Since 1948 there have been a total of eleven nationwide recessions, averaging out to one financial depression every six years. Although these economic downturns may be unavoidable, It’s important to continue marketing efforts through them. 

One major challenge local service businesses often face during a recession is acquiring new customers. This is because consumers are less willing to spend on discretionary services when they are unsure of their future financial situation. But if people are being discerning with their money how can business owners both reduce their costs and maintain their brand health? The solution is in digital marketing and branding.

How does a recession impact consumer spending for local businesses?  

Research indicates that one of the worst things to do during a recession is make drastic changes to your marketing budget. Instead, companies that began to invest more in marketing performed better during and after the economic downturn. This is because purchasing trends do not always reflect the economy’s health. A consumer’s will to spend depends on their confidence in their decision and their trust in your business. Therefore simply adjusting your marketing strategies and product offerings in response to a shifting demand can help your company gain new leads and retarget past consumers. After all, a loyal customer can be one of your biggest assets during a recession. 

How can my business stand out during a time of economic downturn?

In order to set yourself apart from the competition during a recession, your business needs to increase its visibility. There are various ways to stand out to customers online such as review generation and content creation.

During a recession, consumers are typically looking for the easiest and most reliable business to work with which is why most people will examine their search engine’s local pack organically to select a fitting company. For this reason, it is important to have the most reviews out of the three selected companies ranking on the Google local search pack. This is because amidst a financial downturn people are looking for a company that they know will get the job done right the first time.

3 strategies to market your business during a recession

• Create Visibility by Adding More Value

Adding value to your business is a key part of approaching a collapse in the economy. When prospects visit your website, they want to be able to view the list of steps for the service you are providing. By understanding exactly how the process from start to finish is going to go, they can feel confident about selecting your company to get the job done with no surprises. Once your procedures have been documented online, customers will be less leery about giving their money to you.

Next, it is important to address what makes you different from other candidates. This can be accomplished by creating blogs and other helpful content to build a personal relationship with the customer. 

• Make it easy to do business with you

Making your business easy to work with by adding a chat widget, call to action, and online scheduling software is another effective marketing tactic to use during a recession.  The incorporation of a chat widget allows customers to reach out with any quick question directly through your website. Setting up calls to action throughout your website like “Call now!”, “Schedule now!”, and Get your free instant quote!” encourage interaction and efficiency. Having an online scheduling software is also beneficial in creating an effortless booking process catered to the customer’s availability. 

• Touch base with past clients

Hanging onto your current customers should be your primary goal during a recession. Marketing to your existing customers throughout a recession is more effective and less expensive than trying to find new ones. During a time of economic hardship, you should also look for ways to improve your buyer’s experience by nurturing past customers. For example, launching a loyalty program that rewards your customers for doing business with you creates temporary flexible payment options. Whether it be an online database or a book of clientele that has been served in the past, it is important for businesses to log contact information. Once securing a phone number or email you can send out monthly newsletters with special promotions, to stay in contact with your prospects and bring business back into your sales funnel. 

Although it is easy to panic and cut marketing expenses in times when the future of the economy is unknown, digital marketing is crucial to keeping your business alive. Companies that continue to promote themselves during a recession stay at the forefront of people’s minds, so when consumers gain back the money to spend, they instinctively pick them.If your company needs assistance in building a funnel for new customers, acquiring customers, and retargeting customers, click here to schedule a free consultation and receive a custom marketing plan. Let Phlash Consulting streamline your marketing process, enhance your affordability, and grow your audience’s trust!