8 Reasons why Marketing is essential in a Recession
As a marketer, I have found more often than not that the Marketing budget is sometimes seen as a ‘nice to have’. And is usually one of the first things to get cut when budgets need to be tightened.
With the price of living at an all time high, and a looming recession, I thought it would be a great time to look at the huge importance of remaining consistent, or even upping your marketing game ahead of, and during a recession, as well as some important things to consider.
So here are my top reasons on why you need to keep pushing on with your marketing, recession or not, if you want to come out of recession stronger.
The importance of consistency
You may have heard before about the importance of consistency in marketing to promote your brand, as this enables you to stay at the top of your target audience’s mind… Well, marketing in a recession is no different! In fact marketing before and during a recession is probably the most important time to remain consistent. Think about it, in uncertain times many other companies will act out of scarcity and may look to reduce marketing activity. Therefore those businesses that continue or even increase their marketing activity, will gain a much larger share of the market as they are the ones that are visible. It is important to remember, that even if someone does not need your product or service right now, by staying top of mind, they will come to you first when they need your product or service in the future.
History on the importance of Marketing in a recession
History shows that companies who invested in their marketing and stayed consistent throughout a recession have actually benefited from exponential company growth..
As a popular adage says, “When times are good you should advertise. When times are bad you must advertise.”
a buyers market
Historically the cost of advertising drops during recessions. The lower rates create a “buyer’s market”.. For example, research suggests that direct mail advertising, which can provide greater short-term sales growth, increases during a recession.
Client retention
Client retention should always be top of mind as a business. And during a recession is definitely no exception. Not only is the cost of acquiring new customers much higher than retaining existing customers, your clients are more likely to remain loyal to your business, as they have already learned the value of your product or service, and developed a relationship and trust.
Before and during a recession is a fantastic time to ensure you have a solid customer retention strategy in place. This could be as simple as scheduling in regular communication with clients, ensuring they are still satisfied with your product or service, and regularly asking for feedback.
Ensure your business and its marketing is “customer-centred.”
Go beyond expectation with customer-centric marketing which ensures customers are a part of a company's marketing message. By using strategies such as inbound marketing and customer advocacy, you would continue to provide relevant content to customers, even after they've closed. This turns customers into promoters that could then generate new customers through referrals from word-of-mouth. Referrals are key to business success and growth, especially during and after a recession, when businesses will be looking to rebuild and increase brand awareness.
Outsource your Marketing department
You may have no choice but to review or reduce your marketing budget, and subsequently may no longer need a full time Marketing Manager or a whole Marketing department. This is when outsourcing your marketing can work especially well. Not only can you significantly reduce your costs, you can also utilise specific expertise, whether that is completely outsourcing everything, or having an external marketing agency support, or help to upskill current marketing staff. In turn, this allows you to maximise your budget effectively.
Furthermore the ongoing ‘great resignation’ could mean your business may already be struggling to source and retain skilled marketing staff in-house, and as a result outsourcing your marketing could be a great option in this instance.
Focus on industries that may not have been impacted by recession
There's no such thing as a recession-proof business, since every financial crisis is different. But certain types of businesses have traits that help them hold up in tough economic times
Your company could look to these industries to try and onboard more of these clients, helping them and your business to weather the storm together.
Re-evaluate your marketing strategy and plan
Businesses are always evolving and so are your clients, especially in a recession, so this is the perfect time to review and re-evaluate your marketing strategy and plan. For example, has your original target market changed? Trends, society, technology, economy all change over time, so the audience you targeted originally may not be the audience right for your company now. It is also important to look at the finer details, such as, buying behaviour and habits, which will of course naturally change as we go through a recession.
As the saying goes ‘Failing To Prepare Is Preparing To Fail’.
And finally, let's remember it isn't all doom and gloom, a recession can be a great opportunity for business growth when sales & marketing are made a priority.
Staying committed to marketing in a recession really WILL set your brand apart.
Need help with marketing for your business? Let’s chat: hello@reachmarketingandsocial.com
