“During an economic downturn, it’s tempting to reduce your marketing budget to improve your cash flow,” said Vito Vishnepolsky, business growth specialist at the Martal Group. “While focusing on low-cost marketing channels and customer retention can fortify your finances in the short term, you’ll discover that long-term growth ends up taking the hit.”
Still, there are effective strategies to shift marketing dollars and stretch resources. Here are a few suggestions from our panel of marketing experts and small business owners.
Shift Marketing Spend
“If funds are limited, the first thing to do is to shift the market communication closer to the purchase phase in the customer journey,” said Evan Berglund, Senior Partner at the Gonzberg Agency in San Francisco.
“This typically means forgoing some branding activities in favor of search engine marketing. However, this shift in strategy also comes with a caution, as the competition may achieve a leg up when things turn around if they kept up with their branding activities during the economic downturn,” said Berglund.
“During an economic downturn, people are often looking for deals and value for their money,” said Rahul Via, CEO at WebSpero Solutions digital marketing agency. “Adjust your messaging to emphasize how your products or services can help customers save money or provide more value. Highlight any promotions, discounts, or loyalty programs that you’re offering to attract customers.”
Invest in Low-Cost PR
Nicole Blake-Baxter, founder and owner of The Blake Agency, also suggests ramping up low-cost PR tactics, including these tactics
- Write a press release about your product launch, holiday giveaway, or company move. Send it to the media and share it via a wire distribution service.
- Create a podcast or YouTube channel and discuss trending topics or interview experts within your industry.
- Reach out to nano influencers (1K–10K followers) and recruit them as brand ambassadors in exchange for free products, services, or discounts.
- Write informational articles and share them via your company blog or get them published on other websites as guest posts.
- Research local organizations and offer to speak at upcoming events.
- Donate products or services to a charity that aligns with your values/mission, and share your philanthropic efforts in a press release, newsletter, or via social media.
Invest in Customer Retention
Andrija Savic, Director of Client Relationships at DesignRush, suggests focusing on customer retention and making personalization a priority.
“Your existing customers are your bread and butter in times of economic crisis, as you already have their trust. And with a tight financial budget, your best marketing asset would be to focus on retention strategies and repeated purchases,” said Savic. “Start by showing care and support with regular communication.”
You can also leverage personalization to impact customer experience. Instead of sending blanket offers, use data to understand how customer behavior has changed during the crisis and offer more attainable plans that result in sales.
“One of the best tips for small business marketing in an economic downturn is to focus on building strong relationships with your customers,” said Danny Dorset, founder, and CEO at Everlast Recovery Center. “By building strong relationships with your customers, you can create a loyal customer base that is more likely to continue doing business with you even during tough economic times.”
The cost of acquiring a customer is way higher than the cost of retaining customers. In an economic turmoil, small businesses can focus on implementing strategies that focus on retaining customers.
“If your customers are satisfied and loyal, it will be reflected in your sales,” said Aima Irfan, Editor in Chief and Marketing Manager at InsideTechWorld. “A 5% increase in customer retention can increase revenue up to 25% to 95%!”
Leverage Email Marketing Segmentation
“Start by identifying your most loyal customers and segmenting them into groups based on their past purchase behavior,” recommends Ubaldo Perez, Jr., CEO of HUSH Anesthetic. “Then create a promotional offer tailored to each group’s interests and needs. For instance, offer a discount on a customer’s next purchase, or provide free shipping for orders over a certain amount.”
When crafting your promotional offer, emphasize the value that sets your product apart from competitors. Highlighting the unique benefits or perks customers will gain from purchasing from you can make the offer more enticing.
By implementing a targeted email marketing campaign that offers promotions and discounts, businesses can attract cost-conscious customers and drive sales during a recession. However, balancing the need for increased revenue with the potential risks of diluting the brand and creating an unsustainable price expectation is vital.
Bundling Promotions
Another effective strategy is to work with other businesses.
“Consider partnering with complementary businesses to offer bundled promotions that provide even more value to customers,” said Perez. “For example, if you run a restaurant, you could partner with a local wine shop to offer a discounted dinner-and-wine package.”
Focus on SEO
“During an economic downturn, it’s essential to focus on your target audience and understand their needs and pain points,” said Via. “With more people turning to online shopping and research, it’s critical to optimize your website, social media channels, and other online platforms to increase your visibility and reach.
Use search engine optimization (SEO) techniques to rank higher on search engines, create valuable content to engage your audience, and use paid advertising to target specific demographics.
Watch Your Competitors
Here’s another tip we love.
“During a slowdown, it becomes more important to monitor your competitors’ moves,” recommends Emma O’Conner, Head of Sales & Marketing at the House Buyer Network. “If you notice a reduction in their spend in certain areas it could mark an opportunity for you to fill the gap and win a portion of their client base. From experience, an economic downturn can prove to be a growth opportunity for many small businesses.”
Sydney Gerber, head of Marketing and Sales for Sell My House Fast, agrees. “An economic downturn is the ideal time to expand your client base and double down on client acquisition,” Gerber said. “Often your competitors’ social channels will slow down and your voice is more easily heard across the web.”
Speaking of Social Media
Platforms such as Facebook, Instagram, TikTok, and Google enable you to use targeted demographic and psychographic data to target your ads to the people who are most likely to be interested in your product or service.
“Unlike popping a leaflet through every door, you’re only showing ads to the people who are likely to be interested and convert – much more efficient,” said Julie, founder, and advertising specialist at Nutshell Services. “Social media ads also provide huge flexibility as you can test various creatives at low cost and quickly scale what works.”
Stay Optimistic
Above all, it’s important to stay optimistic during tough economic times,” said Daniel Smith at Spreadsheet Daddy. “Keep your focus on your long-term goals and stay committed to providing value to your customers. With the right mindset and a willingness to adapt, you can successfully market your small business even during an economic downturn.”