After the tense lockdown period in 2020, many businesses are still experiencing aftershocks which coupled with soaring inflation and the threat of a recession can be incredibly overwhelming. So what can brand owners do to protect their business?
It’s been widely discussed that a global recession is on the way. How drastically it’s going to hit us, or its duration is not yet certain, but many people and businesses are already feeling the pressure as costs rise all around us; from food to fuel, to energy, transport and going out. Due to the COVID-19 pandemic, sadly many companies have already closed their doors, but for many businesses, alternative arrangements such as budget cuts, redundancies and reduction of operations have been put in place to stay afloat. In the first instance, this is what many businesses do to cut costs when they hear a recession is looming, however, it is important to know exactly where to cut costs, so you keep the damage to your business at a minimum.
Don’t stop marketing – fight harder than ever to share your brand.
A popular instinct for many businesses when evaluating their spending and budgets is to rethink their marketing budget. However, disrupting or cancelling marketing efforts during a recession can actually cause more harm to your business in the long run. If you reduce your marketing efforts in the midst of a financial crisis, you are at risk of losing both your online and offline presence. The loss of this presence leaves a window open for other competitors to swoop in and claim your place in the market.
It may sound surprising but continuing with a strong marketing strategy throughout a recession can actually improve the growth and retention of your long-term market share. If you remain consistent with your marketing, you will also remain in the forefront of consumers' minds as a reliable brand.
Not only will you retain your presence in the industry, but you are also indicating that your brand has strength and stability, which is appealing to many consumers, especially in times of uncertainty. Even if your business has faced some disruptions and is not as strong as it used to be, your audience will still be engaged by your consistency and the level of stability you can provide, whatever it may be.
Get closer to the customer
You want consumers and clients to know that despite ongoing challenges and setbacks, you are still thriving, open for business and there for them when they want you. Visibility counts!
To get closer to new and existing audiences, it is vital that you have a feel for what consumers are after and how they are behaving. Whatever your business - get out and meet your customers or clients. Look at the places and channels where your brand is sold, assess the competition, look at reviews and comments from users, and learn what the market wants.
Direct-to-consumer businesses can make good use of online surveys to get rapid feedback on opportunities and new ideas. Meanwhile, any B2B business can make great use of customer visits to hear it from the horse's mouth. Hear what the clients need, the challenges they are facing and position how your business can help them. Raising your profile with clients and customers is a positive step to retaining their business.
Get smart!
During a recession, you don’t want to be wasting your marketing budget on campaigns, ads or activities that aren’t essential to achieving your core goals and objectives. Over time it is not unusual for a company’s marketing spend to begin to spread across a wide range of activities, often requested by other people or teams in the business.
Before a recession hits it’s the perfect time to review all spending and assess its contribution to sales growth, profit protection and customer retention. Cut out the peripheral activity where you can and focus spend on the core. With existing campaigns, for example, use your time and budget to make any adjustments that retarget your business to bring in new audiences.
And whilst there might be the temptation to chase new markets be careful not to neglect your loyal customer base as they are a real asset in times of uncertainty. Often it is simpler and more effective to direct your marketing strategy toward your existing audience rather than push to win over a new one.
Remember; recession doesn’t mean stop spending; it means spend smart!
Strengthen Service
During a recession it’s not only businesses that are making cuts to their budgets; so are consumers. Consumers are looking to reduce their spending and ensure that they are going after the essentials. In order to still be considered ‘an essential’ in the eyes of consumers, you need to strengthen the services you offer so you aren’t outmanoeuvred by competitor brands.
Rather than focusing on the potential negative impacts the recession could have on your business, you should consider this as an opportunity to provide consumers with what they need most and cement the loyalty of your existing clients towards your brand.
Bring in experience
There is no doubt that marketing during a recession is a challenge, mostly because you are forced to go against your instincts and normal operating standards. Going against your instinct for your brand can be daunting and enough to make you reduce efforts altogether.
Here at Curzon Marketing, we have a combined experience of 100 years and are dedicated to helping the growth and success of your brand. It is useful to consider bringing in experience if you feel the prospect of marketing during a recession is out of your depth.
Marketing strategy, creative campaigns, and marketing operations can be created by an outsourced marketing team and are effectively created to help keep your brand moving forward during tough times.
Outsourcing your marketing introduces a marketing team who will use their range of skills and experience to help your brand stay up to date and allows you to focus on other areas of your business knowing that the marketing is covered by the agency.
Whilst outsourcing is an additional business expense, it should be seen as an investment in expertise, knowledge, and breadth of capability because you gain access to a team of experts. Additionally, outsourcing offers a stress-free and cost-effective solution to your company’s marketing which is a real plus during a recession.
Curzon Marketing offers a solution, whether it is on a temporary or permanent basis, to provide expert marketing so your business can keep on growing.
Get in touch to find an effective marketing solution for your business and brand growth.