Digging Deeper When the Well is Dry: Why & How Should You Market Your Business During Economic Downturns
Written by Dawn Nolan
There’s been a lot of talk about a forthcoming economic recession over the last year, and while some forecasts had seemed to show improvement, the latest news isn’t optimistic. The question, rather, seems to be when will this event occur rather than if. The best advice? Be prepared.
Now, the immediate reaction that a lot of businesses have to this type of situation is to cut costs, and often enough, the line item that is usually one of the ones slashed is marketing. However, there have been plenty of articles with advice and evidence from successful leaders stating that the opposite should be done. In fact, a report by Analytics Partners looked at the stats from prior recessions and found that, during the last recession, 60% of brands that increased their ad spend/media investment saw ROI improvements, including a 17% rise in incremental, while those that cut spending risked losing 15% of their revenue.
What does that tell us? It suggests that you should boost your spend - or at the very least maintain - and pay more attention to your marketing efforts during economic downturns. Yes, budgets might be tighter, for both your business and your customers, but it is imperative that you not lose the brand loyalty that you have established and the relationships you have built. You need your customers’ support more than ever. You want the ROI and you want the competitive advantage. However, If you’re not entirely convinced, or more focused on a quick cut, think about this — what happens when the economy improves (this is holding out the hope that your business will be able to survive the downturn)? You’ll have to start from scratch — or — at least several steps back.
So, with all of that being said, what steps should you take to remain relevant and top-of-mind even in the tough times? Here’s a few suggestions:
Stay true to your brand and consistent with your strategy. Don’t make any major changes!
Keep communicating. Targeting is key. You don’t want to lose the customers’ you already have by trying to widen your appeal, and they do want to hear from you. Craft your messaging intentionally and personalize when possible.
Evaluate what has and hasn’t worked in the past (more often than not, you’ve probably experienced something similar if you are a long-standing business, and if not, there are others you can look to).
Look into a loyalty program if you don’t already have one. Reward those that support your business already.
Be creative! Test out some new ideas (but don’t abandon what works!)
Oh, and if you weren’t sold on digital marketing before, it’s time to rethink that.
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