Inflation is at a 40-year high. But what does this mean for brands? Can brands increase revenue during an economic downturn? Even during a recession, brands can continue to grow. By focusing on messaging, value, loyalty and measurement, marketers can strengthen ties with new and existing shoppers. Marketers can navigate the downturn by focusing on boosting trust. Then, marketers can pivot to value, mastering loyalty and maximizing efficiency via measurement. Here are some tips to keep in mind as budgets tighten.
Build trust by personalizing messaging
Marketers should emphasize the value of their product or service. Focus on the reason customers cannot go without it and how much they appreciate the customer’s business. If possible, marketers should also tailor their messaging to customers based on any consensually obtained information such as profession, location, income, and shopping habits. A recession affects everyone differently. Segmenting customers based on likely sentiment and tailoring marketing to reflect that sentiment will drive stronger bonds in difficult times.
Adjust pricing and packaging
Businesses can implement dynamic pricing to adjust rates based on customer information and real-time economic trends. They can also reduce product sizes and adjust prices accordingly. Brands should put out content reflecting pricing adjustments and the rationale behind them. Most consumers want savings information from retailers and brands during a recession. Such offers will help buyers understand that the business is working on their behalf.
Communicate with loyal customers
Using transactional data, marketers can offer returning shoppers deals on recurring purchases. They can also recommend complementary items. This includes essentials that shoppers are likely to buy even during a downturn. Marketers can also use consensually acquired personal information, such as a customer’s profession, to extend tailored offers that reward the shopper for who they are—such as a back-to-school promotion for teachers.
Efficient strategies are a result of campaign measurement. Real-time campaign performance can make the difference between outstanding and average results. Smart marketers will pay attention to the channels and tactics driving incremental growth, not just high conversion rates. And they’ll rely on metrics that provide the full, long-term story, not just dashboard-accessible campaign snapshots.
Carolina Macedo, the author, is the Project Coordinator of Marketing Keys.