Whether we have actually entered a recession is still being debated, but we do know that we are in a significant recession. When the economy enters a recession, there is a dramatic change in the way people spend their money.A new mindset of frugality grows .
This is true for both consumers and businesses. As budgets get tighter, businesses are being forced to be more strategic with their ad spend. While event budgets increased in Q3 fresh list of this year, all other forms of marketing decreased, including sales promotions which fell by astaggering 7.5% .
This is an attempt by many companies to focus on customer retention rather than acquisition, as they see marketing strategies as a way to win over the consumer. Not only is this view of marketing incorrect, it also means that companies miss out on exponential growth.
Recessions can be great opportunities to hone your marketing methods and make better use of your budget; they are a unique window of opportunity, especially for those who can analyze trends and data well.
Skeptical?
Let's discuss the best ways to market during a recession.
Understand customer habits
Marketing isn't just about acquiring customers. It also helps you retain them as consumer values change.
The reason for this shift is that consumers during economic downturns cut costs and spend only on necessities. Indulgence ceases and consumers lose confidence in spending. During the Great Recession,there was a dramatic decline in the Consumer Sentiment Index (CSI), which fell along with personal spending. The depth of the decline was rivaled only by the low level of consumer confidence achieved. People spend more time at home and spend less on services that do not meet their basic needs.
It’s important to pay attention to the types of media that capture people’s attention, as this means you can reduce costs by focusing on high-yield marketing efforts.
Analytics won’t lie to you when it comes toatuação, and so, like a good friend, they need to be listened to and trusted. A recession will cause unpredictable behavior, and so you can’t rely on channel and ad performance to remain the same.
Analytics will let you know when changes happen, which can better prepare you to address them through new marketing strategies.