WHY YOU STILL NEED MARKETING IN TIMES OF CRISIS
Did you know Marketing is the first cost to be cut doing a crisis?
COVID-19 has dominated the news and conversation surrounding the financial struggle for many businesses is prominent. At the forefront of this conversation for many business owners is managing your finances and budgets. Like the public’s response to food and hygienic products, businesses begin cutting costs based on fear and assumptions. It is important to listen, have conversations with your team and evaluate your data to make informed choices about the changes and future of your business. Each company is different, so cutting costs to adapt to the situation will not be a one size fits all situation. Businesses have to discover new ways to approach their marketing to reduce the financial burden of the crisis.
Photo by Iceberg Media
Why Marketing Is Important During a Crisis
Marketing in general enables businesses to reach their target market through multiple channels, increase awareness, drive sales, build customer loyalty… and the list goes on. But what happens when you get rid of your marketing? You risk losing your existing customers, limit yourself from attracting new customers and reduce your market share. In other words, your customers begin to forget about your business and may choose to purchase from your competitors if you are not doing enough to retain them.
Situations like the Corona Virus put into perspective the importance of having a strong communication and marketing plan, so you can evaluate successful initiatives, analyse quantifiable return on investment and make strategic decisions on the future of your company.
You want to retain your customers during a crisis through marketing initiatives so that when it blows over, they will come back to spend on your products or services!
To give you a real life example, let’s take a look at how the 1990-91 recession impacted fast food chains. The much loved brand McDonald’s decided to reduce their advertising and promotions budget, whilst their competitors Pizza Hut and Taco Bell took advantage of this move and increased their spending. As a result, Pizza Hut was able to increase sales by 61% and Taco Bell by 40%, whereas McDonald’s sales plummeted by 28% (Forbes 2019).
You can see that dramatic changes to your marketing budget can jeopardise your long term market share, making it more difficult to regain lost sales following the crisis. So, if reducing marketing costs is the next step for your business, it is important to still maintain marketing, be consistent and persistent for the best outcome.
Marketing Strategies during a crisis
Here are a few marketing strategies you can implement during a crisis.
Inbound Marketing
Inbound marketing is a cost effective option to attract potential customers to your business and convert them in purchasing customers. Things you can do include:
Blogging- write about about topics relating to your business and would appeal to your target market.
Content Marketing.
Email marketing- sending frequent newsletters, updates about your business, new arrivals or promotions.
Social Media campaigns- generate engagement and conversation.
Search Engine Optimisation (SEO)- optimise your website to increase its appearance on google search engines.
Customer Loyalty Programs
It is crucial you maintain strong relationships with your customers during a crisis to ensure they not only shop with you now but purchase with you post-crisis situation. Implementing customer loyalty programs or customer retention strategies can be an effective tactic to enhance your customer’s experience. This could include:
Strong focus on customer service, both in-store and online.
Create a rich multi-channel experience for customers.
Reward customers with incentives, special offers or loyal points when they purchase.
This will enable your brand to maintain a prominent place in the minds of your consumer.
Important Marketing and PR Communications
Even if the crisis was not your company’s doing, like in this instance, it is important to openly communicate what you are doing to resolve the issue. We’ve seen a lot of companies communicate via email and social media to their customers how they are increasing and maintaining hygienic practices to reduce the spread of Corona Virus. It is important to communicate that message across your employees as well and provide support.
When adapting your marketing and communication messages, it is important to consider the following:
Your Stakeholders and Customers- who are they, what do they want and how will you communicate to them?
Your Goals- have your goals changed as a result of the crisis? This will impact your marketing strategy.
Determine an appropriate message- what do you want to say to your target audience?
Identify appropriate communication channels.
Devise and implement a marketing budget appropriate to your business and financial situation.
Measure the progress, feedback and make necessary changes to your strategies.
Be cautious of humour during a crisis- it is important to be sensitive of your wording and approach to marketing campaigns.
Remember, the aim of your marketing strategies are to retain your customers during a period of uncertainty and come out of the crisis with your two feet on the ground.
We hope this provided some value for your business. From a small business to another, we wish you the best during this time.
