Between the global COVID-19 pandemic and the subsequent economic downturn, businesses both large and small are feeling the impact. Some might be feeling an instinctual need to downplay marketing efforts and go on the defensive during this time of uncertainty, but that’s not quite the way to go. True, marketing looks different during a recession than it does during times of prosperity, but all that means is that it’s time to adapt and pivot to new strategies.
Even if — scratch that, especially if — sales are down, it’s still important to cultivate engagement and loyalty from customers. Here are some tips for successful recession marketing, as well as some reminders of what not to do.
DO: Act now
If a recession is imminent, burying your head in the sand isn’t going to make it go away. Start making plans to weather the storm as soon as you see the clouds forming. Discuss the pending economic turmoil in earnings calls, make contingency plans, and solidify your growth goals. Marketers can even predict churn and plan for lost customers in advance. According to a study by the Harvard Business Review, companies who acted early during the 2008 recession fared 6% better than those who didn’t.
DON’T: Lose sight of long-term goals
There’s no way around it: Dealing with economic woes is going to produce some hardships in nearly all industries, particularly when the problem is on a global scale like our current pandemic. But while business leaders need to act quickly, they should still keep their eye on those long-term goals. Keep growth in mind during your recession marketing campaigns, even while taking immediate action, and you’ll fare better when the economy recovers.
DO: Evaluate customer behavior to keep optimizing campaigns
Businesses aren’t the only ones making changes during a recession. Consumer shopping habits are going to change as well, thanks to the financial insecurity that comes with any economic downturn.
According to a different HBR study from a decade earlier, customers are naturally going to prioritize essentials first and designate “restaurant dining, travel, arts and entertainment, new clothing, automobiles, appliances, and consumer electronics” as treats. They won’t be eliminated from most consumers’ budgets entirely, but they will be consumed in moderation.
It will take careful, consistent evaluation to keep up with your customers’ needs during a recession, and your marketing campaigns during this period should reflect those findings.
DON’T: Bring marketing campaigns to a halt
With many companies tightening their belts and enacting cost-cutting measures during a recession, there’s an instinct to reign in marketing — after all, if customers are spending less, doesn’t it make sense to reduce ads? Not necessarily.
As Brandthropologist says, “It only defends profits in the very short term, but also leaves your brand weakened and much less profitable post-recession.” This goes hand-in-hand with keeping those long-term goals in mind; marketing should very much still be part of the overarching strategy. Plus, even the toughest times are an opportunity to differentiate your brand by demonstrating resilience and integrity.
DO: Make your customers feel more valued than ever
Whether in a recession or a golden age, one marketing fact remains static: It costs more to acquire new customers than retain existing ones. Now is the time to take advantage of loyalty programs and extend timed benefits that customers currently can’t use, either because they’re stuck at home or have limited funds. Your most loyal customers were there before the recession, and you should make sure they stick around until it’s over.
Marketing during a recession is a tricky thing, but by acting quickly, keeping long-term goals in mind, and always putting the customer first, businesses can weather the storm with minimal damage.
Don’t panic and do take common-sense measures to protect and grow your business and brand. And remember – we’re all in this together!