The last few years have been difficult for company presidents and marketing directors.
Marketing during the pandemic, then transitioning into a period of inflation has created many challenges.
Now we’re looking at stagflation: rising prices and slowing economic growth.
Rising prices impact media costs, personnel, and much more, impacting the bottom line… and our marketing efforts.
Slow economic growth based on economic data, corporate purchases, layoffs, and hiring freezes shows we’re in the beginning stages of a recession… one that can likely last 2-3 years.
Past recessions have proven to us the importance of marketing smart and marketing smarter than your competition.
In an age of stagflation, your marketing is going to change.
Instead of a disadvantage, marketing in this environment can be turned into an advantage.
There’s an old saying, “When times are good, you should advertise; when times are bad, you must advertise.”
In fact, besides profitable growth, you can position yourself to dominate your market in this economic environment.
There are 7 marketing strategies that you can use:
#1: Coming out on top and dominating your market
History can teach us a lot about handling similar economic crises today.
History confirms that the companies that recognize the importance of marketing during a recession, will come out on top.
I know this from past experience, having navigated 5 recessions for my clients. I even wrote a book on this long ago called Navigating Economic Crisis.
And the stagflation/inflation of the late 1970’s and 1980’s was even worse than today. But clients that continued to advertise fared much better than the clients that cut their budgets.
With a 13-15% inflation rate and 11-12% interest rates, the economic environment was challenging—But great things happened anyway.
For example, in the recessions of 1974-75 and 1981-82, companies that continued to invest in advertising/marketing saw a staggering 256% in growth, while their competitors that reduced or eliminated their budgets saw a decline in business and customers.
In the recession of 2008-2009, many businesses cut their advertising/marketing expenditures by 13% or more. Yet statistics showed 3.5 times more brand visibility for companies that didn’t cut or kill their advertising/marketing budgets.
In the current recession of 2022-2023, there’s no reason to think results will be different.
For those who cut back or stop marketing, sales will decline more than they should and take years to recover ground. Those who marketed during the recession saw sales growth and gain not only with new customers but were able to dominate their market.
Also, database marketing must be a priority in this economy.
Focusing your advertising and marketing on servicing existing clients offers 5 to 25x times more yield. In fact, it takes far less effort and expense to keep existing clients than to solicit new ones.
#2: Make sure all your marketing is accountable and traceable, with improved results.
All of your ads, channels, and media must be trackable and improved.
The only way to have accountable advertising is to use direct response advertising.
This involves using direct response copy, and art. Always know what your cost per lead and cost per sale is. Know what your return on investment (ROI) is.
You cannot afford to waste money on things that are not producing immediate direct-to-consumer results.
#3: Don’t be afraid to try something new but do it smart.
Most marketers are caught doing what they’ve always done —They are stuck in the past.
But the marketplace has changed. Google and Facebook have changed. YouTube and Addressable TV have changed. Geo-fencing and Strategic App Marketing (SAM) has changed; and of course, data has changed with the ability to use Transactional Data Modeling (TDM).
#4: Using multichannel marketing strategies will increase results by 89%
Multichannel marketing will maximize your profitability. When I wrote the book The New Multi-Channel Integrated Marketing: 29 Trends for Creating a Multichannel, Integrated Campaign to Boost Your Profits Now, a couple of years ago this was the new marketing and advertising… And still is.
Why?
Because the response rates improve by 89% or more with the multiple channels in reaching your targeted prospect. If you’re not fully sure how to do this, get my book HERE or give us a call at 615-490-8832 to discuss your marketing.
#5: Experiment with direct mail in an online world
Direct Mail is not dead. But in a recession or a period of stagflation. It can be one of your most powerful tools, combined with multichannel marketing. You’d want to use a new format such as a newsalog or magalog, or a high-quality personalization technique and combine it with the Transactional Data Modeling (TDM).
#6: Remember seasonality can be your friend
There are good times to market and bad times to market.
In August and September, your response rates will be up, despite a recession or time of stagflation.
The last week in December, and the first few weeks of January are always the highest response rates of the year.
Give me a call if you’d like to discuss seasonality in your responses. It will help you reduce your risk.
#7: Consider getting a second opinion on what you’re doing is needed now more than ever
Consider getting a second opinion on what you’re doing. Whether you contact my team or someone else, get some other eyes on your remarketing. Have them give you either a professional critique or an assessment of what you’re doing.
It could save you a lot of money and make you a lot of money. This is especially the case if your response rates are not what you want.
Need help in using results properly and getting powerful marketing? Give us a call at 615-933-4647 or email Craig at [email protected]
