3 Lessons on Growth During Uncertain Times

When economic times are uncertain, different businesses take different strategies. Some tighten the belt, hunker down, and wait for things to improve. Others see opportunities. When their competitors pull back, they invest so they are way ahead when times get better.

This strategy sounds good, but does it work? History says it does. Research from Harvard Business Review (HBR) found that, during the past three U.S. recessions, 91% of businesses struggled, while 9% thrived. What did these successful businesses have in common? Marketing! HBR found that, during recessions, successful businesses differentiated from non-successful businesses by maintaining their commitment to marketing, staffing, and pursuing operational efficiencies that would benefit them for the long term.

What happens when they don't? HBR offered one cautionary tale:

[During the 2000 recession,] Office Depot cut staff by 6% to cut losses for the near term. Staples hired more staff and looked for opportunities to improve operational efficiencies and invest for the long term. As a result, Staples’ sales doubled at the end of the 2000 recession and were substantially higher than Office Depot’s sales, billions ahead of Staples before the recession.

How can you apply these lessons to your marketing? During a slow-down, use the time to do the following:

1. Invest in technology. Improve operational efficiencies by eliminating repetitive tasks. For example, move repeat jobs or those requiring limited changes into templates stored in an online marketing portal. This saves time, lowers costs, and reduces errors.

2. Expand your channel mix. When you want to steal market share from a competitor, you need to saturate the market with all of the available channels—direct mail, email, social media, and wide-format graphics. Be everywhere!

3. Invest in data. Do a deep clean on your data to use only the most up-to-date information on your target audience. Invest in additional data, if necessary, to make your targeting even more effective.

As the saying goes, “When the going gets tough, the tough get marketing!” Commit to a long-term strategy. Use the time to make strategic investments. Then, emerge on the other side of challenging times even stronger and more profitable.

When Does Print Marketing Beat Digital?

Print and email are powerful tools for getting information out there quickly or engaging your audience on a frequent or programmatic basis. But when you want to communicate with your audience at a deep and emotional level, you want to turn to print.

The reasons have to do with the way our brains are wired. The human brain processes information on a physical, tangible page differently than on a digital page. It’s why print is loved by all age groups, from Gen Zs to Baby Boomers—it’s physiology.

Let’s look at one study conducted by Temple University. Using fMRI brain scans to compare the brain’s response to digital communications vs. paper, the researchers found that both print and digital ads increased the reader’s engagement (the amount of information they process or absorb from an ad), memory retrieval (their ability to accurately remember the advertising source and content); and their purchase and willingness to pay.

However, the study found that physical ads outshone their digital counterparts in the following metrics:

·       Review time: Amount of time spent with an ad.

·       Stimulation: Emotional reaction to an ad.

·       Memory speed and confidence: Ability to quickly and confidently remember advertising sources and content.

·       Desirability: Subconscious desire for the product or service.

·       Valuation: Subconscious value a participant places on the product or service.

This is why print is so effective when selling products with a strong emotional connection or needing to be more deeply considered over time, such as luxury goods, home décor and furnishings, travel and hospitality services, and fine dining and culinary experiences. Our brains are wired to receive that information readily in print.

Other benefits print has over digital marketing:

·       56% of customers see print to be more trustworthy.

·       More than 92% of 18-23-year-olds find print more straightforward.

·       Response rates are 37% higher than email marketing.

No wonder 62% of customers respond to direct mail and purchase within three months.

Email is great for quick communications—flash sales, tips and tricks, regular audience engagement—while print is optimized for the more considered sale.  Print has more uses, of course, but these findings show why print is the way to go if you have a higher-end or more complex product.