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Why You Shouldn’t Cut Your Marketing Budget During Economic Downturn

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Why You Shouldn’t Cut Your Marketing Budget During Economic Downturn

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WHY YOU SHOULDN’T CUT YOUR MARKETING BUDGET DURING ECONOMIC TURNDOWN

It’s easy to look at your financials and wonder if your marketing budget is something you need when people aren’t spending the way they used to. When economic times are tough, the first thing to keep in mind is that it won’t last forever.

Think about it this way: whether the economy is up, down, left, or right, people still need senior living care. Letting them know your community is where they should go for that care comes down to effective marketing strategies

Recession isn’t a word anyone enjoys reading and we’re not fans, either. We’ll use the word recession as we outline how to navigate your marketing budget during an economic turndown, but it’s not meant to scare you. We’re here to make sure you’re fully prepared and know how to keep your senior living business thriving during, and after, these daunting times.

WHY MARKETING STILL MATTERS

Making marketing one of your top priorities during a recession can help your business recover quicker when it matters most. Companies that have recovered quickly from recessions didn’t cut their marketing budgets and, in many cases, increased them.

KEEPING YOUR CURRENT CLIENTS

It can be up to 5x more expensive to attract new clients as opposed to keeping existing clients.

Your marketing efforts should be geared toward retaining existing clients and, thus, their revenue. Keeping the right clients is key, and your marketing allows you to do this by keeping them informed of new products, services, and deals.

FINDING NEW CLIENTS

Your marketing efforts can help you attract new clients, even in times of recession. Remember: people are still growing old, still requiring extra support, and still need your services. Your marketing can show potential clients why your community is the one they want to live in.

Additionally, people are always looking for good deals (maybe even more in a “bad economy”), even when it comes to senior living. Smart marketing can help you reach out to these potential future clients and encourage them to try your senior living community.

COMMUNICATING WITH YOUR AUDIENCE

If your marketing slows or stops altogether, it could make your existing and potential clients question the stability and credibility of your business.

Your marketing is the main communication channel between you and your audience. You don’t want clients left wondering about your business’ ability to survive the economic downturn, or how much your care about client retention. They may even forget about your business entirely.

Here’s what could happen if you completely cut your marketing budget:

  • Your competitors may overshadow you
  • You can convey a lack of corporate stability
  • New clients won’t come across your brand
  • You’ll see a decrease in business overall
Senior woman looking at bills

MARKETING STRATEGIES DURING ECONOMIC TURNDOWN

There is no doubt that businesses across the board are struggling. However, big problems always lead to even bigger opportunities, and we’re not just trying to be overly optimistic. Rather than cutting your marketing budget, we recommend that you look for ways to refresh and improve the efficiency of your marketing.

Here are a few suggestions:

  • Examine your target market to ensure you’re reaching the right people
  • Examine your current marketing channels to see if there are any that can be reduced or eliminated
  • Make sure you are measuring your results to determine what is & isn’t working
  • Invest in marketing automation or other tools to make your work easier

Make an unforgettable mark so that when survival becomes revival, your brand is the most memorable. Almost all purchase decisions are influenced and made at home.

You can use social media to reach child decision-makers, email to reach residents directly, and SEO to appear in front of the people who need your services the most. There are many ways you can use marketing strategies to not only survive the recession but thrive in it.

Lockdown has simply focused attention on the location where we most frequently shop and browse. The at-home consumer has always been and continues to be an important audience.

DISCUSS YOUR STRATEGY WITH YOUR MARKETING TEAM

It may be tempting to cut back on marketing, but there are ways to carry out your current strategy more efficiently to maximize sales. By being wise about where you spend your money, you can stay at the top of consumers’ minds without overspending.

Marketing budgets shouldn’t be cut on a whim or because it appears to be an easy target for necessary cuts. Staying true to your marketing plan, even during a recession, will result in a stronger rebound when the market corrects itself, as well as greater long-term success for your brand and its loyal clients. 

Discuss all of your options with your marketing team before deciding on a budget. They will most likely work with you to achieve your objectives, even if budgetary changes are needed. 

Your relationship with your marketing team should be open and honest; they, too, want to see you succeed and will do everything in their power to help you do so.

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