Becoming Recession-Proof: The Importance of Marketing

The coronavirus outbreak has affected almost every part of our lives; with businesses across the country having to work from home, pause trading or in some cases, close their doors forever. The effect of this is staggering, with the UK’s economic output shrinking by 20.4% in the second quarter of 2020. This quarterly slump has pushed the UK’s economy into the deepest recession of any major global economy.  

With the future uncertain, companies of all sizes are shifting strategies to survive, grow and develop further, even during this recessionary period. Those who have implemented a thorough business strategy with a clear marketing plan will recover the fastest from this economic downturn.

Is now the time to cut marketing budgets?

If you’re thinking about cutting your marketing budget, you’re not alone. In fact, Marketing Week found that 90% of marketers are either delaying or reviewing their marketing budgets.

To understand why this strategy won’t do what you think it will, it’s important to look at historic recessions. As previously stated in “Why Investing in Marketing Is Essential During COVID-19,” businesses that strategically invest during recessionary periods come out on top. For example, Kellogg’s, who doubled down their investments during the Great Depression, saw their profits grow by 30%.

Although it’s not clear how long this pandemic-induced recession will last, to be recession-proof and retain your customers, it’s important to remain at the forefront of your customer’s mind and show them exactly how you can support them during these difficult times.  

Not only this, but with your competitors feeling the same way as you, continuing to advertise gives you a massive advantage. When other brands pull their ad spend, your business’s voice and exposure naturally grows as you remain visible in a seemingly empty market. If a customer is in need for a specific service you offer, they will turn to the Internet. If your competitors have stopped investing but you’re still running SEO, PPC or social media marketing, whose business do you think will come up first?

How to recession-proof your marketing strategies

Consumer spending accounts for 70% of the economy, even during recessionary periods.

It is therefore imperative that you understand how to shift your strategies so that your business can remain open and growing.

Although no recessions have been alike, it’s important for your business to pay attention to trends and themes in spending across your industry and amend your marketing to suit. Even though your customers or clients may be struggling, they don’t want to stop hearing from you. Instead, they want you to speak to them differently.

Using empathy, honesty and understanding, adjust your tone of voice within your content marketing strategies to become more compassionate and support your customers when they need you most. Find out what problems your customers are likely to be experiencing during the recession and match your business to the solution they need. You may also decide to advertise your lower-cost services or products to support your customers for cheaper as they are likely to be spending less during the recession.

EDGE Creative

The type of strategy that will work best for you is dependent on a number of factors, including the industry you are in and your own business goals. We understand that the last few months have been trying for many individuals and businesses, and so we are currently offering free consultations with a Marketing Director.

Find out more about recession-proofing your marketing processes by calling us on 0121 355 8092 to see how we can help you.