5 Reasons Why You Shouldn't Cut Your Marketing Budget During An Economic Crisis
Today’s business landscape has been badly affected by the global pandemic outbreak. However, many small eCommerce companies now get the chance to become more efficient. Real-time data shows that investment in online marketing has increased by 36%, which gives marketers a huge opportunity for growth, and most importantly, enables companies to achieve greater audience engagement online.
During the last economic crisis of 2007, online advertising sales have risen by more than 27% over two years. It is not just the overall profit margin that’s inflating, either. Digital marketing is changing dramatically in the times of recession.
Although the current situation might evolve to become a serious threat for thousands of people, the digital industry can still benefit from a growing demand businesses place on the current low-price internet marketing services. By providing businesses with the most robust offering of marketing tools, digital agencies across the globe help various industries stay afloat during these tough economic times.
Not only will online marketing survive, but it may also increase profitability during the lean times, continuing stealing your attention. Online advertising is far more business profitable now, and there are five specific reasons why you should maintain your marketing during a worldwide economic downturn.
- 1. Why Digital Marketing Is The Most Effective Channel During Crisis
- 2. Remarketing Can Retain More Customers During Recession
- 3. Online Marketing Is Measurable. Why Don’t You Budget Your Way Through The Recession?
- 4. Nowhere Is A Compelling Digital Marketing More Appropriate Than In Times Of Crises
- 5. A Well-defined Marketing Plan Can Improve Consumer’s Experience and Brand Loyalty During Recession
1. Why Digital Marketing Is The Most Effective Channel During Crisis
In particular, digital marketing services such as SEO and CRM require lower investment compared to any other traditional marketing channels, such as Newspaper or TV advertising. Any online marketing effort requires little time to implement and is more cost-effective than its traditional counterpart.
As you know, our company specializes in developing effective marketing solutions; we help eCommerce websites convert leads into paying customers, and what is more important, build strong customer loyalty. Looking for a creative marketing agency to suit your business needs? Look no further! As your strategic partner, Dewzilla’s team of highly-skilled business developers and marketers will work with you hand in hand to make your business dream a reality.
With the assistance of our promotions experts, you can identify components of your marketing, its internal weaknesses, and potential financial costs of direct damage before the recession strikes.
So, instead of bailing, why don’t you use the opportunity to approach high net worth clients in the down economy.
2. Remarketing Can Retain More Customers During Recession
Before shutting down your business during the recession, you need to know how your customers are doing during these hard times.
Indeed, the most common problem for businesses is to stay afloat amidst an unexpected crisis. And it is very pleasant that the approach to maintenance with effective marketing planning gets on a new level. To learn how your company can survive, and even overcome an economic downturn is essential, especially if your business aspires to thrive in marketing. This means you need to develop a working customer retention strategy that provides as much value as possible in order to keep your brand on the tip of their tongues.
According to the latest customer retention stats, about 70% of businesses claim that it’s cheaper to retain customers than it is to find new ones.
Additionally, there are other equally important factors that may play a role in creating a good feedback campaign during a recession: low advertising costs, and more chances to revolve both targeted and new clients.
In fair weather, managing your marketing budget can become more clear and easier because of the real impact of new financial measures and communications strategy. Reevaluating your current market will help you understand the current situation of the web development service industry, and provide you with useful information on potential risks, or the likelihood of occurrence.
3. Online Marketing Is Measurable. Why Don’t You Budget Your Way Through The Recession?
Nowadays, customers’ buying behaviour is governed by two major factors: digital marketing and online channels. Digital marketing helps you to measure ROI more effectively than the traditional type. In particular, a thoughtful online marketing strategy can help businesses to capitalize on market dynamics, try different types of appeals, evaluate which generates the most favourable response rates, and then adjust your marketing plan accordingly.
What is more, you can create a marketing budget plan or calculate your current ad budget to manage your investments more effectively.
Note that most of your targeted clients will not be able to form an opinion about your brand the first time they see an ad or a promo. Hence, the most effective tool at your disposal in this respect is the approach called advertising repetition. The successful strategy implementation may lead to the consumer purchasing your brand he goes to buy a particular product.
So, in times of crisis, it is better to keep your marketing, but smartly manage digital ad budgets! Remember, despite the global anxiety and grief, people still need to buy things, and ефкпуеув digital marketing spots are the best way to get your message across.
4. Nowhere Is A Compelling Digital Marketing More Appropriate Than In Times Of Crises
All you can do is keep being present and encourage your audience to actively engage with sales. Practice shows that accurate advertising during an economic recession helps you keep your brand №1 in the minds of the customers.
Customers are more likely to stick to the brands they hear about most often.
By consistently engaging with your customers — by offering them your discounts, freebies, support communication, creating help resources etc., — you’ll make sure they remember your product/brand when making a purchase decision.
Even though the pandemic continues to cause industrial concerns, the latest data on businesses that profit off of the crisis, and are reportedly thriving in it— Groupon, Wells Fargo, Netflix, and Uber — explains why these and other forgotten companies came back to life as people are ordering more food delivery and streaming series online more than ever.
5. A Well-defined Marketing Plan Can Improve Consumer’s Experience and Brand Loyalty During Recession
Another reason to keep investing in your marketing against the background of global financial anxiety is the perceived power of your company’s ability to switch to crisis marketing management mode. An active online presence during recession signals recognition of a company’s great potential. Simply put, make no doubt of your business being resilient enough to adapt quickly after the pandemic ends.
Reducing your marketing budget can result in your competitors taking over your advantageous position.
Regardless of the global economic challenges, you should never bail on marketing your business. If consumers are not aware of your company, they can’t do business with you.
A tech-savvy marketing strategy provided by an esteemed digital agency can give you an opportunity to distinguish yourself from the competition by accentuating on your product quality or understanding customer wants.
It is important to remember that instead of making deep spending cuts, think of what your company spends money on and what financial gain your business makes.
Extra Tips To Keep Your Customers Happy
During an economic crisis, you should put all your focus on your gold customers. We have mentioned in a previous article the Pareto principle which states that 20% of your customers are responsible for 80% of your profits. These are the most valuable ones, because they keep coming back for your products. To satisfy your gold customer’s whim, the number one priority in times like this is to best address their needs.
Create more compelling business proposals. Naturally, you would not want to get stuck in old ineffective marketing strategies, nor fall into a rut again. To keep you from making this business mistake again, learn what you need to know about your clients’ needs, especially what they crave the most during a crisis. You can then use this information when developing marketing message strategies.
Keep in touch with your clients. This does not necessarily concern Email marketing or using social media channels for self-promotion. Indeed, via Facebook and Twitter, the firm could disseminate notifications for input and recent developments and receive feedback, harnessing a two-way communication model. However, paramount amongst those is the realization of a good personal relationship with your clients. Show them you understand them, make them your friends. Making them see your business more than just friendly will ensure good customer relationships and better performance in the future.
We hope this information helps guide your business along the arduous journey, and overcome the challenges the virus outbreak brings. Remember to never give up on enhancing your company’s chance of success, even during the darkest days of the industry’s downturn. Create an effective digital marketing plan and stick to it no matter what comes in your way.