Branding When Times Get Tough
There is no shortage of data, debate, and discourse telling us that times are tough.
Many businesses, families, and communities are being squeezed. Sure, there are some exceptions, but there’s a lot of pain in our communities right now.
Recessions Don’t Last Forever, and Brands Never Sleep
Our gut instinct might scream, ‘Cut costs when times are tough!’ But that's not the right play. As the saying goes, ‘When times are good, you should advertise; when times are bad, you must advertise.’
Sure, cutting brand and promotional spend might seem like a quick fix for short-term budget concerns, but savvy brand marketers who want to weather the recession and maximise their budgets need to plan—and spend—for the recovery.
No matter the state of the economy, branding goes on. It’s business as usual.
Your website is working 24/7. You continue to have conversations with various internal and external audiences. And your brand continues to lead the hunt for new business.
Staying visible and maintaining your brand presence during tough times sets the stage for a strong comeback. As we emerge from economic downturns, the brands that kept pushing forward will be the ones that thrive.
Do you hit the pause button?
The good news is that historically, 75% of recessions end within a year (source: Money Hub - How to Survive a Recession), and a full 30% only last two quarters. So, any cut in spending will be short-term and result in nominal savings, putting your brand at a disadvantage heading into the bounce-back period just around the corner.
17 March 2020, at the height of COVID, brand and marketing guy Mark Ritson said this about branding in a downturn
“Confronted with a 50% cut in marketing budgets, the smarter play is to actually focus more of the budget on the longer-term brand-building mission. At some point, consumers will return to the streets, the cafes and the various other activities that they have been denied during the dark days ahead. Keep the brand light burning because the cost of snuffing it out for the rest of 2020 and then trying to reignite it next year is gigantic.”
You may choose to put some brand-related activities on hold, but it’s important to take a step back, look at your strategy and prioritise what needs to be done.
Here are some ways we've helped our clients, particularly in the B2B sector, where services take precedence over products:
Brand Strategy
Revisit Your Brand Positioning: Ensure your brand positioning is still relevant. The market landscape may have changed, and your brand needs to reflect current client needs and market conditions.
Focus on Core Values: Highlight the core values that differentiate your brand. In tough times, reliability and trustworthiness are extra important for clients and people who engage with your brand.
Develop a Recession-Proof Value Proposition: Craft a value proposition that addresses your client’s specific pain points during a recession. Emphasise the long-term benefits of your services.
Brand Design
Update Visual Identity: Consider refreshing your brand’s visual identity to make it more modern and appealing. Even subtle changes can signal to clients that you are confident and not sitting still.
Consistent Branding Across Channels: Ensure your brand design is consistent across all digital and physical touchpoints. Consistency builds trust and reinforces your brand’s presence.
Invest in User Experience (UX): Enhance the UX of your website and digital platforms. A seamless, intuitive experience can set you apart from competitors and improve client satisfaction.
Brand Delivery
Enhance Service Quality: Focus on delivering exceptional service quality. Exceeding client expectations can turn them into loyal advocates for your brand.
Personalised Client Communication: Use data and insights to personalise your communication. Tailored messages show that you understand and value your clients’ unique needs.
Client Feedback Loop: Taking care of clients is taking care of business, so establish a robust feedback loop with clients. Regularly gather and act on feedback to continuously improve your service delivery.
What to do now?
For some of you, maintaining the status quo will be the right thing.
However, if you are considering what to do with your brand during the downturn, our advice is not to stand still. We had to say that, didn’t we?
Your brand can not only survive but thrive during a recession. Remember, recessions don’t last forever, but the actions you take now will shape your brand’s future.
We’re here to help.
No matter the state of the economy, branding goes on, but branding is a business activity and must deliver results. So if you're struggling to know what to do with your brand and need an agency to guide you through the tough times, please get in touch.
