Is a recession coming in the U.S.? Are we already in it? Since World War II, the U.S. has experienced 12 recessions, according to the National Bureau of Economic Research (NBER) — an average of one every six years. Indeed, they are more common than most people realize. So what are you doing to recession-proof your business?
Content marketing is an effective way to recession-proof your business and keep it afloat during economic downturns. By creating valuable content, you can encourage customers to continue purchasing your products or services despite a weak economy.
Let’s discuss a few examples of companies that demonstrated recession-proof growth due to their enhanced marketing efforts.
Toyota resisted the temptation to cut down its marketing budget, and by 1976, the company became the top imported carmaker in the United States.
In times of economic uncertainty, the right approach to marketing is key to success. Toyota seized a chance to invest in new and effective communication strategies that helped them stay ahead of the competition.
When consumers do gain back the money to spend, they will instinctively turn towards brands or business that have stayed top of mind.
Back in 2008 and 2009, while the world was in recession, Amazon grew its sales by 28%. How? They even continued to innovate with new products and even launched the now-famous Kindle.
This move, although risky, helped their business grow its market share, and on Christmas Day 2009, Amazon customers actually bought more ebooks than printed books!
In the 1920s, Post was the leader in the market, but when the Great Depression hit, the company reduced its marketing considerably. Meanwhile, its biggest rival, Kellogg’s, doubled their advertising expenditure and quickly saw their profits boom by 30%!
In fact, after overtaking the top position in the 1920s, Kellogg’s is still the category leader a century later. Companies that continued to advertise during the 1923 recession ended up 20% ahead of where they were before the recession. On the other hand, the companies that had reduced their marketing were still in the recession and were 7% behind where they were in 1920.
There’s no recession in love for this line of business. While the economy tanked, Match.com grew, increasing revenue by 25% and active subscribers by 30%. They invested heavily in product development and marketing. On average, they introduced updates to the platform every two weeks.
The online dating sight also fine-tuned their marketing to ensure they were bringing the right people into their community. Their ongoing digital audits helped them identify their closest online competitors – creating a list of potential acquisitions. Eventually they completed 28 acquisitions by emphasizing their ability to add value to the brands they acquired.
You can either be defensive or offensive in your approach towards any potential recession or down-turn. Consider this as an opportunity— to provide prospects what they need most in a recession. Continue to build relationships before they even buy from you and be top-of-mind. This will also cement the loyalty of your existing clients towards your brand.
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