Breaking Down Why You Should Invest In Marketing During A Recession
When looking at an economic downturn in the face, it’s very easy to think, “maybe my company should wind down its marketing budget and strategy.” In doing this, you’re not only going to lose your market share, but you’re also going to lose potential customers who are still looking for your products even in a downturn. Wouldn’t you rather gain market share and still reach those customers? It seems like the answer is common sense. Now more than ever it’s important to buckle down and invest money and time into your marketing strategy. It will pay dividends when the economy makes a turn upward.
We’ve listed out some great reasons on why to continue investing in your marketing strategy when the economy takes a hit below.
Your competitors are downsizing their marketing budgets. This leads to decreased noise on the internet, social media, etc. It is essential to gain a foothold in the minds of people now for when the economy makes a rebound. Also, downsizing your marketing budget will only help short-term.
A strong presence reassures potential consumers that your business is strong and healthy. If you’re investing in your marketing budget and visibly attracting new customers, it will be easy for potential customers to view your business as trustworthy.
Work on understanding your target market’s behaviors during a recession. We can think of consumers falling into four groups: slam-on-the-brakes consumers, pained-but-patient consumers, comfortably well-off consumers and live-for-today consumers. Find out where your customers fall and use the matrix below from the Harvard Business Journal to adjust your marketing strategy.
Move online. Digital marketing is your best resource for your budget during an economic downturn. It is also easy to track giving you the best way to figure out your return on investment and how your campaigns are doing. This is your low-cost and high-return way to grow your market share.
Focus on your current customers. Using a marketing strategy, you can build brand loyalty and keep your business in the minds of your current customers even when they’re not quite ready to come back yet. Remarketing to your current customers is a proven and effective way to retain business and is also cheaper than trying to chase new ones. Reach out to your current customers and entertain the idea of helping them weather the slowdown.
Your marketing budget is not an expense, it is an investment. Studies show that companies that actively market and advertise during an economic downturn saw increased sales and market share when the economy began to rebound.
Do you want your business to not only survive but thrive during and after an economic downturn? Ecomitize is here to help with your eCommerce business. With over 200 online stores and counting, we know what it takes to take your business to the next level. Reach out to us today to see what we can do for you.