6 B2B Marketing Tips to Survive a Recession

The COVID-19 pandemic has seen several countries around the world enter in lockdowns in recent months. This has put pressure on economies, building up to what the IMF is calling the most severe depression the global economy has faced in the last century. If this looming recession is to materialize, millions of businesses around the globe will face severe challenges.  Some will survive, others not but what's clear and important to understand is that planning is everything.  For B2B businesses, being prepared for the inevitable knocks to come may be the difference between survival and failure.  This article looks at the marketing aspects that B2B businesses should consider - in advance of a recession.

Marketing During a Recession

During a recession, consumers and businesses alike are faced with having to do more with less. People have less money to spend, meaning they’re buying less and the demand decreases. Marketing is often thought of as a business function that is an expense that you can do without, oftentimes being the first to face budget cuts. This approach, however, is one that can help you get through a recession, though it will unlikely get you very far in the long term during the economic recovery phase. Let’s take a closer look at this.

B2B businesses should aim to increase marketing budgets during a recession because if they don’t, they’re first of all decreasing their profit potential and secondly, disrupting their growth. B2B’s rely heavily on their brand perception, so inappropriate cutbacks, decreased visibility and rash decision making won’t bode well. Instead, you need to position your B2B as the provider of a solution (preferably to a solution that is vital to or during the struggle). To do this, you need to consider your points of differentiation, as this can set you apart and put you in a stronger position once the recession is over.

When the economy is performing well and your business outlook is positive, you’ll be developing a marketing strategy that is based on maximising profits in the long term. When considering advertising, you’ll look to benefits and opportunities in a proactive approach, marketed to as many people as possible. During a recession, marketing efforts become concentrated on the short term, with low cost being the primary consideration. The goal is to drive sales to a more narrowly defined audience in a reactive approach.

B2B’s therefore need a marketing strategy that is centered on maximising value in order to create sales opportunities, even if the possibility of those sales is delayed until better economic conditions are reached. This is the key to a solution that will help your B2B weather the storm, rather than choking by falling into the trap of cutting budgets and product prices which ultimately lead to decreases in investment and poor brand perceptions.

It comes down to missing the opportunities presented by times of trouble. Though difficult to see, businesses who utilise their time to plan and strategize before the crisis hits can safeguard themselves from complete failure. Since many businesses lower their marketing budgets, your advertising competition is reduced, making this the perfect time to maintain your presence and gain market share. If you are at a loss and have to cut down on your advertising budget, be sure to follow the tips below to maintain your business’s position as best as possible:

6 B2B Marketing Tips in a Recession

• 1. Positioning: As mentioned earlier, your B2B’s brand positioning is key. As such, you should demonstrate your values and capabilities through collaborations, the sharing of testimonials and any awards you have received. Over and above this, you want to be seen as a safe option during a recession, so avoid risks and focus on leveraging any loyalty you have earned.
• 2. Online marketing: With this recession being referred to as the ‘Great Lockdown recession,’ you will need to ramp up your online marketing efforts for the foreseeable future. The new normal is predominately online, meaning your B2B will work in the space of virtual events and social media, rather than trade shows, events directories, print media and traditional advertising.
• 3. Go direct: Increase your direct marketing by speaking directly to your audience via direct messaging and community forums online. Another way to do this is by improving your email marketing, which is a highly effective way to generate traffic and maintain relations with existing leads. Finally, be more direct in your approach through Account Based Marketing (ABM). Do not assume that because you have targeted audiences that you’re already doing this - ABM is highly precise and measurable by revenue. It’s concept of having the marketing and sales teams work together to see the businesses you’re targeting as partners to help your business, can be very useful during a recession.
• 4. Insights: With this direct approach of communication, be sure to pay close attention to their responses, attitudes and reactions, both with your business and more generally. This will assist your B2B in identifying patterns, sentiments and problems. With this, you can appeal to B2B’s while being on the same page and being able to meet their needs better.
• 5. Lead nurturing: B2B’s are known for taking long periods of time when it comes to decision making. Expect this process to take even longer during recessions. This needs to be kept in mind when approaching leads and guiding them down the sales funnel. In addition to this, many of the leads who approach you will likely be at the awareness stage, not yet ready to buy but able to be nurtured for future purchases. That being said, your marketing is best directed at existing customers, providing them with new offers and increased value.
• 6. Optimise: Your B2B needs to have a website that has a landing page. On it, your key details should be visible, with easy access to any relevant information and importantly, your choice of a lead generation form or signup. Your business needs to rank highly during internet searches, as this is where a lot of research takes place during the decision making process. Your social media and content should also be optimised so that it achieves its maximum potential returns.

As the world braces for a global recession, ensure your B2B is doing all that it can to prepare. By understanding the value and importance of marketing, you can help your business to survive the economic downturn and prosper thereafter.

Bonus Tip

Outsource your marketing to experts who have all of the knowledge and resources at their disposal. They will develop and implement a successful strategy. This is a great option during a recession as you can capitalise on getting ahead of your competition and work with an agency on a contractual basis that fits your budget. Book a meeting with us at Nexa - we’re here to help!