If there’s one thing we know, it’s that during a recession every business is in the same boat – and that boat is in largely uncharted waters. There are subtle nuances, and no downturn is the same, but typically, many businesses will: a) panic, and b), cut costs. If there are fewer enquiries coming in, and patients are delaying making decisions about treatments, it’s tempting to universally slash your spend in an effort to preserve some cash.
This really isn’t the thing to do, however: the world has learned from previous recessions that the brands that continue to advertise are the ones that come out on top. A recession usually lasts for between seven and 15 months, which, in the grand scheme of things, isn’t a significant amount of time, however gruesome it may feel while it’s ongoing. What history shows, therefore, is that the key to weathering the storm is (to adopt the well-worn phrase) to keep calm and carry on.
In the meantime, your rivals will be hacking away at their budgets and weakening themselves in the process. This in turn makes the field less competitive (with the cost of things like clicks and magazine ads coming down), which means that you’ll be spending less on enquiries and your marketing will work even harder for you.
This doesn’t mean that you should blindly carry on as before; if ever there was a time to pause and review your approach, this is it. You probably will need to cut some of your costs, but the focus here should be on understanding how consumer behaviour is evolving in response to the times, and then fine-tuning your strategies and tactics accordingly.
To begin with, consider your market and its psychology, reviewing things from a patient’s perspective. In times of prosperity, your rising revenues aren’t just caused by marketing and clever advertising – they’re also due to people having confidence in the future. This confidence is coupled with a healthy amount of disposable income, which encourages the adoption of lifestyles and values that encourage consumption. In times of recession, this confidence is knocked and transaction speed slows down.
Your audiences may sit across a range of demographics. Some segments are comfortably off and will continue to spend money as normal; they’ll see out any recession as they still have a good income or savings. Some take a more ‘live for the moment’ approach, meaning they’ll find the money or borrow it (for instance, with an interest-free loan) for the short-term, in the assumption that things will improve once again. Some more pessimistic people will be evaluating their costs and reducing their spend.
Knowing which of these groups you’re talking to can help you think about how you should adapt your marketing to appeal to them while the recession lasts. It may be that very little needs to change for you, but it’s good to understand this nonetheless.
Clearly, your usual demographics such as age, income and location still apply and have relevance, but it can also be interesting to re-categorise according to these segments: those that will pause on spending, those that are comfortably well off, and those that are living for today. You might also consider your ongoing sales: which treatments are continuing to sell, and which seem to be slowing down? For the time being, move more of your budget into your more resilient offerings.
While you’re reviewing your spend, it’s important to maintain your customer service. This is an area that we know many of our clients take pride in, and a level of quality through which they stand out. Think about how you make people feel, whether this is meeting the expectations of existing patients, or building trust with new patients who are still making up their minds.
Arguably, during a recession, this customer service is more vital and valuable than ever. Referrals are usually down to your existing patients, and hard times mean that we all look for trusted providers. Among new and potential patients, too, you’re building a relationship. As we’ve mentioned, transaction times slow down, so if someone doesn’t convert as quickly as you’d expect, don’t give up on them – they may still do so.
At this time, maintain your communications to retain trust and let people know you’re there. You might want to adapt your messaging to be more empathetic and attuned to the economic climate; reassure people that you do understand, and that you want to help them. While it might seem sensible (and even helpful) to discount your product range, take care: widespread price cuts will ultimately devalue the product and cause people to expect the lower price. Remember, the amount you’re paying will be rising too, making this an even more expensive choice. You may even find that you need to increase the price of some products.
Rather than blanket discounts, look at which areas are performing and consider reductions on specific products. For instance, can you offer a lower-price teeth-whitening solution, which you can then compare with a premium solution when you have interest? You could also create bundles to provide more value. This may be the nudge that’s needed to get some patients over the line.
If you’re in the happy position of having a good-sized affluent audience across your marketing channels, you should still continue to build awareness. They will be buying, so you may have the opportunity to attract them at a lower cost if other practices are reducing their activity.
In times of adversity, as we saw during the peak of the pandemic, it’s the brave that grow and succeed. If you can carry on, making changes only where the evidence suggests you should, while retaining your customer service, you’ll come out with a bigger brand share than before. I’ve often heard it said, ‘When times are good, you should advertise. When times are bad, you must advertise.’
And of course, if you’d like help with reviewing your marketing, or identifying and understanding your audiences, do contact us for a marketing appraisal.
