It’s Not All Bad: How to Take the Lead in a Recession

The research is in and 70% of economists agree that we are now in a recession. But in the face of a troubled economy, studies show that the tech industry’s fast growth helps to protect against economic threats. In Massachusetts, for example, the “economy seems to be stronger because of our tech sector” said economist Alan Clayton-Matthews, a professor at the University of Massachusetts at Boston. So in response to a recession, what can you do to gain ground for your company? The combined power of technology and marketing hold the key. This month we take a proactive approach to dealing with the struggling economy and how carefully-planned interactive marketing can improve your bottom line.

It is well documented that brands that increase marketing efforts during rough patches in the economy are more successful in creating sustainable brand loyalty, and therefore can improve market share and return on investment. Other than the almost instinctive reaction to cut back the marketing budget when money is tight, the opposite is proven to be quite effective. Maintaining your marketing spending reassures the consumer of your brand and develops trust when they’re hesitant to spend on little-known brands.

During the last recession in 2001 the advertising sector was hit hard with overall ad spending dropping 9%. However, the past seven years have seen tremendous advancements in the interactive marketing area. Rather than the dot-com frenzy of 2000, web marketing is now primarily results-driven and highly measurable which makes for much more efficient media planning online. Carefully planning impressions and the intended ROI should be the driving force for all marketing decisions when the budget is tight. This suggests that the goal of marketing during a recession is generating quick sales to boost your bottom line. Performance-based ads will thrive in this environment, making online and interactive marketing an even stronger form of reaching the consumer.

Effectively targeting your ROI truly means changing your objective from creating awareness to creating sales. In addition, researching the customer is the key to effectively allocating marketing dollars to drive sales. Meticulously selecting which customers to target and where is easy now that online behavior is so measurable. So instead of aiming to recruit new customers, it will most likely be more profitable to target existing customers who already have a history with your company. E-mail marketing strategies are among the most highly effective because they have the ability to target existing consumer and capitalize on relationship marketing.

Smart marketers will invest in analytics applications to track the online spending habits of their consumers. Google Analytics is a trusted overall analytics application that tracks visitor behavior, measures conversion rates, and monitors AdWords ROI.

Careful measurement and implementation through the combination of technology and marketing metrics should work together to hold up against a struggling economy. Successful companies do not throw out their marketing plans when the economy challenges them; they adapt and overtake the competition.