COVID-19 has dragged the world economy to an offensive zone where it is hard for anyone to generate sales and have a productive business. Taking care of customer’s expectations, no matter what the situation is, is of utmost importance. If you are a D2C (direct to customer) brand, make sure to send an email or a message that takes off the tension from customers and assures them that your company is taking the current situation even more seriously and will take care of customer safety. This is an essential and necessary step in contriving the expectations.
But what next?
How are companies pushing forward in such hard circumstances and uncalled changes that are affecting the business?
Whenever there is an untimed recession, the marketers have to face poorly charted waters because no two situations are exactly alike. Since the first big recession was from the year 1970 onward, we have keenly studied the success and failure of a handful of companies as they have succeeded in coming out of recession. There is a visible pattern in consumer behavior and a firm’s strategies that will either drive or undermine the performance.
It is essential that a company knows about the evolving consumption examples and find a way to tune their strategies accordingly. Recession is not restricted to companies and it’s employees; it is also for the consumer. During such times, consumers limit their priorities and try to spend less. Due to these restrictions, there is a drop in sales, business imposes cost cuttings, reduced prices, and delay in new investment.
Cost checking, in the long run, is a wise decision, and by chance, if you fail to support the brand or review customers’ growing needs, it can jeopardize performance over some time. A company should put customers’ needs under a microscope, take a scalpel instead of a cleaver to the marketing budget. This is the time when you can rapidly modify the strategies, tactics, and product contributions in reply to the shifting demands.
What are the core components to retain clients during economic uncertainty?
The Core Components of Marketing Resilience
Data and long-term planning drive today’s marketing landscape. Editorial calendars overpass months and robust data underscore every move a brand makes. There is a long list of marketing leaders who have the ability to shine during good economic times, but it takes a lot to take along the entire team when the times are uncertain. There needs to be an entirely new approach to achieving something path-breaking.
Your brand should have the following approach.
- Supervise the current economic and ambitious landscape and pivot, respectively
- Judge and satisfy the dynamic needs of your audience
- Develop plans and execution strategies that benefit your organization’s growth
Customer retention is very important in times of economic uncertainty. It requires the company to have a perfect mix of vision, exceptional marketing leadership, versatile technology systems, and great staff. Other than all this, you must have a complete understanding of what has prospered or failed in the past.
i) Follow Strategic Spending to Encourage Growth
Stop destroying the company’s budget suggests Media Post; “The temptation to trim spending during a recession is influential for marketers who only see short-term matters. But history has shown that the companies that proceed to market and spend during recessions end up reaping the largest benefits when the economy rebounds.”
We understand that the recession has hit bad, but you need to understand the bottom line. Some cuts in the budget are inevitable and acceptable but don’t respond to the economic uncertainty with sheer impulse. Avoid slashing spending, suppressing the innovations, or dropping the prices of deserving products and services. This is a sudden involuntary reflex that will harm your brand’s integrity, reputation, and its impression in front of the customer. A good marketing strategy will help you understand which investment will support your urgent priorities and promote long term success.
ii) Be Flexible to New Situations
They say that change is inevitable, and only the ones who adapt to it will succeed. Have an approach towards these changes that are agile and can respond to fast-pacing circumstances. Remember that a brand that will offer support, words of wisdom, and help that are needed during this pandemic, will surely be on the top of every customer’s mind. This will reinforce relationships with audiences. But the companies who are trying to play safe or keeping quiet and waiting for the storm to pass are risking a lot of things. One of the first things that will happen is the audience will forget you.
iii) Always Keep Growth on Mind
Never underestimate the power of an enthusiastic mindset. According to a study by Stanford University’s psychology professor, Carol Dweck, on how an individual’s mindset can affect their motivation and achievements, the following distinctions were made.
a) A mind that searches for growth thrives on challenges and sees difficult time or failure as a driving force to achieve growth opportunities.
b) Having a fixed mindset makes one assume that ability and skills are static and that success requires side-stepping failure.
A good marketing plan will not work if the company doesn’t have a growth mindset. It is high time that brands start taking informed risks and make necessary modifications to advance both during difficult and regular times.
iv) Look Out for Opportunities
Making your brand successful during uncertain times is not as easy as having a cake. People start getting reluctant towards taking any action due to either of the following-
a) either it feels challenging to see what the outcome will be
b) or taking a step ahead without a safety net seems risky
But a good marketing strategy works when the team is optimistic and looking for opportunities tirelessly.
v) Be Prepared to Respond Promptly
A brilliant marketing team is flexible, agile, and responds to news that affects their business, audience, and industry as a whole. But what does it need to respond quickly and efficiently? One needs to have a well-balanced system in place; a versatile team has strategic minds, and are ready to go.
vi) Start Investing with Long-Term Growth in Mind
The pandemic came uninvited, and so is its impact. Nobody knows when this bleak time will pass and what it has to offer once it’s done. But this shouldn’t stop the brand from working hard and planning for the future. Once there is economic recovery, there will be a surge in demand until then keep pushing. Stay abreast of new technologies, keep investing strategically in innovation, and when the time is right bam! Hit the marketing button hard.
vii) Partner with Account Managers on Customer Retention
To retain the customer during this time, it is essential that the customer service team is working at its best. This is not the time to stop, but it is the time to dig deeper and deeper till you hit the gold mine.
The respective customer support team should be trained to treat the customer in the best possible way, sympathize with them, and show them how strong your brand is. Right now, we suggest that the marketers should work with the customer support team to help reinforce the effort in multiple folds.
viii) Redesign the content
Find reasons to repurpose your content. Just like there is an audit for all business ideas or strategies, this time, audit the content. Check which content can be used as an asset and look for the ones that can be repurposed for better use. If there is a useful long content, try publishing it in the form of a listicle.
Customer retention is an achievable goal if your team and you’re putting your mind, body, and soul into it. Many have done it in the past. Having a strategic marketing vision during economic uncertainty can help the brand to shine bright even after the storm and will make the brand ready for a dynamic long-term success in ever-changing markets. If you start implementing the mentioned practical strategies, now you can help the marketing team to be in charge and sail the boat forward no matter how deep the water is.