Thinking about cutting your marketing budget during a recession?
Happy New Year! Who'd have thought when we were setting our intentions for the year 12 months ago, we were going to have worked through a global pandemic and not only that, that we’d still be working through it.
Having just entered lock-down 3.0 one thing’s for certain, adapting to constant change is here to stay. At least for now. As we continue to shape our businesses for the future you may have cut or be thinking about cutting your marketing spend to reduce expenditure.
Most companies reduce spending in recessions, especially in areas that are easier to cut like marketing. Despite this affecting the bottom line in the short term it’s a strategy that's often short-sighted.
Research shows that the companies that kept their marketing spend the same or increased it bounced back most strongly from previous recessions.
The key is not to stop spending money but to change the way you spend it. Adjusting strategies, tactics and product offerings in response to shifting demand and changing consumer behaviour can result in companies flourishing during and after a recession.
Here are 4 points to think about when marketing in a recession
- Understand how your customer's behaviour has changed and met their needs. Customers are being more discerning with their money but are still spending. They want to buy the right products from brands they trust.
- Don’t lose sight of your existing customers. Loyal customers are the primary, enduring source of cash flow and organic growth. Keep in touch with them through your communication channels (email, social media etc.). Even if you’ve had to close your doors for the time being keep them updated with ways, they can continue to access your products or services and with any news or innovations you are making.
- Increase visibility with potential customers through brand awareness. Maintaining visibility in your market is essential for long term growth and continued investment.
- Measure, test and learn. When budgets are tight knowing what works, quickly, makes it much easier to make decisions of where to invest.
If you need support in refocussing your brand, marketing or digital presence please get in touch via email hello@factored.studio or ring 01524 388104.
