Running a successful marketing strategy in a challenging economy reminds me of trying to make the perfect Negroni.
We all know the classic recipe, but the critics are distracting you with the latest Sbagliato trend.
There’s a new ‘essential ingredient’ every other day, much like the ever-evolving platforms of social media. Today it’s Threads, tomorrow it’ll be Strands (just kidding, I made that up).
Then, the economical climate takes a turn and the punters are now wanting… a G&T?! Now, what are you going to do with all that vermouth?
But on a serious note, it's not easy to determine where your marketing dollars are best spent to maximise your ROI at the best of times, nevertheless during an economic downturn.
Your natural response may be to sit tight, but I’m going to explain how that can set your business back in terms of growth.
Mistake #1:” I pulled back during COVID, so I’ll do the same again”
It’s the C word everybody truly hates, but it’s important to mention. The COVID-19 pandemic served as somewhat of a catalyst for many businesses. Not only did it drive a major shift to digital marketing in Australia and all over the globe, it also created the opportunity for many businesses to thrive.
With the uncertainty of lengthy lockdowns and the rise of remote work, many businesses pulled back on their marketing efforts to avoid wastage.
However, what we actually saw, was that businesses needed to leverage their marketing channels in order to stay relevant and keep in touch with their audience.
Not only did those businesses survive the pandemic, they thrived… and took some bonus market share from their competitors while they were at it.
Mistake #2: “I’m not going to pull out of all marketing, I’m just going to pull my *insert platform here* activity”
The urge to scrounge back some marketing dollars (especially in more expensive territory like TV and Out of Home) is tempting, but don’t be fooled into thinking it won’t affect your results.
A 2018 study by Google found that the average consumer journey now involves anywhere between 20 and 500+ touchpoints.
Now, take a deep breath as the thought of a 500+ touchpoint marketing budget washes over you (cha-ching). Luckily, the optimal touchpoint strategy is a combination of both paid and organic activity that aligns with your audience.
So in basic terms, you don’t have to spend more to get more - but you do need to spread your marketing efforts across the right touchpoints to hit that sweet spot and maximise your ROI.
Mistake #3: Everybody else is doing it, right?
In a challenging environment, fortune favours the brave. It may seem like others are resting on their laurels waiting for the storm to pass, but chances are, they’re already pivoting to make the most of the opportunity.
It’s not easy to get an edge on your competitors, but our clients are finding that with the right marketing mix, you can take that equity share you’ve had your eyes on, whilst they delay and fail to take swift action.
Mistake #4: The customers won’t spend in a crisis
We get it, from eggs to electricity, the cost of everything is going up. Data from an NAB Consumer Sentiment Survey released this month, shows that consumers are making spending trade-offs in the face of rising costs.
So now, more than ever, it is important to be completely in tune with your customer:
- Does your product/service bring pleasure or help them avoid pain?
- How can you be contextually relevant with your messaging to ensure that you hit the nail on the head?
- How can you creatively and concisely portray the benefits of your offering so that customers just get it?
The above might seem like a no-brainer, but ensuring your language is on point (and your not being tonedeaf) is critical during more sensitive times, when spending is more considered.
It’s not easy to strategise and think clearly when you’re clouded with doubt or uncertainty in market - the best thing to do is get a set of fresh eyes to determine the best way forward with a creative led strategy. Sound good? Reach out to us today to organise a session.