How to Market in an Economic Downturn

In a slowing economy, overconfidence can lead a firm into all kinds of trouble, even disaster. After you've enjoyed success for a number of years, it’s easy to dismiss changes in the market, over-hire, and spend too much wooing the wrong clients. On the other hand, excessive timidity can stop a firm's momentum dead, offering hungrier competitors a chance to eat away at your market share and hard-won client base.

Marketing your firm in a slowdown doesn't have to be difficult, but it helps to diagnose the situation early, before aggressive and painful corrective measures are needed. Keep in mind that we are in a natural business cycle that will end at some point, so if possible, avoid doing things you will regret later. Try to think of today’s downturn as an opportunity to test your self-discipline and refocus on marketing fundamentals. That way, your firm is likely to come out of the downturn stronger and better positioned than ever.

7 Ways to Thrive in a Market Downturn

1. Don't dilute your positioning. Your credibility can suffer if you say one thing one day then do something entirely different the next. Regaining a lost market position later can be very difficult.
2. Focus on existing clients first. Retaining existing clients is the foundation of recession marketing. It’s far cheaper and easier to get more work from businesses that already trust you than to build new relationships from scratch. Talk to your clients and honestly assess their needs. Your best clients want to work with you and are likely to appreciate your pro-activism.
3. Seek out the kinds of clients that fit you best. At the same time you are talking to your current clients, begin identifying and targeting the kinds of new clients that your skills and fee levels suit best. You are more likely to close this type of business — and the work will be more satisfying — than if you cast your net too wide and sacrifice your positioning for short-term business.
4. Plan for a longer sales cycle. In a downturn, businesses take longer to make buying decisions. Consider slowing down your spending accordingly. Don't lose heart: your clients are still buying, but you need try even harder to stay in front of them.
5. Start measuring your marketing efforts. Metrics will provide the data you need to spend your limited marketing dollars wisely. If you aren’t reviewing your web statistics already, that’s a great place to start (and doesn’t have to cost a lot). Next, begin building trackable landing pages and developing measurable campaigns. Then, using a technique called AB testing, begin discovering what messages resonate with customers.
6. Put excess human resources into your marketing. An economic downturn is no time to put the brakes on your marketing. If you have excess capacity, put a few of your most knowledgable people to work increasing brand awareness and building your reputation as thought leaders: writing articles, public speaking, mentoring — even blogging.
7. Avoid cutting your prices. Don’t shoot your firm’s reputation in the foot by slashing your fees (and profits). Pricing is a positioning tool, and prospects equate low prices with lower quality. Instead, focus on attracting the kinds of clients that appreciate — and are willing to pay for — your expertise. If you have to make compromises to stay competitive, try to adjust your offerings or reduce your scope of work before cutting your fees.

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