It’s all over the news: headlines about the upcoming recession and how to prepare your business and yourself. The truth is that consumer confidence in the economy is down, and according to a recent poll, more than 70% of economists predict the recession will hit by the end of 2021.  

As US businesses prepare for a recession, now is the time to take a step back and look at the big picture. Is your business prepared to ride the tide of the next recession? Is your marketing strategy recession-proof? Here, Your Marketing People gives you a list of six dos and don’ts of marketing during a recession to help your brand make it through the economic downturn in one piece. 

DON’T: Panic.

This is first and foremost, and we can’t stress this enough. Do. Not. Panic. Some companies will begin prematurely devaluing their brands by cutting their marketing budgets, losing potential customers and revenue in the process.

Strategy: Instead of panicking, prepare. Read the rest of our dos and don’ts below to make sure your brand is properly prepared. 

DO: Report, track, and analyze everything.

The best way to prepare for an economic slowdown is to track and understand your data. 

1. Start with your channels. 

• Which marketing channels are bringing in the most revenue at the lowest cost?
• Which are your lowest-performing channels?
• Is there a certain time of year your business generates the most sales from your campaigns?

2. Next, study your target audience and customer base.

• What channels do your repeat customers respond well to?
• How did their spending patterns change during the last recession (if your business was around during the Great Recession)?
• Do they spend the most during a certain time of year (for example, the holiday season)? 

Strategy: During a recession, consumers are willing to take more time searching for what they want as well as for the best price; they also are more prone to postponing purchases or buying less. “It’s more important than ever to really know your customers and their journeys,” says Ishani DePillo, CEO of Your Marketing People. “Besides developing trust through customer satisfaction, your messaging needs to appeal to the wants of your target audience.” 

DON’T: Cut your marketing budget without considering the long term.

In the midst of a recession, companies have a tendency to cut marketing budgets first in order to save money—in the first quarter of 2009 (during the Great Recession), for example, overall advertising spend in the US fell by 13 percent. While cutting your ad spend is a quick way to reduce costs, you’ll also reduce your sales and revenue. There have been many studies that show that brands who maintained or even increased their ad spend during a weak economy actually grew their market share (and sales) during and after the economic downturn. 

Strategy: “Dive deep into your data to analyze what channels and campaigns are most profitable,” says Alisha Chocha, President of Your Marketing People. “Then, reallocate your budget to the top-performing channels.”

DO: Focus your budget on your loyal customers. 

Your existing customers are the ones who keep coming back because they love your product and/or service and you are a brand they trust. According to the Harvard Business Review, during a recession, “trusted brands are especially valued and they can still launch new products successfully, but interest in new brands and new categories fades.” 

Strategy: Move most of your marketing budget in paid search, paid social, emails, and other channels toward remarketing to customers who consistently buy from you in order to capture the most sales and avoid wasted spend.  

DO: Test, improve, repeat for all of your ad campaigns. 

On a similar note of not arbitrarily cutting your marketing budget, pausing all of your underperforming campaigns isn’t the answer. Instead, run tests, improve messaging, and then rinse and repeat. 

Strategy: “If you’re not meeting your target ROI with certain Adwords keywords, work on improving the campaigns first,” says Emily Sugano, Paid Search Manager for Your Marketing People. “Test and see if simple improvements, like using negative keywords, increase your revenue for underperforming campaigns.” 

DO: Consider outsourcing some of your work to agencies or contractors.  

To maintain the momentum of marketing your business during an economic slowdown, consider partnering with an agency or hiring marketing contractors. You’ll work with a team of experts in their fields, who will strategize creative ways to build your brand.

Strategy: When you choose an agency, you’re able to scale the work up or down according to your budget. 

Fool-Proof Your Recession Marketing Strategy

One last thing to think about: During a recession, the competition in the ad space decreases (as competitors slash their marketing budgets), which also causes the cost of advertising to go down. Take advantage of the lower rates and simultaneously show your customers that your brand is stable and thriving.

As always with marketing, preparation and a solid strategy are key to your brand surviving any economic downturn. Your Marketing People can help you prepare for the long term by setting up your digital marketing channels for success. Get in touch with us.