As the COVID-19 pandemic brought most economies to their knees, business owners are in pursuit of survival tactics as the world adjusts to the new norm. The price of inflation is proving costly, and there is a need for business owners to review their Digital Marketing Budgets.
First, there was hope that the economy would gradually pick up and get to safer grounds by 2023. Still, economists and financial market analysts appear to have a contradicting opinion on that one. Running a small local business in South Florida during this COVID age appears to worsen by the day. It has become more important to invest in Local SEO Services for your business in preparation for the inevitable economic decline approaching in 2023.
While Fed officials’ latest report project economic growth of 0.2% in 2022 and 1.2% in 2023, this silver lining may not be losing its glimmer. A forecast by Fanie Mae around mid-October predicts a 0.7% shrink in this quarter alone and higher unemployment rates from the earlier projected 3.5 % to 5%.
With the current state of trying to combat inflation and a potential decline in the GDP consequent to numerous factors, It is reasonable to wonder if spending more money on digital marketing is worth the trouble. While business is all about risk, It is also about playing the cards right; thus, here are some tips for marketing in a 2023 recession.
- Do Not Cut Back on Advertising
With an analysis of the economy pointing at a recession, It may be tempting to hold your money for sunny days. However, this may not be the most brilliant move as business needs to keep going. Generally, the primary goal of advertising is to promote brand awareness; therefore, downsizing your marketing budget should do more harm than good. Furthermore, your competitors are probably marketing less, creating a gap for you to leverage.
- Invest More in Digital Marketing
The recession is the time to claim your online presence more than ever. Consumer spending may decline, but they look at products to purchase. Maintaining your market share during a recession through local SEOs and social media platforms promotes a sense of consistency in marking your existence. Managed Web helps businesses set up an effective location landing page and an efficient SEO-optimized website. Undoubtedly, digital marketing is the most affordable option in a recession; thus, it only makes sense for you to channel more money in that direction.
- Leverage on Customer Loyalty
Consumer loyalty is one of the most valuable assets a business can have. Firstly loyal customers are willing to spend money on your products or services because you meet their needs. Maintaining that relationship is vital as they can help you reach new customers through referrals and positive reviews. While advertising is meant to convert leads to revenue, existing customers will likely get you there faster. It is, therefore, crucial to keep them close by staying in touch through offers, emails, newsletters, freebies, etc.
- Switch to Long-term Marketing Services
Long-term plans are not only convenient but cheaper. As you pen down your marketing budget for a recession, always look for every opportunity to save money. Since the goal is to keep costs down, discounts are an excellent way to kill two birds with one stone- same service and lower prices- as usual, and marketing companies offer discounts on long-term services contracts such as yearly plans compared to shorter ones.
- Review How Your Pitch
A recession typically comes with a significant change in consumer spending habits. The consumer mindset almost inherently switches towards a more reserved spending approach. With that in mind, you need to understand that getting money out of the consumer’s pocket will take more effort. The more effective strategy would be tapping into rational and emotional marketing; thus, your messaging has to be more personalized and valuable to the consumer.
- Take Advantage of Marketing Tools to Assess Your Performance
The business cycle is changing, and so are several other factors, including customer and competitor behavior. Fortunately, tools like Google Analytics help business owners assess all these factors while assessing their marketing strategies. With this information constantly at your disposal, it becomes possible to restructure and improve the results at whatever stage of the cycle.
- Do Not Cut Back on Advertising
It is undoubtedly possible to reap bountifully during a recession. Several businesses, like Toyota, pulled through some of the worst recessions by pushing harder on brand awareness; thus, you can be sure that cutting back on marketing is the worst decision, and the survival of your business may hang in the balance.