Marketing

Why a Recession is the Right Time to Invest in Your Marketing

With high inflation and threats of a recession making headlines, many business owners are getting nervous and looking for ways to cut spending. This makes sense, and no one would argue with the decision to hold back on non-essential spending.

But where do you draw the line between essential and non-essential business expenses? While there certainly are areas you may want to hold back on spending right now, hiring a marketing agency shouldn’t be one of them.

Yes, we run a digital marketing agency, but this isn’t why we’re advocating for hiring one—even in times of inflation and recession. In our decades of owning and operating a small business that serves other small businesses, we’ve seen firsthand how businesses that double down on marketing come out ahead in the long run, despite the economy or world events. Here’s why:

1. People are still spending money, even if they’re spending less than before.
2. The competition for business is stronger.
3. Your customers want to do business with people they trust.

Below, we will dive into the details of these points. But we want this message to be crystal clear: we aren’t just saying this because of our industry. Consistency in marketing and communication is critical to a thriving business—full stop. It’s an intentional investment in your company’s future, not an unnecessary expense. So if you need a fresh perspective, keep reading. And please don’t hesitate to contact us with your questions about marketing in a down economy.

People Are Still Buying

During a recession, consumers are more cautious with their spending but don’t stop spending altogether. They just shift their spending to items they perceive as providing good value. So if you can show consumers how your product or service provides good value, you’ll be in a great position to increase your sales even during tough economic times.

Even though people are cutting back on spending, there will always be people looking for your business’s products and services. If you’re not marketing, you’re not giving yourself a chance to reach these potential customers.

There’s More Competition

Recessions provide opportunities for businesses to gain market share from their competitors who are cutting back on marketing. Businesses that do well during a recession continue to market themselves effectively and can gain a competitive advantage.

Because the competition for market share is stronger, focus on maintaining the strength of your brand and connections with leads and current customers. Since consumers have less to spend on products and services, they’re likely to be more choosy about who they do business with.

When funds are tight, there’s little room for error. So while people are still spending, they’re growing more discerning regarding where they spend. This means that you’ll need to work harder to maintain those connections and convert leads into customers.

A good marketing agency will audit your company’s digital footprint to ensure consistent branding across the board, including a thorough review of directory listings and any other online expressions of your brand.

If anything seems out of order, a marketing agency can work with you to make necessary updates. This marketing best practice will go a long way to maintain trust between your business and current clients and establish trust with new ones.

People Will Spend Money With Businesses They Trust

Trust is more important than ever during a recession. People are careful about where they spend their money and want to know that businesses are stable and will be around for the long haul. If you can show potential customers that you’re a business they can trust, you’re more likely to win their business.

There are a few ways to build trust with potential customers. One is by being transparent about your business and your products or services. If you’re open and honest about what you’re offering, people will be more likely to trust you.

Consistent and proactive marketing and advertising during a recession will secure trust between you and your customers. For example, social media engagement is an effective relationship-building marketing tactic. People love engaging with brands they support on social media, and brand videos always do well with consumers of all demographics. But this can’t happen sporadically, or it could backfire and produce unwanted consequences.

Proactively writing and sharing content that answers people’s questions about your products and services will give your leads the information they need to make an informed-buying decision. They’ll trust you more when you’re upfront about costs and they know they’re dealing with an honest proprietor. But beyond that, simply humanizing your brand and making meaningful connections online can foster a loyal business relationship for years to come.

Read More: Making the Most of Social Media in a Post-Pandemic World

Another way to build trust is by providing great customer service. If you go above and beyond to help your customers, they’ll be more likely to trust you and do business with you again in the future. Times are tough, and consumers are looking for help improving their quality of life. Make it easy for them to do business with you, and they’ll keep coming back for more.

A helpful way to be proactive with customers is to simply pick up the phone and check in with folks. People enjoy a personal touch like that, plus a live conversation will give you a chance to discover more about their needs and maybe even result in upsell opportunities.

Marketing Is an Investment That Yields Long-Term Dividends

For all the reasons listed above, small business owners should think carefully before cutting back on marketing during a recession. If you’re not already working with one, hiring a marketing agency now is a great way to discover untapped resources and opportunities to reach new audiences. Your marketing agency can work with you on a strategy to attract new customers and beat the competition.

We love helping businesses thrive in a digital world. We will do whatever we can to help you weather this season of economic uncertainty with confident assurance in the investments you’re making to grow your business. Please get in touch with us today, and we can discuss how investing in marketing can help you make necessary improvements and proactive investments in your company’s future. We look forward to hearing from you!