Is your brand ready for an economic downturn?
Regardless of the current economic climate, planning for a recession is smart. It can help create the right space for a deeper connection with your existing customers, provide a closer look at new opportunities, and set the groundwork for establishing the brand you really want.
You can’t completely recession-proof your brand, but there are steps you can take to minimize the impact. Use the following steps as a guide toward bridging any gaps and strengthening your strategy for staying afloat when consumers are spending less.
Resist the urge to slash your marketing budget.
For many businesses, marketing tends to be one of the first things to go when a recession hits. But, the truth is, cutting marketing during a recession could nearly kill your business.
Marketing connects businesses with their consumers. When done well, it shares what matters to your business, and your audience shares their thoughts in return. The very best brands go even further and use that input to inform what decisions are made next. Cutting your marketing budget during a recession minimizes the conversation with your customers and significantly increases the risk of your competitors stepping in to engage them.
Listen even closer and engage your audience.
As a recession approaches, consumers’ needs shift. They’re making decisions about what products and services are necessary. So whether you reallocate dollars to build an online community or engage a third-party research firm to conduct focus groups, doubling down on your efforts to stay connected with your customers will pay off in the long run. They’ll feel valued and heard.
This double-down will create an opportunity to implement user-generated content into your strategy. See if there are ways to invite consumers to take the lead in sharing your story, advocating for your brand, and helping you stay in the minds of more. Use your digital platforms, your email solution, and other tools to meet your customers where they are.
Poke holes in your positioning.
As you engage your customers and learn more about their changing needs, compare what you’re learning with your current positioning. Does it still resonate with those you serve? Are there any weak areas or opportunities to improve? Undergoing a brand audit as part of your pre-recession planning can go a long way in helping your brand remain relevant and differentiated.
Keep your eye on what could be.
Start by taking a closer look at your audience through focus groups and user-generated content. Learn why they’re choosing your brand over another.
Is there something new or different you could offer your current customers? And is there someone else who could benefit from your current offerings? The more value you can offer people, the less likely they are to walk away during a recession.
Keep your team members in the forefront.
In many ways, employees are the foundation of any brand. They influence what’s said about your brand. They impact consumers and prospective employees alike, which is why one of the best things a company can do is to keep employees informed and part of the process.
Should you choose to trim back or change course, be intentional in your explanation. Don’t lead with profitability. Speak to the steps you’re taking to protect them and the business. Placing more emphasis on people can do wonders for preserving your brand.
Want some actionable advice? Play the long game by making strategic decisions based on your purpose and customer needs. Those who aren’t prepared are most likely to experience the worst outcomes of the next recession. Embrace your internal teams, maintain a connection with your customers and bring in experts who can help you see the hidden potential of your brand.
At pivotal moments, rebranding is the most effective way for leaders to signal significant change. Are you at a pivotal moment? Drop us a line, and we'll be in touch.
