During economic uncertainty, it’s essential that your fintech or financial services company continues marketing. Right now, your customers need your services more than ever. In an economy like this, people are worried about their jobs, savings, and the future.
They need a financial partner to reach out and guide them through this. They need you.
Many businesses pull back on marketing spend during an unpredictable economy to cut costs and depending on your unique circumstance, that may make sense for you, too. But let’s look at history. During past periods of uncertainty, brands that kept marketing saw increased sales and bounced back faster once the economy recovered.
People may be buying less right now, but demand will return. This is why it’s more important than ever for you to continue communicating. You want to be top-of-mind for your customers when they’re ready to buy again.
History proves that the brands that kept marketing during economic downturns saw positive impacts on sales and market share. McGraw-Hill conducted a research study where they looked at 600 companies from 1980 to 1985. They found businesses that chose to maintain or increase ad spend during the 1981-1982 recession had much higher sales once the economy recovered.
Yes, that was over 30 years ago, but the strategy still works in more present times. During the Great Recession of the late 2000s, rather than pull back on their efforts, Amazon went all-in on marketing new products, like the Kindle 2. In 2009 (during the recession), the company’s sales actually increased by 28%.
Get to Know Your Numbers
Because so many companies are cutting ad spend right now due to fear of the unknown, ad costs are decreasing. This is because ad prices are determined by supply and demand, and the highest bidder gets their ad shown. With so many advertisers pulling back on their campaigns, there is less demand and more ad space available.
This presents a great opportunity to reassess your marketing strategy and make your ad spend work harder for you. Dig into your campaign performance and make necessary adjustments. Where are you seeing the most ROI? What can you fine-tune for better results? Take this time to rethink your targeting, messaging, and channel mix so you can make informed decisions about reallocating your marketing budget to make the most impact and get the most return for each dollar invested.
How to Cut Through The Noise
As companies cut back their ad spends, you might have fewer businesses to compete with for customers’ attention. A good opportunity for your company, yes, but keep in mind that peoples’ heads might be filled with ever-changing news stories, worries, and anxiety about the future.
You need to be authentic to get through to them. Customers can see right through brands who are just trying to make their next sale. Be strategic with your messaging. Promote your brand without being overly sales-y or altruistic. Striking the right balance can help you get through to your customers, stay top-of-mind, and increase sales.
For more insight into how How to Remain a Market Leader in an Unpredictable Economy, download our free guide.