Should you keep marketing your business through a recession?
The cost-of-living crisis is unlike anything we’ve experienced before. Businesses are being forced to close their doors. Some are lucky enough to be able to operate from home, while others are desperately hoping Government grants will soon hit their accounts so they can continue to pay their staff.
What have we learnt from previous economic shocks?
When the 2008 financial crisis hit, there were two kinds of companies:
- Those who panicked cut hard and fast, slashed budgets, made redundancies and halted all outgoing sales and marketing.
- Those who made clever cuts trimmed the fat where they could but continued with the long-term activities that would benefit them and ultimately get them growing again once the dust settled.
Which ones do you think survived?
Thousands of businesses went under following the credit crunch (remember Woolworths?). Still, those who thrived did so because they were not afraid of change and were clever, innovative, and creative. They continued to invest in their existing marketing channels and emerging technologies such as digital marketing.
Wake up and smell the coffee
A great example of a company that rode the wave of the 2018 recession is Starbucks. With a higher price point than most coffee chains, Starbucks was hit hard by the economic slowdown, as clients opted for cheaper coffee chains. By March 2018, their profits had fallen 28% from the previous year.
How did they respond?
- They used social media marketing to engage with their audiences, create a community, and build brand reputation.
- They developed a mobile app long before their competitors, with features such as a store locator, nutritional information, and a rewards programme.
- They also launched a creative new initiative known as ‘MyStarbucksSignature,’ which allowed consumers to develop their own signature drink, name it, and share it online.
While these strategies don’t seem innovative today, they were revolutionary in 2008, especially when businesses struggled. Explore our future-proof strategy.
Staying visible to your clients is more important than ever!
Your shop, office or workshop may be closed, but you can still promote your products and services online via digital marketing platforms, keeping your brand front of mind.
After all, if you’re not visible to existing and potential clients, people will assume you’re no longer trading, and the moment lockdown is lifted, they’ll approach your competitors instead of you.
Benefits of digital marketing
The nation currently spends time online at home via their laptop, tablet, or smartphone, so digital marketing is a no-brainer. However, there are a raft of other reasons why online marketing trumps traditional mediums as a means to raise awareness, communicate with audiences, and generate sales.
- It’s cost-effective – Costs for pay-per-click platforms such as Google and Facebook Ads can start from as little as a few pence. Plus, as you only pay when someone clicks, you’re not wasting your budget exposing your message to people who aren’t interested.
- Improved targeting – Online marketing platforms collect a lot of user data, which you can use to target your marketing efforts precisely to the people you want to reach.
- Increased flexibility – Unlike traditional advertising and print media, digital marketing can be adjusted quickly. This means you can easily tweak or ditch campaigns that aren’t working and re-allocate any budget to those performing well.
If you’d like to learn more about the options for marketing your business online and how VCM can support your business and keep it profitable, please contact us today.