Increasing macroeconomic headwinds are making businesses rethink their strategies in the expectation of a global downturn. In the UK, a 2023 recession has already been predicted by economists with May 2021’s inflation rate at 9.1%, the highest since March 1982. This is showing no signs of slowing, with expectations for this to reach 11% in October. So what does this mean for business and marketing departments?
With the risk of losing steady income, experiences of cash flow and resource issues as well as budget cuts, it can make it even more difficult to try and engage with your audience and retain business. This can be a huge issue for businesses, especially if they’re not strategic in this type of climate.
In this episode of TechTalks, we’re taking a look at how brands can better coordinate their resources, assess and reset their marketing goals and stand out in the crowd during this time of uncertainty.
Joining our host, Richard Braggins, Content Director at CopyHouse, are:
Martin Kennington, Chief Marketing Officer of 365 Business Finance.
Zoe Marchant, Managing Director of Bright.
Jessica Carroll, Head of Marketing at Accountancy Cloud.
Kathryn Strachan, Managing Director of CopyHouse.
You can watch the full TechTalks episode below, or keep reading for the summary of key highlights.
A recent government backed campaign suggested that in order to get through the cost of living crisis and predicted recession, businesses should consider cutting back on their marketing spend to save money and channel it into other areas.
This caused understandable concern in the marketing community, with many arguing that this was completely the wrong approach for businesses that want to continue to see growth in their customer base and bottom line.
“If a business thinks cutting back on marketing is going to help, then unfortunately it’s not the golden ticket they’re looking for. I understand that some will need to dip into their marketing budget, but cutting back in general is not the solution.
Revisiting how you’re spending your budget and making sure you’re spending in the right places is where you should start. Use what you have to the best effect.
During the next few months, we need to be marketing more to our customers and target audience. This doesn’t always have to equate to spending, but we need to make sure we’re in front of them as much as possible. We should be assuring them that we can help them get through this time."
- Jessica Carroll, Head of Marketing at Accountancy Cloud.
Aside from the risk of having your marketing budget cut, it can also be a tricky time to work out exactly how to speak to your customers. During recessions, consumers often have far less disposable income, meaning they are more cautious with their spending and cut down on things that aren’t considered a necessity.
With this in mind, it’s crucial for businesses to align themselves with their customers and their changing needs, being sensitive to their situations and updating their messaging accordingly.
“You need to look at your targeting carefully. Make sure your messaging is relevant and that your propositions will land correctly. B2B businesses in particular need to focus on evidence - how are you adding value to your audience?
Customer advocacy in particular was important during COVID for outreach success. You need to sell without selling yourself, and this is more powerful coming from your users than from you as a brand. There’s been a real shift towards credibility marketing.”
- Zoe Marchant, Managing Director of Bright.
If you’re keen to continue your marketing efforts during more difficult financial times, there are plenty of options that can help you to keep costs down while maintaining an effective strategy.
One of the key things is to keep your customer front of mind and focus on how you can make their experience with you better. Make sure your products and services remain relevant to their needs and take the time to speak to them as often as possible to understand where further improvements could be made.
It’s also important to keep an ear to the ground with what your competitors are doing. If you’re able to spot clear gaps that they’re not filling, you can capitalise on this.
Remember that marketing isn’t always about having huge budgets and creating national campaigns. If you can focus on the areas that are most effective for your business, this can help you bring costs down while maintaining an active and focused strategy.
“If your budget is really limited, focus on your short and medium term plans first. Where can you optimise to make those months a success? Take a look at your organic social and email campaigns, they’re cheap and help to show the world that you’re still engaged. Keep on top of your content and make sure you’re tracking attribution and focusing on the most cost effective campaigns.”
- Martin Kennington, Chief Marketing Officer of 365 Business Finance.
“Make sure you stay the course. Some strategies take time to work, so be patient. Don’t jump the gun or make rash decisions and stay focused on what you want to achieve.”
- Kathryn Strachan, Managing Director of CopyHouse.
While new business marketing will always be key to growing your business, it’s also important to keep an eye on your customer retention, making sure you continue to remind your existing clients of the value you provide.
Customers are likely to remember the brands that continued to provide support and good service during tough economic times, and this can help you maintain your customer base in the long-term.
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