Surviving and Thriving During a Recession
With the stock market bouncing and interest rates on the rise, it seems that we might be recession bound. We’re hearing about massive layoffs and businesses trimming the fat, but are they making the right choices to stay viable during economic uncertainty?
While it’s always wise to contain expenses, businesses must continue to support their brands and marketing efforts – especially during an economic downturn. Simply taking a hatchet to the marketing budget is a definitive wrong move because it results in the company taking a hit in the long run.
In other words - keep the lights on while your competition goes dark.
According to the Harvard Business Review, consumer attitudes and behaviors change during economic instability. Audience segments change based on disposable income stability therefore audience personas change and range from “Slam-on-the-Brakes” to the “Live-for-Today” groups. Additionally, product and service consumption is sorted into four categories: “essentials, treats, postponables, and expendables”.
So do you need to overhaul your whole marketing strategy? Not necessarily. Making drastic adjustments is not recommended – unless of course your brand and marketing collateral is already a dumpster fire. You know who you are, we see it, your customers see it, and even dogs see it. For many though, a thorough review and well-tailored approach should get you through tough times.
To start, prepare a response for a recession market. First and foremost, create a strategy for your marketing efforts.
Analyze customer tiers and their needs to determine shifting demands. Then, tailor your brand messaging/visuals and offerings accordingly.
Use targeted audience campaigns that emphasize 1) how you can help solve their problem(s) and 2) the value you bring to the table.
Integrate rewarding customer loyalty.
Continue to build customer trust by limiting brand changes or new product introductions.
Plan to A/B test your campaigns and ditch what’s not working.
Once you have your strategy drafted, look at delivery tactics and channels.
Get your website in order. According to business.com, 75% of consumers admit that they judge a business’ credibility based on their website design.
Engage consumers with meaningful, relevant, value-added content marketing – be it discounts, coupons, and rewards or helpful hints and tips.
Use direct mail to your advantage. Grab and hold consumer attention outside of digital to connect with new and existing customers.
Get involved. Put your brand in action and donate brand-supporting time or service to build connections with your community.
If appropriate for your business, get social. Social media can be an asset to your brand if correctly crafted. Remember the rule of thumb – 60-80% social and 20-40% branding.
Combine your strategy with your intended delivery tactics and channels to create a survival plan. Gently fold your plan into your current marketing and your customers won’t notice a desperate shift but a subtle response to the changing times. And if the time comes for survival mode, you will be nimble enough to shift your strategy to your advantage.