Explore How Growth Marketing Can Shield Your Business from Recession
The term “recession” can spark fear and uncertainty in the hearts of many business owners. When faced with economic difficulties, most entrepreneurs look for ways to cut down on expenses, which can lead to layoffs, reduced salaries, or even worse, cutting back on their marketing budgets. However, slashing your marketing expenses during a recession is not always the best solution. Instead, businesses need to adopt a growth marketing perspective and focus on strategies that promote growth and foster customer loyalty.
The Benefits of Maintaining Your Marketing Spend
Businesses that maintained or even increased their marketing spend during previous recessions outperformed their competitors. For instance, during the 2008 financial crisis, companies that decreased their advertising budgets by 13% saw a significant drop in brand visibility. In contrast, leaders who maintained their marketing spend saw a 3.5 times increase in brand visibility. Investing in marketing and advertising during tough economic times can help your business stay competitive and keep reaching your target audience.
Engage Your Customers Via Email
Most consumers will be cost-conscious during a recession and will think twice before making any purchase. As such, businesses need to embrace a growth marketing perspective and employ email as a relationship-building tool. You can use email to engage leads in various sales funnel stages, not just to nudge them towards a purchase. Highlight what your company is doing for local communities, and educate people on how your products or services fill market needs. Email newsletters can build audiences for your online content, providing further opportunities to showcase your value and expertise.
Become a Go-To Resource
Online content is an effective and cost-efficient way to increase brand awareness. Consumers may be tightening their belts, but they still need to know your company exists. Digital content, including blog posts and videos, can help consumers get to know your brand. However, the information provided should be beneficial and relevant to their needs. Your digital content should be seen as a go-to resource for consumers, providing solutions to their problems.
Reward Loyal Customers
In a recession, it’s essential to keep your existing customers happy. Providing excellent service or unique products may not always be enough incentive. Loyalty programs and referral programs can be effective in promoting customer loyalty, provided they don’t have several hoops for customers to jump through. Reward programs encourage customers to remain invested in your company, while referral programs allow your current customers to advertise your business for you.
Form Partnerships with Industry Thought Leaders
A well-known industry thought leader who advocates for your brand could quickly increase its visibility. Influencer partnerships give both sides a chance to say something more meaningful. A thought leader might enable your business to reach a coveted but elusive market segment. You can also feed off each other’s knowledge to create resources your competitors can’t duplicate.
The Bottom Line
Cutting back on your marketing budget during a recession may seem like a logical and responsible decision, but it can hurt your business in the long run. Businesses that maintain their marketing spend, focus on growth marketing strategies, and cultivate customer loyalty can emerge stronger from a recession.