Marketing During a Recession
A conversation today with a prospective client -
Them: “No. We still haven’t done anything in the three months since you last presented your proposal. We liked what you had to say. But, the market just isn’t good now. We think we should just wait until it gets better.”
Me: “I see. Have your challenges that we spoke of back then gone away in the meantime?”
Them: “Oh no…they’re still here and then some! But, what are you going to do?”
And, so it goes. At least 3-4 times per week I have this conversation with clients who have scaled back their marketing budgets or prospective clients who have delayed the launch of a concerted campaign. It is the atypical reaction we see from those too concerned with the short term to be able to see beyond the next six months. A recession provides smart firms an exceptional opportunity to be proactive and to distance themselves from others.
The key is strategic marketing.
No business has money to waste, especially now. The current slowdown does provide an exceptional incentive to pause and assess what marketing dollars are allocated to, who they are intended to target, and whether they are are cost effective. One recent review of a professional service client’s budget spotted $250,000 per year in yellow pages ads (in one market). What’s worse is that the spend included no mechanism for tracking leads. The stunned client hadn’t realized that they had allowed their spend on an unproved marketing tactic to ratchet up for the past 20 years.
Once the excesses are cleared, its time to forge ahead with strategic marketing planning. Review target audiences and key messages. Ask the tough questions. Very often we find clients chasing unprofitable audiences simply because everyone else does or selling a product that nobody understands or wants. If the firm is on track with its product and it’s pitch, it’s time to look for both new and proven ways to reach those most profitable clients in meaningful ways. Plot a course of at least one year (many firms plot their marketing 3-5 years out). Of course, there will be a bit of slack in the plan to allow a firm to take advantage of emerging opportunities (e.g. when a less strategic competitor throws in the towel).
Finally, follow the plan. A recession is no time to stop getting your marketing message out there. If anything, it’s ever more critical to remind clients and prospects of your services and your value. Be aggressive but be smart. Get strategic with your marketing!
