Inflation is at a 40-year high, economists are predicting a recession. Businesses are looking to cut, cut, cut – but is marketing the best place to start downsizing?
Believe it or not, businesses can thrive – and have thrived – in a downturn.
Utilizing agility and flexibility in marketing efforts are key strategies to maintain business stability during a down market. With the right strategies, advertising through a slower market can actually grow your business.
60% of US consumers are expected to continue spending during the expected market downturn, due in part to growth in personal savings over the past two years.
There are various approaches to advertising in a down market.
Here are our top 5 tips:
- Address the situation
Let your customers know that you understand the world we are living in, and the situations that many people will be or are already facing.
- Shift pricing to a value model
Offer discounts or special deals that attract customers looking for ways to save money.
- Adjust messaging to build trust
Let your consumers know that you have a quality product that you stand behind. Offer solutions to problems, offer a guarantee, or promises of product quality.
- Step up the service
When your customers walk away feeling like they received excellent service, they become a loyal customer. Now is the time to bolster your employee morale and incentives to make certain they provide a positive experience.
- Ensure effective marketing measurements
This doesn’t mean you should only look at the low-funnel, high conversion tactics. Know how to pique interest, engage and secure your customers through tactical funnel channels.
During a recession, it is natural to cut any spend that cannot easily be measured and double down on bottom-of-funnel tactics with high conversion rates and readily perceptible ROI. Smart marketers will pay attention to the channels and tactics driving incremental growth, not just high conversion rates. And they’ll rely on metrics that provide the full, long-term story, not just dashboard-accessible campaign snapshots.
-AdAge
No matter what approach you take, it’s important to continue advertising during a down market. Doing so can help keep your business top of mind with consumers and position you for success when the economy improves. It also puts you ahead of your suddenly silent competitors when the market rebounds.
