How should we market in an inflationary economy?

Inflation was a pretty chill house guest until recently. It laid low, didn’t eat much, hung out in the corner and made few demands. As a result we kinda forgot about it.

But with rising interest rates finally appearing to cool off an overheated economy, we are now forced to recon with the return of inflation. And with it, increased expenses.

Who knows if we’re headed for a true recession, but it seems certain if we keep talking about it, it could well become a self-fulfilling prophecy. The media loves a good doomsday story, and they can’t seem to get enough of tech layoffs – even if the downsizing is only returning many to last year’s staffing levels!

What we do know for certain is that many companies are looking for cost savings. And often the first expenditure to be questioned is advertising and promotions.

Don’t cut back on promotion
I had the opportunity to be interviewed as a subject area expert about marketing during these times, at The Connected Woman’s recent evening gathering. While there were a number of emerging themes which I’ve shared below, the biggest take away was to NOT cut back on promotional efforts. Why? Because studies have proven that businesses and brands who stop promoting all together during recessions experience a drop-in sales, and those who keep a promotional presence increase their sales, and most importantly increase their market share, in light of others pulling back.

DO focus on what works, trim elsewhere
However, it’s certainly a time to focus on what works, and perhaps do more there, while trimming out the extras of less quantifiable benefit. It’s also a time of focus on the right brand and right products. What products or services are most appealing to your customers in economically challenging times? Now is a good time to focus promotions on those things.

Zig while others Zag?
One way to stand out is to do what others are not doing right now. I was reminded of the simple effectiveness of a paid postal drop this past week. A window replacement company dropped an 8.5 x 11” flyer to our neighborhood. But what made it stand out was the fact it appeared to be a hand-written note about their services, complete with corrected crossed out copy, some with extra emphasis or yellow highlighter, and signed by the sales manager, noting his cell phone. It wasn’t glitzy, but it felt personal. And the hefty gloss paper it was printed on ensured it stood up in the mailbox and commanded attention. In a world gone mad for online digital, depending on your target customer and offering, being a little old school might be just the ticket right now! Email me mary@charleson.ca if you want to see a picture of the flyer. I’d be happy to snap a photo and send you copy. You know what they say – imitation is the most sincere form of flattery!

Walk in your customers shoes
Being human and having empathy in your storytelling is a great way to connect with customers under stress. Showing care and understanding while delivering exceptional customer service can also be some of your best marketing, if it generates positive word of mouth.

Free promotion
Beyond paid promotional efforts, there are also many things you can do at little or no financial cost to generate promotion.

Social media
Social media, with well selected channels which align with your target audience, and interesting content, can maximize organic reach to your existing audience. And depending on the platform choice, can also deliver considerable reach to new audiences without spending a dime.

Email marketing
Email marketing newsletters to your database cost little more than effort, but can deliver huge returns, in the form of top of mind awareness, and 1:1 connection.

Publicity
Earned media publicity can deliver the magic of third-party endorsement, while also expanding your reach to new audiences. Pitching the media a story about your offering for radio, TV or print is the traditional route, but podcast interviews can be another solid choice for finding niche audiences and new exposure. Being quoted in an article by a reporter is another tactic, as is submitting articles to publications in your industry. (Check out the helpful blog posts below)

UGC & influencers
User generated content (UGC) can be a great way to gain free promotion. The secret of course is giving your audience something about your offering to talk about online. Then you can fan the flames some more featuring their posts, and ensuring there is a common hashtag to encourage others to do the same.

Mico-influencers are people who have a loyal and engaged following on social media, but their audiences are not large enough to command substantial brand deals. Many will do promotional work in exchange for product or service which you may be able to comp for close to free. Sometimes micro and nano influencers will even promote brands just because they like and use them. If you notice a social account who appears to be a fan with their content, be sure to engage and nurture the connection.

Events & networking
Whether it be in person or online, there’s nothing like networking to increase exposure, especially for B2B style businesses.

80/20 rule
The 80/20 rule states that 80% of your business will come from 20% of your best customers. That will be the case whether we’re in inflationary times or not, but at a time when you are trying to be strategic with your expenditures and time resources, it’s far better to focus on the customers who will deliver the sales. Something to keep top of mind.

Generosity is magnetic
My final bit of advice on all of this is to remember that when you come from a place of service, people will remember you. Generosity is magnetic. Whether it be over delivering on a promise, or simply giving some small services for free, it can be a great way to stand out and be memorable.

In addition to the tips above, if you didn’t get a chance my recent blog post, and last week’s email tips, you’ll likely find the content about playing the long game on social media, and marketing as community development helpful for your free promotions strategy.

MEET OUR CONTRIBUTING MEMBER MARY:

Mary Charleson, is a marketing speaker, educator and strategist. She is the author of www.fiveminutemarketing.com blog and weekly newsletter, featuring marketing tips, served up like a personable chat with a caring friend over coffee. She has authored two books: Word of Mouth Mouse & Mobile and Five-Minute Marketing. Mary is a CSP (Certified Speaking Professional), a designation through NSA (National Speakers Association) held be fewer than 12% of speakers globally. She is a member of the Canadian Association of Professional Speakers and the Global Speakers Federation. Subscribe to Mary’s Weekly Five-Minute Marketing Tips.