5 Easy Ways to Market Your Business in a Down Economy

When the market heads into a downturn, a number of businesses will not make it. That is simply because the business will not know how to market in a down environment. The good news is that there are a number of businesses that survive and even thrive when things get bad. Here are five proven ways that you can market your business during a down economy.

1. Create a Referral Campaign

They always say that the best marketing is word of mouth. Therefore, there is nothing better than turning your existing customers into your sales team. You can do this by creating a referral program. You can create a referral program by offering your existing customers one of your products for free or offer a discount for every customer that they refer to your business. One referral will typically cost less than using traditional marketing channels to get one new customer. You will find that some of your existing customers will be able to referral multiple new customers to your business.

2. Focus on Existing Customers

It is much less expensive to sell to your existing customers then it is to try to acquire new customers. After all, the existing customers already know, like and trust you. Therefore, you should focus your efforts on getting repeat business from your existing customers. Some of the steps you can take to keep your existing customers happy are to simply ask them what they want. Some customers may want to buy in bulk for a discount. Perhaps other existing customers want you to offer a specific item at a lower price. Listen to your existing customers and give them what they want so they can continue to purchase from your business.

3. Use a Flag Banner to Attract Customers

Flag banners are one of the most inexpensive ways to attract attention to your business. There are a number of different types of flag banners available. You can use standard flags, feather flags, tube flags, rectangle flags and retractable flags for your business. These flags are weatherproof and can be used outdoors. If you operate a kiosk or a business inside of a mall, you can use a flag banner as well to attract foot traffic.

4. Market Your Product or Service as an Essential Item

When the economy goes bad, people will stop buying discretionary items and only buy essential items. This can be a problem if you have been marketing your product or service as a discretionary item or a "treat." Therefore, you will have to pivot your messaging to make your product or service something that the customer can not live without. For instance, if you operate a day spa, you may have been marketing your service as a way for customers to treat themselves. Now, you should market your day spa as a necessity for their customers to reduce or eliminate stress. Investigate different ways that your product can be marketed as a necessity and communicate that message to your customers.

5. Offer lower priced items

When the economy is down, people will have less money to spend. Even if the customer has less money, they may be less likely to spend that money in fear of running out of cash. Therefore, you will want to introduce lower-priced products or services to your overall menu. For instance, if you operate a restaurant, you can have a dollar menu item. You can use this item as a "loss leader" to get customers into your establishment. From there, you can entice the customer to buy other items at a regular price. If you offer a service, you can provide a first time price for new customers. Try several different types of discounts. Some of these approaches may not work. However, you are bound to find a discount strategy that will be a home run.

Your business doesn't have to become a victim to a down economy. Start a referral program, focus on existing customers, invest in flag banners, reposition your business and offer discounts to keep your revenue coming. You will be surprised how much business you can create in any market environment.