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How to build recession
ready marketing
strategies
/sarahclarkedigital
Sarah Clarke
CLICKTHROUGH MARKETING
Slideshare.Net/SarahClarke438765
Some housekeeping to begin with…
#BrightonSEO
It’s no secret that the hot topic of the
last 12 months has been the rise of
inflation, cost of living and the looming
recession
So what’s actually happened in the
last 12 months?
Lets recap…
So when you think about it, it’s no
wonder consumers are spending
less
But what does the data say?
Consumer confidence has hit a low…
Source: Consumer Confidence Index, 2019-2022
86
88
90
92
94
96
98
100
102
104
#BrightonSEO
Note(s): Worldwide; April 29 to May 9, 2022; 16 years and older; 11,056 respondents
Source(s): Dynata; ID 1317949
2
And caused changes in habits…
60%
48%
45%
38%
36%
0% 10% 20% 30% 40% 50% 60% 70%
Cheaper purchases
Less non-essentials
Dining out less
Traveling less
Going out less
#BrightonSEO
marketing budgets
would go first
66%
Whilst advertising has changed
consumers plan to
cut spending
84%
rise in media costs
of advertising
4.5%
Source: AdWeek
#BrightonSEO
Leading to the swiss cheese effect,
often seen in aviation disasters…
Have you had these questions?
Why is performance down
YoY? What are we doing
differently?
Why aren’t we
driving more
revenue?
How can we make
our website or our
pages work harder?
Is this drop in
revenue/sessions
consistent across other
clients?
#BrightonSEO
What consumers
do during a
recession
So what are we going to talk about?
Why consumers
keep spending
during a recession
Strategies for the
specific consumer
behaviour
#BrightonSEO
Who am I?
Sarah Clarke - Head of Digital Paid Media, Data &
Analytics
• Eight years experience, managing
annual budgets of £3million
• Specialism in the psychology of digital
marketing and applied behavioural
science
• Masters in Digital Marketing
/sarahclarkedigital
#BrightonSEO
This theory is founded in research
Source: How to Market in a Downturn by John Quelch & Katherine Jocz
#BrightonSEO
Slam on the
breaks
Pained but
patient
Comfortably
well off
Live for
today
#BrightonSEO
So how does spending change?
Profile the
Audience
Profile the
Product
Layer in
Consumption
So how do we use these audiences?
#BrightonSEO
How do we quantify consumption?
Postponables
Treats
Essentials Expendables
#BrightonSEO
So now that we have audiences and
consumption, what does this mean?
Continues
spending
Stocks up
in bulk
Lower
prices
So for essential spending…
#BrightonSEO
Continues
spending
Compared to treats…
#BrightonSEO
More
selective
Cut back
spending
Eliminate
spending
Continues
spending
Layering in postponables…
#BrightonSEO
Negotiate
harder
Delay and
repair
Will be put
off
Great deal
required
And reviewing expendables…
#BrightonSEO
Reduce
spending
Deeply cut
back
Eliminate
spending
Won’t
expand
A consumer spending framework
Essentials Treats Postponables Expendables
Slam on the
breaks
Will see lower cost
brands / value options
Will reduce or eliminate
treats or seek lower cost
substitutes
Will put off all possible
spend unless forced to
Will eliminate purchases
in this category
Pained but
patient
Will seeks out favourite
brands at lower prices,
will stock up on good
deals
Will cut back on some,
less frequent and less in
quantity
Will delay purchases,
repair, seek value and
low ownership costs
Will deeply curtail
expendables
Comfortably
well off
Will continue to buy
favourite brands
Will be more selective in
purchasing luxuries
Will seek better quality
for the price, will
negotiate harder
Rarely regards any
purchases as
unjustifiable but may
reduce conspicuous
Live for today
Will continue to buy
favourite brands at pre-
recession levels
Will continue to buy
favourite brands at pre-
recession levels
May buy if there is a
great deal, otherwise
may postpone
Reluctant to regard any
purchase as
unjustifiable, may not
expand to new types
LOW HIGH
RISK OF SALES DOWNTURN
HIGH
LOW
BEHAVIOUR
CHANGE
/sarahclarkedigital
#BrightonSEO
When spending is slowing down, how
do we maintain traction?
This is where strategy shines
Essentials Treats Postponables Expendables
Slam on the
breaks
Will see lower cost
brands / value options
Will reduce or eliminate
treats or seek lower cost
substitutes
Will put off all possible
spend unless forced to
Will eliminate purchases
in this category
Pained but
patient
Will seeks out favourite
brands at lower prices,
will stock up on good
deals
Will cut back on some,
less frequent and less in
quantity
Will delay purchases,
repair, seek value and
low ownership costs
Will deeply curtail
expendables
Comfortably
well off
Will continue to buy
favourite brands
Will be more selective in
purchasing luxuries
Will seek better quality
for the price, will
negotiate harder
Rarely regards any
purchases as
unjustifiable but may
reduce conspicuous
Live for today
Will continue to buy
favourite brands at pre-
recession levels
Will continue to buy
favourite brands at pre-
recession levels
May buy if there is a
great deal, otherwise
may postpone
Reluctant to regard any
purchase as
unjustifiable, may not
expand to new types
LOW HIGH
RISK OF SALES DOWNTURN
HIGH
LOW
BEHAVIOUR
CHANGE
/sarahclarkedigital
#BrightonSEO
Data
Consumer
Science
Creativity
A framework for success
#BrightonSEO
What is happening?
Why is it happening?
What could happen?
With a messaging focus for essentials…
#BrightonSEO
Brand
focus
Promote
packs
Emphasis
price
Can’t live
without
And alternative messaging for treats…
#BrightonSEO
Great
quality
Reward
loyalty
You
deserve it
Seize the
moment
A different focus for postponables…
#BrightonSEO
Buying
now
Repair
services
Offer
finance
Quality of
life
And wrapping up with expendables
#BrightonSEO
Discreet
buying
Brand
focus
DIY
options
Must have
items
To produce a messaging framework
Essentials Treats Postponables Expendables
Slam on the
breaks
Emphasise price; hit wallet-
friendly retail price points
Offer smaller pack sizes for
less money
Promote low-cost value
products
Shrink sizes
Hold prices down
Advertise as a “you deserve it” small
indulgence
Provide low cost financing
Promote exceptional deals
Challenge penny-wise, pound-
foolish behaviour
Offer do-it-yourself
alternatives to doing without
Continue awareness
advertising (for instance, for
future plans)
Pained but
patient
Offer a lower-priced option
Promote bonus packs to
encourage stockpiling
Emphasise dependability of
brand product or service
Reward loyalty consumers, even if they
consume less
Advertise products as morale raisers
Advertise products as affordable
alternatives to more expensive luxuries
Offer simpler models, lower
prices
Promote lower-operation-cost
models
Promote repair services
Continue awareness
advertising
Invest in product
improvements that accelerate
customers reentry
Comfortably
well off
Continue awareness
advertising
Emphasise outstanding quality
Advertise as a product you deserve
because you are successful
Promote savings from buying
now
Advise customers they’re
“missing out” by postponing
Enable discreet purchasing
that avoids the appearance of
flaunting Advertise benefits of
impressing wealthy friends
Live for
today
Continue awareness
advertising
Remind consumers “you can’t
live without it”
Offer convenient automatic credit card
billing
Promote as an opportunity to seize the
moment
Offer monthly payment plans
Promote quality of life benefits
of buying now
Offer exciting new products
and promote as “must have”
Advertise as products you can
aspire to when your income
grows
/sarahclarkedigital
#BrightonSEO
Creative
in ads
Content
on platforms
Conversion
on website
How does this impact what we do?
#BrightonSEO
So how would this work in practice?
Lets use Dell as an example…
“Out of the
box, within
your
means”
“Depend on
Dell for
simple
solutions in
tough
times”
“The ideal
laptop
works
anywhere,
in any
economy”
“Weak
economy,
powerful
you”
#BrightonSEO
So what?
How should we be using this?
#BrightonSEO
What consumers
do during a
recession
So what have we covered?
Why consumers
keep spending
during a recession
Strategies for the
specific consumer
behaviour
#BrightonSEO
Thank you
sclarke@clickthrough-marketing.com
/sarahclarkedigital

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Brighton SEO Search Advertising Show - Sarah Clarke - Recession Ready Framework

  • 1. How to build recession ready marketing strategies /sarahclarkedigital Sarah Clarke CLICKTHROUGH MARKETING Slideshare.Net/SarahClarke438765
  • 2. Some housekeeping to begin with… #BrightonSEO
  • 3. It’s no secret that the hot topic of the last 12 months has been the rise of inflation, cost of living and the looming recession
  • 4. So what’s actually happened in the last 12 months? Lets recap…
  • 5.
  • 6.
  • 7.
  • 8.
  • 9.
  • 10.
  • 11.
  • 12.
  • 13.
  • 14.
  • 15. So when you think about it, it’s no wonder consumers are spending less But what does the data say?
  • 16. Consumer confidence has hit a low… Source: Consumer Confidence Index, 2019-2022 86 88 90 92 94 96 98 100 102 104 #BrightonSEO
  • 17. Note(s): Worldwide; April 29 to May 9, 2022; 16 years and older; 11,056 respondents Source(s): Dynata; ID 1317949 2 And caused changes in habits… 60% 48% 45% 38% 36% 0% 10% 20% 30% 40% 50% 60% 70% Cheaper purchases Less non-essentials Dining out less Traveling less Going out less #BrightonSEO
  • 18. marketing budgets would go first 66% Whilst advertising has changed consumers plan to cut spending 84% rise in media costs of advertising 4.5% Source: AdWeek #BrightonSEO
  • 19. Leading to the swiss cheese effect, often seen in aviation disasters…
  • 20. Have you had these questions? Why is performance down YoY? What are we doing differently? Why aren’t we driving more revenue? How can we make our website or our pages work harder? Is this drop in revenue/sessions consistent across other clients? #BrightonSEO
  • 21. What consumers do during a recession So what are we going to talk about? Why consumers keep spending during a recession Strategies for the specific consumer behaviour #BrightonSEO
  • 22. Who am I? Sarah Clarke - Head of Digital Paid Media, Data & Analytics • Eight years experience, managing annual budgets of £3million • Specialism in the psychology of digital marketing and applied behavioural science • Masters in Digital Marketing /sarahclarkedigital #BrightonSEO
  • 23. This theory is founded in research Source: How to Market in a Downturn by John Quelch & Katherine Jocz #BrightonSEO
  • 24. Slam on the breaks Pained but patient Comfortably well off Live for today #BrightonSEO So how does spending change?
  • 25. Profile the Audience Profile the Product Layer in Consumption So how do we use these audiences? #BrightonSEO
  • 26. How do we quantify consumption? Postponables Treats Essentials Expendables #BrightonSEO
  • 27. So now that we have audiences and consumption, what does this mean?
  • 28. Continues spending Stocks up in bulk Lower prices So for essential spending… #BrightonSEO Continues spending
  • 29. Compared to treats… #BrightonSEO More selective Cut back spending Eliminate spending Continues spending
  • 30. Layering in postponables… #BrightonSEO Negotiate harder Delay and repair Will be put off Great deal required
  • 31. And reviewing expendables… #BrightonSEO Reduce spending Deeply cut back Eliminate spending Won’t expand
  • 32. A consumer spending framework Essentials Treats Postponables Expendables Slam on the breaks Will see lower cost brands / value options Will reduce or eliminate treats or seek lower cost substitutes Will put off all possible spend unless forced to Will eliminate purchases in this category Pained but patient Will seeks out favourite brands at lower prices, will stock up on good deals Will cut back on some, less frequent and less in quantity Will delay purchases, repair, seek value and low ownership costs Will deeply curtail expendables Comfortably well off Will continue to buy favourite brands Will be more selective in purchasing luxuries Will seek better quality for the price, will negotiate harder Rarely regards any purchases as unjustifiable but may reduce conspicuous Live for today Will continue to buy favourite brands at pre- recession levels Will continue to buy favourite brands at pre- recession levels May buy if there is a great deal, otherwise may postpone Reluctant to regard any purchase as unjustifiable, may not expand to new types LOW HIGH RISK OF SALES DOWNTURN HIGH LOW BEHAVIOUR CHANGE /sarahclarkedigital #BrightonSEO
  • 33. When spending is slowing down, how do we maintain traction?
  • 34. This is where strategy shines Essentials Treats Postponables Expendables Slam on the breaks Will see lower cost brands / value options Will reduce or eliminate treats or seek lower cost substitutes Will put off all possible spend unless forced to Will eliminate purchases in this category Pained but patient Will seeks out favourite brands at lower prices, will stock up on good deals Will cut back on some, less frequent and less in quantity Will delay purchases, repair, seek value and low ownership costs Will deeply curtail expendables Comfortably well off Will continue to buy favourite brands Will be more selective in purchasing luxuries Will seek better quality for the price, will negotiate harder Rarely regards any purchases as unjustifiable but may reduce conspicuous Live for today Will continue to buy favourite brands at pre- recession levels Will continue to buy favourite brands at pre- recession levels May buy if there is a great deal, otherwise may postpone Reluctant to regard any purchase as unjustifiable, may not expand to new types LOW HIGH RISK OF SALES DOWNTURN HIGH LOW BEHAVIOUR CHANGE /sarahclarkedigital #BrightonSEO
  • 35. Data Consumer Science Creativity A framework for success #BrightonSEO What is happening? Why is it happening? What could happen?
  • 36. With a messaging focus for essentials… #BrightonSEO Brand focus Promote packs Emphasis price Can’t live without
  • 37. And alternative messaging for treats… #BrightonSEO Great quality Reward loyalty You deserve it Seize the moment
  • 38. A different focus for postponables… #BrightonSEO Buying now Repair services Offer finance Quality of life
  • 39. And wrapping up with expendables #BrightonSEO Discreet buying Brand focus DIY options Must have items
  • 40. To produce a messaging framework Essentials Treats Postponables Expendables Slam on the breaks Emphasise price; hit wallet- friendly retail price points Offer smaller pack sizes for less money Promote low-cost value products Shrink sizes Hold prices down Advertise as a “you deserve it” small indulgence Provide low cost financing Promote exceptional deals Challenge penny-wise, pound- foolish behaviour Offer do-it-yourself alternatives to doing without Continue awareness advertising (for instance, for future plans) Pained but patient Offer a lower-priced option Promote bonus packs to encourage stockpiling Emphasise dependability of brand product or service Reward loyalty consumers, even if they consume less Advertise products as morale raisers Advertise products as affordable alternatives to more expensive luxuries Offer simpler models, lower prices Promote lower-operation-cost models Promote repair services Continue awareness advertising Invest in product improvements that accelerate customers reentry Comfortably well off Continue awareness advertising Emphasise outstanding quality Advertise as a product you deserve because you are successful Promote savings from buying now Advise customers they’re “missing out” by postponing Enable discreet purchasing that avoids the appearance of flaunting Advertise benefits of impressing wealthy friends Live for today Continue awareness advertising Remind consumers “you can’t live without it” Offer convenient automatic credit card billing Promote as an opportunity to seize the moment Offer monthly payment plans Promote quality of life benefits of buying now Offer exciting new products and promote as “must have” Advertise as products you can aspire to when your income grows /sarahclarkedigital #BrightonSEO
  • 41. Creative in ads Content on platforms Conversion on website How does this impact what we do? #BrightonSEO
  • 42. So how would this work in practice?
  • 43. Lets use Dell as an example… “Out of the box, within your means” “Depend on Dell for simple solutions in tough times” “The ideal laptop works anywhere, in any economy” “Weak economy, powerful you” #BrightonSEO
  • 45. How should we be using this? #BrightonSEO
  • 46. What consumers do during a recession So what have we covered? Why consumers keep spending during a recession Strategies for the specific consumer behaviour #BrightonSEO