Recession-proof marketing strategies that get results
During a recession, economic activity takes a downturn. People look for ways to restrict their spending, and it can be harder to get new business and retain your existing clients or customers.
Lowered budgets often mean a longer sales cycle as your prospects consider their options - and a stronger focus on pinpointing the exact return on investment (ROI) of each marketing move you make.
If you’re struggling to make sense of how to market your organisation in these uncertain times, read on for some tried and tested strategies that could work wonders…
1. Don’t stop marketing your business
Whatever you do, don’t stop marketing!
If you’re considering cutting back on your marketing activity due to economic uncertainty, then it’s time to reframe your thinking. In the long term, it could have devastating consequences for your brand.
Economic downturns are an inevitability, often accompanied by businesses responding to a decline in revenue (or a projected decline) with drastic cutbacks. But trimming your marketing to the bare essentials can have dramatic and damaging consequences.
During the ‘Great Recession’ in 2008, stats suggest advertising activity in the USA fell by 12-13%, and many companies have been scrambling to pick up the pieces ever since.
Research also shows organisations that maintain their marketing momentum are better at weathering economic storms than their thriftier counterparts. According to Forbes, advertisers that grow their marketing spending see an increase in sales and market share both during and following periods of recession.
2. Adjust your budget allocation
Instead of cutting your budget, optimise it! Take a close look at where you’re spending. Are you overinvesting in tools or tactics that aren’t working for you? Is there an area where the figures show you could see great results, if only you had a little more money (and time) to spend?
It might seem counterintuitive, but spending more in some areas is a surprisingly effective strategy during lean economic times. For companies on a strict budget, it’s understandable that some activities will have to take a backseat until things pick up again. This will allow you to allocate funding where it can make a real impact.
To help make the right choices for your business, be sure of your reasoning before you make a change. Think of it like a game of chess: you need to understand why you’re making each move and stay agile enough to change your plan of attack if needed.
3. Redefine your messaging and targeting
The challenges of marketing in a recession are not dissimilar to those that companies faced during the pandemic: your messaging and approach need to appeal to customer pain points, stand out from the crowd, and show sensitivity to the difficulties they may be facing.
You should also pay close attention to your ad targeting, optimising any paid search campaigns to ensure you’re targeting customers with a high intent to purchase. Work on building stronger buyer personas and advertise only using platforms where you know your target audience will be.
Success or failure will ultimately come down to how you frame your offering.
For example, a recession could prove particularly challenging for a brand selling luxury items with flashy taglines and high-end campaigns targeting the average consumer, as these purchases are harder to justify when budgets are stretched. Meanwhile, products and services targeted at a budget-friendly market with a more approachable tone are likely to see business thrive!
4. Increase your product offering
Consumers have different responses to recession, but the most common response is reduced expenditure and buyer confidence (particularly around larger purchases). This means it’ll be harder to convince people to buy what you’re offering - so it’s time for more creative thinking!
Added value is something that will always appeal to people during times of economic hardship. What else can you offer to help make them buy in?
Special offers and added extras are a great short term solution. New product development could also be a viable longer-term option, particularly as many of your competitors are tightening their belts and limiting investment in areas like research and development.
If successful, this tactic can not only win over customers, but also give you something exciting to shout about as the recession starts to wane - putting you several steps ahead of the competition.
5. Get creative with your marketing methods
Learn how to be more creative on a tight marketing budget. What can you do in-house, and where would you benefit from outside expertise? Leverage your existing skills and invest in developing new ones where necessary.
When working with a marketing team, look for ways to get your name and brand seen by more of the right eyes without breaking the bank:
Consider your own network and partnerships: can any of these ties be strengthened?
How can you collaborate with other companies offering services that complement your own?
Are you making the most of email marketing?
There may also be free or low-cost events you can attend that give you the chance to showcase your brand to an audience already ready and willing to buy.
A recession is an ideal time to think outside the box, and the potential rewards for doing so are enormous.
6. Invest in training your team
Sharpen your digital skills by investing in some specialised training for your team. This will help you get through an economic rough patch in several ways:
Learning new tools means you can take on projects outside your comfort zone with confidence.
You can market your skills at a time when many other companies will have cut back their marketing efforts.
Training gives you a great opportunity to shout about your new skills and projects on your social channels.
During a recession, companies need to remain visible and active - this builds consumer confidence and keeps you top of mind when other organisations are seeking partners to work with. Both are vital for drumming up business.
Training your employees also helps prepare them for greater responsibilities: an important factor for organisations that can’t afford to expand their team during a recession.
At Sookio, we’ve developed a carefully curated series of training programmes, each helmed by one of our digital marketing experts.
From writing for the web to gaining lasting social media skills or getting the most out of Google Analytics 4, check out our training packages for a closer look at the options on offer.
Give your marketing a new lease of life
Whether your business is facing turbulent economic times or you simply need an expert marketing team on your side, Sookio is here to help!
Get in touch to discuss your next project.