9 Tips for Marketing During a Recession

Scroll any stream, and much of the chatter is about an impending recession. Marketers can be ready for the slow down by learning from the past. The typical corporate approach is to operate from a fiscally conservative position, which translates to less spending. Marketing is one budget item that often is reduced, but is that the right decision? Let’s be prepared by breaking down how to approach marketing during a recession.?

Why it's wise to market more in a recession

It's time to suit up because marketing professionals will be battling to justify and keep their precious budgets. Many companies make the mistake of cutting back on marketing when times get tough.?

Historically, corporations that continued with robust budgets during recessions showed growth and were better poised to become market leaders once consumer spending levels rebounded. Example: Kellogg doubled its advertising spend in the 1930s recession, making huge inroads against competitor Post, growing profits by 30%, and becoming a household name. Manufacturer Toyota resisted lowering its marketing budget during the 1970s fuel crisis, later surpassing its main competitor at that time, Volkswagen, and becoming a leading car manufacturer in North America.

During the early 1980s U.S. recessions, McGraw-Hill research looked at company brands. Of the 600 businesses they evaluated, those that kept advertising during the 1980-82 downturn were 256% ahead of their competitors who did not advertise.

And it's not just decades-ago recessions. In a 2002 McKinsey study titled "Learning to Love Recessions," which followed nearly 1,000 businesses in the United States for 18 years (1982 to 1999), including the 1990-1991 recession, it was found that while most firms belt-tightened, the winners traded lower short-term profitability for long-term gains.

History's going to repeat itself. Savvy marketers know the lesson: keep marketing and do it well. Why? Because consumers remember the brands that kept marketing during tough times.

Why marketing more in a recession works

Don't think of consumers as "not spending" in a recession. Yes, their personal spending habits may change and slow down, but it's much more of a pause than a complete stop. When consumers have money to spend again, they'll instinctively turn to those brands they know first.

The Harvard Business Review does a great job explaining the mindset behind consumer spending in a recession. (Note the April 2009 date, near the end of the last great recession.) The article explains that while some will "slam on the brakes" or halt all spending, others have a "live for today" attitude and keep spending. The "pained but patient" and "comfortably well off" groups are in between.

Marketing robustly and thoughtfully positions your brand to hit all four spending habits, whether winning the "live for today" spenders over now or the "slam on the brakes" group down the road.?

How to market in a recession

Marketing professionals do need to be prepared for marketing in a recession. There's no surefire way to predict how much the economy will slow down, the recession length, or how significantly it will impact all of us. What we can do is refocus our spending and make smarter, well-informed decisions. The objective is to be positioned for long-term growth.

Here are a few tips to help with marketing in a recession.

Get creative with your marketing budget.

If you need to cut back on marketing spending, get creative about how you do it. There are plenty of cost-effective marketing tactics out there. For example, social media marketing is relatively inexpensive and can be highly effective. A few tactics:

Rely on existing, high-performing content. Find the gems you already have. Lean on those to make a meaningful impact with your marketing. Look at ways you can repurpose your existing content. For example:

• A blog is turned into a video
• A video cuts down into several easily sharable social video clips
• A white paper inspires a podcast
• A blog turns into an email newsletter

Make informed choices. Really tune into your metrics to see what's resonating with your audience and what's passing them by. Keep your messages relevant to things they care about. You can also see which platforms and methods are gaining the most traction. Invest more time and budget into those high-performing strategies and less in others.

Collaborate with others. Piggyback your marketing by partnering with another brand whose values or services complement your own. Hosting an event or campaign together expands your audience reach and community impact.

2. Focus on value

During a recession, consumers are looking for value more than ever. So make sure your marketing messages focus on the benefits of using your products or services. This could be in the form of cost savings, time savings, or stress reduction.?

Whatever it is, our consumers want solutions to their problems and a good value for that solution. Make sure your marketing messages have a benefits-first focus. Tune in on how you can help consumers save money and/or improve their lives.?

3. Lean into your marketing channels that are working

Now is not the time to spread yourself thin with marketing tactics that aren't working. If you find that specific marketing tactics or channels are performing better than others, put more of your eggs in that basket and focus on those channels.

For example, if you're seeing great results from email marketing, double down on that and create even more engaging email content. If social media is working well for you, consider investing in some paid social media ads to reach even more people.

4. Engage your leadership

Use your leadership to tell stories and get customers excited about your brand. Company leaders are natural brand influencers, who can engage with others and promote your essential message. You can leverage their social media reach and your marketing storytelling to create powerful personal, professional, and organizational loyalty.

Their public visibility also humanizes your brand. In tough economic situations, these leaders are composed in crisis, confident in uncertainty, and grounded in key values rather than relying on short-term gains. Hearing the message from the top shows customers your intent to invest in relationships for the long-term. It enables transparency and increases customer trust.

Ask your leadership to get involved on social media. If necessary, coach them on how to develop a persona and post effectively on the best social platforms for your business.

5. Get personal

In times of uncertainty, people crave connection and authenticity. So lean into your marketing and make it more personal. Share your company's story and connect with your audience on a deeper level. Vulnerability is okay. People relate to brands that can admit mistakes and show they can handle challenges.

Create company accounts on Facebook, Instagram, LinkedIn, Twitter, YouTube, and other major social networking sites. Let the brand express its personality on social media. It'll promote brand awareness while developing trust with your audience.

While on social or any marketing platform, it's critical to follow up on any inquiries or issues raised by your clients, brand evangelists, or even neighboring businesses and vendors on social media. Following up with these individuals may help you increase the organic reach of your company, expand your following, and perhaps attract new customers.

6. Love your current customers

Focus heavily on keeping the customers you already have. Customers will be more inclined to stick with you if you take the time to care for them and keep addressing their needs. Plus, remember existing, happy customers are more likely to buy again with you or renew your services.

Keep providing them with value through your marketing. Inquire about what current customers want from you. Respond quickly and promptly to any messages or comments on social media. Show you're agile and you care. They'll be even more sure to stick around if things get tough.

7. Be sensitive to the current climate

In times of economic uncertainty, people can get worried or even scared. So it's essential to be sensitive in your marketing messages. Don't try to sell people something they don't need or want, and avoid being overly sales-y. Instead, focus on providing helpful information and building trust with your audience.

8. Keep an eye on your competitors

During a recession, you can bet that your competitors will be looking for any opportunity to steal market share. Keep an eye on what they're doing and adjust your marketing accordingly.

This doesn't mean you need to copy what they're doing. But it does mean you must be aware of their marketing efforts and modify your strategy as needed.

9. Plan for the long term

A recession doesn't last forever, and things will eventually rebound. So while it's important to focus on the here and now, it's equally important to plan for the future.

Continue to invest in marketing, even if it's at a reduced level. Hone in your branding so it's consistent on every channel. Lean on building brand recognition and reputation. And make sure you have a solid plan in place so that when things rebound, you're ready to capitalize on it.

Get ready for recession marketing

Many businesses facing a recession make the mistake of cutting costs too quickly, jeopardizing long-term success. By following these tips, you can ensure that your marketing efforts are effective even during a recession. This is your opportunity to set the stage for building customer loyalty and long-term brand growth. Don't let it pass you by.?