Bernard May is the CEO of National Positions, a 5-time Inc. 500 company, award-winning marketing agency and Google Premier Partner.
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I am writing this article with sufficient concern for an economic recession on the horizon. As I write this, the Dow has dropped more than 700 points as of June 2022 and dipped under 30K, gas prices continue to rise, inflation is nearing double digits, and tech companies are laying off huge swaths of their teams.
Times are precarious. I am not going to sugarcoat that. I will, however, use times like these to take stock as level-headed as possible regarding what is within my (and your) control as we approach what is to come.
Can we control the pressures of the country’s economic swings? Probably not. But can we pivot and adjust our mindset and strategies to adapt? Not only do I believe the answer is yes, but I believe this is the only real path forward.
Marketing Is Nonnegotiable
Whenever I hear about a business working through an economic downturn or not meeting revenue goals, and their knee-jerk reaction is slashing or eliminating their marketing budgets, it makes me want to bury my head in my hands.
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Now, to be fair, if headcount or budgets were inflated in the first place, that’s another story. However, your business still needs to run. Attention needs to be gained, customers need to be educated, and value propositions need to get stronger. So, why would you ever eliminate this core driver of your business machine as a first cost-saving step?
Marketing is often seen as a “nice to have” rather than a nonnegotiable necessity. When it comes to your marketing strategy, you may need to pivot and adapt, but eliminating it is only going to weaken (or eliminate) your ability to sustain an economic storm.
Marketing Investment Elimination Vs. Reallocation
The preceding point is not to suggest changes in your marketing team, budgets or strategies will not be needed—far from it. But there is a massive difference between elimination and reallocation when it comes to your marketing in times of economic strife.
I could tie reallocation and recalibration together for the sake of this discussion. In fact, marketing, in general, should always be under the lens of recalibration in terms of testing, optimizing and improving campaign performance.
Another analogy would be your personal investment portfolio. If you have been hit with losses, as many of us have recently, that fight-or-flight urge may kick in, driving you to pull your investments to “stop the bleeding.” But the only way (as far as the market is concerned) to eventually build these assets back is to leave your investments where they are for the time being.
You are likely not going to scramble to throw additional cash into a market that is tanking, but the real monetary loss is only truly realized when you have officially cashed out. Just like marketing—when investing for the long term—you may reallocate or recalibrate your investment. But you only truly “lose” if you eliminate them.
(Note: This is not personal investment advice. This example is being used purely to drive home my point. I am a marketing professional, first and foremost.)
Short-Term Vs. Long-Term Pivots
Let’s add some context to the previous point and apply some real-world applications. While long-term growth is the goal, looming economic clouds may push short-term survival to the top of the priority list. Are there any long-term initiatives whose designated time and monetary investment can be pivoted into shorter-term revenue drivers?
Search engine optimization is, in my opinion, of vital importance, but even I know that this can be a process that takes months to start moving the needle. However, Facebook, Google and Amazon paid ads may help you lock down faster results and sustain your brand in a more efficient way for the short term.
Perhaps you should consider pivoting some of your paid media investment (meant to attract new customers) and create an updated email marketing strategy to focus on retargeting your current customers. Whatever it may be, look at the data, time and budget, and consider what short-term strategies may serve you and keep your business’s engine running.
Capitalizing On Market Opportunities
There is a flip side to everything I have outlined up to this point. What happens when businesses do decide to pull their budgets and “get out of the market”? This, my friends, is an opportunity. Just as the right time to jump in the market is when prices are low, the perfect time to gain or retain exposure is when your competitors jump ship.
When fewer of your competitors are jockeying for your position, the field may open up and make it easier for customers to find, consider and ultimately purchase what they need from you.
Additionally, a drop-off in marketing competition can (not will) lead to better ad deals and placements to be had. As when there are fewer businesses chasing that prime placement spot, pricing for these placements may respond in kind.
Current Customers Are Your Recession Lifeline
Finally, I am going to turn to what is perhaps your greatest weapon during dark economic times: your current customer base. All of those contacts, emails and phone numbers from recent, current or even previous customers can be a game changer.
Beefing up your nurturing and promotions to your current customer base can drive repeat purchase activity and, subsequently, the revenues you need. Remember, your customers are feeling the pinch, too. So giving them care (and discounts) via emails or SMS promotions can build that affinity for your brand and keep them coming back.
In an age when new customer acquisition costs more than keeping a current one, and you have a much better chance of repeat selling to a current customer as opposed to new customers, it is a no-brainer.
Nurturing your existing customer base may be the best marketing investment you can make both during times of economic uncertainty as well as economic prosperity.
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Author: Bernard May, Forbes Councils Member
