The Modern Business Influencer: How To Build a Winning Marketing Strategy During A Recession
How To Build a Winning Marketing Strategy During A Recession
Today we're diving in on the word looming around in every business leader's mind...recession. Whether you believe we are in a recession or not, it has been a topic of conversation in every boardroom the past few months with 95% of businesses fearing a recession. As you meet with your leadership to discuss your operations, financial forecasting, cashflow planning and sales tactics, it's easy to leave out what some view as discretionary spend – marketing.
Research suggests around 50% of businesses will unfortunately follow historic patterns and forego a long-term strategy by cutting crucial expenses linked to sales and marketing – ultimately making it more challenging to retain new and existing customer bases once the economy recovers. Case studies have proven companies that are successful through a recession hone in on their marketing strategy as a competitive advantage. So the question is, what do you focus on to ensure your marketing dollars are providing maximum results during this time? There is one key strategy to focus your resources on for both short-term and long-term success during a recession...owning the connection to your audience.
Why do you need to own the connection to your audience?
In today's environment, owning data is power.
Consumer data is becoming less accessible (rightfully so) to hyper target consumers through third-party applications. The days of brands being able to connect with consumers and generate targeted revenue solely on Facebook or Google advertising are gone. This is due to the launch of Apple's opt-in feature now requiring third-party developers to ask permission to track users' data. This new feature has challenged brands resulting in more expensive advertising campaigns and hindering the ability to run retargeting campaigns.
Research also shows consumers are becoming more protective of their data – a trend we have seen increase throughout the pandemic. The 2022 Digital Consumer Trends Index from Econsultancy and relationship-marketing platform Cheetah Digital stated,
"Consumers are willing to trade data for personalized experiences, but such trades come with high expectations for both the experience and the ways the brand might use that data subsequently." – 2022 Digital Consumers Tends Index
It is more important now than ever for brands to evaluate the right data acquisition strategy that leads with personalized value for their audience. If you are currently dedicating resources to social media strategy, public relations, events or advertising, I encourage you to take a step back and review your big picture strategy. Do you have a call-to-action to siphon off exposure from these third-party platforms and direct them to assets you completely own (your website, podcast, email list, blog)? And once you get your audience to your owned assets, like your website, is there a way for you to extend your interaction with them?
The right lead magnet – a value offering in exchange for contact information – is key to growing a buying audience and owning your connection to them. Website visitors usually aren’t ready to purchase when they’re first exposed to your brand — and if you don’t give them a reason to stay, they click the exit button. The ultimate goal with your website should be to find a way to extend your interaction with a website user and get them on to your email list. Building your email list is the key to owning the connection to your audience long term. The best way to grow your email list is to have a value-driven, interactive lead magnet on your website to drive your audience to.
What kind of lead magnet works best on a website?
Over the past few years we have seen interactive lead magnets, such as quizzes and assessments, be the most successful tool for brands seeking to build data they own. We have seen quizzes convert at a higher rate than any other type of lead magnet, more than doubling the conversion rate of traditional lead magnets.
Quizzes work so well because they focus on the value of the user by allowing the site visitor to learn something about themselves. For example, a website visitor may not be familiar with you or your company yet but they likely will find the opportunity to know themselves better appealing, which is why this offer converts at a tremendous rate. Additionally, quizzes give you far more data on your audience than any other offer.
For example, if you have a “Leadership Readiness Quiz,” you’re going to have access to data based on their answers that could inform how good a lead they are for your leadership consulting business. The way they answer each question can also provide you with their key pain points to ensure you are nurturing them with targeted, valuable content once they are in your email list.
The instant gratification of personal feedback that a quiz provides is proven to be addictive. Throughout the years, the quizzes we have created with clients have garnered over half a million quiz takers and have been featured in OWN, Forbes, Inc. and on Good Morning America. In the future, we will focus a full newsletter series on the art of building irresistible lead magnets for your brand.
At the end of the day, brands that focus on building data they own and utilize that data to lead with value will be able to win in a recession and beyond with their marketing strategy. I encourage leaders to think differently about their approach to acquiring consumer data and to turn away from depending solely on third-party platforms. Those that continue on this path will exhaust their resources quickly and be left behind in the changing landscape. During a recession, leaders will be challenged to think long-term about truly getting to know their customers and the right approach to nurturing them. With today’s consumer behavior, providing value trumps all.
