6 Tips for Social Media Marketing in a Recession
You probably already know that New Zealand is in recession; as our GDP falls for the second quarter. As stated by Kiwibank, household consumption is contracting, and business and household confidence remains low. This isn't music to marketer's ears; as ours is often the first budget to be scrapped when profits slow.
Make Social Work For You
As budgets get smaller, it's time to get smart with your marketing. Tough choices need to be made in an economic downturn, but you can still achieve amazing results if you play your cards right.
The good news is, you'll find your audience on social media. During tough economic times, people spend more time on social media platforms seeking distractions, entertainment, and social interaction.
Here are 6 tips for using social media to bring sales, boost brand and ensure your business weathers an economic storm, and comes out strong on the other side.
Audit and Prioritise
As profits slow, often our to-do list gets longer. Don't waste time marketing on the wrong channels. Find out where your audience hangs out, and focus on creating high-quality content there. Take a look at what has worked well for your brand in the past, and what experiment doesn't need to be repeated.
"You won’t be able to do it all. The more comfortable you get with ruthless prioritization, the easier it will be to push back on competing priorities confidently." Carilu Dietrich, a marketing expert who chatted to Sprout Social.
2. Craft Thoughtful Messaging
The recession is a stressful time for most of us who aren’t Bitcoin billionaires or named Kardashian. Your audience is likely to be more sensitive to your messaging during this time. Tweak your tone of voice to be empathetic and understanding. Thoughtful messaging can foster a stronger connection with your audience. Treat them like a friend, and consider how you would like to be "marketed to” during this time.
3. High-Quality Creative:
Now is the time to focus on quality over quality. Spend a few extra hours in CapCut perfecting your Reel, instead of spamming your followers with a low-quality Reel every day. You're likely to get way better engagement, and way less unfollows.
Ensure your posts have a lasting impression with high-quality creative. Capture your audience's attention: make them laugh, be vulnerable, or honest. If possible - all three. This will lead to more brand recognition and positive feelings towards your company.
"Brand awareness helps drive sales by increasing loyalty among existing customers. When potential new customers hear about your company through word-of-mouth advertising from current customers, they are more likely to be loyal buyers in the future." (The Surprising Sales Impact of Brand Awareness | Entrepreneur)
4. Don't Slow Spend
Social media marketing offers a cost-effective alternative to traditional marketing channels. It provides flexibility and responsiveness to your business needs. While it's important to make every dollar count, slashing your social media marketing budget entirely may hinder your competitiveness. Studies have shown that brands that increase advertising during a recession experience significant sales growth. Allocate your resources wisely to maintain a strong presence and gain a competitive edge.
Check out these stats from a study by MarketSense during the 1989 to 1991 recession. It found that brands that increased their advertising during this time saw serious sales growth.
Jif Peanut Butter had a growth of 57%
Kraft Salad Dressing brands saw growth of 70%,
Pizza Hut sales rose 61%.
McDonald’s cut its sales budget, and sales dropped by 28%.
5. Brand Investment and "Future Demand"
Reducing brand marketing during an economic slump may provide short-term gains, but you risk long-term negative consequences.
Harvard Business Review analysed the performance of companies during recent recessions and found that 80% of companies that cut marketing costs hadn't regained their pre-recession sales and profits within three years (Tracksuit). Investing in brand marketing during economic downturns ensures commercial success and future demand (coined by Marketing Association fav James Hurman).
6. Build a Community and Nurture It
Closed communities have gained popularity as people seek more intimate online destinations. Leverage this trend by using social media as a multi-way communication tool, encouraging conversations in comments, and engaging with accounts of all sizes.
Building a community around your brand adds value to the audience's experience and helps maintain brand visibility in crowded social media feeds. Community Groups on Facebook and LinkedIn are a great way to foster organic social engagement without exhausting your ad budget.
And remember to set time aside to respond to comments, messages and even reviews. Your community will thank you for remaining engaged, leading more better ROI across your socials.
So there you have it, 6 tips to utilise your most valuable marketing asset during the recession – social media.
Want a helping hand in social media, and more tips to get you through tough times? Chat with us at Matter, a specialist social media and content marketing agency.