Three ways to use marketing to get through tough economic times (like now)
At the time of writing this, I’m seeing and hearing everywhere - “people aren’t spending”, “I’m struggling to sell anything”, “nothing is working anymore”…
When the cost of living rises, discretionary spending drops - it makes sense. You’re probably cutting back on things yourself and being careful where and how you spend your money. But if you’re also a small business owner you’re getting a double hit 😞
I can’t solve all your problems, I wish I could, but I can give you some general tips on how to reshape your business and what and how you promote your products or services through times like this. If you need something a little more specific - please get in touch.
Before you read on, take a deep breath and pop your empathy hat on. I want you to be in a customer-focused state of mind because understanding your customers and how they are feeling right now will help you to serve them better and communicate with them in a way that’s relatable and engaging. It can also take the sting out of declining sales to understand why it’s happening and that it's probably not something you are doing wrong.
So let's start by looking at your offering and how it fits in today's marketplace.
Customer behaviour always changes with the economy
In their April 2009 Harvard Business Review article “How to Market in a Downturn”, John Quelch and Katherine E. Jocz describe four different categories of expenditure (below). Sure it’s academic, but I think you’ll recognise one or more of these categories yourself.
When you finish reading this, you might like to think about your products and services and how they fit into these categories to help you determine important marketing information like; who your target audiences should be, the likelihood of sales, what value you represent and how to pitch it and, what products or services of yours are going to be in demand right now.
Four categories or types of expenditure
Essentials are items or services that are deemed necessary for survival or central to wellbeing - and could encompass health or mental health, fitness, food, housing, transport, education & training and more. You might also look around these categories like fitness equipment, outfits, consumables or mental health apps, experiences and programs.
Treats can be defined as indulgences, usually bought without much thought and easily justified because of perceived need or low price point.
Postponables are items or services that are needed or wanted, but their purchase can be put off until a later date.
Expendables are seen as unnecessary or unjustifiable and are unlikely to be purchased until things get easier.
Where do your products or services fit within those 👆 categories? Knowing that will help you with the rest of this article.
Three ways you can use marketing to reshape your business fortunes
Note: The following three tips are aimed at smaller businesses to help you make some decisions about how you’re going to ride out this bump in the road.
1.Kill your darlings
It’s a term writers use to cut unnecessary storylines or characters, even if they mean something to them or they really care about them. Can you apply that to your business? To your products or services? Could you get rid of some of your favourites if they were no longer serving you or your customers?
There’s a process that you can go through (supported by me and/or your business coach or accountant if you need to) to determine what products or services in your business you should support or shelve. Doing this will help you focus your attention and your marketing budget on where you will get the best return. Here are just a few thought starters:
Resources - what products or services take the most time or energy, or cost the most to create?
Return - which of your products and services do you get the best return on? The most profit?
Value to your customers - what do you offer that has the most value to your customers and clients right now?
What are people buying? - what do you sell a lot of and why do you think that is?
Feedback - look at your positive and negative feedback in reviews, comments, abandoned carts, social media insights, return customers and more.
2. Change your language
In times when discretionary spending is high, it’s easy to get lazy with marketing language. But now is the time to pull your content and your language into shape. Once you have decided which products and services you are keeping, it’s time to rewrite your key messaging to suit the current financial climate. Here are just a few thought starters:
Who are your target audiences right now and why do they need or want what you’re selling?
What marketing channels are you using? Are they right for your target audiences? How are you differentiating between your target audiences? Do you have too many channels or not enough?
Do you have the right tone for the time? Are you using clear and uncomplicated messaging - is it really easy to understand the benefits and value of your products or services?
Is your visual language (your creative elements) consistent with the words you are using, with the direction you are going, and will your target audiences relate to the visuals? If you are using images of people - can your target audience see themselves?
Note: If you are appealing to a niche audience, don’t be afraid to use gendered language and visuals or truisms to get straight to the point. Keep the waffle for brunch!
Big tip: don’t start changing anything until you really truly understand who you are speaking to.
3. Maximise your budget using campaigns
Once you’ve done the work around what products and services you are keeping and you’ve created a set of key messages and language around the benefits and value of your offering, it’s time to think about how you can maximise your time, energy and budget and still be able to deliver on your promise.
Marketing in campaigns or shorter bursts allows you to promote heavily in a targeted way around key times of the year so you can ‘make hay while the sun shines’. Campaigns can be seasonal or around key dates like Christmas or Mother’s Day or when you know your customers need or want what you are selling. For example, gyms, fitness brands, diet-related products and services all do well in January - capitalising on all the people making New Year’s resolutions.
An example - If you are a ‘maker’ of one-off or limited edition things then you can campaign hard in the lead-up to a store re-stock, hopefully selling out and allowing you time afterwards to start building up your stock again and, building up the excitement for what you are creating.
You might also consider campaigning heavily in the lead-up to or during times when you don’t naturally attract sales. Create positivity around purchases that are out of season. For example, if you sell beanies and scarves you won’t have much interest in summer unless you push to the other hemisphere or generate buzz around the new season products - colours, styles, pre-orders, gifts.
. . .
I could literally go on all day, but I do have to wrap this up. Firstly though, I know I said I’d give you three tips but here’s one more that I’ve said time and time again and it’s never more important than right now - love the one you’re with. Your existing customers and clients are a fantastic source of income and recommendations, so nurture them, involve them, and connect with them all year round. There is a lot of solid proof that return customers offer the most value to any business and also cost the least in money and energy to acquire. If you’re using social media, you’ll know that engaging your existing audiences will also help you win over the algorithms - pushing your content further and helping you to grow.
Ways to do that include: emails that add value, using the Stories feature on social media platforms, driving chats in social media, holding face-to-face meetings, hosting Q&As, offering discounts to existing customers or launching new products and services to them. Let them know you see them and care about them.
Hopefully, this article has given you a few ideas on how you can make positive changes to your business and marketing outputs through these tougher-than-usual times. Don’t stop marketing! Just change it up a little to move with the times.
If you need more specific help, please reach out.
❤️ Hi I’m Erika ✌️ I’m a marketing specialist with a BA in Media and Comms, Masters of Marketing, Certificate in CX (Customer Experience) and over 25 years marketing experience.
I’m well-placed to help you navigate the sometimes overwhelming world of marketing and social media. I work with you one-on-one or create fun and action-oriented workshops and webinars for groups, organisations and businesses.
Book a free discovery call with me below or simply email me to get the conversation started.
