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Downturns tend to reveal a host of bad decisions made during fatter times. But one thing that’s held true for as long as I can remember is companies often cut or stop investing in their brand, thinking that buyers will be cutting spending during the downturn, and that’s not actually true.
[Buyers] don’t necessarily cut spending during a recession; they just change what they buy– either to stretch the value of their dollar or spend on what is most important to them.”
2020 sucked. Like the T-Shirt said. 2021 was better, but still kind of sucked. 2022 was supposed to be great and wasn’t. Now, we’re dancing on the edge of 2023 and we’ve stopped making predictions because we just don’t know how the winds will blow. That’s even greater reason to prepare, to strengthen, to re-vitalize and re-identify your brand, your purpose, and your position. It’s fast times in the changing world. Are you ready?
Many brands are thankfully changing their playbooks for the 2022 economic downturn, realizing their goal should be to persuade new customers, versus giving a discount for something they are already purchasing.”
There’s no way that the brand and identity you had before the pandemic – the unrest, the elections, the turmoil, Jan 6, the pandemic, the stock market roller coaster, the tragedies, the tech meltdown, Ukraine, Pete Davidson dating Kim Kardashian, Elon Musk Twitterisms and Kanye West’s brain farts – remained intact. It’s time to do an audit. It’s time to get Bullish on Branding. It’s time to re-access where your customers are, what they’re thinking, and what fears they might have about their future.
70-90% of B2B brands buy from brands that were known to them at the start of their search. Think about that. It’s extremely unlikely that buyers will purchase from you if they haven’t heard of you. In a world where other brands are cutting their brand efforts, smart B2B marketers are increasing their branding efforts to become one of those brands that’s in the consideration set from day 1.
At The Fundamental Brand, we understand the necessity to tighten the belt during a downturn. We just don’t think you should strangle your brand while doing it.
With a lot of expertise in SaaS businesses, we know that tech is entering its mid-life. Moore’s Law might have slowed. The world is seeing improvements, not unicorn disruption of categories. The promise of new applications is more nuanced, increasing the need to infuse messaging with emotional relevance. You messaging must be sharp. The reward large.
During a recession – if that’s what will be – you can’t disappear, and you must appear timely to the world as it exists today, not two years ago. Better yet, you might expect your competition to pull back, opening up big opportunities. Be ready with a renewed shot across their bow.
In good times and bad, branding is essential for any business that wants to succeed in today’s ever-changing world. The economy is in such flux that people are looking to brands for stability, a sense of ownership and belonging, and reassurance that they can rely on their trusted brands to provide great products and services.”
We get it. A new year. Belt tightening. Uncertainty.
All the more reason to stoke the fire of your brand.
How are you updating your message to address the economic downturn? Let us know in the comments.
We’ll offer ideas on how you can sharpen your message to resonate with prospects and energize your team.
We help brands discover what REALLY matters.