Why marketing is more important than ever when times are tough
The economic outlook is gloomy, to say the least. UK GDP fell by a jaw dropping 19.1% in the three months to May 2020, thanks to the COVID-19 lockdown (source: ONS). GDP measures the value of goods and services produced and provides an idea of a country’s overall economic health.
And as if massively declining GDP wasn’t bad enough, some expect it to take four years for the UK economy to recover, while unemployment could rise to 9% and the economy could shrink by 11.5% this year. Even as some lockdown restrictions have been lifted, consumer spending has been significantly lower than hoped for.
History lessons
It’s worrying news and many business owners will seek to mitigate risk by cutting costs and saving rather than investing. That’s only to be expected, but some could make the classic mistake of slashing their marketing budgets, which can prove hugely damaging.
While conditions in the coming years will be much more severe, the 2008 “economic downturn” provides many useful lessons (although GDP fell by “only” 5% in 2009 and “just” 6.4% throughout the period). As media consultant, Brad Adgate, recalls in his piece for Forbes: “In the aftermath of the last recession in 2008, ad spending in the US dropped by 13%.”
However, he adds: “[Numerous] studies point out the advantages of maintaining or even increasing ad budgets during a weaker economy. Those advertisers that maintained or grew their ad spending increased sales and market share during the recession and afterwards.” Adgate reminds us of the popular adage that: “When times are good, you should advertise. When times are bad – you must advertise.”
Marketing strategy
Advertising might not work for your business or it might just be part of your marketing strategy. But Adgate’s general argument can be applied to the wider function of marketing, both sides of the Atlantic. When times are tough, it’s not a time to do less marketing, but the same, if not more marketing.
If your competitors cut their marketing spend and activity, it could enable you to raise your profile, win new customers and make more sales. You may need to reposition your business post lockdown and tell your customers about it, while creating or introducing new services or products won’t succeed without marketing. Your prices may need to change, which is something you must communicate to your customers.
You may need to realign your business with post COVID-19 changes in customer behaviour, in which case marketing is similarly essential. And if large numbers of businesses start to fail, as some are predicting, you must let existing and potential customers know you’re still around. Marketing can of course help you to hang on to your existing customers, which will be essential if your business is to weather the storm.
Effort and energy
Money may be tight for your business in the next few years – possibly very tight. But that doesn’t mean that you can’t commit time, effort and energy to marketing. And there are many things you can do that are no cost or low cost. You could, for example, be much more active on social media. Facebook, Twitter and LinkedIn offer advice and opportunity to business users.
It may be wise to create a new marketing plan for your business. There may be signs that your current website is past its “sell-by date”, but if you can’t afford to replace it, you could improve it by adding better writing and website imagery. Introduce a blog to your website if you don’t have one – or blog more regularly if you do have one. Also make sure that your website is optimised for Google.
Creating a customer email can be a good way to stay in touch with customers and encourage their loyalty. There are free basic customer email newsletter solutions available (eg Mailchimp, Freshworks, Moosend, etc). Maybe you could introduce a customer loyalty scheme, while offering cost-effective incentives if your customers recommend you to others. Money-off coupons can be a good way to attract new customers, as can promotional giveaways and online prize competitions.
Survive and thrive
Press coverage can raise your profile and help you to attract new customers, although your story really must be newsworthy. Alternatively, you could offer yourself to local, national and trade journalists as a source of small-business comment and insight. Entering business awards is also a proven way to secure media coverage.
Be prepared to collaborate with other businesses. Also put yourself “out there” more and do much more networking. You may choose to pay for some of your marketing activity, of course, for example, paid social media. This can bring an excellent return on investment, so don’t discount paid options, but trial them and find what works best.
Who knows what lies ahead? Some excellent opportunities may even come your way, it may not all be doom and gloom. But, as previous recessions have shown, the businesses that survive and thrive will be those that invest in marketing.
Mark Williams is a freelance editorial consultant, editor, journalist and SME content specialist with more than 25 years’ experience. He has written for The Guardian, numerous leading brands and award-winning magazines and websites. Visit www.markiwilliams.com