In tough economic times, it might seem like marketing is the most obvious place to tighten the belt, but we think Henry Ford put it best when he said: “Stopping advertising to save money is like stopping your watch to save time"
Looking ahead to the remainder of 2024, it can be hard to feel optimistic in a challenging economy fuelled by high cost of living and low consumer confidence.
In tough economic times, it might seem like marketing is the most obvious place to tighten the belt, but we think Henry Ford put it best when he said:
Basically, companies that continue to invest in marketing during challenging periods often emerge stronger and more resilient than their competitors.
Take a look at some statistics from the last recession…
Advertisers who maintained or grew their marketing budgets in recession:
(Numbers courtesy of MediaWorks NZ)
The stats speak for themselves and show the importance of maintaining and even increasing marketing budgets in times of financial pressure.
Here are some priorities, strategies, and considerations for marketing during tough times.
Now more than ever, focus on retaining existing customers: no matter what kind of business you’re in, repeat customers are a source of steady revenue and can help stabilise cash flow. They know you, they know your product or service, and they know how you operate – and in times of uncertainty, everyone likes to stick to things they know! To retain existing customers, consider offering loyalty programs, discounts, or other incentives – add a little sauce that shows how much you appreciate them.
When the economy is wobbly, it’s essential to make every marketing dollar count. Be strategic about how you allocate your budget, focusing on the channels and tactics that are most likely to drive results and where you can track and measure performance – if you’re unsure where to start, try looking at what’s given good ROI in the past and build a strategy from there.
Knowing what suits you, your business, and (most of all!) your customers, is crucial to optimising your marketing spend in the right places – here’s some free starting points to bolster your marketing efforts:
Email Marketing:
This is a cost-effective strategy with high ROI and enables you to reach a large audience, especially if you’ve got a database of existing and new customers that you can target and tailor email campaigns towards. Think welcome messages, follow-ups, and promotions.
Platforms like Mailchimp make email marketing easy (and free!), and it allows you to track open rates, click-through rates, and conversions – so you know what marketing strategies get results.
We’ve already mentioned the importance of relationships with your customers, and social media allows you to foster engagement and showcase your business’s identity – and it’s free to do yourself!
Stick to the platforms that make sense for your business and where you’ll be able to reach the audience you want.
When it comes to content, you can show work or products alongside testimonials to effectively convey your worth while attracting potential new customers. Plus, social media analytics allow you to monitor performance and optimise your strategy for the best results.
It pays to be visible – after all, you can’t sell a secret! PPC ads provide visibility to your target audience so you can get your business in front of those who are most likely to be interested. The ROI of PPC is measurable too, and you can track the performance of your ads in real time and adjust campaigns to maximise effectiveness. Budget control is a big benefit of PPC, as you can set and manage your spend to keep costs to a minimum.
These days, a good website is a key element of any successful business: it’s your digital storefront, so it’s crucial that its look and functionality are up to scratch. Start with simply making sure the content is up to date, and keep it relevant to meet current customer needs and interests. From there, look at the user experience: consider improving navigation, load times, and mobile compatibility.
Optimising your site for search engines (SEO) will increase traffic, helping more customers find you. It also pays to check you’ve got Google My Business and Bing Places For Business are set up correctly – these improve local search visibility, provide essential business information, and help your customers connect with you – and did we mention it’s free?
In uncertain times, consumers are more cost-conscious and are looking for value. Make sure your marketing messages place the value of your products or services up front and centre. Try to highlight how your business can save customers money, time, or effort, as they’re likely looking for ways to reduce and save from their end too. By clearly communicating how you provide unique value in a crowded market you’re more likely to stand out and capture the attention of potential customers.
It’s too easy to get caught up in short-term thinking during tough economic times and things can start to feel a little frantic – remember, this isn’t the first time we’ve faced this, and it likely won’t be the last time either (check out our blog from over a year ago on Recession-Proofing Your Business here).
This is why it’s important to keep your long-term marketing goals in mind. Consider how your current marketing efforts can position your brand for future growth and success. Invest in building your brand reputation by improving customer experiences and creating content that will resonate with your audience. By keeping a level head during tough times, you’ll be in a better position to retain your current customers and come out of the recessed economy with your head high.
When everyone is tightening the belt, it can be challenging to justify hiring new employees or expanding your marketing team. In fact, often the marketing team is the first one to be reduced, which is why outsourcing marketing tasks to external parties can be a cost-effective way to keep up with marketing efforts without incurring the overhead costs of full-time employees. External resources can bring fresh perspectives, specialised expertise, and a flexible workforce to your marketing efforts (how convenient, that’s what we do!).
While it may seem tempting to cut back on marketing during tough times, doing so can be detrimental for your business in the long run. By focusing on efficient, cost-effective strategies and maintaining a long-term perspective, your business can navigate economic challenges and emerge stronger.
For many businesses this is a challenging and uncertain climate, but beware of cutting too much from your marketing budget without careful thought. As Warren Buffett said:
At PDC Creative, we are here to help your business thrive. Get in touch with the team to discuss marketing strategies that’ll help you take the lead in our ever-evolving world.
