In uncertain financial times, you may be tempted to scale back on marketing. However, cutting marketing budgets can have long-term negative effects on your business. Especially if you rely on digital marketing to reach your target audience. Instead of cutting marketing here’s what you should do instead.
Ask What Are The Spending Habits of Your Target Audience?
Consider the spending habits of their target audience and categorize them into different demographics. High earners and spenders are less likely to be impacted by a recession. Feel free to can keep reaching out to them in the same way. On the other hand, if you’re targeting lower-income groups, focus on educating and offering free resources to generate leads.
Elongate Your Sales Funnel
During a recession, the marketing and sales funnel is elongated, and it may take longer for customers to convert. Be sensitive to those who are heavily impacted by a recession and adjust your marketing language and narrative. Creating free content and offering webinars can grow a your mailing list and increase brand visibility.
Instead of solely discounting products or services, offer a lower-priced “entry-level product” to entice customers and build trust. This can be particularly effective during a recession when some customers may be looking for more “entry-level products” and tools to DIY their needs, as they may not have the funds to hire someone for more expensive services.
That’s really the goal for recession-proof marketing, make sure you’re top of mind, for a number of people, when people are out of this tunnel.Cora Kessler, Small Magic Studios
Focus on Email-List Building
Email list building during a recession can help your business remain top of mind and build a relationship with potential customers. By offering valuable content and resources, you can establish your business as an authority in your niche and keep potential customers engaged until they are ready to make a purchase.
Cutting marketing during a recession is not recommended, especially for non-brick-and-mortar businesses. Instead, should adjust your messaging and target audience, be sensitive to your customers’ financial situations, and offer free resources to generate leads. By focusing on email list building and offering lower-priced “entry-level products,” you can remain top of mind and build trust with potential customers.
Cora is the founder of Small Magic Studios, a digital marketing strategy company for small businesses. She supports entrepreneurs to get unstuck in their branding and marketing with thorough strategic planning and implementation. She has spoken on panels about influencer marketing and led award-winning campaigns for Fortune 500 brands. Small Magic Studios offers digital marketing plans, one-on-one strategic coaching, and a self-guided course.
Make sure to sign up for the Small Magic email list for free webinars, worksheets, and even a podcast listener code for a session with digital marketing expert & founder, Cora Kessler.