© Powered by TheWrap Social Media MarketingWhen inflation hits, brands have to decide to raise prices, increase margins, or cut costs—sometimes all three.
They also need to know how to respond to consumer purchases when they don't have their dollars. While consumers may be less likely to splurge or buy in large quantities, consumers are seeking and embracing alternatives to value experiences.
For example, instead of eating at restaurants, they start cooking and having fun at home. Instead of hitting bars, they invite friends over for homemade cocktails. Instead of engaging in enrichment activities for kids, do fun things at home.
Each example represents a typical change in consumer behavior over an indefinite period of time - a great opportunity to provide a brand alternative.
Think twice before closing the deal
However, some companies continue to reduce their spending on all marketing activities in response to economic changes. Others focus only on paid social activities. Both distribution channels are evolutionarily risky activities. Primarily sales directly to the consumer, through e-commerce and multiple points of purchase. So it's important to stay "on top of your head," because if you're not, you'll feel the consequences.
Remember that consumers will continue to spend on the things that matter to them. And it just so happens that creators are very specific about what these things are.
Leads are channels to your target market.
People are much more receptive to people than to ads - which is why influencer marketing is so effective.
Successful influencers carefully grow their followers, consistently post great content, and take the time to answer questions and start conversations. But they have to be authentic and relatable to win the trust of their audience. This is a tough X-factor for brands to replicate, and it's especially powerful in times of economic uncertainty.
Content creators who have a deep connection with their audience understand how inflation affects their lives. Using this knowledge is crucial because consumers reduce and control their spending.
Creative marketing plays a role at every stage of the customer journey
Once adopted, creative marketing has proven effective at every stage of the customer journey, from raising awareness to building trust and conversion. Check out the strategies influencers can use across all marketing platforms:
Top of the Hunnel: Creators use hashtags, product launches, and more. Thus increasing their spread and fame. They use it to create awareness.
Funnel Central: Creators share hands-on tutorials, livestreams, contests, giveaways, and more. Increase audience and build trust
Bottom line: Content creators help their audience make purchasing decisions through product guides, discounts, promotions, direct marketing, and video testimonials.
By being involved throughout the buying process, design can become a valuable touch point for consumers and tell a more compelling story for the product.
Innovators help brands navigate turbulent times.
The benefits of working with creative advertising can outweigh brands' legitimate concerns about marketing costs, especially in times of uncertainty. The right partner can cover all bases.
Affordable: Creative partnerships are a cost-effective way to add media value by aggregating and promoting branded content on the creator's channel. Influencers proved their worth when production agencies were temporarily closed when the pandemic hit. One study found that influencer-generated content can increase ad performance by 40% for half of a production studio's creative costs.
Culturally appropriate: Successful innovators span all ages and demographics and represent a multitude of interests, allowing you to find a partner who reflects and is empathetic to your target customer and their current interests.
Cross-platform: Influencer marketing has been limited to a few platforms, mainly Instagram and YouTube, but has since expanded successfully to new platforms such as TikTok, giving brands more options and the ability to market to a larger audience.
The Complete Conversion Path: While it's natural to focus on lower conversion path marketing efforts now, skipping important steps in the buyer's journey leaves revenue on the table. Creative Marketing offers a more effective, whole-track approach that expands brand reach, builds trust and drives business in a way a simple discount code can't. Measurable Impact: Social work allows you to demonstrate that creative partnerships drive deals for your brand.
Creative marketing can help you succeed in any field
Your success depends on understanding and responding to consumer behavior when you are unsure about inflation, price hikes, margin shrinkage or price cuts.
But knowing the experiences and the costs they can't afford requires a deeper understanding of consumers. And this can be a daunting task for the brand marketing department.
But the real influencer is like the canary in the coal mine. They are sensitive to the hopes, desires, and fears of their audience and how they influence their behavior. As a result, you can interact effectively and deliver the right message at the right time.
Brands that understand the unique power of creative marketing can find opportunities and grow their business in any environment, regardless of inflation.
