THE AUTHOR
Christian Twiste
Chief Digital Officer
The economic slump also known as the Great Recession from 2007-2009, caused by a mortgage crisis that led to the fall of the American real estate sector, had far-reaching consequences in Europe as well. Numerous countries faced national debt defaults and had to seek bailouts from the European Union. However, one valuable lesson learned from these events is hindsight.
While it may seem counterintuitive to increase investments during a recession, this is precisely what forward-thinking companies are doing. In the past, a positive customer experience was often defined by a friendly smile and a warm handshake. Today, customer expectations have soared and show no signs of slowing down.
Customers now demand a consistent and personalized experience across various touchpoints, tailored to their preferences and position in the buyer’s journey. Even as economic activity slows, customer expectations continue to rise. With consumers having less disposable income, businesses must work harder than ever to earn their trust and loyalty.
Actions Your Marketing Teams to Take During a Downturn
So, what strategies should teams employ for marketing during a recession and where should they direct their efforts?
- First, it's essential to reframe the perception of marketing from being a "cost" to a "vital component in the pipeline." Cutting the marketing budget, particularly during challenging economic times, can lead to severe repercussions that ultimately harm the overall business health. Marketing is the lifeline that can guide you through; it deserves a chance.
- Always remember that retaining your existing customers is up to 25 times more cost-effective than acquiring new ones, and a meagre 5 percent increase in customer retention can yield over a 25 percent increase in profits.
- If economic difficulties necessitate staff reductions, it's time to empower your customers to self-serve to the greatest extent possible. Ensure they have the necessary tools and resources to independently address their own needs and issues.
- Ensure your marketing team operates independently, free from reliance on IT or development teams. Leveraging low-code/no-code tools that facilitate the execution of complex processes through an intuitive drag-and-drop interface will empower your team to respond to your customers more swiftly and effectively.
- Be certain that you engage your customers across all digital channels, meeting them where they are. Your technology stack should support seamless integrations, facilitate content reuse, and ensure all tools are accessible within a unified system, providing a comprehensive view of your customers.
- The key is to deliver a multi-experience. Ensure your capability to transform the valuable customer insights you've gathered into personalized experiences across all channels and devices, and do so efficiently and effectively.
- Your customers' surroundings are evolving rapidly, with rising prices, decreased job security, and cooler homes, all influencing their behavior as consumers. This is an opportune moment to employ A/B testing to guarantee alignment with customer sentiment and adapt to market fluctuations.
- There has never been a more favorable time to embrace MarTech. Invest in technology that not only enhances efficiency and cost-effectiveness, such as marketing automation and streamlined content workflows but also enables you to achieve more with fewer resources. This includes the utilization of low-code/no-code tools and artificial intelligence (AI) for in-depth customer insights analysis and faster, more responsive actions.
Why Korcomptenz?
Harnessing the potential of emerging technologies hasn’t consistently proven simple. Numerous enterprises encounter difficulties in determining their starting point and investment priorities. At Korcomptenz, we’ve established a proven methodology that empowers you to strengthen your business capabilities, ensuring your competitiveness in the market. The process commences with a comprehensive evaluation and quantification of your distinctive Digital Transformation requirements, culminating in a tailored roadmap for your success. This approach ensures that you achieve tangible returns on investment at each stage of the journey.
Conclusion
The past two years have underscored the critical role of new technologies in ensuring the survival and prosperity of businesses during periods of uncertainty. With the appropriate technology, companies can adapt to shifting conditions, pivot to address evolving demands and find opportunities for success even in the most challenging circumstances.
Unfortunately, it’s a common occurrence for us at Korcomptenz to observe companies prioritizing the wrong aspects when choosing marketing solutions. Instead of pausing to evaluate their existing situation, expertise, financial resources, and capacities, they rush into a solution offered by a vendor making grand promises without due consideration. Request a consultation today.
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