A recession is forecast to hit the world in 2023, so it's time to start preparing your digital marketing strategy to meet it head-on.
At the risk of sounding bias, we say that digital marketing is more important than ever during a recession. By connecting with customers online, businesses can help build brand awareness and create a connection that will last long after the economic downturn is over.
Start investing in digital marketing now, and you’ll ensure you can continue reaching customers online even if the economy is struggling. After all, if one thing Covid-19 taught us it’s that when a crisis is in play, we spend more time online. Therefore, having your business visible on platforms that your target audience is scrolling on is critical.
How a recession might impact New Zealand businesses
Naturally, we should expect to see a drop in consumer spending. When people are concerned about their financial security, they’re less likely to spend money on non-essentials. This will have the most significant impact on retailers and restaurants but will also create a trickle-down effect to other industries.
Another way a recession can impact businesses is by making it more difficult to obtain credit. This can make it harder for businesses to invest in new products or services or to expand their operations. Finally, an economic downturn can lead to job cuts, having a negative impact on the morale of employees and the mood of the general population.
Many of these things are out of your control, but you’re not entirely powerless in how a recession affects your business. You do, for example, have an opportunity to expand your potential customer base and strengthen connections with existing customers. Recession or not, your business still needs marketing!
Should you market your business during a recession?
Some businesses are understandably wary about marketing themselves in a recession for fear of being seen as insensitive. However, these businesses are missing a huge opportunity. While it’s certainly not time to blow your own horn or boast about how well you’re doing, it’s also not the time to become a wallflower.
During a recession, customers are more likely to research and buy products online, so businesses that already have a strong online presence are well positioned to ride out the storm. Regardless of your industry, it’s an important time to invest in your online presence and market your business; you just need to be careful about how you do it.
How can businesses use digital marketing to connect with customers?
Instead of focusing purely on sales, now is a great time to utilise your digital marketing efforts to connect with customers, building relationships in a way that is both affordable and effective.
One of the simplest ways to connect with your customers is through your website. A website not only provides information about your products and services, but it can help turn visitors into leads and leads into customers. If yours is outdated, unappealing or not fit for purpose, it’s not doing your business any favours. Set aside time to either revamp your site in-house or, better yet, bring in professionals to turn it into a powerful marketing tool.
Another effective way to connect with customers is through social media. Social media platforms like Facebook, Twitter, and LinkedIn offer businesses a way to connect with customers and create a community around their brand. The power of social media can’t be overstated, and now is a great time to start investing time, energy and resources into your presence.
By using digital channels to your advantage, you can communicate with customers directly and share positive messaging about your brand. This can help build awareness and widen your potential customer base for when spending habits return to normal.
Things to remember when marketing during a recession
At Mint Design, our marketers guided our clients through the challenges of COVID-19, and learnt a thing or two about marketing when times are tough. Here are our five biggest tips for doing it well.
1. Stay focused on your goals
Regardless of your industry, all businesses will tighten their belts during a recession, so it’s important to make the most from any marketing investment. Before putting any digital marketing strategy into practice, it’s important to know what you're trying to achieve. Decide what you will measure to track your success, whether it’s engagement, reach, sign-ups or sales, and set a budget you’re comfortable with.
2. Keep your messaging clear and concise
When the economy is slow and unease is in the air, people are less likely to engage with boring content, as they rely on social media for a break from the humdrum of daily life. Long drawn-out messages will miss the mark. Instead, make sure that your key points are easy to understand and digest.
3. Focus on value-added content
While people may not be spending in the way that they used to, they will be looking for ways to save money, so offer them content that provides real value. This could be in the form of tips, how-to guides, or even discounts and special offers.
4. Keep an eye on your competition
If you know what your competitors are doing (and can see that it’s working), you may want to adjust your own marketing strategy accordingly. This is especially important during a recession, when every penny counts.
5. Stay positive
A positive attitude is always appreciated, especially during hard times. Remember that people are looking for ways to escape the recession, and, if done right, your content could be just what they’re looking for.
Digital marketing has a multitude of benefits for your business and can be incorporated into any budget. The greater your investment, the greater the results. If you’re not sure where to start, or need support taking your marketing to the next level, you’re not alone.
Get in touch today for an obligation-free chat about how we might be able to help.
