It’s been noticeable this year – the big Christmas TV ads that we all look forward to, have toned down their usual materialism that packs a punch during the festive season. And for good reason. With a gloomy landscape for many caused by the cost-of-living crisis, it makes sense that retail giants shift their focus away from materialism and instead spread a message of kindness – whilst keeping that expected sentimentality.
Using John Lewis’ television ads as an example, previous iterations have placed a gift at the front and centre of the campaigns (the man on the moon was gifted a telescope, the snowman’s snow-girlfriend a hat and scarf, and Buster the Boxer a trampoline). But this year’s advert wasn’t about a gift or an item, it was about an act of kindness. And that’s a marked change.
Taking this approach as inspiration, we decided to pull together a few pointers on how marketing teams can be more mindful of wider social and economic issues when devising or implementing campaigns and continue to win despite the cost of living crisis.
Know your audience
Every product or service has a different audience, and the cost-of-living crisis is affecting some parts of society more than others. Whilst brands that sell ‘status’ may still be able to put their prices up with no ill-effect, those more functional products that sell based on ‘satisfaction’ may see that even a small price increase drastically affects custom.
Now is the time to dive into any consumer and sales data you have. Examine your audience, create pen portraits to help you visualise what they’re facing – and if they are indeed affected by global economic downturn – adjust your efforts and be conscious with your messaging.
When examining these audiences, also pay attention to spending habits and be sure to collect that sort of data with your ongoing sales processes. Who is still spending money and on what? What sales have dropped off amongst specific audience groups? What pressures and emotions could be affecting these changes?
For brands whose audiences are affected, more of the same marketing isn’t going to work. And yes, it does mean our jobs are going to get harder; campaigns will need to address the issue, not ignore it; they’ll need to resonate with each customer; and most importantly – they’ll need to convert.
Be reactive (and fast)
When you’re making adjustments to your strategy – keep this one very important point in mind: Those who adapt to this new landscape first – are likely to do the best. Embrace the new status quo, figure out what you can do to compete, and do it fast. We saw it during Covid 19 – those who sat on their hands lost market-share to competitors who were agile, adaptable, and quick off the mark to embrace change.
This could go for your marketing strategy, but looking at your wider business, could also apply to your pricing structures or your product mix. As consumers look for lower price alternatives of a good quality, can you diversify and find more cost-effective varieties? Or are there innovative pricing models and methods you’d be willing to offer to customers – perhaps spreading the costs over a number of months, to make large purchases feel like a long-term investment as opposed to an expensive purchase?
Build trust
We already know that consumers are becoming increasingly discerning, and on occasion cynical, of both brand activity and advertising. But this is definitely being compounded by the current state of affairs.
Building trust amongst your existing and potential consumers is essential and a simple way to do this is to polish up those accolades – or if you don’t yet have any, start collecting them.
These don’t necessarily need to be trophies or medals – we’re talking online reviews, customer testimonials, and certifications granted by recognised bodies. Start applying for certifications, incentivising online feedback, or including packaging slips that encourage customers to leave a simple and generous review – it will all help to build trust amongst those who don’t yet appreciate the quality of your product.
We also know that there has been a significant rise in conscious consumerism of late, and we predict that this will extend to customers paying attention to brands who are being empathetic in light of the current economic landscape. Brands who donate to foodbanks, value and support their staff, and invest in CSR are likely to garner support – and maybe even change the buying habits – of potential customers.
Secure ‘bang for buck’
Turning our focus to campaign implementation – let’s talk about budgets. For many brands, in fact, most brands, the difficult consumer landscape is going to have a knock-on effect on marketing budgets for next year.
This means that you need to get tactical when it comes to how you’re going to reach your audiences. If you have data that evidences how previous channels have worked for you – use it to inform what channels you use now. You might find that digital, with all its targetable and measurable prowess, is the best place to invest spend. Be intelligent, be daring, but don’t be wasteful – every penny is going to be a prisoner when it comes to ad spend in the coming years.
The same goes for your campaign creative – rather than commissioning a new concept and roll out, why not repackage an existing piece of creative or campaign from a previous year. There’s no harm in making the most of existing assets, especially during a time when budget needs to stretch further.
But it’s not all doom and gloom. We see an opportunity here to be smarter, more sensitive, and more engaged with our audiences. It’s a challenge that’s going to set exceptional marketing teams apart. Have you considered how you’ll adjust your marketing efforts for the current climate? Maybe it’s time we had a chat…
