On the surface, it seems to make sense. When a financial downturn hits, budgets get tighter, so something has to go. For some companies, that means layoffs. For others, it might mean changing formulas or sizes for their products to save money. And for many others, marketing gets the axe. We can make a case for the first two solutions, but not the third. It’s crucial to focus on marketing during a recession.
We’re no strangers to recession. In addition to the brief recession in 2020, we also dealt with the confusion and paralysis caused by COVID. Before that, during the Great Recession in 2008, many marketing leaders of today were perhaps getting their start or beginning their climb up the career ladder. With two recessions—at the very least, plus the immense strain COVID put on most businesses—under our collective marketing belts, we can examine what worked for businesses and people in the past. It wasn’t all crisis; many new opportunities arose, too.
Companies that saw significant growth during and after the previous recessions had the following factors in common:
- They took early action, including necessary pivots
- They had a long-term vision
- They focused on growth instead of cost savings
Resilience. That’s the key to surviving a recession. Those who have built up a financial buffer in recent years, now have a better chance at acting on possible threats and/or opportunities.
So, what do you need to know to make sure your continued marketing finds its target so that you can always make the most of your tightened budget?
Your Customers Are Changing
Knowing your customers and their behaviors is crucial. A recession brings new challenges to this universal truth, because your customers are going to change during this time. Whether it’s their financial needs, family needs, or survival needs, their lives will be different. Some cope by tightening their belts—that’s what your company is doing, right?—while others will invest more to grow during this time.
When you retarget your customers, you can craft messaging that meets them were they are and ensure they first discover your brand and then become loyal followers. Just remember that what got your buyers through the previous recession may not be the message they need to hear right now. “We’re all in this together” just isn’t as comforting as it was two years ago.
Outlast Your Competitors
If you’re considering cutting your marketing budget right now, you can be sure your competitors are, too. What if you simply…didn’t? What if you maintained, or even increased, your current marketing strategies while your competitors took the easy way? If your competition stops competing, then you have big new opportunities for your brand. If you’re the one who stops competing, however… Well, you could lose a lot of ground while we move through the recession.
Whether you invest more in marketing or maintain your current spend, the most important thing is that your audience keeps hearing from you.
Making the Most of a Limited Budget
If you do find you have no choice but to cut your marketing budget, there are a few options to ensure you continue making the most of every dollar.
First, content marketing will ensure that your buyers continue to receive news and information about your products and services. It’s especially important to continue reaching out with blogs, website content, social media posts, and videos if your target market has evolved in any way. Without continuous content marketing, you’ll have no way to reach your current and new buyers with your messaging.
Next, make use of free or inexpensive tools, such as your own website and social media platforms. While a boosted post or a pay-per-click ad is always a great way to drive more traffic to your site, the most important thing is to make sure buyers can always receive the latest news about your brand through your owned media platforms.
Finally, maintain marketing leadership, no matter what. Eliminating high salaries might look great on paper, especially if you think an entry level marketer can continue regular marketing duties on their own. However, without some form of leadership, your marketing could quickly lose direction, resulting in confusion and a lack of strategy to continue growth during a financial downturn.
As a Fractional CMO, I know firsthand that outsourcing to a part-time marketing executive is a cost-effective way to maintain solid marketing leadership and guidance for even the smallest marketing teams. Together, we can make a big impact on your marketing for a fraction of the cost of a full-time CMO.
If you would like to chat about your options on how to navigate your marketing and brand growth, reach out. We would be happy to be your guide.
