Marketing during recession: How your business can survive the recession by investing in digital marketing

 

Marketing during recession. It seems like a non-sense, right?

For decades now, the economic specialists have been talking about the future economic crisis, which will be “the biggest one so far”. We bet they said the same before all the recessions they went through or before each economic crisis they anticipated, if they had anticipated one.

Of course, by announcing the future economic downturn every two months doesn’t mean you anticipate something, but that’s another story.

Today’s article is about the best strategy to adopt marketing wise when the economic crisis does happen. What would be your first decision to make in such a difficult economic period? Will you cut down the marketing budgets or you will be one of the few to invest at least the same?

Why isn’t digital marketing valued the same during economic recession?

Digital marketing is essential to the success of your business, disregard of the industry you are working in, disregard you pass through times of economic recession or prosperity. Whether we talk about leads, conversions or even users to reach your website, all is done by marketing. Without it, people wouldn’t know about your brand or about your services, and, more important, wouldn’t know why your products are superior to others, in terms of pricing-quality ratio.

Also, marketing can help you distinguish your brand from the others in an ocean of brands, online and offline. Without marketing, your brand wouldn’t have got the value it has now, right?
Nowadays, it’s almost impossible to raise awareness, generate leads, land customers and build a brand without spending some money on marketing.

Also, marketing can help you distinguish your brand from the others in an ocean of brands, online and offline. Without marketing, your brand wouldn’t have got the value it has now, right?

Nowadays, it’s almost impossible to raise awareness, generate leads, land customers and build a brand without spending some money on marketing.

Marketing. Does it sound like an important tool for your business in times of prosperity? We bet it does.

Why isn’t digital marketing valued the same in times of recession?

It’s an important question. Let’s see. The number one decision which owners do in times of recession or economic downturn is to cut the expenses. Marketing sounds like an expense to some of the CEOs or CFOs out there, and it is one of the first budgets to be cut during crisis. Huge mistake. Huge!

If marketing is an expense to you and not an investment, get rid of your marketing guys and hire others! It means it’s their fault you saw the situation this way, it’s their fault you saw no profit from their implementing of the marketing strategy.

On the other hand, if marketing is an investment to you and you are aware of that, how do you think you’re supposed to survive without it during economic downturn?

Our conclusion, in short, is that the marketing budgets should stay at least the same in times of crisis.

A good marketing strategy is always the best response to an economic crisis situation!

What could an effective digital marketing strategy do during economic crisis?

An effective strategy of digital marketing in times of an economic crisis will lead to:

• increasing the visibility of your business;
• increasing the credibility and market share of your business;
• increasing the number of visitors to your site;
• increasing the number of returning customers;
• increasing sales;
• generate profit growth;

You should remember that your marketing budget is an investment, not an expense!

Our advice is to continue to invest in marketing even during these difficult financial times.

5 reasons you should continue investing in digital marketing during recession

There are at least 5 reasons why you shouldn’t cut your marketing budget during economic crisis.

1. Digital marketing is the most appropriate channel during recession

First of all, digital marketing is less expensive than many other than any other traditional marketing channels, such as radio or TV commercials. An online effort can be undertaken more quickly and more cost-effectively than a traditional media campaign.

As you well know, a good specialist in online marketing helps the companies to adapt their sales strategies during recession and determines which one can be considered the most effective for an economic downturn.

With the assistance of the marketing research team, you can identify your firm’s strengths, weaknesses, opportunities, and threats prior to recessionary turbulence and enable the company to consolidate its offering.

So, instead of cutting the marketing budgets, why don’t you approach the marketing channels which are more cost-effective and generates more and measurable leads?

2. Re-marketing can retain more customers during recession

Instead of cutting the marketing budget during recession, you need to know how your customers are responding to the economic crisis.

Yes, it’s true, one of the common problem for business is how to sell during a recession. But it’s very important to know that a firm can survive during an economic downturn by developing an effective value marketing plan. This plan means a strategy that provides as much value as possible in order to retain customer loyalty.

According to scientific studies, about 70 percent of businesses report that it’s cheaper to retain customers than it is to find new customers. Yes, it is.

So, here are other good reasons why you should develop and use a good marketing strategy during a recession: it’s cheaper, easier, and more effective to retain current clients than it is to win new ones.

Specific to marketing is the ability to anticipate: anticipating opportunities, but also threats and risks. The marketing analysis also allows us to minimize the consequences of risks and crises, foreseeing them and imagining corrective actions and strategies.

3. Online marketing is measurable. Wouldn’t it be nice to accurately measure your spending in times of recession?

Nowadays, customers start their buying process by interacting with digital marketing and online channels. Digital marketing provides a more effective way to accurately measure your ROI (Return Of Investment) than traditional marketing. In other words, an online marketing strategy during recession can offer the ability to test various tactics, evaluate which generates the best response, and then adjust the marketing strategy accordingly.

Besides, you can estimate your profit for each penny invested in digital marketing strategies and you can anticipate your marketing investments better.

On the other hand, many potential clients will not take action the first time they see an ad or a promotion. So, an efficient marketing strategy requires longer-term investment in money and time to pay-off. But the results are guaranteed!

So, don’t cut the marketing budget during economic crisis, but spend it more efficiently! Digital marketing is the one to appeal to when the economy is falling.

4. Digital marketing keeps your brand awareness even during the most difficult economic crises

Being visible and memorable to your audience is crucial during economic recession. Marketing helps you keep your business values in the minds of the customers.

Customers are more likely to turn to the brands they readily remember.

By consistently engaging with your target audience — presenting them your discounts, offers, news etc.— you’ll make sure that they remember you when they’re ready to make a purchase.

The companies that are most successful in an economic crisis are those able to implement successful loyalty campaigns and good customer retention campaigns. Being able to offer the best possible consumer experience is a winning technique.

5. Digital marketing can improve the perception of brand strength during recessions

Another reason to invest in marketing strategies during economic downturn is the perception of strength which digital marketing offers the investor. The online presence during recession will be considered by customers as a sign of stability. In other words, your business is strong enough to survive these hard times. It means your customers will more likely buy from you than from a no-name brand that appeared overnight.

Reducing your marketing budget is an opportunity for competitors to take advantage.

Regardless of the economic crisis, never stop from marketing your business. If consumers don’t know about your company, they can’t do business with you.

A marketing agency gives you an opportunity to distinguish yourself from other businesses by emphasizing your superior product or outstanding customer needs.

Remember this! Instead of making deep reactionary cuts, objectively look at where your business spends money and what kind of return you’re getting on that money.

The best time for marketing is right now!

3 tips for you to keep your customers even during economic recession

During economic recession, you should focus your attention on your best customers. Remember the Pareto principle: 80% of your revenue comes from 20% of your customers. These are the most loyal ones, the ones who come again and again to buy your products, the ones who’ve turned themselves into ambassadors of your brand.

Make more relevant business proposals. You don’t wanna get stuck in your past, nor do the same mistakes over and over again. You have to be more relevant to your customers, especially during a crisis. So, improve the way you make business offers during economic downturn, so this can help you get more customers.

Communicate with your clients. Notice we don’t say “send them e-mails”, or “write them back on Facebook or LinkedIn”. We say COMMUNICATE. It means, keep a good personal relationship with your customers. Make them your friends. Make them love your brand. Serve them in a more personal way. Build relationships, not transactions!

Our conclusion: keep investing in marketing during recession!

You’ll be ahead of your competition. You’ll be able to continue to sell your products and services at a rate which will ensure profitability during economic recession. You’ll survive the recession like no other!

,,A man who stops advertising to save money, is like a man who stops a clock to save time.”- Henry Ford

Promote your business during recession