There have been a great many economic downturns in recent history, with the 2008 crash and, more recently, the financial impact of the pandemic fresh in many people’s minds. However, as tough as an economic downturn is, taking the right marketing approach can be a great opportunity for your business to grow and thrive.
In fact, according to HubSpot some of the biggest household names that doubled down on their marketing during recessions and economic crises include Netflix, Lego and Groupon.
With that entrepreneurial spirit in mind, let’s explore 18 reasons why you should be marketing in an economic downturn:
1. Make the most of your marketing budget: With a downturn, you are likely to be able to get more bang for your buck when it comes to marketing as competition lessens and prices may drop.
2. Strengthen customer relationships: When times are tough, people appreciate when companies show that they care and make an effort to provide them with value. Use this opportunity to build loyalty through effective relationship-building techniques.
3. Gain competitive advantage: More aggressive competitors may choose to pull back on their marketing activities meaning that those who do market will find a less crowded space in which to stand out from the crowd and gain a competitive edge over their rivals.
4. Grow market share: even if the overall size of the market shrinks, businesses that are able to increase their share of the market by marketing effectively can still come out ahead.
5. Take advantage of new technology: Downturns often bring innovation in terms of new technologies and marketing channels that savvy marketers can use. Leveraging new platforms, new tools, and new methods can help you reach new audiences in more cost-effective ways.
6. Focus on quality: As competition for customers increases, it is important to focus on delivering the highest possible quality when marketing your product or service. This allows you to differentiate yourself from your competitors and build trust with customers that will last after the downturn. Your marketing can really emphasise your unique selling points, your customer service and the quality of your outreach. Being visible with such claims during an economic downturn will display an element of authority and credibility.
7. Increase website traffic: A downturn offers an excellent opportunity to increase website visits by driving more qualified leads through search engine optimization (SEO) campaigns, paid advertising, social media campaigns, content creation efforts, and other digital marketing initiatives.
8. Connect with customers: During a downturn, many people are looking for reassurance that their needs will be met during the tough times. As a business, you can use marketing to show them that you are there for them in their time of need and that you understand their challenges.
9. Prepare for an upturn: When the economy bounces back, those who have kept up with their marketing efforts during the downturn will be well-placed to reap the rewards when it comes.
10. Keep morale high: During tough times, marketing can help keep spirits up among employees and customers alike and ensure that everyone feels connected to your brand and its mission.
11. Focus on marketing your absolutely essential services: Advertising only your must-have services will ensure that you are getting the best return on investment and focusing resources in the right place.
12. Target niche groups: When there is less competition, it’s easier to target certain niche audiences and get your message in front of those who matter most.
13. Invest in user experience: People who are spending more time online may be looking for companies that make their life easier with faster loading times, intuitive navigation and an enjoyable user experience – all of which can be achieved through effective marketing.
14. Leverage analytics: With the right data-driven approach to marketing, businesses can identify what’s working and hone in on their most successful strategies while avoiding wasteful activity.
15. Make the most of your personnel and freelance network: During a downturn, marketers must often do more with less, which means ensuring everyone is pulling their weight and working to their full potential.
16. Focus on customer retention: It’s often cheaper and more effective to retain existing customers than it is to acquire new ones. Use this period of instability to strengthen relationships with your current customers and keep them loyal with remarketing, email nurturing and other hyper-personalised marketing approaches.
17. Keep up with trends: This can be a great time to adjust your strategy and stay ahead of the competition by following trends, monitoring customer feedback and taking advantage of opportunities that present themselves.
18. Keep your business visible: A downturn doesn’t mean you should disappear completely – keep up with your marketing activity to remain top-of-mind when customers are ready to buy.
By investing in your marketing in an economic downturn, businesses can keep up with competitors and position themselves for success once the economy starts to pick up again.
It’s often said that the next millionaires and billionaires are created in times of financial crisis. Having the right mindset and thinking strategically for the upswing is the best way to keep your business head above water but also come out ahead.
With the right approach, anyone can come out on top when times are tough. If you’re looking to find out what that approach looks like for you, and your business, then why not drop us a line and we can discuss exactly what kind of marketing is going to level up your business moving forward.
