For businesses, a downturn can mean the difference between success and failure.
Some of the most prosperous businesses of today were established during economic downturns, such as Google in the early 2000s dot-com crash or Uber in the Great Recession of 2008.
However, there are many more businesses that fail during a recession for every one that succeeds.
How businesses manage their marketing and advertising expenditures during these challenging times is one of the main factors in determining whether they succeed or fail.
When a recession strikes, firms immediately slash their marketing expenses in an effort to save money. But doing so might be erroneous.
Businesses can contact customers during recessions who can be more price-sensitive and open to new offerings.
Businesses should concentrate on reallocating their advertising resources to more effective channels and creating interactive content to attract customers who may be spending more time at home rather than reducing their marketing budgets. Despite a market slowdown, firms can reach and interact with customers in these three ways:
Create engaging online content
Customers are spending more time online than ever, therefore it's critical to create content that is engaging and interactive. Businesses should concentrate on producing content that will generate leads and sales because ROI becomes even more crucial during a recession.
Traditional sponsored advertising is costly and vulnerable to banner blindness, which is the phenomenon where users ignore internet adverts.
Quizzes, polls, and surveys that are interactive can be a more efficient and cost-effective approach to reach and engage customers.
Interactive content enables businesses to offer important information or entertainment while simultaneously gathering data that may be utilized to better marketing campaigns, as opposed to non-consensually slapping customers in the face with a commercial message.
For instance, a clothes retailer might offer a style test that directs visitors to the appropriate outfits for their body type. This engaging and entertaining quiz also offers the business useful information on the preferences of its clients.
Identify industries that can withstand a downturn.
All industries are not equally affected by a recession. In reality, there has been a lot of growth in some businesses. For instance, the energy sector has had a comeback as a result of rising oil prices and increased consumer demand. The United States Oil ETF has increased by more than 30% year to far, while the S&P500 has decreased by almost 15%.
Another sector that is highly resistant to economic downturns is the healthcare sector. People need more medical attention as they become older, and when the economy is bad, the government tends to spend more on healthcare.
During recessions, other so-called "defensive" businesses, like food and beverage, basic household goods, and personal care, also frequently perform well. Targeting five recession-proof industries can help businesses succeed even when the economy is having trouble. However, it may be worthwhile to look into how your product or service might be positioned to appeal to these industries. This is not to say that your company must be in one of these industries to survive a recession.
Prioritize marketing channels that will increase ROI.
Businesses frequently slash all aspects of their marketing budgets while trying to minimize costs. However, not every marketing channel is made equally. Some, like sponsored search and social media advertising, can be quite expensive while yet being very effective at generating leads and sales.
It may be less expensive and just as efficient to contact and engage clients via other marketing channels, such email marketing and content marketing. Businesses should concentrate on allocating their marketing spending to the channels that would produce the highest return on investment during a recession.
Reaching potential clients who could be interested in your product or service but aren't necessarily actively looking for it, such as through email marketing, can be quite successful. Additionally, email is a permission-based communication, increasing your chances of connecting with open-minded people.
Another powerful strategy for reaching and interacting with customers is content marketing.
Businesses can draw clients who are searching for solutions to their problems or answers to their queries by producing high-quality, useful content. It's crucial now more than ever to concentrate on marketing channels that will increase ROI. You may still connect with and engage clients despite a slowdown in the economy by effectively spending your marketing budget.
A recession can be a chance for businesses to prosper with the appropriate strategy. You may weather the economic storm and emerge victorious by concentrating on interactive content, selecting industries that are recession-proof, and directing your marketing budget to avenues that generate ROI.