Marketing in a global recession → Four things to remember!
With another global recession on the horizon, times ahead are looking precarious for many businesses across the world. However, it’s times like these where business leaders must take stock of what is within their control as they approach what is to come in the future.
More often than not, marketing budget is one of the first areas of a business to be cut when a global recession hits. Yet, history has shown that recessions can offer incredible opportunities for business growth for brands that sustain their marketing activities and budgets.
Take Netflix for example, in the global recession of 2008, Netflix was not quite the media giant it is today. At the time, it had just introduced a new product (the streaming service) in response to the dying video rental stores such as Blockbuster. Throughout 2008 and 2009, Netflix continued to work on partnerships with organisations such as Xbox so that people could stream video content through their existing devices and consoles.
Through these innovations, Netflix was able to grow during the economic downturn, increasing their memberships and subscriptions throughout the 2008 recession while other companies struggled to maintain revenue. Prioritising innovation and marketing and finding new ways to appeal to their audience, whether that be through introducing new products or expanding its products via partnerships and collaborations, Netflix used their marketing budget to their advantage, proving its importance during a global recession.
Can we control the pressures of the world’s economic swings? Probably not. But as businesses, we can pivot and adjust our mindset and strategies to adapt.
Here are 4 things to remember when marketing in a global recession
1. Marketing is non-negotiable →
Whether we are in a recession or not, your business still needs to run. You still need to draw attention to your product or service, your customers are still waiting to be educated and your value proposition still needs to get stronger. So why eliminate this key driver of your business as a first cost-saving step?
Marketing is too often seen as a ‘nice to have’ rather than a non-negotiable necessity. When it comes to your marketing strategy, you may need to pivot, adjust and adapt, but eliminating it all together is only going to weaken your ability to survive an economic storm.
2. Your current customers are your global recession lifeline →
Your greatest weapon during the dark times of a recession is your current customer base. All those followers, email addresses, and phone numbers from recent, current or even previous customer interactions can be a game changer during a global recession.
Enhancing your nurturing campaigns and promotions to your current customer base can drive repeat purchase activity and as a result, the revenues you need. Don’t forget that your customers will also be feeling the pinch too so showing that you care (and providing discounts) via emails or social media promotions can help build that affinity for your brand and keep them coming back. In an age where new customer acquisition costs more than keeping a current customer, building on existing relationships with customers is a no-brainer.
Nurturing your existing customer base may be the best marketing investment you can make, during both times of economic uncertainty as well as economic prosperity.
3. Short term vs long term pivots →
Long-term growth is always a goal to reach for, however economic grey clouds may push short-term survival to the top of the priority list. Ask yourself this; are there any long-term initiatives whose designated time and budget can be pivoted into shorter-term revenue drivers?
In digital marketing for example, search engine optimisation (SEO) is of vital importance, however it can take months to start moving and takes a lot of timely investment. However, Facebook, Google and Instagram paid ads may help you lock down faster results and help to sustain your brand in a more efficient way for the short term.
Could you consider pivoting some of your paid media investment (meant to attract new customers) and create an updated email marketing strategy that focuses on retargeting your current customers? Email marketing allows you to develop a personal connection with your existing customers and increase your brand loyalty by providing personalised communication from your brand to their inbox.
Whatever it may be, look at the data, time and budget and consider what short-term strategies (or quick wins as we like to call it) may serve you to help keep the engine of your business running.
4. Invest in data-driven insights to understand your customers →
To grow your business further during a global recession, you need reliable reporting and insights about your business, your customers, and your industry. Learning about your customers is critical because consumer preferences change when the economy changes and shifts. The messaging and targeting that may have worked before a recession may not be as effective now. Business leaders need to access current, comprehensive data about their customers (through the likes of Google Analytics or Instagram Insights) so that they can chart the best path forward for their brand.
Ultimately to survive a global recession, your business needs cash flow which comes from sales. To generate these sales, you need to continue reaching your customers and convincing them to buy. Ensuring you continue to market your business during a global recession positions your business for better growth on the other side. While your competitors panic and restrict their marketing budgets, you can pick up valuable brand awareness and market share that will pay off as consumers regain their confidence. This isn’t to say your marketing shouldn’t change during a recession, you just need to adapt and pivot and target your efforts doing more with less.
Want to successfully market your business during a global recession? Let’s Chat →
