Recession! A word that strikes fear into the hearts of businesses.
In the face of a potential economic recession, you may feel compelled to tighten your belt, cut costs, and scale back on your investments. However, a recession actually offers a unique opportunity for businesses to bolster their brands and emerge even stronger than ever.
But how?
The only way out is through. We’d like to walk you through the pivotal role that investing in your branding plays in fortifying businesses against recessionary pressures and how they can help you seize opportunities for growth–in spite of recession.
Why Should You Invest in Your Brand During a Recession?
Seizing Opportunities Amidst Market Shifts
Recessions can be the cause of profound shifts in market dynamics. They reshape consumer behavior and industry landscapes. In order to make it through a recession, businesses have to analyze these changing trends and discern emerging opportunities. But that’s just the start, once opportunities have been identified, a business has to adapt their strategies accordingly–identifying pockets of growth amidst the downturn.
You might not be able to believe it, but recessions can actually serve as catalysts for innovation and entrepreneurship. Did you know that some of the world’s most successful brands were built during recessions? WhatsApp, Airbnb, Uber, and IBM all started during economic downtowns.
The lesson? We need to change our thinking around recessions. Instead of panicking, how can we problem solve? How can we identify the opportunities that emerge from new market dynamics and take advantage of them?
Risks of Neglecting Branding in Recession
One thing becomes abundantly clear when weathering a recession: adaptation is key; but, this doesn’t always look like just cutting costs.
Investing in your branding during an economic downturn may actually help your business in the long run. Good brand building can help you capitalize on the potential shifts in market dynamics–gaining you a competitive edge, whereas diminished brand visibility and weakened customer loyalty can erode your market share and undermine your business’ long-term prospects.
Plus, if you’re thinking about reigning in your spending when it comes to branding… your competitors are too. This creates an excess “share of voice” in the market. What does this mean for your business? Basically, that you now have a chance to step into center stage. Without all the voices that usually clutter the market, your brand will have a higher visibility if you do decide to maintain your investment in your brand.
Just like a hard winter eventually turns to spring, 75% of recessions end within a year. You’ve worked hard to establish your brand, don’t let the short term gains impact your long term costs. Investing in your brand during a recession could mean your brand will have higher visibility and reach a greater percentage of your target market. If you can use this time to build brand loyalty with your audience, you’ll be able to not only recover faster post-recession, but maybe even grow your businesses success in the long term.
Remember, this too shall pass.
But How Can You Dig into Your Brand Identity and Help It Withstand a Recession?
Establish a Clear Brand Identity
At the heart of every successful business lies a compelling brand identity that resonates with consumers. During a recession, clarity in brand positioning becomes even more critical. Businesses need to voice their values, voice, and vision in a manner that captures their audiences and sets them apart from competitors.
If you do not have strong branding already established, it may be time to think about it! Your target audience is fickle and a good brand will mean the difference between your audience staying loyal or moving on to some other brand making their voice known.
When thinking about how to establish a clear brand identity, repeat the following mantra: consistency breeds credibility. You’ll want to get and maintain a cohesive visual identity across your platforms, from social media to your website design. By maintaining cohesive visual branding and crafting targeted marketing campaigns, your business can create connections with your audience. An easily recognizable brand will linger in the memories of your target audience, calling them back time and time again. If each touchpoint with your audience is positive and consistent, you’ll build trust and loyalty with your audience that can withstand economic downturns and upturns.
Make Sure Your Brand Identity Extends to Your Customer Experiences
Exceptional customer experiences serve as beacons of stability. Businesses that prioritize customer service and engagement are able to forge deeper connections with their audience, fostering a loyalty that transcends economic fluctuations. Investing in customer relationships pays the dividends, both in terms of revenue and reputation.
Streamlining processes, enhancing communication channels, and personalizing interactions are hallmarks of a great customer experience. You might not think of this as investing in your brand, but branding is so much more than the visuals. Your brand is an overarching experience that is communicated through your visuals and copy, but experienced in real life through your customers’ interactions with your brand. That is why leveraging social media platforms, implementing loyalty programs, and just generally investing in living out and acting on your brand values actually help you connect with customers. These are the brand investments that become even more impactful when other brands are choosing to step down from the stage, offering up more of a share of the market voice for your business to work in.
In times of crisis, empathy and authenticity resonate more strongly than ever before.
Find the Right Balance
Branding is Only One Part of the Solution
Investing in your brand will help you weather an economic downturn, but just increasing spending in a particular area is not the answer. You’ll need to find the delicate balance between smart investments and cost-cutting measures. In previous recessions, we’ve been able to learn that companies who focus more on operational efficiency, rather than cutting spend on marketing and branding, are better able to withstand the recession and may even come out in better shape than they went in.
As businesses grapple with global recession warnings, layoffs, and banking turmoil, it can be hard to think about investing in something like your brand. But, a measured approach to brand investment yields tangible benefits in the long run. If you’re looking to create a forward-thinking brand, you should be able to recognize that recessionary periods are the perfect moment for innovation and diversification. By committing to sustained investment in branding, you can future-proof your brand and position yourself as a market leader in the post-recession landscape.
Ultimately, the value of a strong brand identity extends far beyond short-term gains and serves as an important strategy for businesses seeking to thrive in both the immediate and distant future. As your business navigates the complexities of recessionary environments, try embracing a more balanced approach to your brand.
If you’re looking to invest in your branding, whether that’s establishing a brand strategy, getting started in social media marketing, or refreshing your website’s design, reach out to White Canvas Design Agency today. We can help you effectively engage with your target audience.
White Canvas Design Agency offers: brand strategy and identity, website design, graphic design, and social media services.