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As the COVID-19 situation continues to evolve, and the status quo seems to change every hour, with the only constant being uncertainty. While it may seem incredibly challenging to operate without a script, you aren’t the only one that’s feeling that way. Most online businesses and brands are unsure of how to proceed during these unprecedented times.
In these particular set of circumstances, one of the only situations that can provide us with a little insight into what’s to come is the 2008 Recession. If you would like to brush up on the history of the subprime loan market and the 2008 Recession, click here to check out that blog post for a brief recap. While we aren’t experiencing a full-blown Recession just yet, we entered a Bear Market on March 11th, 2020, when the DOW fell to 23,553.22, or over 20% from its 52-week high. While this fall might be shortlived, there’s no concrete answer on how long this will last. Restoring faith in the markets and economy depends immensely on the Coronavirus Pandemic slowing down, and the jury’s out on when that will happen.
All is not lost, though, since digital marketers play a unique role in this situation. Digital Marketing wasn’t the juggernaut it is today, but during the 2008 Recession, online advertising fell by just 2%. Since most people are staying at home, working remotely, and practicing social distancing, online services have become incredibly valuable. They haven’t suffered the devastation that has occurred in other industries.
How Can Marketing Help?
Recessions come in various shapes, from V-shaped, U-shaped and L-shaped. While none of them are ideal, it’s preferable to experience a V-shaped Recession than an L-shaped one. Each one has it’s effects on the economy and on us individually. Marketers are lucky enough to have a direct impact on this aspect. There are 2 main ways that marketing can help reduce the effects of a recession. These are by:
- You can lessen the depth of the economic downturn using marketing campaigns that provide consumer awareness to your products or service.
- It can help you reduce the effects of a recession on business as the economy picks up speed again.
What Can You Do?
We did see an initial slowdown in campaigns, as the harshness of the situation set in. Once businesses have the opportunity to assess the circumstances and create better strategies to face it, things will probably change. We are fortunate to be in an industry that’s seeing additional interest. Searches for consumer loans are on the rise and will probably continue to do so for a while. That’s because, for some individuals, the stimulus check can’t come fast enough, or it isn’t enough to cover mounting costs.
Lenders, especially within this online space, have continued and will continue to extend loans utilizing appropriate underwriting practices. That said, what steps should you take to change your marketing strategies to face a possible recession? The first step in a recession is the fall, so your first step should be to implement measures to lessen it. While it may not happen, it’s critical to have a plan in place if this does happen. This means that your campaigns should be agile and adaptable to shift quickly with the changing times.
One of the ways you can keep those campaigns alert and agile is to monitor all the consumer data you have available. Consumer trends can change on a dime, so tailoring them to fit any consumer pain points works best. Another is to streamline your processes to suit working remotely. In our particular industry, it’s incredibly common to work remotely, so this step is something most of you have entirely figured out.
The next step to consider is the measures you should instate to help make this economic downturn as brief as possible. As a brand, one of the best ways to do this is by hammering down brand loyalty. Understanding the demographics that respond the best with your campaigns is essential. As with the previous step, keeping a close eye on your engagement metrics can help focus on who your most engaged consumers are.
Finding ways to create brand awareness through content marketing also helps in this regard. Since digital media reigns king, capitalizing on that attention from consumers can make it easier to maintain brand visibility. Keeping up to date with SEO trends and keywords can help immensely, so be sure to keep an eye on it, so you rank organically on search engines.
The recovery period is go-time, where you will be able to see the fruits of your labor. It’s not time to rest on your laurels, though. Having a strategy for when things start to look up will help to impulse yourself further and generate more significant and better payouts. Increasing the number of campaigns in tune with consumer behavior will ensure you rise above the competition.
Where should I focus my campaigns?
Before closing, it’s also important to consider where this pandemic has hit the hardest. Places like Nevada, New York, and Hawaii have taken a beating since they rely heavily on the tourism industry. Modifying your campaigns to target areas that have been affected less will ensure a smoother transition and an overall better return on investment. It will also allow you to slowly be able to broaden your campaigns to states that were gravely affected.
While each new day brings uncertainty, the LeadsMarket team is always looking for ways to adapt and innovate to current shifts in the market. If you would like to learn more, click here to speak to our team to see how we can help!