Experts predict a sharp decline in marketing effectiveness as customers switch to economic survival mode. Discover how your brand can strengthen customer relationships against a tough financial outlook.
The IMPACT team were thrilled to be back at Mumbrella360 this year (in person!) to hear from the nation’s leading communications and marketing experts.
Among the sessions we attended, one question prevailed: how can businesses and brands succeed in the current economic environment?
In case you missed it, the global pandemic, warring nations and a culture of dangerous lending has led the world to the precipice of yet another financial crisis.
With H1 of 2022 delivering the worst stock market performance since 1970, the ‘R’ word (recession) is predicted to hit Australian shores sometime in 2023 if measures to cut inflation are ineffective.
To be clear, Australia is not currently in a recession. The constant barrage of doom and gloom financial forecasts, however, means the nation has effectively already switched to survival mode when it comes to spending and saving.
As Aussies watch rents, interest rates and grocery costs soar, price is now king; and marketing messages, no matter how clever, will fail to cut through if a product or service isn’t seen as essential.
Spooked consumers bunker down
Rock-bottom interest rates and easy access to lending via buy now, pay later services made everyday life that little bit easier for many Australians in recent years. We even had a little cash saved up from dining and holidaying at home.
Luxury products and services became more accessible and the idea of ‘treating yourself’ was seen as a very reasonable way to offset the personal sacrifices made throughout the pandemic.
However, the sting from rising mortgage rates, energy costs and food bills has been sharp and fast; stopping many consumers in their tracks.
12 months ago, messages to rest, nest or nurture yourself would have easily connected with pandemic-weary consumers. The same applied for themes of togetherness and community.
Now, the focus is on saving pennies and protecting the interests of your own family first.
Be seen when customers are blinded by economic fear
One Mumbrella attendee asked, ‘should we all just pack up and not bother with our marketing plans’?
The answer, of course, is no. Smart brands and organisations will use the coming months to gain a better understanding of what their customers actually need, strengthen their relationships and grow loyalty.
Now is the time to invest in understanding the true needs of your audience, and to stop the guess work. Only then will your messages and campaign connect and drive action.
Sign up for IMPACT’s Commercial Challenges Workshop to get on the front foot with your communications and marketing initiatives.
In this workshop, IMPACT, together with our behavioural science expert, Kris White, will help you understand the effect of the economic outlook on your audiences to:
- Understand their mindset, priorities, drivers and behaviours
- Identify communication barriers, opportunities and areas of strength
- Update and adapt key messages to deliver communications that cut-through
Message firstname.lastname@example.org now to receive a 10% discount on your Commercial Challenges Workshop.