In challenging economic conditions, many businesses face the pressure to stay afloat and maintain profitability.
Sales become critical as they are the lifeblood of any business. However, the relationship between marketing and sales is often misunderstood. To shed light on this topic, I consulted Elliot Schwartz, an independent broker and marketing consultant, who shared valuable insights and tips on growing a brokerage during tough times.
Schwartz emphasizes the role of marketing in creating a favourable environment for sales. It is through marketing efforts that products and services become known to potential customers. However, during tough economic times, marketing is often seen as an expense rather than an investment. Budgets get cut, and companies fail to recognize the importance of continued marketing during recessions.
Research has consistently shown that companies that continue to invest in marketing during a recession tend to emerge stronger and recover faster. While it may be challenging to allocate funds that seem scarce, cutting marketing efforts altogether can have long-term negative effects on a business. Although some argue this point from a self-serving perspective, the evidence remains that marketing investment pays off eventually.
Furthermore, tough times provide an opportunity for market share to shift hands more easily. When demand is low and consumers are more cautious with their purchases, they become open to alternatives and may switch to alternative products or suppliers. This dynamic presents a unique chance for businesses to attract new customers and increase their market share.
The insurance industry, for example, experiences customers seeking better prices during tough times. Schwartz explains that different strategies can be employed to make money in this sector. One strategy focuses on offering a unique product or service that cannot be found elsewhere. In this case, marketing efforts are primarily aimed at acquiring new customers, as the product itself satisfies their needs. Volume becomes crucial, and marketing messages revolve around what sets the product apart.
Great news for all Brokers!
WITH EVEN GREATER MUSCLE NOW,
RENASA WILL BE ABLE TO REACH A LOT MORE
RENASA – THE BROKERS even better BEST FRIEND
Renasa Insurance Company Limited is an Authorised Financial Services Provider (FSP License 15491) and is licensed to conduct non-life
insurance business (License No IN0140 )
Another strategy revolves around differentiating the business through exceptional customer service or efficiency. Instead of emphasizing a unique product, these businesses attract customers by offering a superior experience. The marketing focus is on highlighting the way they do business and the added value they provide to customers. While the volume may be constrained, the objective is to maximize the efficiency of the business’s platform and communicate the benefits of their approach.
A third strategy revolves around understanding a specific class of customers better than competitors. By investing in customer knowledge and insight, businesses can offer tailored solutions and build long-term relationships. Here, customer loyalty becomes paramount, and marketing efforts are centered around retaining existing customers and maximizing their lifetime value.
During tough times, Schwartz advises businesses to adapt their marketing strategies accordingly. For businesses with unique products, the focus remains on finding new customers even if the market is smaller. In contrast, businesses that differentiate themselves through customer service should consider offering solutions that address the current challenges customers face. Finally, businesses centered around understanding a specific class of customers should prioritize customer loyalty and satisfaction.
When planning marketing and sales activities, it is crucial to prioritize and fully commit to selected strategies. Instead of spreading resources thin across various initiatives, focusing on fewer, well-executed efforts can yield better results. Businesses need to determine their specific objectives, whether it is creating awareness, enhancing understanding, or incentivizing immediate responses. By selecting the most effective marketing tactics aligned with their goals, companies can maximize their return on investment.
In conclusion, tough times present both challenges and opportunities for businesses. While it may be tempting to cut marketing budgets, investing in marketing during recessions can yield long-term benefits. By understanding their unique selling proposition and aligning their marketing strategies accordingly, businesses can position themselves for growth and come out stronger when the economic situation improves.
Prioritizing and fully committing to selected strategies is key to maximizing the impact of marketing and sales efforts during tough times.