Tips To Maximise Your Marketing In A Recession
Since 2007 the world has seen a significant economic downturn that resulted in a worldwide recession
. Whilst many countries are currently in recovery, evidence suggests that the downturn is a long way from over. Marketers will have to fight hard to hang onto their budget and this article suggests ways to make the most of your marketing in a recession.
Unless you have been living in an extremely remote part of the world with no access to the news you will know about the Global Recession. According to the National Bureau of Economic Research, a recession is: A significant decline in economic activity spread across the economy lasting more than a few months.
The first thing that tends to happen in a recession is that customers reduce their spending and businesses cut their marketing. Marketing budget is one of the easiest cuts to make in business so marketers have to fight hard to retain it. However if your marketing is completely measurable and you can evidence that you are generating a decent return then you are much more likely to at least retain some of your spend. Having retained some marketing spend, think about how you can spend it more wisely and what you can offer customers who are likely to be looking for better deals in tough times.
Focus on your Core Business
If you have reduced budget it would be wise to focus on your key customer segment as these are likely to be your most profitable customers. Try and offer them something exclusive so they are receiving additional value. Bear in mind that customers are likely to be shopping around more so you need to stand out from the crowd. This way you are more likely to retain their interest and custom. After all it costs less to retain an existing customer than acquire a new one.
If you are not sure who your core customers are then it is critical that you find out. Core customers are likely to be repeat purchasers and may be loyal to your brand. They are also much more likely to refer you to someone else which costs you nothing. These are the customers you should be researching and finding out what it is they like about your products and services. You should be able to use this insight to help attract new customers at a lower cost.
Look for cost savings wherever possible
You will already be reviewing your costs regularly but it wont hurt to re-evaluate your marketing spend by channel. Where possible re-negotiate your contracted costs with suppliers. Take a look at what you currently outsource and consider taking on the jobs yourself such as copywriting. If youre not confident at writing you can go on a training course and gain the appropriate skills.
If you are not already leveraging the internet then this will be key for your future profitability. Many social media sites offer free advertising including Facebook business pages. Ensure your website is fully optimized and you are taking full advantage of your traffic.
Consider testing email marketing against traditional media to see if you can increase your profitability. Emails are a much cheaper format given you have no postage costs and you can virtually design and write them yourself.
Consider offering a hook to your customers
Consumers during a recession are not only looking for discounts; theyre looking for real value for their money. Clearly you cant discount all your products and services, however consider offering a hook to entice them in. This has worked really well over the past two years for restaurant chains. Many high street retailers have offered a Buy One Get One Free (BOGOF) or discount vouchers depending on spend levels.
A word of caution however, whilst these can work in the short term, be prudent as customers can quickly become accustomed to paying less for your products.
Empathise with your customers
According to TNS Research, more customers are concerned about the recession than war and terrorism. This is likely to be due to the fact that so many customers are spending more than ever before and used to a high standard of living. Position your business as there to support your customers through the tough times. Clearly if you have a prestige brand this may not be appropriate, however the majority of the population will be impacted in some way.
Test, Test, Test
You should always be testing your marketing activity against a control to truly understand the incremental results of your campaigns. This is even more critical when your budget is tight and could be taken away at any time. Ensure you are implementing the findings of your tests and quickly developing challengers to your winning medium.
If you are reading this article you clearly want to understand more about marketing in a recession. Click on the link for more help and advice on how you can protect yourself against the recession.
by: David Anthony Watson
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