Reassess During the Recession

 

It’s no secret that COVID has caused an economic recession impacting many small businesses and non-profits and their bottom line.  Many have declared that this crisis is worse than the Great Depression and will more than likely have lasting effects on our economy.  But, now is not the time to give up.  Now is the time to reevaluate, reassess and rebuild…stronger.  Below are some ways to achieve success during and after the current state of affairs. 

1. Do Not Immediately Cut the Marketing Budget

The first place many organizations look to cut when purse strings are tight is marketing.  This is the exact reason why NOT to cut the marketing budget…it is not a smart strategy. If all of your competitors are cutting their budgets, and your business is taking the time to fine-tune and continue with marketing efforts, then your business could see an increase in revenue and take over a larger market share.

You want to stay ahead of the fray – stay in the forefront of everyone’s mind.  With more people watching TV, listening to the radio, scrolling through social media feeds, NOW is the time to invest (effectively and efficiently) in digital marketing. When competitors slash their budget, consumers will be less likely to see their marketing efforts and instead will see your company’s presence more frequently. Prospective customers will be able to more easily see the services or products your business offers. Keeping your marketing budget the same, or even slightly increasing the budget, will quiet the buzz of the competition, letting your business shine.

2. Conduct New Market Research

It is common knowledge that having accurate market research is vital for successful marketing campaigns. Market research can give a business a better understanding of its customers and better knowledge about how to approach its target market. Time have changed.  Circumstances have changed.  Shopping patterns have changed.

The way you do business or request donations must change with the trends.  And, you won’t know the current trends if you don’t conduct new market research.  During financial hardships, a person’s available income and discretionary income changes. While it is a convenient idea to cut costs and use historical data from previous recessions, it is not a good idea. By doing expansive market research on your target audience, your business will be able to get insights that can be used as a competitive advantage. A business can align itself with its customers’ needs through market research, which allows for the business to thrive during and after a recession.

3. Focus on Retaining Existing Customers

Customer retention is always an important business strategy, but especially now. Local restaurants and bars that pivoted to curbside or delivery at the onset of the pandemic are faring much better than those who didn’t.  Why?  Because their loyal customers pivoted with them.  They started ordering out, sharing the establishment and their specials on social media, etc.  A majority of a business’s profits come from existing customers, and the costs of retaining customers are much lower than the costs of trying to attract new customers. New customers aren't as likely to give unfamiliar products or services a try during a recession, which is why the primary focus should be on existing customers and keeping them satisfied.

And, shifting the focus to existing customers will cut down on spending without slashing the marketing budget. Keeping customers satisfied will only benefit the business in the long run, because these customers are more likely to leave positive reviews and recommend your business to their friends, which gives your business free word-of-mouth marketing.

4. Analyze Past and Current Performance Metrics

If you are finding you have a little more time on your hands, then this is the time to measure metrics!     Performance metrics can help determine if you’re meeting your goals (which should be re-evaluated) or if you’re on the right track to reach your goals. These metrics can help improve strategy and can be early indicators if things are not going as they should be. During a recession, tracking metrics is even more important as one mistake could lead to the business’s downfall.

What you’ve done in the past may not be right for today. Tracking current performance will allow you to see how your marketing campaigns are doing in this unusual landscape and time. The combination of past and current data will allow businesses to invest their time in areas that have proven to work in the past and see if what was working is still working today.

5. Remain Consistent

Now is not the time to rebrand yourself or your business. Now is the time to revamp your services if needed, but not your brand. Remain consistent in your name, branding, marketing and customer interactions. Your business should not go from sending bi-weekly emails to bi-monthly emails, nor should it go from weekly blog posts to monthly blog posts. These efforts of staying consistent will also keep costs down, which, in a recession, is vital. 

COVID has created quite a stir in all aspects of our lives.  Yes, businesses have taken hits because of the pandemic, but the recession is not forever. The reevaluation of a marketing strategy can help businesses survive this uncertain time.

Listen to your customers.  Listen to your competitors.  Remain flexible.  Remain vigilant.  While it might not seem like it right now, the storm will pass.  The question is, are you ready, willing and able to weather it?