As financial experts predict a likely recession, businesses may start to wonder what that means for their budget, especially small businesses. One of the top areas companies tend to cut back on during financial downtown is marketing.
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As financial experts predict a likely recession, businesses may start to wonder what that means for their budget, especially small businesses. One of the top areas companies tend to cut back on during financial downtown is marketing.
In reality, this is a big mistake that can end up costing you more than you realize.
Instead of halting marketing momentum during the recession, the key is to make the most of your budget. Here are a few quick tips for leveraging small business marketing dollars during a recession.
1. Don’t Shy Away From Marketing
The first, and most important tip is to avoid putting marketing on hold. Recessions are scary and stressful for us all, especially small businesses and entrepreneurs. When looking at your overhead vs. budget, it’s tempting to think that cutting marketing can save on costs.
In the long run, reducing your marketing during a financial crisis can have disastrous effects. For one, it stunts your marketing momentum, which makes it harder for you to gain new customers and turn customers into loyal brand advocates (which you’ll really need in those difficult times!).
Furthermore, many brands (including your competition) will be shutting down marketing and shying away from digital advertising. This gives companies that stick with smart marketing a huge advantage in the market. It’s part of the key to helping you continue business during and after a recession.
2. Understand Your Customer’s Situation
Simply put, the same message that would have made slam-dunk copy during financial prosperity won’t have the same impact during a recession. Part of effective marketing is understanding your customer’s current mindset and situation. You may need to adjust marketing segments and messaging to best suit the moment.
Related: 7 TikTok Marketing Tips
The first step is to put yourself in your customer’s shoes and evaluate their situation. What challenges and concerns are they facing? Which obstacles would hold them back from making a purchase? How does your offer help them address their current (and potentially new) issues?
3. Prioritize
Neglecting marketing is not a wise choice, but you should develop clear priorities for your initiatives during a recession. Given the changing landscape, you may need to adjust how you prioritize various marketing channels, products/services, new developments and more.
Your budget may change during this time, which makes it even more vital to use intentional strategies.
Consider how the financial landscape and circumstances of your audience may change your priorities. For example, it may not be the best time to launch that new treatment you were planning, and could instead be a better time to focus on strategic partnerships with influencers or co-marketing with another relevant brand.
4. Automate Whenever Possible
Automation is one of the best ways to make marketing more effective and less of a financial burden.
One example could be a website chatbot. A chatbot can streamline prospect and customer communication, helping them along the customer journey without tapping into your staff resources.
Related: Mobile Marketing Strategies for Personalized Communication
Chatbots are just one great automation application, in marketing, there are many more.
5. Delegate Externally
Delegating is always important for marketing momentum, but it becomes even more critical during a recession.
Layoffs are a common result of recessions. In an attempt to save money on employees, it can be tempting to try to do it all yourself. In reality, that’s not the best use of your time or money.
Instead, evaluate where and to whom you can delegate your marketing efforts. Shifting more responsibility onto employees may not be ideal, especially if your budget does not allow you to retain all of them. Furthermore, attempting to delegate everything internally may overwork your team, leading to many other issues.
Outsourcing externally is often a better option. Digital marketing options can handle your needs and are often less expensive than sourcing and managing freelancers or virtual assistants. Additionally, you may be able to take advantage of the IRS 100% tax deduction for U.S. small businesses.
Recessions are a frightening time for small businesses and entrepreneurs, but it’s not a time to panic. While it may seem smart to cut marketing costs on the surface, the real key is to market smarter and more effectively.
Valeh Nazemoff is an accomplished speaker, bestselling author, coach and the founder of Engage 2 Engage, a digital marketing services company. She is passionate about improving people’s lives through strategic planning, collaborative teamwork, automation and delegation. Nazemoff’s books, Energize Your Marketing Momentum (2023), Supercharge Workforce Communication (2019), The Dance of the Business Mind (2017) and The Four Intelligences of the Business Mind (2014) aim to help businesses create order from chaos.
