strategies with surgical precision and consideration.
How Your Business Can Navigate a Recession
One of the worst things a business can do during a recession is put their heads in the sand and hide away – addressing the reality of the situation, investing in effective strategies, and thinking long-term will help businesses survive the uncertainty!
