A Recession may be here. Before you stress out, let’s review what past recessions have taught us about marketing your business during a downturn. Then, let’s identify opportunities we can use to thrive and grow.
Here are a few tips from a three-time recession plus a pandemic marketing advisor, Liz Harsch, Owner of Tailor-Made Advertising.
I did not set out to become a recession marketing expert. However, my business has survived three recessions so far and it may be that the fourth one has arrived. So, let’s look at what entrepreneurs can do to make the most during a downturn or recession. I hope that some of these tips will be helpful to you. Remember, this will pass, so dig in and learn how to help your company thrive.
1) Ask questions. Start by asking your customers what they need and how you can help them. Sometimes this is just what they need, someone to listen. At a time when customers feel cash strapped, you can listen and find opportunities that can fill a niche. Example: If you are a yoga studio seeing reduced class purchasers, ask past customers if a bring a friend promotion would be helpful. Provide and post some free 15 minute online lessons to show the quality of your teaching. Then, expand your reach by asking past students to share them. Offer special bundles that your loyal customers can get to thank them for their loyalty. Your clients need you to help them when their finances are more limited.
2) Cut expenses where it makes sense; however, keep a marketing budget. Track your most successful marketing and keep those campaigns. Look for ineffective campaigns and trim those. If you stop marketing, your past customers may think you have gone out of business. Don’t just drop your conversations, let people know about your new products and promotions and remind them of the value of your products and services. This is when your email marketing can help. Emphasize quality and ways to stretch budgets. Make suggestions on how your clients can thrive during a downturn by sharing tips you find helpful. If your contacts respond, boost your posts and consider adding ads to get more social proof while increasing your marketing reach.
3) Consider increasing your marketing budget. If your company is competitively advantaged, consider marketing more right now. Digital marketing will be priced more competitively when money is tight. In fact, you can stretch your investment and pick up market share when your competitors reduce their advertising. Track your campaigns carefully and watch for low cost competitors trying to poach your customers. Also remember that many consumers are hurting so — in addition to promoting your business—also provide free tips, empathy and highlight your local support for your community.
4) Conduct a survey. This is a good time to do a survey and find out what you can provide for your customers (products or services, smaller packaging). During times when expenses have to be cut, you may find that some of your products can be a solution. Can you bundle services or products for a better value? Are there are new markets that could use your products to solve a problem? Now is the time to diversify and not be dependent on any one type of buyer.
5) Offer discounts and/or value added services. Tariffs increase the cost of goods, so recognize that customers are going to cut their costs and that is not a reflection on their opinion of your business. Create a contingency plan for your customers. Add discount offers for loyalty. For example, without being asked, my phone company added Gigabytes to our family plan and my language instructor is offering new bundled classes that offer better discounts if I purchase more classes now. Some companies are also offering layaway or financing plans. What do they know? That I will be a much more loyal customer if they work to keep my business over the long run.
6) Ask for help, negotiate with suppliers and manufacturers. It’s time to lower your overhead. Ask your suppliers, and manufacturers to change your rate and terms to give you more time to pay. Find suppliers that are local and won’t be as affected by tariffs. Ask your landlord and monthly service providers for a break. Check your monthly subscriptions to see if they are offering discounts or bundles. Shop their competitors’ pricing to ensure you re not overpaying. Ask about bulk buying deals or anything that will reduce your costs but keep your merchandise flowing. Don’t wait. Start talking to your suppliers now.
7) Share solutions and challenges with others like you. Join webinars from SCORE, SBDC, Chambers of Commerce and other networking groups. Many of them have Facebook and LinkedIn groups too. Often the best solutions have already been discovered by your peers. Sharing those solutions can be the difference between surviving and thriving.
8) Media Mix. Get more done with your marketing efforts. Create a media mix that marries your most effective traditional tools with digital media tools. Reach your target market more effectively. Generate the required number of exposures to elicit sales and results. If you need help brainstorming to create your own recession-aimed marketing plan, contact us by email, or call at 310-791-6300.
If you need help with your business marketing strategy or help designing, critiquing or improving your marketing plan, contact Tailor-Made Advertising here . Or call them at 310-791-6300 to keep your organization thriving.
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Liz Harsch is the owner of Tailor-Made Advertising in Torrance, CA. Her firm provides marketing, training and consulting to identify marketing and media alternatives for business owners. As an experienced Marketing Director, Media Planner, Liz has trained small business owners for Constant Contact, SCORE, SBDC, SBA, Cities, MWD and County outreach partners plus many Chambers of Commerce for over 25 years. She can be reached at her Torrance, CA, office at 310-791-6300 or by email at liz@adteamla.com. You can also see her upcoming training workshops calendar at https://bit.ly/TMadeEvents.marke
