A financial crisis is bad news for everybody.
But savvy businesses can stay ahead in uncertain times. The key is to not let your marketing slide.
Companies that hold their marketing budgets steady, or increase them, during an economic downturn are the ones that bounce back the best, according to the Harvard Business Review.
And there’s no reason why only the largest businesses can survive: small brands have certain USPs that can make them more attractive to customers, as long as they’re visible.
Here’s what you can do to keep your business afloat.
This is the worst global financial crisis since 2007–2008. Then as now, retail brands are struggling to maintain their budgets, pay their staff and ultimately stay in business.
However, there are differences between that crisis and this one, which give a slight advantage. The causes are different: Last time, the housing bubble burst and the banks ran out of money. This time, the economic downturn has its roots in the global pandemic, as well as the Russian invasion of Ukraine, and is caused by high inflation.
It affects almost every country in the world, and it’s obviously bad news for businesses. In retail, small companies are hit hardest, as they have less of a financial cushion and less market power.
However, because the crisis is based on high inflation, rather than the banks failing, some brands can take advantage of prices going up.
Hold your nerve on pricing
Prices are going up because of inflation. It can be tempting to keep your prices low, to beat your competitors and to not turn off your customers, but that hurts your margins as your costs go up.
Customers understand inflation. Prices are going up everywhere, so no one will be surprised when yours go up too. With good advertising and strong marketing, you can put your prices up and…