Worried about an upcoming recession?
Don’t worry, we got your brand covered. Let’s discuss what you can do to be prepared for an economic downturn.
In times of loose VC money and thriving businesses we are often under the illusion that there is only one way for our economy: 🆙
However, even first-year Bachelor's students in Economics can teach us that economies follow a cycle by nature, and it is just a matter of time before you find yourself in a downward spiral.
All the more it is important to make your brand stand out. Here are three ways to make that happen.
1. Don’t fall into savers mode
By instinct, business owners and leaders cut their expenses for, so regarded, ‘non-essential’ business activities. While it may be a smart move for short-sighted revenue to cut marketing investments, it might harm your business more than you could wish for in the long run. Even more so, studies suggest that the companies that increase their marketing investments gain a larger share in the competition and secure their pole position after the recession (Field & Binet, 2008).
2. Reevaluate your brand positioning
While you’re trying to play it safe, your customer might also evaluate their spending behaviour. That makes it a perfect time for you to reevaluate your customers' values, intentions and behaviour and adapt your brand towards their deep-set desires (don’t forget that you also should be able to fulfil them 😉).
But watch out. Your gut feeling might be misleading in this process of empathising with your target group. This is where real-world data about your customer is definitely the better option you should rely on. Quite counterintuitive, but, strong luxury brands such as LVMH and Richemont could maintain or even increase their revenues during the financial crisis of 2008/09, while the whole industry went down by 9% (Vogue, 2019).
3. Discover new target groups
Are you now hyped about quantitative research? Then we have good news. It’s time to explore new opportunities.
Since your current target group might not be the best fit anymore due to their adapted spending behaviour during the recession, others might be happy to engage with your brand. You can start looking for them in unexpected places, like in different social groups or in other countries where the recession did not hit as hard. Don’t be afraid to explore a new market. There are always experts to help you out.
What do you think?
Uncertain times can be scary for business owners. And even if you feel like you’re drowning, remember to keep your eyes open and grab that branch to help you get out of the water. Keeping up your marketing investments, creating a strong brand to fit your target audience, and even exploring new markets might be this saving branch for your business. 🌱