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Marketing and social media budgets are often the first thing companies cut in tough times, but they’re wrong.
When inflation hits, brands have to decide whether to raise prices, lower profit margins, or cut costs. Sometimes we do all three.
Additionally, they must understand how to accommodate consumers who are more selective in what they buy when the dollar is not too far away. They do not tend to overwhelm themselves, but they seek out and embrace alternatives to the experiences they care about.
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For example, instead of eating out at restaurants, people will cook and entertain themselves at home. Instead of going to a bar, invite a friend over for his hand crafted cocktails. Instead of signing up for child enrichment activities, they do fun things at home.
Each example represents a typical shift in consumer behavior during uncertain times. This is a great opportunity for brands to make alternatives accessible.
Think twice about marketing cuts
However, some companies continue to cut spending on all marketing activities in response to the changing economy. Others focus solely on bottom-of-the-funnel activities like paid social. Both are risky moves given how distribution channels have evolved. Sales are primarily direct-to-consumer, leveraging e-commerce and multiple points of purchase. That’s why it’s important to stay “in the corner of your head.” Because the bottom line feels it in the moment it doesn’t.
Remember, consumers continue to spend money on things that matter to them. And the creators happen to be uniquely attuned to what they are.
Creators act as conduits to target markets
People are more receptive to people than advertising, which is why influencer marketing is so effective.
Successful influencers cultivate their audiences carefully, consistently publish great content, and take the time to answer questions and start conversations. But to earn the audience’s trust, it has to be authentic and relatable. This is a difficult X-factor for brands to replicate and is especially powerful during times of economic uncertainty.
Creators who are deeply connected to their audience understand the impact inflation has on their lives. Harnessing that knowledge is critical when consumers are cutting back and scrutinizing their spending.
Creator marketing plays a role at every stage of the customer journey
Once considered a top-of-the-funnel tactic, creator marketing has proven effective at every stage of the customer journey, from raising awareness to building trust and driving conversions. Consider the tactics influencers may deploy throughout the marketing funnel.
- Top of funnel: Creators can leverage their reach and reputation to drive awareness through branded hashtags, product opens, and more.
- Middle of funnel: Creators nurture audiences and build trust through how-to tutorials, live streams, contests, giveaways, and more.
- Bottom of funnel: Creators help audiences make purchasing decisions through product guides, offers and promotions, live shopping, and video testimonials.
By participating in the entire buying process, creators can tell a more compelling story for brands while being a key touchpoint for consumers.
Creators help brands navigate uncertain times
The benefits of partnering with creators may outweigh a brand’s reasonable concerns about marketing costs, especially during times of uncertainty. The right partner can cover all bases.
- Cost-effectiveness: Creator partnerships cost-effectively collect branded content and increase media value through promotion on creator channels. Influencers have proven their worth during the temporary closure of production houses at the start of the pandemic. One study found that content created by an influencer improved his advertising performance by 40% at about half the creative cost of a production studio.
- Culturally relevant: Successful creators belong to all ages and demographics and represent many interests, so you can find partners who reflect your target audience and who align with them and their current concerns.
- Cross-platform: Influencer marketing was previously largely confined to a few platforms such as Instagram and YouTube, but has since expanded successfully to new platforms such as TikTok, giving brands more choice and marketing to a wider audience. giving you the ability to
- Full funnel: It’s natural to want to focus on bottom-of-the-funnel marketing efforts right now, but skipping critical steps in the buyer journey can ruin your bottom line. Creator marketing offers a more effective full-funnel approach that extends your brand’s reach, builds trust, and drives action in ways that simple offer codes can’t.
- Measurable impact: Social commerce has made attribution possible, proving that creator partnerships drive brand transactions.
Creator Marketing helps you succeed in any environment
Whether you choose to respond to inflation by raising prices, lowering margins or cutting costs, success in uncertain times depends on understanding and responding to consumer behavior.
But to know the experiences and spending they can’t live without, we need to know them deeply. And that can be a tall order for a brand’s marketing department.
However, good influencers are like canaries in a coal mine. They are sensitive to the hopes, aspirations, and concerns of their audience and the impact they have on their behavior. As a result, they can interact authentically and deliver the right message at the right time.
Brands that recognize the unique power of creator marketing can find opportunities and grow their business in any environment, regardless of inflation.
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