Research of the Week filters through hundreds of research studies and finds the most interesting and thought-provoking research for marketing professionals. Then we provide practical strategies and tips on how to apply the research to influence your marketing programs. Enjoy!
During economic downturns, there are some industries impacted more than others. The current pandemic has battered travel, finance, hotels, gyms, sports, live events, premium services, restaurants, and more. But other industries have had a positive impact. Here is a graphic (source: @NYTIMES Instagram) to show those doing well, and those struggling, during the pandemic.
To take a deeper dive and look at e-commerce, you find some unexpected winners in e-commerce product categories. Here is a graphic that looks at March 2020 vs. March 2019 (source: Slackline, Amazon, Business Insider, Euro New, CNBC).
At first, it is surprising to see items like bread machines, weights, and fitness foods with dramatic increases. But after you think about the reasons, it makes sense. For companies that offer those products, I’m sure they had to quickly adjust their ad spend, test messaging, explore ways to increase their audience, and more.
Takeaway: Even in challenging economic times, there are opportunities to find success. For restaurants moving to curb=side pickup, to gym offering video workout programs, companies that can move quickly and adapt are discovering winning formulas.
Tip based on the research: What can you do to find a winning formula during this pandemic? First, you must realize that with challenges come opportunities. For example, here are a few companies that were founded during the 2008 recession:
Plus, you can find companies that had tremendous growth during the 2008 crises:
- Netflix stock rose by 57 percent.
- Amazon sales rose by nearly 25 percent.
- Domino’s changes its pizza recipe, spent millions of dollars on research and marketing. The result was a massive success, with an increase in both sales and profits.
- Lego profit grew by 63% with a strategic plan of global expansion.
When most companies were in decline, entrepreneurs were launching companies and innovative companies were expanding by implementing bold but calculated plans. Time and data will reveal the winners and losers from this pandemic.
Here are 4 key lessons you can learn for challenging economic times:
- Look for new opportunities. Do your research, test offers, and don’t be afraid to move forward on a plan. Waiting on the sidelines is not a plan.
- Help those in need. Both customers and companies need help during challenging times. Lower prices, grace on payment terms, and free resources are some of the ways you can help. How you respond during a crisis will either build loyalty for your brand or damage your reputation.
- Present an alternative. How can you help solve a problem for your audience? Be a part of the solution and provide options for your audience.
- Be agile and use marketing to find your path to success. Do you need data to help point you in the right direction? Run a series of digital advertising and email campaigns to test offers, messaging, and products. Quickly find out what is working and not working during this time of crisis.
If you want to run tests with digital advertising campaigns, Perfect Audience has experts available to work with you. We will share with you what we are learning and help you apply those learnings to your specific situation. Click here to schedule a meeting.