According to Bloomberg’s December 2022 survey of economists, there’s about a 70 percent chance that the US will end up in a recession this year. Recessions are notoriously hard on businesses, especially those not prepared or willing to invest in sustainable growth during an economic downturn.
So what does that mean for businesses, and how can they prepare? We’ve compiled a guide for navigating economic uncertainty and formulating a marketing strategy during recessions. Keep reading for everything you need to do to keep your business viable, and potentially even on track for growth this year.
First, what constitutes a recession, and what does it mean for businesses?
Recession is an economic term defined as a continuous decline in GDP (Gross Domestic Product) for 2 or more consecutive quarters. You might recall the great recession of 2007-2009, which totaled more than 15 quarters of economic shrinkage in the US. So what happened to businesses during that time?
Small businesses were hit the hardest, and commercial lending was slashed. Fewer businesses hired employees, and the unemployment rate increased as the GDP decreased. Businesses struggled to stay profitable, and some struggled to even stay afloat for those rocky 15 quarters. An estimated 1.8 million small and medium-sized businesses closed in the first two years of that recession.
But some small businesses actually grew. And some remained stable enough to rebound after the recession ended, growing more profitable after the recession ended. Their secret? Preparing for the forecasted recession ahead of time and creating marketing and financial plans to accommodate it.
Marketing during a recession: ten tips to help you maintain and grow
Since another recession is likely approaching, now is the time to start planning your recession proof strategies for managing and growing your business. Here are a few tips to help you outlast, and maybe even grow through, the upcoming recession without increasing marketing spending:
1.If you haven’t begun already, start your data analytics now. Consider your current marketing strategy and find out what’s working for you, and what’s not. It can also be a good idea to analyze what your competitors are doing, and what their shortfalls are. Take advantage of marketing analytics by filling in the marketing gaps that your competitors are missing. It can also be a good tactic to ask your customers directly about their needs with customer surveys.
2. Marketing during a recession doesn’t mean cutting marketing costs completely, especially when it comes to your long term goals and efforts. Don’t diest from long term strategies, especially if the data shows that they’re working for your business. It is possible to grow during a recession, but that depends on your willingness to continue investing where it counts, and your ability to manage capital when cash flow declines.
3. Be accessible to your online audience and prioritize customer service. 72 percent of consumers say they’d refer a friend to a business that offers a great customer experience. Today’s consumer values good customer service highly, and has an abundance of options when it comes to who they want to do business with. Word-of-mouth marketing and customer reviews are very effective for gaining your audience’s trust, especially when money’s tight.
4. Simplify your messaging. By simplify, I don’t mean modify or stray from your message and values. But during a recession, every dollar counts for your customer base. Keep your messaging clear and simple, and lead with the value offer. If your business offers several different products or services, make it clear to your audience what’s what, so they can decide what they need from you.
5. Evaluate the three P’s: product, pricing, and promotion. Consider whether your products or services are still doing well with your target market. Then, consider whether your price point is in line with your competitors, and whether it needs to be adjusted. Finally, think about the way you promote your products and services. Do you need to adjust your messaging? Is it still relevant to the buyer? If you decide to adjust your pricing, do you need to promote your new pricing? Considering these factors is important for keeping you in touch with the customers that have supported you in the past, and might even help you reach a new audience.
6. Take advantage of social media. If you’re running your social media platforms in-house, this can be a cost-effective way to continue reaching your base and new audiences within your marketing budgets. Telling the world what your business is planning through social media is free and can be very effective. Make sure you have a unified online presence and are taking advantage of the right social media platforms for your target audience.
7. Make sure your website is search engine optimized and reaches the audience you intend it to. A simple site audit and some fine tuning can help you reach many more potential customers, for a small fee. Once your site is optimized, it will rank higher on search engine results pages and be more accessible to the audience you’re trying to reach.
8. Similarly, if you’re using Google Ads or another advertising platform, make sure you’re filtering out negative keywords and only targeting data-driven keywords. This way, you’ll generate targeted traffic that is ready to make a purchase.
9. Lean on email marketing. If you’re an established business, chances are you can leverage a database of existing customer contact information. Email marketing can be a cheap and easy way to let your customers know what your business is promoting, and how it can continue to add value to customers’ lives during uncertain economic times. Marketing campaigns are easy to create with free campaign building tools like Mail Chimp and Canva.
Let us show you how to market during a recession
If you’re overwhelmed by the prospect of an impending recession, let us help.
Now is the time to start preparing for a recession in 2023, even if you’re not sure we’ll enter a recession in 2023, 70 percent of Americans believe it’s coming. That means whether or not you’re preparing for difficult economic times ahead, your customers are.
Don’t wait to start preparing for the future. If you need help with analytics, SEO, or building an effective marketing strategy for your business, get in touch with us today. We’ll help you determine what’s already working for you, and which services can position you for long term success, recession or not.
