You're a leader looking to make smart choices and enjoy higher returns on your marketing investments during an economic downturn. Here are seven great reasons why you should be pressing on the gas pedal and revving your marketing engine during a downtick.
Reduced Competition: When competitors slow or park their marketing efforts during tough times, they effectively reduce the amount of "noise" aimed at your target customers. With less competitors vying for your customers' "attention," accelerating your marketing program unlocks opportunities to capture a larger share of the market at a smaller cost -- decreasing level of effort and increasing your ROI.
Customer Acquisition: During tough times, companies often de-risk their operations (and vendors). Meaning they might be open to trying new vendors. Articulating your value proposition in the context of the current economic state will attract new customers. By increasing marketing efforts, your company will rebound faster than your competitors when the economy starts to improve, giving you a massive competitive advantage now and in the future.
Diversification of Clients: In an economic slump, your traditional customer base might be affected differently than other segments. Identifying new target audiences or niche markets that remain less impacted by the economic downturn, enables diversification of your customer base. Effectively, reducing over-reliance on any one specific group fueling a decline in sales.
Mitigating Sales Decline and Customer Retention: Effective marketing is a marathon not a sprint. Optics of "continuity" are just as important as the actual health of your company, regardless of the economic state. If your brand goes "mum," your customers, partners, employees, and vendors may ask themselves if you're still in the race. Instead, solidifying your brand's presence through brand awareness campaigns, shows strength, stability, viability, and savvy. This reinforces why 1) your prospects should do business with you, 2) existing customers should continue doing business with you. Consistently giving your stakeholders and customers peace of mind during the hard times, helps with customer retention and acquisition now and customer loyalty when the economy recovers. Also, being in the "consideration set" and influencing prospects' choices for when they do decide to make a purchase, prevents your products from being overlooked.
Long-Term Growth: The results of a marketing program may not be a realized "sale" for 6, 12, or 18+ months. If you can maintain or even expand your customer base during challenging times, you'll be better poised to take advantage of the recovery when it comes. Conversely, you may emerge on the other end of crisis and find yourself in a bigger predicament than when you entered it.
Reinforcing Value When businesses become more cautious with their budgets, the purse strings tighten which may results in less sales for your organization. Strategic communications enables your brand to communicate the value and relevance of your products and services, addressing consumer needs and concerns during tumultuous times. By highlighting how your offerings can provide solutions, improve their bottom line, and reduce their stress, you encourage potential customers to make purchases despite economic uncertainties and existing customers to trust your brand even more.
Addressing Pain Points: Recessions, contractions, or disruptions in your industry, amplify customer pain points. Identifying and communicating these pain points positions your products or services as solutions. Your marketing campaigns can convey empathy, understanding, and solidarity, fostering a stronger bond between your brand and your customers. Nesting a positive emotion with prospects and customers in time of crisis, builds trust, which builds customer acquisition, retention, and referrals.
🏁 BONUS LAP 🏁 Employee Morale: Employees are THE biggest asset your company has. A healthy marketing program demonstrates to employees that leadership is engaged and actively working to keep the business afloat -- boosting morale. When employees feel certainty and job security, they're more likely to be productive, positive, and be motivated to help the company grow and thrive. And they'll stick around longer. Ready to leave your competition in the dust looking at your tail lights? Let's talk.
by Vlad Gorenshteyn, founder and CEO of Kaprikorn Co.
About Vlad Vlad is the founder of Kaprikorn Co. and leads all client partnerships, laser-focused on helping execs meet their outsized revenue goals, effectively compete in the marketplace, and increase the value of their company. Drawing two decades of experience working with ad agencies and small and large brands including Porsche, CNN, Publicis, BBB, EATON…Vlad brings together under one umbrella -- Kaprikorn Co.’s not so secret weapon. He’s spoken at marketing conferences including MasterClassing and ClickZ as well as featured in news media for his expertise.
About Kaprikorn Co. Kaprikorn Co. helps senior leaders making critical marketing decisions in the midst of economic uncertainty. If you're looking to address your prospects and clients with an effective marketing program that is firing on all cylinders, contact the Kaprikorn Co. team today.