“Don’t stop marketing,” said Will Copp, Owner of Knox Concrete Contractors. “Even during an economic downturn, marketing efforts should remain consistent. Doing so will help you stay top-of-mind with customers and prospects.”
“Maintaining or increasing ad spending during a downturn is a great way to grow share,” said Paul Dughi, CEO at StrongerContent.com. “Studies were done in nearly every decade since the 1920s showed that during recessions, sales and profits dropped off at companies that cut back on their advertising. When the economy recovered, those companies continued to suffer. While their competitors prospered, those cutting back on advertising during the downturn lagged behind the ones that maintain their ad budgets. Many never recovered.”
We asked a group of marketing experts and small business owners to recommend their top strategies for marketing your business during challenging economic times. Here’s what they had to say.
Investing in Targeted PPC and SEO
“Organic traffic can be difficult to come by during economic downturns, so investing in SEO strategies such as link building and keyword optimization can help you increase your visibility online,” said Alex Capozzolo, Co-Founder of SD House Guys. “Additionally, targeted paid advertising campaigns can also help drive more customers to your website.”
“The best methods for small businesses to market during an economic downturn or recession are often counterintuitive,” said Matt at Uplift Marketing. “This is because most businesses automatically focus on how to cut back or hunker down during tough times. They aren’t looking for strategic opportunities. They aren’t looking to gain market share. However, this is exactly what they should be doing. Why? Because this is the opposite of what their competitors are doing. When everyone else is intentionally pulling back, this is actually the best time to gain ground. It is far easier to stand out in a crowded field when others are investing less in marketing. Also, marketing costs typically drop during this time as advertising is cheaper.”
Increasing your Pay-Per-Click (PPC) advertising during an economic downturn can be a good idea for several reasons:
- Lower Advertising Costs: During an economic downturn, many businesses cut back on advertising spend, resulting in lower competition for ad space. This can lead to lower advertising costs, making it more affordable for businesses to increase their PPC advertising.
- Increased Visibility: With fewer businesses advertising, increasing your PPC advertising can increase your visibility to potential customers. This can be especially important during a downturn when people may be more selective in their purchasing decisions and looking for trusted brands.
- Targeted Advertising: During a downturn, people may be more focused on finding products and services that meet their specific needs. By increasing your PPC advertising, you can target specific keywords and demographics to reach those who are actively searching for your products or services.
- Brand Awareness: By maintaining or increasing your advertising during an economic downturn, you can continue to build brand awareness and loyalty. This can position your business for long-term success once the economy begins to recover.
“Also, invest in SEO optimization so potential customers seeking products or services related to yours can find you more easily on Google and other search engines,” said George Harrison, Director of Marketing and Operations for PKGMAKER.
“With more people spending time online than ever before, businesses must have a strong digital presence to remain competitive and top of mind,” added Sarah Walters, Marketing Manager at The Whit Group. You may reach more people and boost sales while cutting your marketing expenditures with an effective online strategy.
Ramping Up Digital Presence
Besides PPC, ramping up your digital presence can pay long-term dividends without spending a lot of money.
“Focus on strengthening your online presence as this will enable potential customers to discover and learn about your company easily,” said Luke Fitzpatrick, Marketing Officer at Drsono.com. “Make sure that you have a well-designed website that effectively communicates the purpose of what you do and is kept up to date with fresh content, such as blogs and news articles.”
Fitzpatrick also says it’s important to make sure that you have an active social media presence across multiple platforms (e.g., Twitter, Facebook) “so that customers can interact with your business in real-time. Also, consider utilizing other digital platforms like YouTube for video content or Reddit for discussion forums focused on topics related to your business.“
“It is more important than ever to focus on building and maintaining relationships with your customers. Utilize digital channels such as email and social media to stay in touch with your customers and ensure that they are aware of any promotions or discounts you may have available,” said Capozzolo. “Additionally, be sure to provide helpful and engaging content that will keep customers interested and engaged.”
“To use content marketing, you don’t have to be a crafter or food enthusiast,” said Edward Harris, CEO and Founder, Phoenix Reviews. “All types of businesses have started blogs to give their customers useful content and foster brand loyalty. Since content can be shared on social media and used to drive traffic from search engines, promotion through blogging is ongoing. Write a piece that instructs readers on how to incorporate your products into their lives in novel, practical ways that they may not have thought of.”
Focus on Core Competencies and Emphasize Value
“Identify what your business does best and focus your marketing efforts on those areas,” said Copp.
“When consumers are tightening their belts, they are more likely to choose products and services that offer the most value for their money,” said Mervyn O’Callaghan – Co-Founder and CEO of CameraMatics. “Emphasize the unique value proposition of your business and make sure that your pricing is competitive. Highlight any cost savings or other benefits that customers can expect when doing business with you.”
Partner with Other Businesses
Cross-promoting with other businesses that have compatible or complementary services can help stretch your marketing dollars further.
“When considering potential partners, it’s important to choose businesses that complement your own and share your values and goals. Look for businesses that serve a similar target audience but are not direct competitors,” said Jonas Østergaard Pedersen, International SEM Manager at EcoOnline. “This can help to ensure that the partnership is mutually beneficial and doesn’t dilute either business’s brand.”
Leverage Established Customers
During economic downturns, you want to keep a close eye on your current customers.
“To effectively market during an economic downturn or recession, businesses must find ways to reduce costs, shift strategies, and focus on customer retention rather than acquisition,” said Tom McSherry, the Managing Director of Premium Dental SE. “The idea that it costs 5x more to acquire customers than to retain them is still true in 2023. Forbes reported this statistic before and reported this again just three months ago.”
“Existing customers are far more likely to experiment with new offerings, averaging 50% higher than those who are first-time buyers.,” McSheery added. “Additionally, these established customers invest 31% more in their purchases compared to those who are newly acquired. This means that you have more potential to generate higher revenues and profits with existing customers.”