Article n°8 - 2 min
Why A Financial Crisis Is A Great Time To Invest In Your Brand.
There is an opportunity amid uncertainty
Recessions are unique opportunities for brands to reinvent themselves while competitors are focused on cutting costs. That may be a prudent strategy in the short term but when the market cools down, they’ll end up in the same market position and place in investors minds as they were before the recession.
History shows that businesses that invested in branding during a recession can come out stronger after these down cycles.Investing in branding is a unique opportunity to solidify your market position and differentiation.
Airbnb during the Covid pandemic is a perfect example of this. Airbnb shifted its marketing strategy from performance-driven to brand-building. The switch led to incredible results for Airbnb, and this strategy is “driving a great return on investment ,” said the CFO of Airbnb.
Clients are less likely to cut ties with strong brands during a market downturn
Investors don’t necessarily stop investing during a recession; some switch firms to maximise returns but most investors are looking for reassurance that firms have their financial goals in mind.
The more your firm lacks the understanding of their goals and how your strategies help them achieve their goals, the easier it will be for investors to leave and shop around for other firms.
On the flip side, if your firm has consistently demonstrated reliability, transparency, and a deep understanding of your client needs, it builds a reservoir of goodwill and loyalty.
Trustworthy brands offer a sense of stability in uncertain times, making clients feel more secure in their investment decisions.
By investing in your brand, your firm can also create a strong emotional connection with your clients, leading to increased loyalty.
According to a survey by the Advertising Research Foundation, 84% of consumers said they are more likely to continue doing business with a company they feel connected to emotionally.