Smart Agency Strategy to Deal with COVID 19 and Uncertain Times
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What does the 2020 coronavirus pandemic mean for marketers?
This article covers how you can communicate with clients, create responsible marketing strategies, and mitigate the impact of the crisis.
We don’t know how long it will last, or how bad the damage will be – and as entire countries are going on lockdown, we’re already starting to see the signs of a major global economic downturn.
Some experts say that we’re facing the worst recession in modern history – even worse than the 2008 economic collapse.
This situation is (rightfully) causing worry for entrepreneurs who don’t know if their businesses will survive. Marketing agencies are already starting to feel the effects as clients pause campaigns or pull out of contracts altogether.
On the one hand, it’s understandable that businesses are trying to cut down on costs, and marketing budgets are the easiest to scrap.
On the other – and this may seem counterintuitive, but hear us out – there is no better time to invest in marketing than right now.
But how do you help clients understand that marketing is still essential at this time? And which marketing strategies are the most effective in this once-in-a-lifetime cultural shift?
There is no playbook for this specific situation, but this isn’t the first time that the global economy has struggled. Through expert advice and the insight we’ve picked up from “The Great Recession of 2008”, this guide will help you address your clients’ concerns about marketing in the face of COVID-19.
Read on to learn more about how the pandemic has impacted business, why customers act the way they do during a crisis, and the reasons that marketing in a down economy is a good idea. We’ll also cover several marketing strategies that will help your brand stay mindful, compassionate, and critical during the quarantine.
The Impact Of COVID-19 On Businesses
We are only a few months into the global pandemic response, but we’re already seeing major changes in industry. Many countries have instituted national lockdowns, forcing non-essential businesses to close to help reduce the spread of the virus. Unemployment is on the rise as well since plenty of businesses could not afford to keep staff on payroll with the reduction in sales. Overall, the global market is expected to lose $2.7 trillion.
One important thing to understand is that not all businesses will be affected in the same way. Essential industries are seeing a huge uptick as they try to meet increased demand. Healthcare, media/news, and finance are some of the industries that are seeing the most positive changes. Restaurants had to close down their doors to customers, but with more people staying at home and unable to get groceries, there are some major opportunities in the food & beverage industry.
In contrast, the travel industry is perhaps one of the hardest hit, with some experts estimating that the pandemic will cost them hundreds of billions of dollars in lost revenue. The airline industry in the United States had to beg the government for a $60-billion bailout just to stay afloat amidst increasing travel restrictions.
Getting Help for Your Team and Your Agency
This section is specific to agencies registered in the United States and USA citizens. In no way does any of the below information attempt to convey financial or legal advice, you should always consult a tax professional or attorney with regards to specific financial questions.
During these uncertain times, agency owners should be mindful of the assortment of loans and grants available to their agencies, and also can help guide their team members to resources for individuals and families.
We have compiled a list of the programs available to USA-based companies and taxpayers with quick summaries and links to additional resources.
Family First Coronavirus Response Act
The Family First Coronavirus Response Act offers many measures designed to help individuals and families. This is a great resource that can help your USA-based employees and team members, from cash stimulus payments to expanded unemployment benefits for independent contractors.
Direct Payment to Taxpayers
All independent residents with a valid Social Security number qualify to receive a rebate of $1,200, and a rebate of $500 is added per child. Married couples are eligible for a $2,400 rebate.
If your 2019 adjusted gross income is above these requirements, the refund will be reduced accordingly. If no tax return was filed for that year, rebates will be calculated based on 2018 tax returns:
- $75,000 (individual taxpayers)
- $112,500 (heads of households)
- $150,000 (married couples)
The IRS is building a portal to update users on direct deposit information, which will more than likely be available via your IRS.gov account – that that’s not certain yet.
Entitlement to Paid Leave
Information from the Department of Labor
EMPLOYEE RIGHTS: Paid Sick Leave and Expanded Family and Medical Leave Under the Families First Coronavirus Response Act
https://www.dol.gov/sites/dolgov/files/WHD/posters/FFCRA_Poster_WH1422_Non-Federal.pdf
Unemployment Benefits
Established through December 31, 2020, the Pandemic Unemployment Assistance program covers half of the costs for employment insurance incurred by non-profit organizations and state and local governments that are not part of the UI system.
This program helps those who are not traditionally eligible for unemployment insurance such as independent contractors and self-employed individuals.
Weekly payments of $600 are available for each recipient through July 2020, and the program has provided funding for states to waive the usual waiting period before benefits start. Payments may continue for an additional 13 weeks for those who remain unemployed once state assistance is no longer available.
For more information visit your state’s unemployment office.
Early Access to Retirement Account
Offered to taxpayers who have been diagnosed with the virus, have had a dependent or spouse diagnosed, or have experienced a loss or decrease of income due to the COVID-19 pandemic. Withdrawals on or later than January 1, 2020, in amounts not exceeding $100,000 will not receive the 10% penalty.
Retirement Plan Loans
The retirement plan loan limitations have been increased to be the lesser of $100,000 or 100% of the participant’s vested account balance in the plan.
Minimum Distribution Requirements Waived
Certain IRAs and defined-benefit contribution plans have had their RMD requirements waived for the year 2020.
Charitable Contributions
If the standard deduction is taken, there is a $300 deduction available for donations to charitable organizations.
HSA Rules
High-deductible health plans with an HSA can be used to pay for telehealth services before reaching the deductible limit, allowing the coverage of remote health care services without violating federal requirements for HDHPs with an HSA.
Certain OTC medicine and medical supplies, including the ones necessary for social distancing and in quarantine, can now be categorized as qualified expenses which allow funds to be used to purchase such items from Flexible Spending Accounts, HSAs, and Archer medical savings accounts as well as enables health reimbursement arrangements for the purchases.
Rules return to their normal requirements on December 31, 2021.
Coronavirus Aid, Relief, and Economic Security Act (CARES Act)
SBA Loan Programs via CARES
Paycheck Protection Program (PPP) – For businesses with <500 employees that were in business as of February 15, 2020.
Use this form to apply at any bank offering SBA loans:
https://home.treasury.gov/system/files/136/Paycheck-Protection-Program-Application-3-30-2020-v3.pdf
The application deadline is June 30, 2020.
Economic Injury Disaster Loan (EIDL)
Small businesses, private non-profits, and independent contractors who were in business as of January 31, 2020, maybe eligible for this loan as well as an immediate grant of up to $10,000.
Use this link to apply, and select the box that indicates you would like the emergency grant of $10,000:
https://covid19relief.sba.gov/#/
Additional Business Provisions of the CARES Act
Payroll Tax Deferral
May defer the Social Security tax payment for which the employer’s share. The remaining 6.2% will still be required for the employee portion of the Social Security tax.
If deferred, 50% of the payment is required by December 31, 2020, while the remaining 50% must be received by December 31, 2022.
If any debt is forgiven due to the Payroll Protection Program, then this benefit will be unavailable.
Refundable Payroll Credits
This is available to employers who had to close fully or part-time due to a COVID-19 shut-down order OR had more than a 50% decrease in gross receipts when comparing data for the quarter year over year.
50% of employee wages paid during the COVID-19 pandemic may be eligible for a refundable payroll tax credit. If the employer has less than 100 employees, all wages will qualify for the credit regardless of whether the business is currently under a shut-down order.
If the employer has more than 100 employees, only wages paid to employees for services not rendered due to COVID-19 related circumstances will qualify for the credit.
If any debt is forgiven due to the Payroll Protection Program, then this benefit will be unavailable.
Form 7200 will be made available for employers to use to apply for an advance on the payroll credit. Find a draft of the form and instructions from the IRS here:
Form: https://www.irs.gov/pub/irs-dft/f7200–dft.pdf
Instructions: https://www.irs.gov/pub/irs-dft/i7200–dft.pdf
Contributions to Student Loans
From March 27 through December 31, 2020 employers may contribute up to $5,250 per year to put toward an employee’s student loans. This amount would not be counted as part of the employee’s income.
The maximum amount of $5,250 applies to all educational assistance (i.e. books, tuition, fees) offered by the employer as well as the new student loan repayment benefit under current law.
Net Operating Losses
NOLs from the tax year 2018 or later may now be rolled back up to 5 years. This enables you to carry losses back to years with higher income tax rates.
The 80% taxable income limitation rule has been removed for 2020 but will be put back into effect for 2021. Capital loss rules remain unchanged.
Limitation of Interest Deduction
The adjusted taxable income limitation has been increased to 50% for 2019 and 2020, allowing an increase allowed interest deduction. Partnerships fall under certain limitations.
Why You Should Continue Marketing During A Down Economy
Since the pandemic is ongoing, it’s hard to estimate just how bad the COVID-19 pandemic will affect local businesses. But one thing is clear: we are living in extraordinary times, which means that we can’t rely on old ways of thinking or doing. Businesses that want to survive the upcoming financial crisis need to rethink, realign, and restrategize.
Many businesses are trying to make up for the sudden loss of revenue by cutting costs. Unfortunately, marketing and communications budgets are usually the first to go. But if there’s something we can learn from the 2008 economic crash, it’s that marketing is more important than ever right now.
One of the biggest advantages of marketing during a recession is that most other businesses aren’t doing it. There’s less competition, which means that you can increase your clients’ market share more easily (and potentially for cheaper).
Marketing is also a long-term game, and continuing your marketing spend puts you in a much more competitive position once the economy recovers. According to several studies, companies that cut marketing spend during the 2008 recession saw both a lower market share and a lower Return on Capital Employed (ROCA) after the recession ended. By increasing your clients’ “share of voice” during the recession, you increase the chances of their market share growing in the future.
Lastly, times of crisis and tragedy present many opportunities for your business to grow. If your client can launch a new product or push an existing one that addresses a major pain point, consumers will flock to the brand. For example, telecommunications brand Zoom saw a 26% surge in its stock price from February to April, despite the S&P 500 crashing 32% in the same period.
Growing Your Agency During This Crisis
Think agencies aren’t continuing to grow and sign new clients? If you are starting to doubt having positive agency growth, you need to reposition your thinking. In the following video, Mark Luckenbaugh guides you through a strategy session designed to help you gain clarity and create a plan of action that will help you grow even during the most difficult times.
- Client Management and Marketing Spend Observations on What's Working
- Hidden Opportunities to Help Your Clients Succeed and Your Agency Thrive - Right Now
- The Client Types That Will Help Recession-Proof Your Agency
Factors To Consider When Planning Crisis Marketing
The evidence suggests that spending during a recession is the most effective long-term strategy, but not all businesses are prepared to maintain their marketing spending while revenue is low. If this is the case for your clients, a delicate balancing act is necessary.
If they spend too much with a negative cash flow, that could effectively run them out of business. If they don’t spend enough, they might ride out the recession, but they might not be able to recover from the loss of market share.
There’s no one-size-fits-all solution. The best approach for your clients depends on a variety of factors, which we’ll break down below.
Business Category
If there’s one factor that has the biggest impact on your marketing approach, it’s the nature of your clients’ businesses. Since this pandemic will affect industries in different ways, it’s important to look at that context to decide whether an offensive or a defensive strategy is best.
Essential businesses (e.g. healthcare, news/media, F&B, etc.) have the most to gain from marketing during the pandemic. Service businesses with long-term contracts (e.g. most utilities, telecommunications) are generally unaffected by recessions since their customers are already locked in, although they won’t be able to get any new customers at this time.
Consumers are less likely to buy high-ticket items, and those that do will prioritize value over bells and whistles. Even smaller purchases like groceries are being reevaluated – shoppers are more price-conscious and may choose store brand items over their more expensive branded counterparts. Interestingly enough, some consumers may spend more on cheaper indulgences to treat themselves during the lockdown, so there could be an increase in demand for the affordable luxury sector.
Industry Size
Gaining more market share in a billion-dollar category will net you a much higher ROI compared to an increase in market share in a smaller category. If your clients’ industry is stable or has a good chance of growth during this period, then the long-term gains of advertising will eventually justify the initial spend. But if the returns are likely to be little or non-existent, then reducing the marketing budget could be the smarter decision.
Customer Behavior
Even outside of economic downturns, many people make purchasing decisions based on price. WPP’s BrandZ database estimates that around 10% of people decide exclusively based on price, and that figure often multiplies during recessions.
For example, people may have a preferred premium brand that they usually buy. But in a financial crisis, they might switch to a cheaper alternative.
These premium brands could slash prices to stay competitive, but that isn’t always feasible nor effective. Take a cue from some of the luxury businesses that successfully navigated the 2008 recession – they offered cheaper packaging and more affordable “formats” (e.g. smaller sizes, bulk pricing).
The trick is to keep pushing value. Within a certain price range, the deciding factor will be whether or not consumers think your clients’ products are worth the extra cost. By focusing on what your clients offer that their competitors don’t, you could help their brand retain customers despite a price disadvantage.
Brand Strength
How you market during the COVID-19 pandemic largely depends on how well-established your brand is. Below are some of our recommendations for three different levels of brand strength:
- Niche brands should focus their resources on building up their core brand and existing product portfolio. Trying to break into a new market is a huge risk; attracting new customers through free trials or demos would be the smarter move, as long as it doesn’t impact the brand’s perceived quality.
- Weak brands selling essential or in-demand items should be able to survive the pandemic/recession, but only if they allocate their resources wisely. These brands should focus on strengthening existing customer relationships rather than trying to increase market share.
- Strong brands have both the capital and brand recognition to expand their product line during a recession. New categories mean new opportunities for growth, especially if their original category is stalling during this time.
Competition
Nothing happens in a vacuum, including marketing. The whole advantage of marketing during an economic downturn is that it gives your clients a competitive advantage by increasing their share of voice. But if other businesses in their industry are also marketing aggressively, that could make your marketing efforts less effective.
When you’re crafting a marketing strategy for your clients, you have to consider how their competitors will respond. If your client increases their ad spend, will competitors retaliate? At a minimum, you should aim to maintain your clients’ share of voice and relative spend so that they’re not left in the dust.
Marketing
In A Down Economy
Marketing during a recession – and in the middle of a global pandemic no less – is not the same as marketing during economic stability. Fear and uncertainty change how consumers behave, and your marketing strategies need to adjust accordingly.
In this section of the guide, we’ll take a look at “recession psychology”, or what motivates consumers during times of crisis. We’ll also outline our top tips for digital marketing agencies as well as the most important things to avoid.
The “Recession Psychology”
The COVID-19 pandemic has caused massive unemployment and economic insecurity. Many people have lost their source of income, and those that haven’t are wary to spend in case things go downhill. Even the most creative and well-thought-out marketing campaigns will find that a lack of financial security is a hard obstacle to overcome.
To tackle this challenge, we need to reframe how we think about consumers and the products or services we market.
Consumer Groups
Marketing is usually based on demographics. Perhaps you market exclusively to women over 40, or maybe eco-conscious vegans are your target audience. But during a recession, demographics may not matter as much as how customers react to the economic situation.
According to John Quelch and Katherine E. Jocz, we can group customers into four psychological categories: slam-on-the-breaks, pained-but-patient, comfortably well-off, and live-for-today.
Note: While income level and financial stability certainly play a role, people from any income bracket can be part of any level. Psychology recession groups people based on emotions and attitudes, not how much money they earn.
Slam-On-The-Breaks
Slam-on-the-breaks consumers are the people who are the most affected by economic downturns. This usually includes vulnerable populations and low-income earners, but high-income earners who have financial anxiety may also be a part of this group. These types of consumers will put a pause on their spending or find ways to reduce it.
Pained-But-Patient
This group of consumers tries to stay patient and positive during a recession, but they do have some worries about maintaining their finances in the long-term. Pained-but-patient people may have a safety net, or perhaps they’ve kept their job despite wide-scale lay-offs and underemployment. Most consumers fall under this segment.
Pained-but-patient consumers will also reduce their spending, but they won’t economize as drastically as the previous group. If the situation doesn’t improve, they might start identifying with the slam-on-the-breaks segment more.
Comfortably Well-Off
The comfortably well-off are confident that they can survive the recession without having to make too many lifestyle adjustments. The top 5% of earners usually fall into this bracket, but this could also include people with enough savings, investors who cashed out before the downward turn, and others who feel financially stable despite the economic situation.
During recessions, comfortably well-off consumers are likely to stick with their preferred brands. They’ll continue to spend around the same, although they may be pickier when buying or delay larger purchases.
Live-For-Today
This segment is mostly made up of young, urban folks who prioritize experiences over material things. They aren’t as worried about savings and generally have disposable income. Live-for-today consumers may delay large purchases but won’t otherwise change their spending behavior unless something changes their circumstances, like losing their job or getting sick.
Types Of Products/Services
Now that you know the four psychological segments, let’s talk about how each group spends. There are four categories of expenditures during a recession:
- Essentials are the things that you need to survive. This includes shelter, food, and clothing. In some cases, medical care might be essential, like during this pandemic. And since COVID-19 has made public transportation a huge health risk, having a car or some other form of mobility might be considered essential as well, especially for people who still have to go to work.
- Treats are little luxuries or indulgences that you can easily justify to yourself.
- Postponables are products that you want/need but can put off buying without impacting your quality of life.
- Expendables are things that you desire but don’t need.
Aside from the most basic of essentials, products can fall into any category. For example, one person might consider a new video game a “treat”, while someone else categorizes it as an “expendable”. Recessions can also shift products from one category to another. On a regular day, grabbing takeout for dinner might be a treat. But because non-essential movement is highly discouraged to prevent the spread of COVID-19, the additional financial and social costs might move it to the “postponables” or “expendables” category.
Here’s how each of the consumer groups prioritizes their consumption during a recession, according to the Harvard Business Review:
17 Tips to Be Ahead of the Curve
In an economic downturn, clients often reduce their marketing budget. But eliminating marketing spend isn’t the answer. It’s better to reassess your current strategy, eliminate low-performing practices, and figure out the best ways to maximize the budget.
A strong, recession-proof strategy balances both short-term profits and long-term investment in the brand. Your challenge as the marketing agency is to provide clients with the best approach for their business – the tips below will help you do just that.
Understand Your Target Market
Recession or not, every marketing strategy should be built around the customer – who they are, what they want, and what their biggest challenges are. Without an understanding of the people you are marketing to, your messaging won’t be as effective.
You need to figure out which of the four consumer groups your target market is a part of, and what category your clients’ products would fall under. For example, if you work with a value brand, you could market to both slam-on-the-brakes and pained-but-patient types pretty effectively. But if you’re a premium brand with the same customer demographic, you might want to reduce prices or offer more affordable formats.
Return To Traditional Values
In times of uncertainty and fear, people naturally gravitate towards things that are familiar and comforting. Brands could benefit from emphasizing family values and close relationships, especially since mandatory social distancing has many people feeling isolated and lonely.
This works especially well for furniture or home entertainment brands. With the government urging everyone to “stay at home”, making your space feel cozy and inviting is a priority for many consumers.
Rethink Product Lines
Depending on how your clients’ products are predicted to perform, a readjustment of their product portfolio might be in order. If the business has weak products, this is the best time to remove them from the product line. If the brand offers a wide range of models with relatively small differences, reducing them to the most distinct models could help them cut costs. Since disposable income is limited, most people also prefer multi-purpose products to specialized ones during recessions.
Adjusting product portfolios is all about resource allocation – which products have the most demand right now? Which products can we afford to eliminate, even temporarily? What features are my customers looking for? As a digital marketing agency, you may not have that big of a say in what products your client will offer, but you can make suggestions about which products to dedicate most of their marketing budget to.
Rethinking product lines doesn’t mean that you can’t launch any new products during this period. Innovations will always attract customers, just make sure that the new products’ messaging caters to your target consumer group. For example, slam-on-the-brakes consumers will prioritize low prices over more features, but pained-but-patient consumers want a good balance of both value and price.
Offer Deals
Promotions and deals make products more accessible to more people. They can also be a great way to boost sales in the short term while cultivating customer loyalty in the long run. Many companies have offered discounts or cash-backs in the wake of COVID-19. Some brands (like Zoom and Zencastr) have even offered their products for free for the rest of the quarantine!
The downside to price reductions is that, given enough time, the perception of your client’s brand could change. A premium brand could be “downgraded” into an economy brand, which reduces its desirability with some consumer groups. Also, consumers could get used to the new low prices and resist any increases when the economy stabilizes.
Fight For Market Share
During economic downturns, sales aren’t the only metric you need to look at. Market share is just as important, especially since an increase in market share eventually results in an increase in profits in the subsequent year.
For smaller businesses, this means building up your share of voice through targeted ad campaigns, content marketing, and more. For larger businesses with enough capital, this could mean acquiring weaker competitors at a low cost.
Of course, not all businesses can afford to increase their market share during this time. Always assess your clients’ capabilities on a case-to-case basis.
Emphasize, Not Abandon, Core Values
In times of instability, some marketers panic and “jump ship” by changing a brand’s messaging and identity. For example, a high-end accessories brand may start reducing their prices to cater to a lower-income demographic than usual.
While this may attract new customers and improve cash flow in the meantime, it also has the potential to alienate the brand’s existing loyal customers. Moving down-market could also put your clients at a disadvantage since they’ll be competing in an unfamiliar market against established businesses.
You should always aim to reinforce the brand’s core values, even when it seems counter-intuitive. During the 2008 financial crash, diamond company De Beers stabilized its profits by reinforcing the diamond’s “enduring value”. Consumers were encouraged with messages like “a diamond is forever” and “buy fewer, better things”, which helped to mitigate the impact of the recession.
Change The Delivery Method
From restaurants to dental clinics, most businesses require some level of in-person interaction. Since the COVID-19 pandemic has forced people to stay at home and apart from each other, this means that most businesses can’t operate as normal while the quarantine is in place.
Even if your clients have closed their doors, they don’t necessarily have to close their business. All this requires is a little creativity.
Businesses can change how they deliver their product to their customers. For example, professionals who rely on appointments (e.g. dentists, financial consultants, etc.) can conduct their meetings online or over the phone. Restaurants and retailers can put up an online shop and deliver goods to customers’ homes.
You can also try to get customers to pay upfront. Discounted gift certificates or store credit are great ways to improve cash flow, encourage repeat business, and keep the business afloat through the recession.
Compute Return On Ad Spend
Because revenues are low, clients are usually hesitant to spend money on marketing during this time. But if you can show them how much the expected returns are, you may be able to keep a few contracts.
Non-essential businesses whose products aren’t a major priority during the pandemic should be wary about pouring too much into ads. A negative return on ad spend (ROAS) can cause a business to go under. But if there’s still demand for what the business has to offer, then advertising could be extremely beneficial. Plus, advertising costs usually go down in a recession because fewer businesses are spending on ads, and clients may want to take advantage.
Strengthen Existing Customer Relationships
It costs more to acquire new customers than it does to get an existing customer to become a repeat buyer. So if you want to reduce client costs, your focus should be on remarketing. Strengthening existing customer relationships is the key to customer retention in both the short term and the long-term – these people are likely to patronize the business again once the crisis is over.
Think about what you can offer to the brand’s existing customers. Free shipping, bulk discounts, brand collaborations with other businesses, and extra services/products can encourage customers to buy again.
Shift Marketing Priorities
Maintaining market spend doesn’t mean maintaining what you spend it on. There’s a lot to be gained by marketing during this time, as long as you know where best to allocate your limited resources.
Most people are staying at home during the pandemic, so any OOH ads (e.g. billboards, bus ads, etc.) or in-person events (e.g. trade shows) would be a waste of money. But this leaves many other advertising channels wide-open – digital marketing, in particular, is expected to become more prominent as more people are glued to their phones and devices than ever before.
SEO / Content Marketing
Search engine optimization and content marketing are probably going to be the go-to marketing channel for most agencies during the pandemic. Although impressions have dropped considerably in most categories, keyword rankings remain the same regardless of search volume. Brands that continue to spend on SEO will most likely come out on top when the situation stabilizes, while those that neglected their SEO campaigns will see their rankings go down.
PPC
Pay-per-click advertising is easy to pitch to clients during times of economic hardship for two reasons:
- They only have to pay for actual leads/clicks; and,
- Results are quantifiable and measurable.
The 2008 recession saw a 14% increase in online ad spend compared to the previous year, and we expect a similar trend during the COVID-19 pandemic.
Social Media
Social media was already a major marketing channel pre-pandemic, but with a majority of people staying at home, there’s no better time to invest in it than now. Facebook, Twitter, and Instagram are seeing increases in usage and engagement – that should come as no surprise since most people are using social media to connect with friends and read the news. Your clients can take advantage of these additional “eyeballs” through sponsored posts, live videos, and other engaging content.
Email Marketing
Supplement your social media strategy with a thought-out email marketing campaign. While some may think that email marketing is outdated, it’s actually a very cheap and effective way to communicate with customers. Use email newsletters to update consumers about operating hours during the pandemic, share helpful resources about COVID-19, or let them know how else the brand is ready to help them during these troubled times.
Employee-Generated Content
In a time when healthcare professionals and other front liners are being praised as “heroes”, empathy for workers is at an all-time high. This is a great time to put staff front and center. Ask them what movies they’re watching during the quarantine, create fun TikTok videos starring employees, or have them share work-from-home productivity tips.
Putting the spotlight on employees puts faces behind the name, which allows customers to relate to the business more. Plus, it allows both staff and customers to have some sort of much-needed human interaction.
Other Projects
Even if all other marketing is on pause, are there other potential brand projects that you could work on? For example, creating an ebook, revamping the website, and starting a podcast are all innovative (and affordable) ways to strengthen the brand. Most marketers are too busy with the day-to-day that they don’t have enough time to pay attention to these projects, so there’s no better time to start than now.
Invest In Corporate Social Responsibility
Some exploit the global crisis for their own personal gain, like the people who buy all the face masks and hand sanitizer from the store only to sell them at marked-up prices, or businesses that forced workers to come in despite being non-essential. Then, there are the businesses that go the extra mile to help those in need. Society will remember both – how does your client want to be remembered once this is all over?
Sometimes, the best marketing is putting your money where your mouth is. Some brands are partnering with charitable organizations to help the most vulnerable sectors, donating equipment to hospitals, or creating helpful COVID-19 resources. Think of the ways that the brand can help the community. It might not be a “direct” marketing strategy, but you can’t put a price on doing the right thing – or the brand loyalty it inspires.
Reschedule Campaigns
It’s very likely that the pandemic hit in the middle of one of your marketing campaigns. The question at this point is whether or not you should continue with what you already have in your pipeline.
If you can turn the campaign around and make the content relevant to the current situation, all the better! But pivoting to a new campaign isn’t realistic for many businesses, nor is it recommended for everyone. In these cases, it might be better to pause any campaigns that might not be appropriate in the midst of a global pandemic.
Play Up Brand Benefits
Marketing in the time of COVID-19 is a tricky subject. Do it wrong, and consumers might think the brand is tone-deaf, callous, or worse, exploitative. The most important thing right now is to help, and you can do that by pushing the products that address customers’ biggest challenges.
Ask yourself, what value do your client’s products have at this moment? Does it keep them entertained while they’re at home? Does it make connecting with others easier? Emphasize the benefits, share your story – people will listen.
If the business doesn’t have any products or services that can directly help, you can still provide value. Share information on how to stay safe during the pandemic, create fun memes for them to enjoy, or inspire them with uplifting messaging.
Refine Your Messaging
During times of uncertainty, nothing hits harder than emphatic messaging. You want consumers to have an emotional connection with the brand by demonstrating that the brand is on their side. A great example is the Ad Council’s “official” COVID-19 hashtag, #AloneTogether. It reassures people that while they might be social distancing or even self-isolating, they are not alone.
Reinforce emphatic messaging with emphatic actions, like improving loyalty programs, eliminating penalties on late payments, or even simply creating educational resources to help people cope with the pandemic. Then, connect it back to the brand, building trust and goodwill in the long run.
Exercise Compassion & Critical Thinking
The most important marketing rule right now? Be kind, above all else. Put customers’ well-being first, and be critical of everything that you post. As one person put it, “stay positive, but not ignorant.” The brands that care about their customers more than they care about profit will recover much faster once the pandemic has eased up.
3 Things to Avoid
- Exploitation. You can continue communicating with customers and posting ads, just be wary of how it comes across. For example, do not use “COVID19” as a discount code as it’s incredibly insensitive to those impacted by the virus. Don’t brag about the brand’s achievements or charitable efforts; At best, it makes the business look arrogant, at worst, it makes them look disingenuous and exploitative.
- Non-essential marketing. Always keep in mind that your marketing efforts will appear alongside news bits about COVID-19. If you do a non-essential launch or press release, people just don’t have the time or emotional capacity to deal with it. Put off anything that isn’t urgent, and completely scrap in-person events (e.g. trade shows, conferences, launch parties) for the time being.
- Tone-deaf messaging & imagery. Before posting any kind of ad or content, ask yourself if it’s appropriate in the context of the coronavirus pandemic. Don’t send out any offensive or potentially harmful messages. Avoid pictures that show large gatherings of people, or images of people out and about. Don’t use language that describes intimate interaction like “get in touch” or “get closer to others”.
Conclusion
The truth is, we don’t know when the pandemic will end. It could be several more weeks or even months before businesses will be allowed to re-open. In the time it takes to contain (and hopefully cure) the virus, many businesses will fail, and many more will struggle to stay afloat.
Brands will try to reduce their spending to offset the loss in revenue, and marketing budgets are often the first on the chopping block. But there are many advantages to maintaining market spend during economic downturns, and as a marketer, it’s your responsibility to help your clients understand what those are.
Remember: be kind, be critical, and be helpful. And stay safe!