Marketing’s Trojan horse

In this eight-part series of articles, Essential Group will share all the methods and tricks of the trade for running a successful hardware store in South Africa. This article focuses on your marketing strategy in the wake of COVID-19.

It’s a warzone out there, no other description for it. The country is in lockdown, companies are losing the battle to survive; many are closing their doors while others are barely ticking over. The enemy at the gate, however, consists of two elements that are posing a threat to businesses: namely, COVID-19 and a lack of business agility.

While we can do our best to protect ourselves from the virus and rely on the faint belief that we will remain unaffected, business inflexibility and lack of adaptability is more insidious and, a lack of savvy runs the risk of crippling companies way after the pandemic has peaked.

Unfortunately, putting businesses into a forced state of isolation, the coronavirus has put paid to tried-and-true marketing approaches, which may not work today, for at least two reasons: social distancing, and your customer messaging that is not modified to deal with fear and apprehension.

While the nation is hunkered down in our various foxholes, hoping to level the viral enemy with an arsenal of weaponry in the form of sanitisers, masks and social distancing, a sense of desperation and marketing paralysis is creeping in the back door, catching companies off-guard, exposing them to the opposition, to the enemy.

WHO IS THE ENEMY?

For one, it could be your own marketing strategy – or lack of it. Let that sink in.

When a market is flourishing, purchases depend on a disposable household income, coupled with a sense of consumer confidence about the future, trusting in business and the economy, and pursuing lifestyles and values that boost consumption. Marketing campaigns abound, spurring on the consumer to go out and spend.

During an economic slump however, there is strong tendency for companies to lower their guard, to no longer focus on strategy but rather on survival. As consumers reduce their spending, becoming stricter with priorities and sales decline, businesses characteristically cut costs, reduce prices, and delay new investments, believing that the temporary profitability gains will tide them over. Companies often slash marketing outlays in areas from communications to research, as this area is seen to be more easily trimmed than production costs – but such wholesale cost cutting is a strategic mistake. A short-term fix with long-term consequences.

While undoubtedly, it is wise to contain costs, not supporting brands or examining major customers’ shifting requirements can threaten long-term performance.

This is a warzone remember, and strategy is essential to survive.

The landscape has changed, you cannot send in tanks where only the agile cavalry can go – or better still, a Trojan horse.

THE TROJAN HORSE…

This isolation time is an opportunity to take advantage of competitors that have dropped their marketing guard, a chance to promote to potential clients, a time to move into the vacuum created by lethargic marketers. Historically, consumer goods companies that maintained or increased their advertising spend during downturns, captured market share from weaker rivals who stopped marketing.

When President Ramaphosa declared the 21-day national lockdown, overnight, a herd mentality had companies stopping all ad-spend, retreating into a ‘safe zone’, preparing to batten down and weather the storm. South Africa was not alone in this ostrich-like reaction.

The knock-on effect was profound on both Google and Facebook advertising revenues; decimating them in fact, as ad-spend fell. This, interestingly however, had a positive effect for the consumer.

Both platforms use algorithms that generally manage the price for engagement based on supply and demand; and, as the supply (of Ads) is at an alltime low, so is the related costing.

Historical examples indicate at least a ten times (10X) improvement on ROI per rand spent, presently. The question is how is this even possible? Well, because so many companies have stopped advertising, those who do advertise, have the entire marketplace as a ‘captive audience’ – advertisers are no longer competing in a crowded marketplace. Now is the time to call on the mercenaries, to be entrepreneurial and get your leads cheaply.

The isolation period is when companies can equip their soldiers to tackle the challenges that lie ahead, to strategise, outwit the enemy; to work smarter. This is absolutely the wrong time to go underground! Rather, it is the perfect time to retain a presence in the marketplace. To do this, a change of tactic is required.

A company’s marketing approach must be finely honed to the customer’s changing needs during the lockdown, to maintain trust, continuity and confidence; to maintain relevance to core customers that will sustain brands after the lockdown is over. Some considerations include ensuring your website is offering a fast, personalised experience. Up the ante on social media, talk to and listen to your customers, learn more about your market, while developing high quality content that will be shared.

Retain that customer relationship that you worked so hard to develop, this is no time for casualties. Send out personalised, targeted communications to existing customers who want to hear your news. Share what differentiates you from your competitors; keep frontof-mind. Consumers develop a fondness and loyalty for your products/services mainly because they are familiar with them. Keep communication going!

Remember, it’s cheaper to retain an existing customer than acquire a new one. That said, it may be time to part with brands or products that were ailing prior to the coronavirus pandemic and are on life support now.

Take this time to determine which brands have poor survival forecasts, which may endure falling sales but can be steadied, and which are likely to thrive during this time, and beyond. And all the while, have a ready pipeline of innovations for when the market shifts, as most consumers will try a variety of new products once the economy improves.

Gear your marketing for the upturn, prepare, innovate, maybe re-invent yourself — get behind enemy lines and take the opposition by surprise.