As high inflation continues to loom large over the United States, it’s a natural reaction for businesses to try and decrease their expenses to take some of the pressure off.
In such times, one of the first places businesses look to cut back is marketing. Often, marketing is incorrectly seen as a non-revenue generating aspect of business, making it an easy area to target for reductions in spending. However, a company’s marketing team, if they are strategic about how they promote the organization, should prove to be more important than ever during times of economic instability.
Here are some marketing tips to consider during these challenging economic times:
Get to know your customers. Of course, a business should always know their customers. However, in a post-pandemic/high-inflation world, demographics have changed. What was of value to consumers three-plus years ago has likely changed. What may have once been a routine purchase could be seen as a luxury today.
Keep promoting your business. While cutting costs in advertising and promotional budgets look appealing when the prices are skyrocketing, now is a perfect time to keep your company at the forefront of the minds of your customers. Ironically, by holding firm with their advertising budgets at this time, businesses could gain market share as competitors go into promotional hibernation.
Be empathetic. There are seldom better opportunities to show you know how to relate to your customers than during trying times. Companies need to understand the mindset of consumers and speak to that mood. Social media channels provide a platform for businesses to acknowledge and present their own concerns about inflation. Furthermore, social media messaging also gives organizations an opportunity to prove themselves as experts in their fields when they offer tips to overcome economic hardship as it relates to their industry and show why their product/service should be a staple in customers’ lives.
Maximize your customer service. While customer service is important during any economic climate, it becomes even more so during challenging times. Superb customer service and positive consumer experiences go a long way toward building brand loyalty. People already have more challenges than normal. Doing business with you should not be another one.
Evaluate your products and services. As consumers are compelled to cut spending, products and services that are essential or are rated as being of good value will continue to be attractive purchases. The adage still holds true for most companies that 20% of their products produce 80% of their revenue. During difficult times, businesses are wise to maintain their focus on the stronger product offerings to ensure they are seen as being worthy purchases.
Find ways to create extra value for customers. As prices trickle upward, consumers explore ways to get the most out of each dollar they spend. In response, look for opportunities to reward customers for their business, whether it’s through creating point-of-contact savings opportunities or the creation of customer loyalty programs.
A recent Monmouth University survey found that a quarter of Americans continue to believe that inflation is the top issue facing their families. While some indicators have pointed toward price surges slowing, it appears that inflation will continue to be worrisome for the immediate future. Nevertheless, businesses that develop strategies to continue to position themselves in front of customers while maintaining an appropriate tone, and those that provide value with their products, will be able to withstand the current economic climate. It is more important than ever to promote the value, the need, and the purpose of your products through strategic marketing efforts. Be sure you are front-facing in the marketplace more often than your competitors and put your marketing team up front to ensure messaging is always on point.
Betsy McCloskey is a partner at Plaid Swan Inc. with offices in Cedar Rapids and Dubuque. Plaid Swan is a female-owned and operated marketing communications firm.
