We’re sure you’ve heard the news… a recession is approaching. Yes, it can be daunting at times, but it’s truly nothing marketers haven’t faced in the past.
Don’t forget, we’ve recently marketed our way through a pandemic that provided insights on long-term shifts in consumer values, attitudes, and consumption patterns.
Remember that there are heaps of data on consumer patterns from past recessions and economic downturns. This data, and their corresponding strategies, can help you shift according to consumer demands and prepare for economic recovery in the future.
With the uncertainty of the coming months, keep these three tactics in mind. 👇
As a marketer, you must understand that your consumer is not a number or a soulless entity. Your brand’s commitment to sustainability, social responsibility, and the push away from more cynical forms of marketing will impact the relationship between you and your consumer.
In a downturn, while your brand or business is studying your customers, your customers are examining you more closely than ever. Tread carefully. Don’t dismiss the frustrations of your audience.
That being said, there are still ways to market your brand throughout the recession that will keep your brand afloat in an economic environment that wants you to sink.
👀 Assess your opportunities
When faced with a recession, your brand has to differentiate what projects and ideas have a poor survival prospect and which projects can stabilize after suffering from a decline in sales.
The lower survival prospects and business opportunities that are unstable or a “risky investment” may have been appealing and worthwhile before the recession but now may be a liability.
Rather than risking your marketing resources on a liability, take aim at maintaining that relevance to your loyal customers who will be vital in sustaining your brand. Ensure you maintain your connections through the recession and into the recovery.
To stay connected, consider improving affordability and updating your product portfolio to match your consumers' ever-changing needs.
✍️ Plan for the future
The brands that survive the recession focus their assets on their consumer’s needs. That being said, you need to position yourself for what's to come post-recession.
In some cases, our consumers’ wants, needs, and behaviors may return to “normal” within a year or two. Interestingly enough, post-pandemic, we’ve seen a return to brick-and-mortar locations, but generally, ecommerce still remains top dog.
The pandemic boosted consumers’ sense of economic vulnerability, and with a recession knocking at the door, growing consumer vulnerability knocks with it.
As a marketer, you should be preparing for a long-term shift in consumers’ values, attitudes towards spending, and vulnerability. That preparation starts and ends with knowing where to allocate your assets.
With digital ad spend projected to grow 11.5% in 2022 – a deceleration, yet still growth nonetheless – marketers will continue to reduce their spending on TV and make the transition over to digital channels. On the other hand, online video is outpacing social media and is looking to grow 15.4% a year making it the fastest-growing channel.
Marketing during a recession can be challenging to say the least. Make sure your brand is taking the proper steps and precautions to maintain relevance in the minds of consumers.