Recession Proof Your Brand or Business

The “R” word has raised its head recently. It’s often defined as two consecutive quarters of negative GDP growth. The outcome is still up in the air. Some economists say it will be a soft landing. Others portend the opposite. Whatever the outcome, what’s a business to do when it comes to marketing in a time like this?

Don’t Become Invisible

In other words, keep investing in your brand. Now, more than ever it’s important to instill top-of-mind awareness in your brand or business. Cutting back on marketing efforts leads to a lot of necessary catch up once a recession has ended. That’s costly in two ways. One, you lose awareness while your competitors continue to advertise, building a consistent presence with their customers. And two, you’ve broken that important base of customer loyalty your competitors have continued to maintain.

Don’t Lose Sight of Purpose

Your brand’s purpose should be front and center as recession and inflation challenge businesses and brands. Defining your brand’s purpose gives it meaning and differentiates you from your competitors. Why did you start your company? What specific need do you fulfill? Is there a unique problem or opportunity you want to solve?

Being the best at what you do in your specific category, whether it’s performance, customer service, or your intrinsic value, is the key to your success. Play on your strengths, those qualities that make you unique. What is it you offer customers that your competitors don’t? Understanding your target’s values and building your brand’s purpose will result in long-term customer loyalty. What’s more recession-proof than that?

Don’t Let Sales Overshadow Brand or Vice Versa

This can be a very sensitive balancing act. In times like these, brands and businesses tend to err on the side of sales versus brand differentiation. That said, if you sacrifice brand in the interest of sales, that will eventually begin to diminish the significance and purpose of your brand or business, eroding its performance. You need a combination of both, to assess what truly works best.

Studies have shown over time a mix of 70/30 or 60/40 of brand over promotion produces the most positive results. You might want to adjust these percentages to see if a different ratio makes more of a difference for your specific business. Whatever you decide, don’t ignore the importance of purpose for your brand or business. In the long term, that’s what customers will remember most. The emotional connection that keeps them coming back time after time.

If you want to find out more about what successful businesses have done to not only survive but thrive though economic downturns, get in touch with John Wagoner or Aaron Petticord, our account supervisors. They are here to help and can be reached at (423) 634.0123.