Tips to Recession-Proof Your Marketing Strategy
Unless you’ve been living under a rock, you’re bracing for what feels like an imminent recession, while most marketers are still catching their breath from the curve ball of a global pandemic. COVID is truly the “gift” that keeps on giving, am I right?
Weathering a recession often flips businesses into survival mode. Instead of reacting, we encourage you to use these five tips to protect your profit–and customers–by proactively planning for the worst-case scenario.
#1: Don’t Stand Still
In periods of uncertainty, businesses look for every opportunity to reduce expenses; many times marketing budgets are the first line item to get slashed. However, history shows that brands that continue to invest in marketing during a recession can gain market share and increase profits. It’s an opportunity to stand out among competitors who are cutting back and to remain top-of-mind with consumers when they’re ready to increase spending. In addition, consistency portrays a message of strength to consumers who are seeking stability and normalcy during turbulent times.
#2: Reallocate the Budget
That said, we’re absolutely not recommending continuing business as usual. Reference your previous campaign metrics and adjust your plan to highlight tactics that are top performers. Keep in mind that the changing landscape could impact results, so maintain a pulse on current analytics and be ready to pivot. Also, consider incorporating or ramping up more cost-effective solutions (ex: email marketing) to help preserve visibility while minimizing the impact to your bottom line.
#3: Focus on Customer Retention
When every dollar counts, having a solid customer retention strategy is more critical than ever. After all, it’s cheaper to keep a customer than to acquire one. Focus on improving their experience from end-to-end. Use owned media channels to show gratitude, provide updates and news, offer discounts, and more. Keeping this audience satisfied will encourage repeat purchases and referrals.
#4: Shift Your Offering
Go back to basics and evaluate the 4 Ps of marketing:
Product: Is what you’re offering relevant in the current climate? How can it be altered to meet market needs?
Price: Consumer spending habits change drastically during a recession. Is your pricing strategy congruent with competitors and consumer expectations?
Place: See tip #2 above.
Promotion: When consumer confidence is low and emotions are high, adapt your messaging to communicate your value and play to the psychological need for encouragement and empowerment.
#5: Explore New Markets
Not all industries suffer during an economic slowdown. In fact, some will actually grow. Assess market conditions and consider how your product or service offering could best serve and support these thriving businesses. If it’s a segment you’ve not traditionally targeted, take the time to conduct research and craft an outreach strategy tailored to this new audience’s motivations and buying behaviors.
The good news? Recessions don’t last forever. Help soften the effects of an economic downturn by being ready to pivot and accelerate into the upturn.
