Global Inflation Rate Rising
Prices continue to skyrocket everywhere, showing that rising inflation is a global problem.
According to Statista, the inflation rate has more than doubled over the last two years in most advanced economies.
During these turbulent times, marketers across all industries face steep challenges in satisfying fast-changing consumer needs.
As a global influencer agency that has created award-winning campaigns for brands within the last decade of economic highs and lows, we constructed a report on how to combat inflation using creator marketing. Download the full report here!
How Economic Uncertainty Changes Consumer Psychology & Habits
Economic uncertainty affects consumer behaviors.
During economic turbulence, there’s a change in priorities when it comes to economic decisions. Most consumers are changing the way they shop in an effort to manage expenses.
According to the Consumer Confidence Index, consumer confidence has dropped in 2022, given the increased recession fears.
History tends to repeat itself. Strong evidence suggests that maintaining marketing activity during an economic downturn pays off.
Right now, companies must stay relentlessly focused on driving efficiencies and staying top of mind to get short and long-term benefits.
Marketing Failures to Learn From
Lesson 1: Don’t Make Cuts Prematurely
Data from the 2008 recession shows the value of investing in brand advertising. Most brands during the Great Recession made the mistake of going into defensive, survival mode and made deep cuts.
However, brands that didn’t do this in 2008 saw their earnings climb steadily during the downturn and even rose afterward.
In summary, focus and plan for the long term. Don’t make the mistake of cutting costs, jeopardizing long-term performance.
Lesson 2: Don’t Avoid the Problem
You don’t want to ignore what’s happening in the economy, but don’t sound like an alarmist when you acknowledge it.
Consumers became fatigued by pandemic ads in early 2020, and the one-size-fits-all traditional messaging about inflation is unlikely to be successful. In other words, mass messaging doesn’t work.
How do you address the current situation and not sound like every other brand?
Lean in and listen. What do your customers need during these challenging times?
Connect with them emotionally, making them feel understood and cared for.
Lesson 3: Don’t Do It Alone
What better way to connect with your customers than with other customers?
Spread awareness about your brand, and increase both brand loyalty and advocacy by partnering with creators.
Creator marketing tactics help avoid a recession-triggered dip in sales by increasing high-affinity touchpoints and amplifying:
- Price comparison
- Deal searchability
- Price considerate messaging
“Despite the current economic uncertainty, marketers are increasing their spending on creator partnerships.
The looming fear of a recession doesn’t mean shoppers won’t be spending money, especially on the upcoming holidays. They will just be more selective in what brands and products they choose.”
– Eric Dahan, Open Influence CEO
Marketing Must Do’s to Inspire Action
Knowledge -> Brand Awareness
- Zero in on your brand’s purpose.
- Create campaigns that amplify your brand’s mission statement.
- Strategically craft messaging that sticks in your customer’s minds.
Attitude -> Brand Loyalty
- Turn the focus inward on clients – Brands should ask, “how can we help?”
- Look for tactical opportunities to create charity through acts of humanity and generosity.
Behavior -> Brand Advocacy & Increased Sales
- Turn the focus inward on clients – Brands should ask, “how can we help?”
- Look for tactical opportunities to create charity through acts of humanity and generosity.
Creator Marketing in Every Industry
During a recession, consumers usually continue to spend money on food, clothes, health, and personal care. So, whereas fashion influencer marketing and travel influencer marketing remain robust, the most affected industries are typically home and sporting goods, luxury goods, accessories, furniture, and electronics.
We do not doubt that creators will make your brand thrive, no matter the industry, even financial influencer marketing services.
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Don’t just survive these times. Partner with a creator marketing agency that will make you thrive. Work with us today!
