Businesses that come out of the recession strong don’t make deep cuts to their marketing budget. With the recent economic downturn, it is important for businesses to be on top of the growth strategies that come with a recession.
And although it can seem like you’re trying to grow a garden in a drought or in a desert where you struggle to get the right resources to grow and thrive, there are oases’ where it can be done. Knowing how to respond and adjust to survive a recession can make a huge difference between success and failure.
Fortunately, research shows that companies who come out of a recession strong don’t make cuts to their marketing budget. In fact, marketing during a recession has been demonstrated as an integral part of companies’ success and odds of surviving the slump. Here are six things to focus on:
Understand your customer.
Just as the economic outlook is changing, so are your customers’ needs. To win, you must also take time to understand the customer’s changed worldview and fears and desires. Take the time to understand where they are at.
Updating your understanding of your customer’s position will help make informed decisions on how best to serve them. The more your know about your customers and your market, the bigger the edge you’ll have over competitors.
Customer loyalty is a key asset during a recession. Treated right loyal customers will remain even when the market isn’t doing well, and they’re more likely to purchase goods or services when there’s a downturn in the economy.
When done right, customer loyalty programs are one-way companies can ensure that customers keep coming back regardless of economic conditions. The best loyalty programs offer better-personalised value and service. Put simply the two things you need to do is one, offer more value and two, measure your customer’s perception and needs and desires.
Adjust your service offerings.
Customer circumstances have changed significantly, making them more conscious of what they need vs want. Use this insight to create pricing tiers and offers tailored to individual customers’ needs. Tiered pricing enables you to offer different levels of service at varying price points dependent on the customer’s budget. For example, you could provide basic packages with essential features at a lower price while allowing customers who want additional features or services to pay extra and upgrade their package. Sure, you might be worried about customers moving down to a lower tier and eroding margin, but that is a better outcome than them churning.
Keep an eye on your competitors.
When it comes to making changes within your own campaigns, it is important to keep an eye on what the competition is doing. Are they cutting back on their marketing? How are they engaging with customers? Knowing the answers to these questions can help you better adjust your own strategies and maximise success.
By understanding how customers are responding to the competition’s advertising and promotions, businesses can gain insight into what works best for their target audience. Additionally, staying informed about changes in competitors’ marketing tactics allows you to identify weaknesses or new opportunities that could help them stand out from the crowd.
Keep Investing – strategically.
As competitors rush to cut costs to stay competitive, the decrease in competition is great news for those willing to invest. They end up leaving the market or battening down the hatches, they leave a space for you to enter. There is less noise on the socials, there is less competition on the ad platforms. Invest strategically and grow.
Push hard on Content, Socials, Ads and SEO.
Be realistic, it isn’t a bed of roses.
If you do all the above, you will still be tempted to spend less and cut some activity. That is natural, but with that comes a reduction in outcomes. Don’t expect the same for less, be challenging but be realistic, challenge your team and give them a chance to be successful.
Fortune favours the brave.