Three Marketing Strategies to Navigate Economic Uncertainty

Economic shifts cause consumers to feel uncertain, which can lead to a volatile environment for marketers. While today’s consumers are in a state of wariness about tariffs and perceived price increases, marketers should be empathetic, trustworthy, and informative; advertisers who demonstrate their attentiveness to macroeconomic changes will earn or maintain consumer trust and brand position, rather than falling behind in a time of penny-pinching. As a marketer, consider the following ways to meet consumers in the middle.

Three marketing strategies for meeting consumers during uncertainty

1.  Empathize with consumers. 

Consumers are feeling unsure about the future, resulting in more thoughtful and price-sensitive spending. Three-in-four Americans note that they are more financially conscious than they used to be, according to research from The Trade Desk. To attract price-sensitive consumers, consider offering deals or discounts. This strategy can make products seem more attainable. When executed carefully, it can boost purchase rates while preserving a positive brand image. Depending on the category, product bundling could also be used to provide more goods at a lower cost.

Marketing considerations for all brands
To meet price-sensitive consumers where they are, marketers should: 

• Consider coupons or deals to make products or services more affordable for consumers worried about the cost of goods
• Clearly indicate the discount on the price tag to attract consumers who are searching for deals; doing so will highlight the added benefit they’ll receive from purchasing the product
• Monitor the frequency of promotions to prevent brand perception from seeming low value

2.  Emphasize brand value.

Value-conscious consumers may spend more time looking into products where the value is high for the price. The Trade Desk reported that 63% of consumers still prefer brand names despite price increases, leaving 37% of consumers to be swayed when it comes to brand preference. If brand value is not clearly defined for the cost, consumers will move elsewhere. Discounts, as noted above, can also assist with brand value by improving the perception of the product and making it appear more valuable.

Marketing considerations for all brands
Ensure consumers are well aware of the value your products hold. 

• If the cost of your good is high, emphasize the importance of your brand and make it clear why your brand is worth the investment by using value-affirming messaging in content
• If in a market with little barrier to entry and numerous competitors, include language in media assets that highlights the benefits of the product or service and the features that make the investment worthwhile

3.  Build or maintain trust.

Consumers that are worried about economic uncertainty may shy away from brands they don’t trust. To maintain trust and loyalty, brands must be transparent with consumers. For example, transparency about rising prices may help a brand build or maintain trust with consumers and save brand reputation. Harvard Business Review notes that with price increases, customer loyalty is important to drive repeat purchases and improve brand perception in the eyes of consumers. 

Marketing considerations for all brands

To retain consumer trust, consider the following: 

• If increasing prices is needed, be honest and authentic with consumers as to why
• Consider a loyalty program to retain customers who are already familiar with and trust your brand

Moving forward

Advertisers that acknowledge consumer feelings by offering discounts, highlighting brand value, and/or being transparent will likely succeed in times of economic uncertainty. Should marketers implement the strategies above, it’s important to note that economic uncertainty changes consumer spending. A survey conducted by Gartner concluded that 70% of American consumers are adjusting their day-to-day spending to save money. Additionally, with the holiday season upon us, Silverpush notes that spending will begin earlier this year, with increased consumer spending in September and October. Gartner also notes that one-third of shoppers plan to purchase gifts by October as this provides them with early access to deals and spreads costs throughout the season. With this in mind, consider aligning marketing flights with heavy consumer-spending months to stay top of mind. While marketing to consumers this holiday season, focus on building trust and affirming value to keep your brand a top choice.