In times of crisis, it’s inevitable that businesses review their marketing budget and would be tempted to reduce or cut costs for promotional activities. Being a knee-jerk reaction, companies need both firmness and a growth approach in their marketing investment.
Marketing week recently observed the COVID-19 lockdown spark off profitable surges in online sales by 35% amongst multichannel retailers over e-tailers.
Do you think these brands pulled the plug from its marketing despite economic tragedy?
You may say “Oh, but they have a bigger marketer’s budget and greater network!” , yet isn’t this an opportunity for you online too regardless of your company size.
Cutting costs may look like a quick, simpler solution when alleviating for potential financial difficulty, but it can prove to be a very costly mistake long-term. Having a healthy inflow of customers is the core and priority of any business.
Once re-assessed, it is clear that marketing investment even during diminishing consumer spending and unstable economies is one of the wisest decision that will benefit you in the long run. Otherwise, how can new customers know that your business exists if your marketing efforts have subsided?
Here are 4 reasons for not cutting down your marketing budgets:
1) To create a Reputation for Your Brand
Reputation is the key factor that stays and is the ultimate differentiator. In this time of crisis, when many other businesses are dropping their marketing efforts; now is the time to act oppositely from your competitors.
If you are prepared and have evaluated your situational risks, invested time and network resources for such market lapses; chances are that you position yourself stronger in unitising these opportunities for your brand to shine for a greater reputation in the future during uncertain times.
For what does the market say about you? What do you want to be known for during economic difficulty? By doing so, your business will develop a brand that is living and building equity every day.
2) To keep your Brand alive in the Marketplace
Customer retention is less time-consuming and rigorous over acquiring new customers when managing your marketing budget – don’t you think?
By maintaining your marketing activity, you reflect stability and resilience towards consumers in an uncertain marketplace; whether online or offline. This can also help in building customer loyalty when delivering upon brand promise for long-term success. Engagement of customers and their loyalty is the main source of increased profitability, as abandoning any marketing efforts’ rate creates leeway for another competitor to take charge.
Remember, consistent and persistent marketing amongst the right set of people when addressing their needs is most effective; any crisis marketer must optimise this within rising digital behavior worldwide.
3) To build Customer trust whatever the marketing channel
Plan your retention initiatives. It can improve your customer lifetime value and acquisition during any crisis.
Investing during crisis and pandemic times makes your business grow when most others might be planning to suspend their marketing efforts. By doing this, you will add more value to your business and develop more loyal customers.
Be thoughtful by building trust and showing gratitude to your customers with discounts, extended services or experiential offers. This will lead to a healthy growth cycle helping your company to stand out in the market.
4) To take advantage from the Buyer’s market interests
Brands and marketers must spot and take advantage of digital marketing that benefits consumers and leads progressively along the online buyers’ journey. As with time and adapting lifestyles within our current climate, people spend more time online to stay connected with close ones living afar and to keep up with the current developments around the world. Be innovative and focus more towards meeting your audience online through united messaging tapping into the emotional messaging of digital.
As a result, allocate your marketing budget and prosper from these opportunities to increase your digital marketing’s effectiveness, optimising your website and updating them through social media as a content relationship-builder towards your business goals.
What do you think about your company’s marketing spend during crisis outbreak?
Comment below on how your market presence has sustained if you’ve reduced your regular budgets and strategic approach towards your most effective marketing channels?