Happy Tuesday Folks!
As we navigate through an economic downturn, I am being asked more and more about tactics that will combat the potential rev loss while consumers tighten their belts.
My main answer.
š¤ Hold tight. Stay the course. And offer value in your brand.
ā If you start to reduce your ROAS and up your CPA now you are going to significantly reduce margin and struggle to regain your stats at a later date.
That being said, it is completely dependent on your category, industry and price points.
ā Your marketing strategies must adapt to the changing landscape, but stay true to your brand. Here are some tips to help your business succeed during a recession:
- Focus on your target audience: Understanding your target audience is crucial during a recession. Look for opportunities to meet their needs and preferences with your marketing efforts. Focus on the 20% of customers that bring in high revenue at a high frequency. What do they want to see, hear and experience?
- Invest in digital marketing: As more people stay at home and rely on digital channels, investing in digital marketing can help expand your reach and engage with potential customers. But remember, expanding your reach doesn't = immediate sales. You have to take that customer through the buying journey.
- Emphasise value and affordability: In tough economic times, consumers are looking for value and affordability. Focus on highlighting the benefits of your products or services and how they can save customers money in the long run. But remember: Value doesn't mean cheap. Value means means emotional value and connection. Are you bringing your customers little joys?
- Leverage social media: Social media is a powerful tool for building brand awareness and connecting with customers. Use it to share valuable content, engage with your audience, and showcase your offerings. Feeding the top of funnel with relatable, educational and interesting content keeps you front of mind.
- Keep an eye on your metrics: In uncertain times, it's important to closely monitor your marketing metrics to ensure your efforts are effective. Use data to make informed decisions and adjust your strategy as needed.
Remember, a recession doesn't mean the end of your business. By adapting your marketing strategy, you can continue to connect with customers and grow your brand.
How do you offer value during tough times? I'd love to hear your thoughts.
Speak soon! Sarah
If you want tailored advice for marketing your business, drop me a dm or book a 1-2-1 over on https://bemorefox.co/1-2-1-consultancy/ š
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