MARKETING Changing gears: How to adjust marketing tactics during a recession

withMarketing DOUG MACMILLAN

Doug MacMillan is president of The Letter M Marketing in Guelph, ON. To reach him, email doug@letterm.ca.

Changing Gears

How to adjust marketing tactics during a recession

It’s no secret that talk of a Canadian recession and the dramatic increase in the cost of living has been at full volume as of late. In fact, a lot of business owners are operating as though the country has already entered a recession or will do so within the next 12 months.

Because recessions have historically caused high unemployment rates (though it’s likely to be a different story on that front this time), business closures and bankruptcies, preparing for an economic downturn is the only way to ensure your business doesn’t get caught in the fallout. If you’re reading this, chances are good you provide a product or service that homeowners and business owners are hoping to either pay as little as possible for, or not need at all in an uncertain financial time. That is until it becomes urgent and then nobody wins.

That’s where strategic marketing decisions come into play. Here are ways you can adjust marketing efforts to lean into and get through a complex economic period.

Adjust your messaging

By reinforcing the importance of being proactive, you can identify opportunities long before they become pricey problems for the customer. When belts tighten it’s not business as usual: a shift in approach is warranted.

Acknowledge the recession by reinforcing your value as a preventive service as much as a “there fast when you need us” emergency service. Promote the fact that routine maintenance can help people get ahead of breakdowns and repairs, which can be costly for the owners. Encourage upgrades to more efficient equipment to ultimately save on fuel costs. Show them the long-term savings potential.

Similarly, many contractors have learned the value of headlining with a loss leader reduced fee for a first call: it gets them to the site, where they can either provide a quick fix for a reasonable cost or, in many cases, be the first (and possibly the only) contractor in line to price out equipment replacement and lock in a monthly plan.

Highlight financing and membership options

Recessions mean we’re more prudent with cash flow predictability. Owners feel more secure knowing their monthly expenses. Promoting a monthly membership-style program that folds in the costs for routine maintenance, emergency calls and most small parts and pieces can offer stability for customers that may nudge them in your favour.

Financing is a complicated solution these days given interest rates and the tiny margins that most contractors operate within, but a competitive financing program can also be a vital asset in a tight economy. This is generally the easiest way to support people who are in dire need of your services and to promote your services to those who just want the financing as an option.

Replace some hard costs with human costs

Advertising can be expensive and while I’m not advocating for a wholesale reduction in consumer-targeted advertising in traditional or digital outlets, these avenues can be supplemented with good old elbow-grease marketing. Have employees drop low-cost postcards at homes in neighbourhoods where they’re working, or pick up the phone to connect with former or existing customers to check in and suggest a pre-emptive service call.

Digital marketing on Google and social media, among many other options, can be pricey. Learn more about how these systems work and commit to frequent analysis (read: at least once per day). If you adjust your investment based on reviewing metrics and recalibrating the campaign even slightly, it can make the money you spend work with a lot more precision.

Upping community presence by contributing staff hours and company resources to important, high-profile causes such as a charity home build or food hamper delivery service keeps the business name out there without major cost. As an additional benefit it reminds people that you care about the communities you work in. Blogs, social media content, email newsletters, short homemade videos, call-in radio shows (if you can swing it), and even old-school flyers at home shows should offer your expert advice on how to keep energy costs low to keep the budget in check. Sharing simple tips reinforces your expertise, and commitment to serving the community.

Launch a creative and fun promotion

The most tangible recession tactics include sales promotions that show consumers how working with you puts cash back in their pockets. Some historically successful promotions include “we’ll buy your old unit from you” when the consumer upgrades, “buy one get one” deals on specific services or goods, or cashback opportunities – “it pays to buy from us.”

There will always be a spend – no matter what the industry, service, or product, money will be spent. Promotions are a great way to advertise how spending with your company is the most mutually beneficial.

Ramp up your content

Most importantly, in a time when businesses are watching their expenses closely, it’s tempting to slash marketing budgets or staff capacity, and as a result, lose market presence. I’ve seen this time and again and those businesses don’t come out the other end as strong. Marketing remains the mainstay to sustaining and growing pretty much any business. Just because it’s easier to trim costs there than in some of the locked-in areas such as vehicle leases or insurance, doesn’t mean you should do it. Some companies have successfully ramped up their marketing during tough times to fill the gap others are leaving, building their brands as calm, confident and reassuring during a rocky time. And finally ... don’t retreat Adjust your digital marketing investment based on reviewing metrics and recalibrating the campaign.

BTN

BY THE NUMBERS

SKILLS SHORTAGES

Percentage of tradespeople who will need to upgrade their skills within five years due to digital disruption, according to RBC. 10,000

Number of Red Seal tradespeople Canada will have a shortage of in the highest demand trades within the next five years. 700,000

Approximate number of skilled tradespeople expected to retire by 2028. 11

Percentage of female new registrants for apprenticeship programs as of 2019.

TIPPING POINTS

Percentage of Ontarians who say they are tipping more than before the pandemic, according to a Restaurants Canada survey. 18.9

The average percentage customers in Ontario now tip. 44

Percentage that the national tipping rate rose compared to pre-pandemic numbers, as noted by an April 2022 Angus Reid survey.

ATTRACTING AND RETAINING TALENT

84

Percentage of Canadians responding to Ceridian’s 2022 Pulse of Talent report who say they are experiencing burnout, with 34 per cent reporting very serious or extreme symptoms. 25

Percentage of Canadians reporting burnout who say they have taken or plan to take a leave of absence. 82

Percentage of workers who believe employers should have all or some responsibility in their skills development.

EVERYDAY STEM

91

Percentage of Canadians who say science is important in their everyday lives, according to the 2022 3M State of Science Index, with 86 per cent saying they want to hear more from scientists about their work. 95

Percentage of respondents to 3M who believe Canada needs more skilled trades workers. 12

Percentage of respondents to 3M who haven’t pursued a career in the trades because they didn’t think they’d make enough money. Eleven per cent didn’t think there was enough career growth; 13 per cent didn’t think a trades career was an option; eight per cent said their family discouraged it; and another eight per cent cited unfavourable stigma around trade jobs as a reason for not pursuing one.

30,581 Number of carved jack-o’-lantern pumpkins lit at the same time in Keene, NH on October 19, 2013, making the Halloween-themed event a Guinness world record.