With the unprecedented rise of inflation, some economists project a nearly 50% risk of a U.S. recession within the next 12 months. This only justifies the fears of the 45% of U.S. businesses that are “highly concerned” about an oncoming economic downturn.
In fact, half of businesses are preparing to slash their discretionary marketing spend. Your business might have also considered cutting marketing, including email marketing, in the face of economic uncertainty.
But reducing your email marketing during the next possible recession is both a mistake and a missed opportunity. Focusing your resources on maintaining a strong email marketing presence can help your business not just survive but thrive during a recession.
So why email?
Fortune Favors the Bold
Studies have repeatedly shown that businesses that invest in their marketing efforts in a recession gain a competitive advantage over those that don’t. One well-known case study by McGraw-Hill Research showed companies with aggressive marketing strategies grew by 256% over companies with more timid marketing tactics during the 1980s recession.
Also, data from the 2008 recession showed that businesses that maintained their marketing output had 3.5 times more brand visibility over those that had cut or eliminated their advertising efforts. In fact, it was Groupon’s aggressive email campaign that allowed the company to make a $500 million profit and establish itself as a market leader.
It’s Here to Stay
Despite the internet’s ever-changing landscape and the rise (and subsequent fall) of many social platforms, emails are a reliable bet for marketers to reach their consumers. So much so that over 40% of U.S. businesses rank email marketing in their top three most-valued channels for growth and retention.
In 2021, there were an estimated 4 billion daily email users. That number is expected to rise to 4.6 billion by 2025. On top of that, nearly 85% of consumers check their email inboxes at least once a day, increasing the chance that your intended audience will see your emails.
Creating standout emails that customers are drawn to helps drive more engagement and makes your business more competitive. Plus, you can team up with an email marketing solutions provider to have experts tailor and manage your content.
Through email marketing, customers get to know your business and you’ll stay fresh in their minds. Your business will be able to reach a growing and active user base, which is essential at a time where consumers will be more financially cautious.
There’s a High Reward
Already, marketing to your existing customers yields five to 25 times more than trying to gain new customers. Specifically, email marketing offers your business an average return of $42 for every $1 you spend.
Email marketing is unique because these customers have already agreed to hear from your business and are more open to your marketing efforts. This opportunity allows you to cultivate customer loyalty, which is critical when your business is most likely to lose its customers from a recession.
Focusing your email marketing efforts on maintaining your relationship with current customers helps ensure they stay your customers. Have a dedicated team of email marketing professionals on hand to create content that resonates with your customers when times are hard.