Investing in Your Brand During Economic Downturns
Key reasons to invest in your brand during uncertain times and strategies to strengthen it
Recession was on the minds of many in 2023, and so far, economic projections for 2024 vary. Whether or not there’s a full recession, one thing is clear—if it’s a possibility for your business, investing in your brand and marketing can be extremely valuable during uncertain times.
Marketers are a resourceful bunch, and for those ready to do the work, there are many opportunities to explore. These range from offering a fresh perspective on social media to revamping their brand positioning and website design.
While pulling back on marketing is sometimes necessary due to budget constraints, consider the value of investing in your brand during a downturn before you make any decisions. It’s a bold move that – if possible for your business – could position you well ahead in the long term.
Why invest in your brand during an economic downturn?
1. Recessions come and go
As tough as they may be, recessions are temporary: 75% of recessions end within a year. While reducing marketing is tempting, strategic efforts can also drive significant growth. This can help your business in the long run and position it well when things start to turn around.
2. Quick bounce back
Brands that maintain their advertising recover nine times faster from economic crises. Instead of decreasing your market presence, consider fine-tuning your efforts, focusing on consumer sentiment and values, and finding better ways to reach your audience meaningfully.
3. Halting brand investment can hinder long-term success
During the 1990-91 recession, Pizza Hut and Taco Bell capitalized on McDonald’s decision to cut its advertising budget. According to a Forbes article, Pizza Hut saw a 61% increase in sales, Taco Bell saw 40%, while McDonald’s sales declined by 28%. These examples highlight the potential for sustained growth by maintaining marketing efforts.
4. Innovate for resilience
In tough economic times, many delay new ideas, but those who keep innovating can see big benefits. McKinsey & Co. found that brands innovating during the 2009 financial crisis did 30% better than the market average and enjoyed faster growth for three to five years.
How to strengthen your brand during a recession?
While a recession presents certain challenges, brand building is possible with the right strategies.
1. Define and reinforce your identity
During a recession, crystallize your brand’s identity and communicate it clearly to consumers through your marketing and website. Your brand should distinguish you from the competition.
Assess your brand position, values, and messaging to make sure they resonate with your target audience—what’s effective, what isn’t, and what needs improvement? Build trust and loyalty by reinforcing your identity through consistent visual branding across your website and marketing.
2. Focus on customer experience
In a recession, consumers are cautious. Providing exceptional customer experiences can give you a competitive edge.
Look for ways to improve your customer service, streamline processes, and improve communication channels, making sure to engage with your customers through social media.
Your website plays a crucial role in shaping the customer experience. Within a matter of seconds, visitors to your website form an impression of your business. Ensure that it’s user-friendly and delivers a positive experience. By prioritizing customer satisfaction, you can create brand advocates who will support your business, even during challenging times.
3. Continuously measure progress
It’s always important to keep an eye on your marketing strategy, but especially during times of uncertainty.. Monitor and assess your efforts to gauge their effectiveness. Track user engagement metrics on your website and use that feedback to make small adjustments. Regularly measure the impact on customer perception and loyalty, and stay flexible to changing conditions.
Strengthening your brand for the future
Approaching the potential recession as an opportunity for strategic investment in your brand can deliver long-term benefits. By employing the right strategies, your brand can emerge stronger on the other side of economic uncertainty.
If you need some help with your brand and visual identity or web design in 2024, explore our services or contact us to see how we can keep your digital presence strong and engaging.
Photo by Kyle Glenn on Unsplash.
A Certified B Corp, Mangrove is a woman-owned website design and development company with a diverse, talented team distributed around the globe. We’ve been building websites since 2009 that amplify the work of change-making organizations and increase the competitive power of businesses owned by historically marginalized people.
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