A business crisis can harm most organizations, and few can swiftly recover. Marketers find themselves in a very challenging position because sometimes it seems like all of their options seem like a dead end.
However, studying the marketing successes and failures of dozens of companies during these periods from the past decades onward allows to identify patterns in consumers’ behavior and strategies. This can help to understand the evolving consumption behaviors and how to fine-tune these strategies accordingly.
Understanding the Common Types of Business Crises
Business crises lead organizations to difficult periods or situations where using marketing strategies and tactics can help secure a company’s growth. While there are many types of crises, it’s important to address two that are the most common among companies:
Economic downturns always make companies look for quick and simple ways to cut costs, and marketing is always considered first. These financial crises occur when the business loses value in its assets and companies cannot pay those debts. This causes a significant drop in the demand.
Moving funds around short-term is the most chosen option among these organizations, which need to reanalyze their whole strategy to increase income as soon as possible.
Modern days make businesses heavily dependent on technology to perform their functions daily. This makes it very risky in case of failure. E-commerce companies and websites can lose millions of leads if one of their servers, platforms, or software suddenly stops working.
Once the software is back only, it’s vital to boost customer service and support to carry out any activity that requires help for their customers. This also applies to marketing strategies that must be made to let everyone know about what has happened.
The Importance of Marketing During a Crisis
There are many periods when a business economy might slow down and even seem uncertain. Due to this, many businesses cut their budgets, and one of the most decided things to remove or reduce is their marketing. This is a colossal error, even if it seems like a practical idea.
A clear example of these moments of crisis was the coronavirus pandemic a couple of years ago, where many small businesses took a hit and decided to cut marketing. However, if an organization has the resources to keep it up, it’s incredibly vital to do so.
With all the current trends and technologies, marketing is more critical now than ever, and it can help maintain a business’s longevity. Creating and sticking to a strategy through the economic downturn can position itself into a situation that can promise growth over time.
In addition, having such a consistent economic development strategy can provide many help to the organization, such as:
Helps to Maintain a Loyal Customer Base
When numbers start to go negative, a business’ great asset is its loyal customer base that keeps things moving. Acquiring new customers costs a lot more than retaining those who already are existing customers.
To keep a base, understanding how their purchasing habits work is essential, and paying attention to their value to increase brand loyalty and engagement.
Can Establish Brand Trust
A period of chaos and uncertainty makes customers focus their trust on the businesses they trust more. Marketing specialists can help communicate the value of these services or products to gain authority or trust instead of losing clients to other brands.
Keeping this strong presence on the market is vital to effectively deliver a message of strength and stability, showing that the company has everything it takes.
Increases Market Share
Another essential reason to maintain marketing specialists working for your business is that a challenging economic moment can potentially increase the company’s market increase. This happens because, during a global crisis, most companies are likely to cut their marketing, leaving a lot of space for others.
Taking up this space with the help of experts will ensure that the brand’s marketing efforts will stay on top of mind among every customer. Meanwhile, others are not. Doing so will give a significant boost in the long term if consistent; meanwhile, cutting marketing only helps in the short term.
What Should Be Avoided?
Handling marketing efforts with care and sensitivity during a business crisis is crucial. Causing negative results among the people could worsen the situation even more, up to the point of no return. These are some practices that specialists should avoid during a crisis:
Copying Other Companies
While following good examples that other businesses have done with their marketing is recommended, it’s essential to take your approach as a specialist for a brand or audience. Conducting research into the target audience can help to reach out to customers and learn more about them.
It’s also recommended to avoid using cliche tips that many companies use during these situations. This applies to things such as “In times like this” or “We’re all in this together.” Instead of doing so, being more direct and letting everyone know what needs to be done is vital.
Ignoring the Situation
Staying silent, not providing any answer, and trying to continue business as usual is a terrible choice, especially since most consumers remember how brands respond in times of difficulty. It is essential to address the current situation and show an understanding to push forward.
Finding the “Perfect” Solution
Every expert must know that there is no perfect solution or magic strategy. Making a mistake with strategy and messaging should always be followed by an apology. The quicker this is done, the quicker it’s possible to continue engaging with an audience to lead a positive and productive basis.
Marketing during a crisis aims to build a good connection with the target audience to continue growing for years to come.
Other Known Strategies for a Business Crisis
After addressing the importance of marketing during a crisis and what things should be avoided when taking action, it’s necessary to know what things are beneficial to grow. Balancing efforts can bolster trust, and there are a few very effective ways that can do it very well:
A business crisis is a moment for marketing specialists to develop a temporary solution and minor adjustments to production quantities, avoiding extensive revisions of prices or products. Cleaning up these product lines should be done earlier before waiting for it to be forced by industry changes.
A marketing agency can help your organization reduce the complexity in production lines, especially of products that are underperforming or have little differences from similar models. Even with streamlining tactics, it’s essential to keep some innovative improvements to grab attention.
Sacrificing these options of customization and variety in favor of simplicity and lower prices can attract new customers and audiences, boosting profit.
Improving affordability is another vital option every marketer needs to consider to help a business gain or keep a customer base. Discounts that require little to no effort from customers and giving cash back are some of the most effective ways to do so.
In addition, increasing the frequency of sales, discounts, offers, and other related priced promotions can attract a very interested base of potential clients. It’s important to note that an excessive promotion could also lead to customers doubting the quality of the products, threatening profitability.
Reinforcing Connection with Clients
Consumers see most familiar brands and companies as a source from where they can depend and trust, feeling safe and comforted when making a choice. Being reassuring with them to reinforce an emotional connection during a tough company time is vital to keep that bond strong.
Still, It’s not all about empathetic messages. Backing up this support with actions is necessary to demonstrate it. Rewarding users should not be only to big spenders but also to those who buy little but very frequently, educating how to shop smarter and save money.
Such methods of engaging while caring for the customer make a difference during times of business crisis.
Investing in marketing during a business crisis is not merely a strategic choice but a crucial lifeline that can determine the fate of a company.
While the immediate instinct might be to cut costs and tighten belts, it has been shown that maintaining or even increasing marketing efforts during challenging times can provide substantial long-term benefits.
A well-executed marketing strategy can help a business maintain its visibility, build brand loyalty, and seize opportunities that arise amidst uncertainty. Addressing customer needs and embracing marketing is vital to transforming challenges into growth opportunities and sustainable success.
Also, remember that marketing agencies like Kala are experienced in helping companies through these processes. Our specialists are able to carry out many strategies related to SEO marketing, improving the visibility, profitability, and engagement of your business.