In our last blog, we spoke about different methods for making your business recession-proof before a downturn actually happens. In this blog, we’ll discuss some marketing strategies that can help you tackle the hurdles that your business may face during a recession so you can come out even stronger.
Don’t Reduce Your Marketing Budget
Most businesses think of cutting their marketing budget when faced with a monetary downturn, but it should be exactly the opposite. If your competitors reduce their budget, and you continue with your marketing efforts, consumers are more likely to notice your presence over theirs. In fact, keeping the marketing budget the same or, if possible, even increasing it a bit can bring your organization to the forefront.
It can be difficult to find a way to make this work, but as we covered in Part One, that’s why financial planning is so important.
Continue Doing Market Research
During a recession, the shopping habits of consumers will change accordingly. They will also be facing the setback of a recession, and purchasing decisions will change.
By doing extensive market research on your target audience, you will be able to get insights and align your business accordingly with your client’s needs. This is a competitive advantage that will allow your trade to thrive.
Invest in Adaptable Technology
During a crisis, think of different technological tools you can use to streamline your business to lower costs by using less labor. Of course, it depends on the type of service your business provides. But using advanced technology does not necessarily mean you have to be in the IT sector.
For example, if you have a restaurant or clothes & accessories business, then online ordering and contactless payment are great options. If your business pertains to education and coaching, then virtual delivery of classes through an online medium can help get revenue despite any unexpected circumstances. It’s best to have these technological needs accounted for beforehand to avoid costly slip-ups during a recession.
Focus on Core Capabilities
When you see a recession approaching, focus on the core products or services of your business. Don’t waste your time and money trying out new things or supporting weaker products during a crisis. Try to gauge the services that your business is really good at and find ways to generate multiple streams of revenue by upgrading these products by maybe adding subscription renewal benefits and other similar perks. Run loyalty or customer incentive programs. This will keep existing customers satisfied as well as add new ones.
Motivating & Managing Staff
With the help of an HR plan, calculate your staffing costs, which in turn will allow you to precisely calculate your products or services. Try involving your workforce in decision-making and finding solutions so that they feel connected, which in turn builds their morale and motivates them.
Offer flexible timings, reduce some staff if necessary, and change staffing arrangements wherever required.
Networking & Alliances
Good networking skills during an economic decline can be useful for understanding how other businesses are coping. Through networking, you may also come across new customers, suppliers, or business partners. Consider forming alliances with other businesses by offering complementary services, without your business incurring any expenses or losses.
Need help with marketing strategies during a recession? Reach out to the experts at WeKinnect Global Branding Agency, LLC. We know how important small businesses are to their communities, which is why we provide an honest assessment of your current marketing strategy, what works, what doesn’t, and what you need.
If you’re ready to get started, contact us today!