06/23/2022
Proper marketing during a downtrend is critical for a business's success. During a recession, it's more important than ever to remember that loyal customers are the primary, enduring source of cash flow and organic growth. Here are our 5 essential tips on marketing during a recession.
1. Market to existing clients
Having a loyal customer base is your one true asset during a recession. It’s cheaper, simpler, and definitely more effective to market your products to your existing clientele rather than focusing your efforts to win new ones—and when we say cheaper, we mean a discrepancy of about 5-25 times.
2. Lean on consistent branding
There is no doubt that more effort needs to be put in during a recession. In the case of marketing, though, you may not actually need less effort, as there’s less “marketing noise“ for your marketing message to have to break through.
3. Empower and encourage your audience
A crucial step here is to ensure that your brand is sending a positive message—one that is fine-tuned to the sensitive mood of your clients and prospects and avoids any resentment.
4. Conduct New Market Research
During financial hardships, a person’s available income and discretionary income changes. This, in turn, changes the way consumers shop and make purchasing decisions. New data needs to be collected, and while it might seem like a smart idea to cut costs and use historical data from previous recessions, it is not a good idea. People change as their environment changes, and each economic downturn is caused by different factors, so no recession is the same. By doing expansive market research on your target audience, your business will be able to get insights that can be used as a competitive advantage.
5. Brand Recognition Still Counts
Businesses that are smart during this time can not only come through uncertain times in a good position but also have an amazing opportunity to gain market share among competitors that aren’t keeping up. Be the business that comes out ahead. We need for you to – somebody’s gotta be in a good position to hire everyone who used to work for companies that didn’t care to invest in marketing.