Experts are predicting a recession in the coming months or years. What is actually going to happen and to what extent is still yet to be known. It’s not all doom and gloom though. Many companies come through recessions triumphant and still growing and thriving. These companies are taking advantage of the recession and using it as an opportunity to not only evolve but to double down on their marketing.
Recessions are a normal part of the economy which ebbs and flows. Recessions are inevitable and necessary in our economy. A recession is defined as “a marked slippage in economic activity” by the United States Bureau of Economic Analysis. It is not permanent, usually lasting between six months and a year. The economy will come out of this recession. How your company fares during this economic downturn are up to the decision-makers in the company.
Thomas Jefferson once said, “The man who stops advertising to save money is like the man who stops the clock to save time.” A recession is not the time to skimp on your marketing budget and your ad spend. If anything, you should be doing the opposite and doubling down on your marketing and relying on marketing to get your company through this economic downturn.
As previously stated, recessions are a natural part of the ebb and flow of the economy. This upcoming slowing in economic activity is brought about by a couple of huge world events. First of all, the pandemic. Money was not being spent per usual during the pandemic, and money was not being made as usual. There were stimulus payments, unemployment insurance payments, rental assistance, as well as small business grants given out during the course of the pandemic. The result of these payments is the recession, as the money people have to spend slowly goes back to how it was before the pandemic.
Also, the Russia and Ukraine war has been a cause for an upcoming recession. This war has many far-reaching sanctions against Russia, and it is turning into the most serious risk of nuclear escalation since the Cuban Missile Crisis of the early 1960s. These fears and uncertainties have also led to the upcoming worldwide recession.
The businesses that will come out on top after this recession are the ones who will use it as an opportunity. Marketing teams know that a recession can hold many opportunities for a company to continue growth and evolve. How you seize these opportunities is up to you and can make a huge difference in your company.
What Businesses Can Do To Use a Recession as an Opportunity
There are ways a business can approach the recession to use it to its advantage. History has shown that companies that drastically downsize in preparation for a recession do not usually emerge successfully. The businesses that remain successful throughout the downturn are the ones that remain steady and keep up with their marketing efforts. Here are some things you can do to be that successful company.
Use the recession as an opportunity to analyze your marketing strategy and find out exactly what is working and what is not. By doing this you are not putting more money into strategies that are not returning your money. Give more of your budget to the strategies or platforms that are working. This will make you money, as well as save you from spending on ineffective marketing campaigns.
When you continue your marketing efforts and your customers and potential customers see you in the midst of a recession, your company is seen as stable and strong. This is great for your business as consumers want companies they can rely on, especially in the face of an economic downturn. Drastic changes make your customers think you’re not doing well, which can make them hesitate to do business with you.
Do What Your Competitors Aren’t
Your business can really shine when you’re the only one your potential customers see. Many companies make the mistake of trying to save money by cutting marketing. Don’t make that mistake and be the one your potential customers see. The increased exposure will keep you top of mind of these consumers.
Give your customers more of what they want and need. This is going to create brand loyalty for your company. Ease your customer’s recession fears if you can. Figure out a way to do this and your customers will become loyal to you, as you were there for them in a scary time. Be there for your customers and they will remember your brand and company in the future.
While you might not see the return from some of these things right away, it’s important to be looking to the future for your business. Doing the things listed above can get you through the recession, but then can exponentially grow your business afterward when consumers are spending more again.
An upcoming recession can be a cause for concern and anxiety for any business owner. You can maintain a strong facade so your customers know they can depend on you. Any big changes can look like instability, which is a look you don’t want for your company.
Take this recession as an opportunity to be there for your customers and to calm their fears. Provide for them during the tough times and they will respond with brand loyalty. After you weather this storm, you will benefit exponentially.
Recessions are short term and your business is in it for the long haul and this recession is a necessary bump in the road. You can hunker down, but the businesses that take this approach aren’t the ones who emerge triumphant. Using the recession as an opportunity will take your business and what it can do for your customers to a new level of greatness.
The Creative Agency can help you to calm any recession fears you might have. We get your business in front of your ideal customers, ones that are going to buy from you, and start a mutually beneficial relationship between you and your customers. Book a free Discovery Call with us today so we can talk about your unique marketing strategy that will keep your business on the map.