Video: Marketing in a Downturn
We’re slowly beginning to emerge from lockdown and the challenge for business owners now, is how to market their products and services in a downturn…
Most companies will have their customers segmented in to groups, perhaps by industry or location, but during a downturn, I recommend you revisit this.
Whether you are B2B or B2C, you’re marketing to human beings, and you need to consider how they make buying decisions now; then you should categorise your customers into one of four groups, check out this video for more detail:
So we're slowly beginning to emerge from lockdown,
and the challenge for business owners now
is how to market their products and services
in a downturn.
Most companies will have their customers
segmented into groups,
perhaps by industry, by location.
But during a downturn,
I recommend you revisit and consider
grouping your customers based on their likely reaction
to that downturn.
So whether you're B2B or B2C,
you're marketing to human beings,
and you need to consider
how they make buying decisions now,
given their current reality.
So ask yourself these questions:
Is what you offer an essential purchase?
Is it an indulgent purchase?
Is it important, but perhaps not an urgent purchase,
so perhaps something that can be delayed?
Is it a nice-to-have purchase,
just not required when times are tough?
Then what I suggest is categorizing your customers
into one of four groups.
So first of all,
the "stop, save every penny" kind of people.
These are the hardest-hit financially,
whether they're low-income or perhaps high-income
and unfortunately hit by redundancy.
These guys will cut down on everything
they possibly can, in order to survive.
The next group is the kind of nervous,
"slow down spending" people.
That's probably the largest group,
not impacted by job losses,
probably quite resilient,
but unsure what might happen
if the downturn continues.
And the longer that it lasts,
the more of these people will move into the
"stop, save every penny" category.
So the next group is the
comfortable, "we'll be fine" people.
So, either high-income
or just confident about their job security.
This group will likely carry on spending
at pre-lockdown levels.
And then finally, the fourth group
are the "Carpe Diem" people.
and less concerned about material purchases,
and more focused on experiences.
These people will continue to spend and seize the day,
unless of course they lose their jobs.
It's also worth having a look at
Maslow's Hierarchy of Needs.
Google it, you'll find it online.
It's an oldie but a goodie,
to figure out where your product or service
might fit into people's priorities.
And then, what I suggest you do
is adapt your messaging and your marketing strategy
to speak to people in each of those groups.
Not everyone is going to cut back,
and not everyone is going to continue spending
as free as perhaps they did in the past.
But if you can speak to each of these demographics,
through your e-mail marketing, through your social media,
through your paid advertising, through your website,
you're more likely to emerge strong from the downturn
that's definitely coming our way.
Now if you need help
with your messaging, your website,
your content strategy,
drop me a line, I'll be happy to help.