Tag Archive for: recession marketing

Key Takeaways

  • Emphasize Trust and Customer Retention: Building emotional connections with existing customers is crucial. Brands with loyal customers see a significantly higher lifetime value and recommendation rates, highlighting the importance of nurturing these relationships, especially during uncertain times.
  • Maintain Advertising Efforts: Companies that sustain or increase their advertising during recessions tend to outperform those that cut back, achieving a substantial increase in sales. Advertising fosters familiarity and trust, which are vital as consumer confidence fluctuates.
  • Focus on Customer Engagement and Referrals: Engaging with customers through feedback and appreciation boosts retention and referral rates. Investing in existing customer relationships is not only more cost-effective than acquiring new ones but can also lead to substantial revenue growth.

There are TWO keywords for your post-COVID marketing strategy: Trust and Retention

2020 won’t be a year any of us forgets anytime soon. Social distancing brought us personal and economic uncertainty that’s sure to last through the remainder of the year. We won’t fully appreciate the full impact on this global pandemic for a very long time. Now IS the time to think about your post-COVID marketing strategies though.

Right now, businesses are having to make decisions that will determine whether they’re company survives or even thrives in a post-COVID-19 world.

Let’s face it, post-COVID marketing and PR will be very needed. It’s not a question of “if,” it’s a question of “what” and “how.”

From past recessions, we know customers steer towards familiarity during times of uncertainty. With this in mind, it’s important for brands to cherish their customers, keep in touch with their customers and tap into and enhance brand loyalty.

Even in a recession, consumers will still splurge, they will STILL treat themselves, but emotional triggers take on outsized importance because consumers actually DO want to feel good about their purchases and when consumers are watching their expenses closely, they have more to lose from a lousy brand (product, customer service, communication) experience. When consumers are watching their pennies, they aren’t taking as many risks with their money.

Get Emotional With Your Customer Retention

Now is a great time to reinforce the brand relationship with existing customers. Think about customer loyalty programs and branding & PR initiatives that strike right to the heart of your existing customers. Discounts and sales are easy, but do nothing for loyalty, so look at reinforcing customer loyalty right now. Now, understand, no consumer says “I want a relationship with a brand,” instead the relationship resides in their subconscious. Our work with Captivation Motivations means we deeply understand how consumers act, even when they don’t understand why they act.

Not only does post-COVID marketing to existing customers cost less than acquiring new customers, but it also pads the bottom line for years to come:

1) Customers with an emotional relationship with a brand have a 306% higher lifetime value and will recommend the company at a rate of 71%, rather than the average rate of 45%. (Motista)

2) Emotionally connected customers stay with a brand an average of 5.1 years vs. 3.4 years (Motista)

3) Emotionally connected customers recommend brands at much higher rates: 30.2% vs. 7.6% (Motista)

Grab Share of Voice While It’s Available

Brands who maintain or even increase ad spends are able to thrive in the years after recessions, the same will be true for post-COVID marketing. There are several reasons for this, first is branding confidence.

While the Edelman Trust Barometer of 2020 addresses the lack of trust in advertising, the strategy behind advertising isn’t trust itself, it’s exposure which leads to familiarity, which leads to increased trust. Also, the ROI will improve because fewer competitors will be advertising so your message will come across more strongly.

Plus, consumers know that marketing decreases during recessions, so by advertising you’re sending a message of your own confidence and strength to both customers and competition.

That said, expect PR, specifically earned media, to take an outsized influence as earned media leads in trust. Brands using PR to refine and focus their commitment to their existing customers will score extra bonus points in customer retention.

4) Companies who maintained or increase ad spend during a recession saw a 256% increase in sales over those who cut back (Innovating Through a Recession: Professor Andrew J. Razeghi Kellogg School of Management)

5) 92% of consumers say they trust earned media over purely promotional content. (PR Daily)

6) 70% of consumers prefer getting to know a company via articles rather than ads (Content Marketing Institute)

Maximize Happy Customers


Celebrate your existing customers, because customer retention is the name of the game. But go the extra mile too, ask for and encourage your customers to give you reviews and feedback AND show that you appreciate their willingness to do so. The reason for this is simple, the more engaged a customer, the more likely they are to be in the habit of referring you to others.

For the last decade, we’ve witnessed one of the most incredible consumer shifts in marketing: the traceability of consumer referrals. We now know that for certain that when a friend recommends a product or service, that product or service immediately benefits from a trust boost. This trend will be on supercharge throughout 2020.

During the boom economy, you probably spent the majority of your marketing budget on the acquisition of new customers. In the post-COVID marketing world, now it’s time to turn your funding away from acquisition funnels and into emotional connections and reinforcing trust with your existing customers, pivoting your marketing budget towards this strategy will increase revenues (yes, even during a recession).

7) Happy American customers will share their positive experiences with and refer about 11 people. (American Express)

8) It’s 5-25X more expensive to acquire a new customer than it is to retain an existing customer. (HBR)

9) A 5% increase in customer retention can increase company revenue by 25-95%. (HBR)

10) 80% of an organization’s future revenue will come from just 20 percent of your existing customers (InsightSquared)

 

Key Takeaways

  • Relationships matter more in a downturn: Strong connections with industry associations, employees, partners, vendors, and customers can protect brand value when the market is under pressure.
  • Customer loyalty is earned in the details: Brands that find thoughtful ways to recognize advocates, support frontline partners, and stay engaged with their audience are more likely to build lasting trust.
  • Quality and focus are competitive advantages: In a market correction, the brands that maintain product quality, invest in what is already working, and stay disciplined tend to come out stronger.

6 Cannabis PR Ideas to Strengthen Your Brand During an Industry Correction

Now is the time to build brand value with the things that do not require a bigger budget.

You may look at these six cannabis PR ideas and wonder what they have to do with public relations. But when you think about reputation as something holistic and constantly evolving, the connection becomes clear. Small actions can create meaningful brand value over time.

You’ve seen the headlines. The cannabis industry is going through a correction. Consolidation is accelerating. Business closures are making news. Capital markets have tightened dramatically, even for established operators. For many companies, survival is top of mind.

Corrections are part of how markets work. They happen. But recovery happens too.

And when this market rebounds, it will almost certainly look different than it did before. The cannabis industry is not going away, and the long-term opportunity is still significant. According to Arcview Market Research and BDS Analytics, the U.S. cannabis market was projected to reach $16 billion in 2020 and exceed $19 billion in 2021.

Yes, absolutely—tighten operations, manage inventory carefully, and keep a close eye on cash flow. Those are smart and necessary business decisions.

But because we are a cannabis PR and branding firm, we also want to highlight the ways brands can keep building value during difficult periods—especially in ways that do not require major new spending.

And while this post was originally written in response to the 2019 cannabis correction, these ideas are just as useful in stronger markets. Good brand habits have a long shelf life.

arcview cannabis industry projections 2020

Image from Business Insider’s Cultivate Newsletter. Subscription link at bottom.

What Should Cannabis Businesses Do to Survive—and Possibly Even Flourish—During a Correction?

The companies that make it through this phase have a real opportunity to come out stronger.

In fact, some marketing and PR efforts can produce even better returns in a downturn because when panic sets in, competitors often pull back, lose focus, or stop showing up consistently.

Branding and PR are inside-out jobs. These six cannabis PR ideas are designed to help you find immediate opportunities to strengthen your brand, your reputation, and customer loyalty. There is far more to brand value than a logo or packaging system. Often, the most important differentiators are already inside the company.

Use these ideas to build a stronger foundation now so your cannabis PR and marketing efforts are even more effective when the market improves.

Double Down on Relationships

“People will forget what you said, people will forget what you did, but people will never forget how you made them feel.” – Maya Angelou

Join and Participate in Active Industry Associations

This is a good time to invest more energy in the industry associations that are actively working to protect and strengthen the cannabis sector at both the local and national levels.

When you join an organization, do more than add your name to the roster. Ask how you can contribute. Look for ways to support the mission, participate in meetings, and build real relationships with the people doing the work.

That kind of visibility matters.

As the industry consolidates, people are increasingly choosing to work with companies and leaders they trust. One of the best ways to build trust is to show up consistently and contribute in meaningful ways. If your membership includes opportunities to speak, publish, or share your perspective, make the most of them. Sharing your point of view can strengthen both your reputation and your network.

At Avaans Media, we have long appreciated how the National Cannabis Industry Association (NCIA) supports its members.

When It’s Time to Say Goodbye

If you need to part ways with employees or partners, do it with clarity, fairness, and respect.

People remember how they were treated in difficult moments. A rushed exit, a cold conversation, or poor communication can leave a lasting mark on your brand.

If you are letting employees go, be thoughtful about timing and delivery. If you are ending a vendor or partner relationship, have a real conversation about how to do it in a way that is fair and professional.

These are hard conversations. No one enjoys them. But during difficult periods, what people remember most is not polished language—it is how you handled the moment.

Treat Your Partners and Vendors Like Gold

When was the last time your CEO went out of their way to make budtenders feel appreciated?

Now would be a good time.

Budtenders are often the face of your brand to the customer. They influence perception at the point of purchase, and many of them are feeling the pressure of the market right alongside everyone else.

So do something thoughtful. Not necessarily expensive—thoughtful.

That might mean a surprise visit to dispensary teams with coffee or gift cards. It might mean handwritten notes, better communication, or simply finding ways to acknowledge their role in your success. If you can do something bigger, wonderful. If you cannot, that is not a reason to do nothing.

Small gestures can travel surprisingly far.

The same goes for vendors and partners. Negotiate smart terms, yes—but honor your commitments. Pay on time. Acknowledge strong work. Treat the relationship like it matters, because it does.

In a correction, the last thing you want is a network of partners who feel lukewarm about your brand. What you want are people who are willing to go the extra mile when things get hard. And the best way to build that kind of loyalty is to show it first.

Celebrate Your Most Passionate Customers

Your customers are still your clearest revenue driver, and this is a good time to make the brand experience feel more rewarding.

Think about what matters most to your audience. Are they price-conscious? Reward loyalty in practical ways. Are they creative and community-driven? Give them ways to participate, share, and feel seen.

That could mean purchase-based incentives, collectible or redeemable promotional items, community campaigns, or creative packaging that invites interaction. It could also mean encouraging customers to share your brand on social media in a way that feels fun and authentic.

Just as important: pay attention to your brand advocates. Notice who is already showing up for you online. Thank them. Celebrate them. Recognize them publicly when appropriate.

No cannabis brand is too large to show appreciation to loyal customers.

Keep Going

“When they go low, we go high.” – Michelle Obama

Lean Harder Into Your Strengths

If last year was too busy to clearly see what was working best, now is the time to look closely.

Find your strongest channels, products, campaigns, and stories—then invest more energy there.

If your social media is performing well, improve it further. If a product line consistently resonates, consider a special edition or a stronger supporting campaign. If one part of your story is landing especially well, build on it.

Brands stand out during corrections when they know what they do well and commit to it more fully.

Focus tends to outperform frantic experimentation.

Maintain Quality

Your customers can tell when you cut corners. Your best customers can tell almost immediately.

It may be tempting to make substitutions, reduce quality, or quietly change formulations to protect margins. Resist that temptation whenever possible.

Maintaining quality helps preserve trust while competitors may be weakening their own products. That discipline can pay off in both the short term and the long term.

Lowering quality may look like a savings on paper, but it often creates a much bigger brand cost later.

Keep Your Standards High—and Your Numbers Close

Set clear, trackable KPIs for your sales, marketing, PR teams, and vendors. Then stay engaged enough to know what the numbers are telling you.

If you pull back too far on cannabis PR, marketing, and sales during a correction, regaining market share later can be far more expensive than maintaining momentum now.

We have seen this repeatedly. Companies cut communications or replace experienced support with cheaper alternatives, and the hidden cost shows up over time in weaker positioning, slower growth, and avoidable brand erosion.

Instead, stay close to the work. Attend sales, marketing, and PR meetings. Watch the benchmarks. Monitor competitors. Understand how your brand is performing in context, not just in isolation.

That kind of discipline helps you catch issues early and make better decisions before they become expensive ones.

In Short

Kindness, professionalism, attention, and time do not require a larger budget—but during a cannabis industry correction, they can make a real difference.

This is a good time to strengthen your brand from the inside out. These cannabis PR ideas are simple, but they are not small. Done consistently, they can improve loyalty, reputation, and readiness for the rebound.

PS: I grabbed this image from Business Insider’s Cultivated newsletter. If you’re not reading it, you should.

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