As financial experts predict a likely recession, small businesses may start to wonder what that means for their budget.
One of the top areas companies cut back on during financial downtown is marketing.
In reality, this is a big mistake that can end up costing you more than you realize.
Instead of halting marketing momentum during the recession, the key is to make the most of your budget.
Here are a few quick tips for leveraging small business marketing dollars during a recession.
1. Don’t Shy Away from Marketing
The first, and most important tip is to not put marketing on hold. Recessions are scary and stressful for us all, especially small businesses and entrepreneurs. When looking at your overhead vs budget, it’s tempting to think that cutting marketing can save on costs.
In the long run, reducing your marketing during a financial crisis can have disastrous effects. For one, it stunts your marketing momentum, which makes it harder for you to gain new customers and turn customers into loyal brand advocates (which you’ll really need in these difficult times!).
Furthermore, many brands, including competition, will be shutting down marketing and shying away from digital advertising. This gives companies who stick with smart marketing a huge advantage in the market. It’s part of the key to helping you continue business during and after a recession.
2. Understand Your Customer’s Situation
Simply put, the same message that would have made slam-dunk copy during financial prosperity won’t have the same impact during a recession. Part of effectively marketing during a recession is understanding your customer’s current mindset and situation. You may need to adjust marketing segments and messaging to best suit the current situation.
The first step is to put yourself in your customer’s shoes. Evaluate the situation that your target customer is in. What challenges and concerns are they facing? Which obstacles would hold them back from making a purchase? How does your offer help them address their current (and potentially new) issues?
3. Prioritize
Neglecting marketing is not a wise choice, but you should develop clear priorities for your initiatives during a recession. Given the changing landscape, you may need to adjust how you prioritize various marketing channels, products/services, new developments, and more. Your budget may change during this time, which makes it even more vital to use intentional strategies.
Consider how the financial landscape, and circumstances of your audience, may change your priorities. For example, perhaps you run a craft store online as a part-time business. It may not be the best time to launch a new product you were planning, and could instead be a better time to focus on strategic partnerships with influencers and/or co-marketing with another relevant brand.
4. Automate Whenever Possible
Automation is one of the top ways to make marketing more effective and less of a financial burden. One example could be a website chatbot. Without a chatbot, you may need to pay several people to respond to commonly asked inquiries. A chatbot can streamline prospect and customer communication, helping them along the customer journey without tapping into your resources so deeply. Chatbots are just one great automation application, in marketing, there are many more including funnel marketing.
5. Delegate Externally vs Internally
Delegating is always important for marketing momentum, but it becomes even more critical during a recession. Layoffs are a common result of recessions. In an attempt to save money on employees, it can be tempting to try to do it all yourself. In reality, that’s not the best use of your time or money.
Instead, evaluate who to delegate your marketing efforts to. Shifting more responsibility onto employees may not be ideal, especially if your budget does not allow you to retain all of them during the recession. Furthermore, attempting to delegate everything internally may overwork your team, leading to many other issues.
Outsourcing externally is often a better option for marketing needs. A complete digital marketing solution can handle your marketing needs completely and quickly. This is a far less expensive choice than sourcing and managing dozens of freelancers or virtual assistants. Additionally, clients are able to take advantage of the IRS 100% tax deduction for U.S. small businesses.
Market Smarter During a Recession
Recessions are a frightening time for small businesses and entrepreneurs, but it’s not a time to panic. While it may seem smart to cut marketing costs on the surface, the real key is to market smarter and more effectively.
Take a deep breath and plan the best way to use your marketing dollars during the financial downturn. Break down your ideal audience’s current situation so you can craft more effective marketing copy that resonates with them in the moment. Adjust your strategy to prioritize what makes sense in the current landscape, even if it means delaying or adjusting launches. Leverage automation and external delegation to ensure you can affordably meet your marketing needs without overwhelming your team.
Marketing during a recession is all about marketing smarter and continuing your momentum in the most effective way possible.
