Relevance is key to surviving and thriving in a recession
Recent discussions with our clients, team members and prospects are focusing on the state of our economy with greater intensity. If you’re a business owner or company executive you either believe we’re in the midst of a recession or are convinced that one is surely coming. Just when things started getting back to ‘normal’ after the pandemic, now we find ourselves facing another economic crisis.
The majority of US economists agree that a recession is in store for the country next year. Because of the potentially devastating effects created by a recession, you no doubt have some concerns about how you’re going to survive and thrive in 2023.
At Marketing Direction, we’re well-equipped to help during times of adversity. Our company was founded in the midst of a recession and we helped clients manage through it successfully. The pandemic struck in 2020 and again our clients survived. It’s easy to make people successful when the economy is great, but it’s a whole other ball of wax when people are holding onto their dollars because they’re unsure what the next 24 months will bring.
That’s where relevance—the state of being closely connected—comes into play.
Understand your prospects’ priorities
As we learned in the midst of the pandemic, if you’re still trying to sell to your prospects the same way you did when the economic climate was stable, then not only will they not buy from you, they may not even associate with you again. Potential clients may even be insulted by your sales pitch because they don’t know if they’ll still be open in six weeks!
While your organization may also be affected by a recession, it’s important to put yourself in the shoes of prospective buyers. Talk to them and ask questions like, ‘What is your biggest fear?’ and ‘What keeps you up at night?’ Reach out to your core clients and ask them the same questions. Odds are your prospects have similar concerns.
Talk to prospects with an appreciation for what they’re going through. First and foremost, understand that the service you’re trying to sell may not their top priority right now. If you’re trying to engage with them only to sell something, you could lose them forever.
Instead, provide value-added information that will keep prospects engaged with you and position you as a thought leader. Reassuring messages that reinforce an emotional connection with the brand and demonstrate empathy (for example, by conveying a sense that “we’re going to get through this together”) are vital.
During the height of the pandemic, we helped clients adjust their conversations and messaging. We shifted the questioning from ‘how can we sell’ to ‘how are you doing?’ and ‘Is there anything we can do?’ Since day one we were able to share valuable information and offer consulting which helped our clients survive the crisis.
Recognize the financial challenges that exist, but offer stability and encouragement to your clients and prospects as well. Later, as business returns to normal and your product or service is needed, prospects will remember and come to you first.
Practice marketing 101
When a recession hits, most business owners start looking for ways to cut costs and lower overhead. Unfortunately, marketing tends to be the first area where budget cuts are made; that is a serious mistake. It’s important to continue marketing your business, so you don’t jeopardize your long-term growth.
If you’re spending while competitors are cutting their marketing efforts, your strategy becomes more effective because your competitors are no longer making noise. Business owners who understand the actions needed to gain top-of-mind awareness and stay relevant in the marketplace gain even more traction as their competitors go silent.
Although it’s wise to contain costs, failing to support brands or examine core customers’ changing needs can jeopardize performance over the long term. According to the Harvard Business Review, “Companies that take a scalpel rather than a cleaver to the marketing budget, and nimbly adjust strategies, tactics, and product offerings in response to shifting demand are more likely than others to flourish both during and after a recession.”
Reevaluate the customer journey from the time your prospect Googles your service until the point your client utilizes your service. What could be improved upon? The insights you gain can then be used to personalize marketing messages based on your customers’ needs, challenges or stages in their buyer’s journey.
Complete this activity regularly along with a review of your company’s marketing plan. For tips on how to do this, check out our webinar on “The Customer Journey.”
Prepare for longer sales cycles
Nurturing leads during uncertain times is more important than ever. Making a purchase decision already takes buyers a long time to make, even more so during a recession. Focus on building relationships with prospects that are based on trust and value. Maintain awareness of your brand identity by providing news they can use through targeted content.
At the same time, don’t forget about your existing clients. Research shows that it costs five times more to attract a new customer than it does to keep an existing one. During recessions it’s more important than ever to remember that loyal customers are the primary, enduring source of cash flow and organic growth. Marketing isn’t optional—it’s a “good cost,” essential to bringing in revenues from these key customers and others.
Regardless of size, industry or budget, changes in the economy can impact any organization at any time. Continuing your brand’s top-of-mind awareness means staying relevant to prospects by researching and responding to shifting priorities. Maintain close consistent contact with existing clients to strengthen established relationships and nurture new ones.
Amid the uncertainty that a recession brings to business, your company can show that it is strong and stable and ready to help with resources, tips, information and the right value-added service or product when the time is right. Providing useful content specific to your audience’s needs as part of your tailored marketing strategy will enable your business to not only survive, but thrive in the next recession.
