Marketing tips during a recession. Don’t stop marketing!

As the Corona Virus spreads around the globe and more and more countries urge people to stay at home, companies close down and the worry about the future continues. So what is the best way for companies to survive this crisis we are now facing? Consumers are more likely to turn to internet shopping to either avoid risking infection in crowded spaces or because they are bored at home. There were f. ex 220 million downloads from the Apple’s online store in February in China which is 40% up from 2019.

Ads

Several studies have shown that companies that continue or raise their marketing budget on ads etc during a recession increased sales both during and after the crisis. There are several reasons for this:

●Other companies strip back their marketing efforts which makes the competition less within your product category. 

●You will show stability in an unstable market which shows the customers that you are reputable. 

●The costs of advertising drop. 

●Your market share will increase as other advertisers cut back which can increase profits.

Email Marketing 

Don’t forget to use your email list.  This is a great way to reach potential customers for a short term sales boost without having to spend a lot of money. Email marketing is something you should always incorporate into your marketing strategy. Emails give you a unique chance to boost sales, build brand credibility and recognition, increase traffic to your webpage and increase sales.

Customer experience 

In all this chaos it is easy to lose track of the customer experience, but addressing customer concerns in regards to impacts of the coronavirus like stock levels and delivery can encourage brand loyalty. Proactively address these issues to keep the customer at ease.

Cut the right costs

Cutting marketing spend will, of course, reduce your costs but will also reduce your leads. An analysis made by PIMS (Profit Impact Of Marketing Strategy) on how over 1000 companies reacted in previous recessions shows that companies that cut their spare capacity, manufacturing and administration costs did well. It also shows that companies that reduce their marketing budget, service and product quality tend to underperform.  

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