{"id":962621,"date":"2020-05-06T17:39:41","date_gmt":"2020-05-07T00:39:41","guid":{"rendered":"http:\/\/customerthink.com\/?p=962621"},"modified":"2020-05-07T00:36:39","modified_gmt":"2020-05-07T07:36:39","slug":"6-factors-that-impact-your-marketing-budget-in-uncertain-times","status":"publish","type":"post","link":"https:\/\/customerthink.com\/6-factors-that-impact-your-marketing-budget-in-uncertain-times\/","title":{"rendered":"6 Factors that Impact Your Marketing Budget in Uncertain Times"},"content":{"rendered":"
Many businesses, such as those linked to retail and tourism, are acutely familiar with the impacts of “slow season.” As such they\u2019ve been forced to morph and develop strategies to help them grow even when things get rough.<\/p>\n
Even so, the recent Coronavirus outbreak has blindsided everyone. The economy has been struck so hard that it feels as if we’re hitting the pause button with no clear outlook on how things will look in the future.<\/p>\n
When things are uncertain, many businesses begin to cut what they think is non-essential. And in many cases, marketing is the first casualty of those cuts.<\/p>\n
It\u2019s understandable, but as much as you may feel tempted, please refrain from any rash decisions. Instead, embrace uncertainty and adapt to the change.<\/strong><\/p>\n There are many actions businesses can start taking right now<\/a> to recover after COVID-19. Those include engaging in push strategies, relying on existing customers, as well as automating business processes<\/a> to cut some costs and save precious time.<\/p>\n We thought it might be helpful to cover a few factors that might impact your marketing budget during uncertain times and help you drive business growth.<\/p>\n When the business environment rapidly changes, it\u2019s startling. The urge to stop your marketing activity altogether may be strong. But this would be a grave mistake. <\/p>\n Historically speaking, companies that cut their marketing activities during the economic crisis have greatly risked long-term success. Constant and persistent investment in marketing activities is the only truly effective solution.<\/p>\n We\u2019re not saying you shouldn\u2019t be cautious. What you should do is:<\/p>\n – Focus on existing clients:<\/strong> Acquiring new customers is anywhere from 7 to 25 times<\/a> cheaper than retaining existing ones (depending on the study you choose to believe). So instead of cutting your marketing budget during uncertain times, focus on the existing client base.<\/p>\n – Make your voice heard:<\/strong> Marketing through a recession can be a challenge. However, making a strategy where you have some activities every month that engages your audience can increase (or at least stabilize) your revenue during uncertain times.<\/p>\n – Be present:<\/strong> Continuing to run your marketing campaigns through the recession will communicate a stability that can survive even the most uncertain of times. <\/p>\n These are excellent ways to play it safe while still engaging in marketing activities that won\u2019t result in a bad surprise.<\/p>\n The state of your finances before the crisis will have a significant impact on your marketing budget. If your business was struggling even before the crisis began, surviving through it all will definitely put an additional strain on finances.<\/p>\n What you’ll have to do is to adapt your marketing strategy and corresponding budget<\/a> to keep your business running while steering clear of bankruptcy. Some steps to consider include:<\/p>\n – Making detailed plans for a few possible scenarios:<\/strong> Having a few plans that could play out during uncertain times will help you avoid bankruptcy or any significant losses. Make sure you assume what challenges your customers are experiencing and how you would attend to them, and prepare a solution for every outlined scenario.<\/p>\n – Be aware of your customers:<\/strong> Uncertain times mean you’ll have to be observant and listen carefully to your customers and tune your offer with their needs.<\/p>\n – Create capacity that will address the customer’s needs and deliver on your promises:<\/strong> Uncertainty can raise anxiety levels. Keeping your promises will put you ahead of the competition so always practice what you preach.<\/p>\n The thing that can make a significant impact on your marketing budget is the behavior of your target audience. <\/p>\n According to some Rutgers research<\/a>, consumers’ reactions during uncertain times are in direct relation to the level of stress they experience. <\/p>\n While faced with uncertainty, they can develop behaviors such as defensiveness and hoarding (both in spending and saving money).Other people might grow afraid to spend money on non-essential items.<\/p>\n To survive the economic downfall, companies will have to work on understanding their customer’s patterns and adjust their marketing strategies accordingly.<\/p>\n To secure your company’s profit, you should rethink the ways you’re segmenting your customers and implement the principle based on a customer’s emotional response toward the crisis at hand.<\/p>\n Some businesses may offer enormous discounts during this period in a hope they will be able to retain those customers at a full price after the crisis is over. However, discounts mean decreased profit that, in turn, impacts the marketing budget.<\/p>\n1. Fear is your worst enemy<\/strong><\/h2>\n
2. The previous state of your finances matters more than ever<\/h2>\n
3. The nature of your consumers and commitment to customers counts<\/h2>\n