Jones: Customer retention, acquisition in uncertain times

Let’s face the facts: In today’s volatile environment, maintaining customer count and acquiring new clients can feel like an uphill battle. While many hope the upcoming election will boost the economy and consumer sentiment, the reality is more complex. 

The election outcome won’t be a magic pill that instantly turns things around. Consumer sentiment is unlikely to recover overnight—it will take time for the effects of any political changes to filter through to the economy and consumer confidence.

According to the University of Michigan’s Sentiment Index, consumer confidence dropped to 67.9 in August 2024, lower than during the pandemic-era low of 71.8 in April 2020. 

Businesses are competing for a positive share of voice in a landscape overshadowed by rising costs of essential goods, natural disasters, global unrest, and political uncertainty. All of these factors contribute to a cautious consumer mindset, driving down spending by both individual consumers and business buyers.

When political and economic uncertainty rises, buyer behavior shifts. Consumers and businesses tighten their belts, focusing on essential purchases and delaying discretionary spending. Business buyers become increasingly risk-averse, often slashing budgets or deferring decisions to mitigate perceived risks.

For your business, this means competing in a more crowded and uncertain marketplace. To stand out, you need to address the core concerns of your customers and prospects and it’s essential to adapt your approach.

Here are three areas where you can make a real impact:

Pricing: Price sensitivity rises in uncertain times, but competing solely on price can be a race to the bottom. Instead, focus on communicating the unique value your product or service delivers. Can you position your offering as a cost-effective solution by emphasizing long-term savings, durability, or other tangible benefits that resonate with today’s cautious consumers?

Quality: Compromising quality is never an option — especially when buyers are more discerning with their dollars. Highlight your product’s reliability and value to position it as the smart, risk-averse choice. Customers in uncertain times need assurance that they’re making a sound investment; quality is a cornerstone of that trust.

Service: Customer service takes on added importance during times of anxiety and uncertainty. People seek reassurance and support, especially when making tough financial decisions. By offering exceptional service and fostering strong customer relationships, you build trust and loyalty, which can keep existing customers with you and encourage referrals.

Businesses may be tempted to cut marketing budgets to conserve resources in the face of uncertainty. However, going dark is not an option. During times of uncertainty, staying visible and maintaining consistent communication with your audience is essential. Your marketing efforts not only reassure existing customers but also attract potential clients who are looking for stability and reliability in a stormy environment.

Effective marketing helps to sustain brand awareness and ensures that your business stays top-of-mind when buyers are ready to make decisions again. By continuing to invest in marketing, you show confidence in your brand and offer reassurance to a nervous market.

Strategies

Here are a few strategies to ensure your business maintains exposure during these politically charged periods. By now, many of these strategies should have already been implemented, but if not, knowing that consumer sentiment is not going to get better with a snap of a finger (e.g., the election), there is no better time than the present to consider the following: 

Localization and connecting with your audience: In uncertain times, focusing on localization is a powerful strategy. Tailor your marketing to specific communities to build stronger connections. Localized content and promotions resonate more with consumers who may feel distanced from big national brands. Show your commitment to the community through local sponsorships, partnerships, and events to build trust.

Stand out with community-based PR: Cut through the noise by building authentic, local PR programs. Engage with your audience through sponsorships, charitable initiatives, or grassroots events. These efforts create goodwill and differentiate your brand in a personal, meaningful way.

Boost digital advertising: Social media and programmatic ads offer targeted flexibility. Increase investment in these platforms to reach specific audiences, even in a cluttered market. Programmatic platforms also help you avoid traditional media’s political ad saturation.

Maximize broadcast with shorter units: Shorter ads, like 15-second spots, are cost-effective and less likely to be preempted. Shifting to streaming and video platforms helps you reach your audience where they’re already spending time, away from the political ad frenzy.

While the current political and economic environment presents significant challenges, businesses that adapt to these conditions can thrive. By strategically focusing on pricing, quality, and service and maintaining robust marketing efforts, you can ensure your business stays competitive, attracts new customers, and builds long-term loyalty, even during the most challenging political windows.

Lori Jones is the CEO of Avocet Communications. She can be reached at 303-678-7102.

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