It looks like we’re headed into murky economic waters again. The common wisdom is to cut costs and slash budgets when a recession beckons, and there’s some sense to it (after all, reducing costs and increasing profits is the name of the game). But what about marketing and PR? They’re almost always the first items to be slashed, but reducing your PR spend could actually end up costing you more.
Studies show that increasing, instead of decreasing, your marketing budget is what brings about greater ROI. One study showed that companies that increased their advertising budgets during a recession enjoyed considerable increases in market share compared to those that had slashed theirs. In another, 60% of brands that increased media investment during the last recession saw ROI improvements. It makes sense when you think about it; once the economy recovers, those that focused their efforts on PR have a greater chance of improving their position.
For PR to be effective, it has to be consistent. Names and reputations are forgotten entirely too quickly, so don’t let all your hard work and hard-earned coverage go to waste by taking the foot off the pedal. It’s best to start making PR plans now so that you can continue or alter them if the economy takes a turn. Remember this famous saying: “When times are good, you should advertise; when times are bad, you must advertise.” The same is true of PR - you need to tell customers what you are doing and why.
Of course, it won’t just be your business reducing costs; your clients will too, so don’t give them a reason to drop you by failing to reach out to them. PR is vital during a recession if you want to keep your clients’ loyalty. It’s all about communication, and regular communication strengthens your connections as you’re all in this together. And, of course, keeping your clients happy and informed boosts your chances of referrals.
Along with loyalty, keeping communication open will do you a world of good as customers look to save every penny they can. Coming along at the right moment with the right package or product could be just what you need to maintain and grow sales — a chance you might have missed if you decided against pursuing more PR.
Lastly, recessions are times of great uncertainty, and you can never be sure who will be affected or how badly. Investing in PR gives you a better chance at reaching those who are able to spend while also allowing you to work with those wanting to spend but might need additional incentives. PR is all about communication, and you never want to close the door on communication.
Build PR is a small, friendly consultancy that cares about its clients and works tirelessly to give you the maximum return on your investment. We have represented some of the biggest names in the construction industry. Read why PR is so important for construction companies here and see how we have helped companies with their construction PR.