Recession-Proof Your Business with Marketing
If you’ve been following the news, you’re probably aware that all signs are pointing to a major slowdown in the U.S. economy. The combination of inflation, the war in Ukraine, the ongoing pandemic, and rising interest rates are signals that a recession is ahead.
So when it comes to recession-proofing your business here’s the number one thing you need to know- no matter what, you still need a strong online presence.
Here’s some statistics from Sprout Social to consider.
76% of consumers look for a company's online presence before visiting in-person
55% of consumers learn about new brands on social
78% of consumers are willing to buy from a company after having a positive experience with them on social
During a recession, segments of your customers may pullback on spending. However, many will still be “window shopping” on social media and saving content and products that interest them. If you are thinking about pulling back on marketing, consider this. During the 2008 recession, businesses that cut their marketing budgets experienced negative performances post-crisis. In contrast, companies that doubled down on marketing experienced an average growth in market share of 1.3% after the recession.
The message is loud and clear- even if your consumers aren’t spending in moment, they still want to hear from you!
Which brings us to what they need hear from you. No matter what your business does or who you serve the number one key to marketing success is this: connect with your audience on a human level. Now is a good time evaluate your marketing strategy and make this the focus. Instead of running promotions, can you share testimonials of customers who benefitted from your products or services? Consider spotlighting your team members and sharing wins and failures. Live video also provides a great opportunity to connect with your customers. All in all, the more your audience members view your brand as people just like them, the more successful you will be.
If you are looking for an example of a brand that does this really well, check out Peloton. They are great at giving their audience access to the lives and advice of their instructors and have been able to create a strong online community of supporters.
You may even choose to take it a step further and invest in acts of goodwill such as donating to local nonprofits, creating a scholarship program, or going carbon neutral. Tide’s “Loads of Hope” is one such initiative. When communities are impacted by natural disasters, Tide sends in mobile laundry units so that residents have the ability to do their laundry. Since its inception in 2005, the Loads of Hope program has helped Americans do 68,000 loads of laundry. The result? Marketing campaigns run in conjunction with Loads of Hope generated the highest return on investment of any of Tide’s marketing efforts. People want to spend money with companies do good.
To sum it up, you may want to pull back on promotional content. During a recession, it may come across as tone deaf. Conversely, the more you work to humanize your brand, the more likely your audience will be to invest in your products or services when they are financially ready to do so.
If your brand is needs help with recession proofing your business with digital marketing, set up a free discovery call below.
