While the economy is shifting and inflation is high, many businesses are looking to cut spending. Many decide marketing is the first to go. This shouldn’t be the case. Let’s discuss the importance of marketing during a downturn.
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Why Marketing During a Recession Matters
1. It’s the Perfect Opportunity to Stand Out from Competitors
If you’ve pondered the idea of cutting your marketing budget during the recession, chances are your organization’s competitors have as well. However, what they may not know—and you now know after reading this—is that reducing marketing efforts results in lower brand awareness, search results rankings, and brand loyalty. Thus, savvy business owners can take advantage of the opportunity to emerge as a leading name within their given market. In fact, a Bain and Capital analysis reported that recessions create 47% more brands on the rise than during economically stable periods. A smart way to capitalize on this and gain top-of-mind brand recognition is to invest in digital content marketing. With less noise online, doing keyword research and utilizing Search Engine Optimization strategies (SEO) is an inexpensive way to grow your online presence and increase website traffic.
2. Brand Relationships are Crucial During this Time
One must also remember that recessions are just as rocky for the consumer as they are for businesses, meaning they’re looking to cut costs as well. Make sure that cut doesn’t involve you. During recessions, consumer loyalty is tested as people feel the need to scale back and focus on getting more value for less. A knee-jerk response to this may be to start offering promotions; however, the incentive actually hurts in the long run. Compared to media, using promotions produces a 45% lower ROI. Additionally, continued use of promotions can actually condition consumers to expect it as the norm, therefore, deterring them from using your brand once the economy levels off. Instead, now is the time to cement brand loyalty by utilizing inbound marketing to offer value-based content that reinforces brand value, shows stability, and offers support. With these three key focuses in mind, consumers will be more likely to ride out the rough times alongside your business and stay with you in the long run.
3. Marketing Wisely Pays Off Now and Later
The saying “you get out what you put in” is certainly true when it comes to marketing. A study by Nielsen shows that many brands are unknowingly cutting their Return on Investments (ROIs) by 50% due to underspending on marketing efforts. Now imagine the additional losses that come with slashing the budget further during a recession. Consider all the added advantages listed above versus the disadvantages and the conclusion drawn is investing in post-recession recovery yields higher benefits. Instead of quitting marketing efforts, the solution is implementing smart marketing practices. Track consumer behavior and spending to inform revenue-generating plans and make use of Key Performance Indicators (KPIs) to track performance, adjust strategies, and invest in well-performing channels.
Let Marketing Help Your Business Grow (Even During a Recession)
75% of recessions end within a year and 30% only last two quarters. Will you choose to see that time as an opportunity or a stumbling block? Marketing during a recession leads to stronger consumer loyalty, opportunity for growth within the market, and overall long-term rewards. Want help navigating marketing during a recession? Contact us today and let Sharp Wilkinson help your business not just survive but thrive.
