The Dos and Don'ts of Marketing During an Economic Downturn
After a nearly three-year global market disruption caused by COVID-19, brands and marketers are slowly settling into a post-COVID world. This requires brands and marketers alike to think more strategically and keep an accurate read on the pulse of the evolving market.
We are currently witnessing an economic slowdown due to high inflation and interest rates, as well as a decreased global growth rate, all of which contribute to reduced consumer spending. When consumers spend less, it is common for brands to want to pull back on their advertising and marketing budget. But is that the best move for you and your business's future?
The decrease in consumer demand increases the need for marketing spend. With more competition and a smaller customer pool to pull from, your marketing and advertising efforts play a more critical role than ever. Although consumer spending may be down, it does not mean this is a good time to pull back on your marketing. If anything, now is the time to ramp up your efforts, lean into the current trends, and fight for your existing customers' loyalty and the attention of potential new customers.
Adjusting Your Marketing Strategy
The best next step is to evaluate the market, conduct data analysis and reallocate budget to the platforms and target markets that will help meet your marketing goals. Companies big and small are having to adjust their budgets for the upcoming year, and we see that as an ideal opportunity to think strategically about how to better spend your marketing dollars.
Here are a few of our top Dos and Don'ts to help you save on costs but keep up with the competition:
| DON'T | DO |
|---|---|
| Panic and cut all your marketing and advertising spend. | Reexamine your marketing budget to determine ways to spend smarter by measuring what's working best and producing results; you can then cut back on some areas that are not positively impacting your revenue and sales stream. |
| Copy your competitors. | Your competition may choose to decrease or increase their marketing spend, but that should not reflect your decision-making. However, you should keep an eye on their efforts to seek out missed opportunities that will help you step up and stand out. |
| Ignore previous and current data. | Take a close look at your sales data and insights to better determine how this economic downturn impacts your customers. Often, customers will cut out luxury or unnecessary items first but still be willing to purchase what they consider necessary to maintain a similar lifestyle. Depending on your offerings, it may be time to push certain products or services to better adapt to this new market. |
| Rely on outdated or out-of-touch messaging. | Update your content and approach to show that you understand your customer's concerns and that you will get through this together. Offering discounts, coupons, or specials can show your customer base that you want to lend a hand amid challenging times, strengthening customer loyalty and building trust. |
| Stick to the status quo. | It is essential to be flexible and open-minded during this time. While your business and its success should remain the top priority, your consumers and employees are facing complex challenges. They will be more responsive to an understanding and empathetic approach. |
Overcoming a Challenging Time
It's not all negative: economic downturns can often free up the marketing field, providing new space for your brand to grow in more ways than one. It can be an exciting time to attract new customers, update your tactics, and pivot to optimize revenue streams.
One key thing to remember right now is to avoid standing still and waiting for the economy to return to better times. As history shows, economic downturns are temporary. Now is not the time to stay idle but to act.
The best way to plan quickly and effectively during these uncertain times is by working with a trusted and professional marketing agency that understands your budget and goals, especially during a time when money may be tight. Having an informed decision maker and one who can act on your behalf can help you not only survive this challenging time but come out on top.