Marketing During a Recession: Strategically Positioning Your Business for Success
Content courtesy of ANA*LITK Marketing.
Since the COVID-19 pandemic, the economy has taken hit after hit, which has led most economists, politicians, and financial experts to conclude that the economy is in recession, or at least on the brink of one in 2023. While there are many debates about whether there will be a recession or when it will start, it’s evident that we are in an economic downturn.
During a recession, the initial reaction is to dial back on your marketing. However, doing so is short-sighted. Recessions create more competition. Even if the number of available clients is the same, the number of dollars they spend is lower. In times of high competition, if you’re reducing your marketing, at the very least, you’re giving up on your portion of the market share to competitors.
During a recession, what becomes more important is maximizing the effectiveness of your marketing to mitigate the short and long-term impact of a recession.
Tips for Marketing During a RecessionNo two economic downturns are the same, so businesses often find themselves in unchartered territories. So how do you market more effectively during a recession to ensure your company emerges from the period profitable?
Focus on RetentionIf you’re not marketing to your existing clients, you’re thinking short-term. Recessions don’t last forever. This is the time when brand loyalty is more important than ever. At the end of the period, will you have retained your clients?
Failure to keep your clients engaged makes it easier for competitors to take them. While your clients might be spending less at the moment, it’s better to keep them now than it is to try to get back to them later.
Relearn Your ClientsKeeping a finger on their pulse is essential no matter how well you know your clients. During a recession, budgets and priorities change. Brands that recognize the shift in patterns are better equipped to keep up with clients and remain on top.
It’s essential to re-evaluate your messaging to ensure that it is aligned with your prospects' and clients' wants and needs.
Optimize Your BudgetBudget cuts are unavoidable during a recession. Focus on optimizing your budget. While cutting the budget sounds like a logical financial move, optimizing your budget is far more beneficial. The difference? Optimizing your marketing budget involves looking at your budget and understanding which actions have the most significant impact vs. those that do not. Cutting costs that have an impact may do more harm than good in the long term.
By optimizing your marketing budget, you are ensuring that you are keeping the most effective marketing strategies. This is one of the best ways to strategically position your company for growth post-recession.
ANA•LITK MarketingWe are a SWaM-certified results-driven boutique marketing and branding services firm with over 30 years of experience. We believe in data-driven creative inspiration and eureka moments that help B2B businesses achieve their goals and multiply their results.