It’s tough running a business right now. Rising inflation, the energy crisis, a weakening pound and the spectre of another recession are conspiring to hike costs at the same time as reducing consumer spending.
As a result, many Kent business owners are worrying about their futures and looking for ways to make savings wherever they can. One of the first areas businesses usually cut back in is marketing, which is sometimes perceived as a discretionary – rather than essential – expense.
In some ways it makes sense. When customers are tightening their belts and revenue is down, marketing spend can be difficult to justify. When the pandemic first hit and 225m full-time jobs were lost globally, marketing budgets plummeted to their lowest levels in more than a decade. Even Google cut its budget in half. But is this approach advisable? Here’s why you can’t afford not to invest in digital marketing.
Marketing can help businesses survive a recession
While there may be short-term savings in slashing marketing budgets, history shows that in the long term it can be the wrong tack for many businesses. In fact, studies have demonstrated that businesses that continue to invest in marketing during challenging times are the ones most likely to survive a recession.
Increases brand visibility
Why? For one, there is less competition. When large numbers of businesses cut their marketing budgets it paves the way for others to increase their presence. With the right strategy, these companies can make impressive advances without spending any additional money. Statistics show that companies that continue to invest in marketing throughout economic downturns experience 3.5 times more brand visibility than those who cut back.
Get ahead in the long term
What’s more, businesses that are savvy during turbulent times often gain a lasting edge over their competitors. The most famous example of this is Kelloggs. During the Great Depression the company doubled its advertising spend and became a household brand name while its previous competitor, Post – another 1920s cereal leader – disappeared into obscurity. It’s a compelling example of the truth in the old adage: ‘When times are good you should advertise. When times are bad you must advertise.’
Evaluate your current marketing strategy
But that doesn’t mean you shouldn’t revisit your current marketing strategy. Any money spent on marketing is an investment in your business so it’s important to ensure your approach is still giving you the best return. Return to the metrics agreed upon when the strategy was launched to work out how well it is performing in terms of your company’s lead generation, sales volumes or profits. Track conversion rates (the percentage of website visitors converted into leads or customers), monitor website bouncebacks and check the levels of engagement with your business via channels such as newsletter sign-ups or new customer accounts created.
Ensure you’re getting the best ROI
A key area to examine is how much sales revenue your current marketing strategy is generating for every £1 you put in. Tracking the return on investment (ROI) enables you to determine whether the plan you’ve chosen is effective or not.
While the best approach for your business depends on the size and nature of your company, there are certain areas of marketing that consistently perform well across all industries. These include SEO (search engine optimisation), which was shown to offer some of the best returns on investment in a recent Statistica survey. Nearly 75% of respondents rated it as ‘excellent’ or ‘good’ for ROI.
SEO is ‘essential’ for small businesses
SEO refers to the practice of increasing website traffic by improving your search engine ranking. It can help promote you as an expert in your field, build trust in your company and generate leads. “SEO is constantly growing in importance and expanding into new areas,” says marketing expert Kelly Shelton. “Before, it played a major role for large and midsize businesses. Now it is just as crucial for small businesses.”
Small to medium-sized businesses are not always familiar with the practice or confident in implementing it for themselves. Yet it is vital for businesses, especially start-ups keen to grow their reach and visibility in a niche market; the benefits of SEO are especially marked for those operating in a predominantly local market. By putting time and money into focused local SEO, businesses can ensure they are building reputation and bringing in leads from the people most likely to become their customers.
Local SEO optimises online visibility
Local search describes a customer searching for a business, product or service within a specific location – for example, plumbers in Kent. Local SEO is the process of optimising a business’s online visibility so it appears in these results – ideally on the first page. It can bring more targeted traffic to a site which in turn helps increase the number of conversions.
But that’s not all. Effective local SEO also helps to build trust in your business. A highly-ranked site suggests trustworthiness and credibility, which is especially valuable if customers aren’t familiar with your company. By increasing prominence in searches SEO helps your business’s website to get a click before your competitors. It can also position you as a leader in your industry – a huge advantage if you are in a crowded market.
Marketing ensures your customers will keep coming back
Investing in effective marketing during challenging times is not only desirable but essential if a business is to remain successful. After all, when customers don’t see or hear from a company, it’s logical that they forget about them. Even previously loyal customers move on. Strategies such as local SEO can help keep your company at the forefront of your customers’ minds and foster trust and credibility. At a time when all of us are questioning how and where we spend our money, marketing can help remind customers how you help them and why you deserve their loyalty.
Think too of the future. When the economic outlook improves, will your customers still turn to you for what they need? With the right approach now, you can be confident they will.