It’s a well-known marketing principle that those builders who continue to market and advertise their product or service during a recession or economic downtown will typically improve their market share and return on investment when the recession ends, as compared to those who don’t. As we are currently experiencing economic uncertainty, this lesson has never been more relevant. Market leaders position themselves for success by continuing their marketing efforts even (and especially) during difficult times.
According to an analysis by McGraw Hill, firms who increased or maintained their advertising during economic recessions grew sales 275% on average in the next five years while those companies that cut advertising only saw 19% growth. Use this fantastic opportunity to build your project pipeline with best-fit clients by collaborating with CLB to execute a fully integrated marketing and sales process.
PRO-TIP: It can be tough and pricey to reach out to prime prospects and clients on their terms if you don't have a successful marketing blueprint. Take this three-minute audit below to see how your marketing and sales strategy could be enhanced.
Effective marketing during a recession is the key to coming out of that period successful and profitable. Even in a recession, there are plenty of opportunities to build customer loyalty and gain new leads.
In difficult economic times, recessions can bring a lot of fear and uncertainty to businesses. However, making hasty decisions based on that fear can be harmful in the long run. Remember: a recession is only temporary. Take some time to analyze how your potential clients spend their money, review your current marketing budget and strategy, and be open to change. If you're wondering what you should do during a recession, here are five reasons why marketing is absolutely essential:
Marketing is just as crucial during a recession as in less turbulent economic times. But, should you advertise as you would in a strong market? Like potential clients, businesses must also adapt during a downturn. potential clients change their spending habits as they focus primarily on essential purchases. As a result, companies must adopt new or alter existing marketing strategies and campaigns to meet the needs of their clients.
Marketing is just as crucial during a recession as in less turbulent economic times. But, should you advertise as you would in a strong market? Like potential clients, businesses must also adapt during a downturn by adopting new or altering existing marketing strategies and campaigns to meet the needs of their clients.
Avoid Long Term Loss
While it may seem counterintuitive, reducing marketing during an economic recession can end up damaging your business more than it helps. Fewer marketing efforts will lead to lower brand awareness, reduced search result ranking, and less customer loyalty. This gives your competitors the opportunity to step in and take over market share.
By investing in your marketing budget and having a smarter strategy, you can weather any future economic downturns while simultaneously building customer confidence and online authority.
Connect With Your Prospects
Although it may be appealing to stick with what you know, continuing to recycle content or refusing to change your strategy will only lead to dissatisfaction. Regularly reassess your marketing plan according to the buying habits and requirements of prospective clients. Those that notice these shifts and invest in keeping up-to-date will see much better results.
Get A Leg Up On The Competition
Budget cuts in departments like research and development or marketing mean that fewer new products are being released, and the output of existing products may slow as clients decrease spending. On the bright side, releasing fewer products means plenty of room to increase market share.
If a company is experiencing budget cuts, this typically means that departments such as marketing are seeing reductions in funding. As a result, fewer builders are marketing to prospects, leaving more room for companies to increase their share of the market and stand out from the competition.
By continuing to invest in marketing, you can concentrate on perfecting your strategy and demonstrate to potential clients how your item can assist them with building or remodeling their home.
Increase Your Market Share
There are two main drivers of market share: marketing campaigns and service quality. However, during a recession, potential clients become more conservative with their choices. By implementing lead generation strategies that are designed to connect with best-fit clients that have intent to buy, build, or remodel during a time where your competitors have slashed their marketing spend, you have the opportunity to gain market share.
To remain visible to your clients during a recession, you need to update your branding. Producing content that reflects consumer spending habits during an economic upswing will only hinder you when the economy takes a turn for the worse. Take some time to evaluate how you can keep your company relevant to those who matter most – your clients.
You can use Key Performance Indicators, or KPIs, to see how successful your marketing campaigns are. By understanding which campaigns work, you can make more targeted and effective marketing plans.
Difficult times may be ahead, but that doesn't mean your business has to suffer. CLBN can help you not only weather the storm, but come out stronger on the other side. Now is the time to plan how best to spend your marketing and advertising budget, and there's no better partner than CLBN.
The Certified Luxury Builders Network leads luxury builders to greatness. Since 2016 CLB Network and builders across the nation with annual sales ranging from $5M - $50M have worked together to deliver a 5-Star experience and become market-leaders. Working with one great company at a time, CLB gives builders the tools, training, and support to achieve success in Quality, Profit, and Pipeline freeing leadership to work on—not in—their business.
We're here to help builders. Experience and expertise is just a click away. Contact us today to see how your business measures up to our builders' benchmark, learn what "GREAT" looks like, and see how CLB can take your business to the next level.