3 Ways Marketing Needs to Pivot in a Recession
With the recession on consumers’ minds, bank and credit union executives may be scaling back their marketing investments. But instead, the opportunity to reap outstanding profits remains for those who are willing to pivot. Instead of doing less marketing, try new marketing tactics to build stronger connections with consumers during these uncertain times. Let’s look at these three trends – detached, personalized experiences and new technology – to get started.
Fears of a recession – which have grown in recent years – have now turned into expectations. A McKinsey Consumer Survey from July 2022 indicates that 30% of consumers are not only preparing for a recession but for “one of the worst recessions we have ever seen.” ants” – a significant increase in this grim expectation in 2021 (18 %) and 2020 (14 %).
For bank and credit union marketers, being aware of the economic environment is key. The challenge is to tailor the message to reassure and educate consumers while taking advantage of the positives. Brands that start their communications from a position of transparency and usefulness, and then integrate them into every touchpoint of the user experience are brands that consumers will perceive as engaging and worthy of trust. trust.
Credit Karma offers an example of the right tone and message for the moment. Personal finance fintech, owned by Intuit, serves consumers like old friends. The message is conversational but honest – never condescending or sugary – and it focuses on how consumers are personally affected by what is happening in the financial sector; Look no further than Credit Karma’s customer-facing website, for example, filled with user-friendly advice. This simple approach is different from the traditional closed-loop financial marketing approach and is particularly appealing to younger audiences.
Others who want to connect with consumers at a time when they may be feeling anxious about their finances will benefit from a similar approach.
Some banks and credit unions pull back or limit their marketing campaigns when a recession hits, but instead, those banks turn themselves into resources to guide consumers through There are many benefits to going through difficult times.
Research shows that return on investment can be even greater in sunnier periods. In fact, “60% of brands that increased their media investment during the last recession saw their ROI improve,” while “brands that cut spending risk losing 15%.” business in the hands of competitors has increased their investment,” according to research from Analytics Partners.
The events of the past few years have shaken financial marketers and changed consumer expectations. By leveraging emerging trends such as grouping, personalized experiences, and technology, banks and credit unions can continue to foster new opportunities to connect with consumers despite the unstable time.
