Crisis marketing to the rescue!

Small and medium-sized companies are among those hit hardest by an in­ter­na­tion­al financial crisis, a trade dispute or a pandemic. Luckily, such major events are rare. But even minor incidents can lead companies into a crisis: a noisy con­struc­tion site in front of a café can keep guests away, or a break-in or ren­o­va­tion that cannot be postponed can lead to closures. Un­re­li­able suppliers, quality problems with man­u­fac­tur­ers, a hacker attack on customer data or a poor online rating get online shops and digital service providers in trouble. The results are a loss of sales. Here, careful crisis man­age­ment is required.

In uncertain times, customers and orders dwindle. This does not always threaten the very existence of a company. However, busi­ness­es shouldn’t wait for a solution to appear out of thin air, but instead proac­tive­ly explore their options. Freezing your marketing budgets at this point, for example, is the wrong way to go. Rather, targeted crisis marketing is required to strength­en your brand, regain trust, and boost demand. A new sales channel, an expanded product range, Facebook campaigns or the re-en­gage­ment of regular customers - crisis marketing includes many means for coping with economic dif­fi­cul­ties.

Pre­ven­tion is better than cure. Using a crisis man­age­ment plan or a crisis com­mu­ni­ca­tions plan buys business owners time. But even if you haven’t prepared in advance for an emergency, it is helpful to proceed carefully and first determine the causes and con­se­quences of the situation. Thus, start by clar­i­fy­ing the following points:

1. What is your USP?
2. What do your customers like about you and what needs to be improved?
3. What are your target audiences?
4. How are com­peti­tors per­form­ing?
5. Which marketing channels are per­form­ing well and which are not?
6. Would new sales channels make a dif­fer­ence?
7. Which financial, personnel and time resources exist for crisis marketing?

In general, digital strate­gies are gaining in im­por­tance. After all, online sales and com­mu­ni­ca­tion are the best option for working re­gard­less of location, re­spond­ing to new cir­cum­stances in real-time, focusing on the right target group and trying different marketing ap­proach­es.

In times of general un­cer­tain­ty and a weakening economy, companies are par­tic­u­lar­ly dependent on good customer re­la­tion­ships. The strategic focus should therefore be on the customer. If your marketing budget is tight, it helps to set ad­di­tion­al pri­or­i­ties in order to bundle resources. Perhaps it is more promising to only address a clearly defined target group. Or it may be more effective to keep existing customers than to win new ones.

Be sure to consider whether a crisis will change your unique selling points. A new brand message and ad­ver­tis­ing that is adapted to the new situation will encourage customers to continue to shop with you. When it comes to crisis marketing, it is important to appear serious and confident to the outside world and to gain the trust of customers. They should have the im­pres­sion that they are getting exactly what they need despite the difficult cir­cum­stances. Sometimes this requires thinking about other values in order to adapt a business’s image.

Strategic com­mu­ni­ca­tion is the order of the day when trust is breached. Say a band couldn’t perform or a venue was damaged in a storm - or­ga­niz­ers now must relieve customers’ fears that they won’t get a refund for their tickets. Whether you’re dealing with quality problems with products or a bug in the online ordering system, targeted com­mu­ni­ca­tion and rep­u­ta­tion marketing limit the damage to your image and restore your rep­u­ta­tion. Trans­par­ent and credible  crisis com­mu­ni­ca­tion is often the best strategy.

If the problem is related to the product range or the products them­selves, it is important to adjust and zoom in on product de­vel­op­ment. For example, it makes little sense to rely ex­clu­sive­ly on sausage products and meat dishes following a scandal in the meat industry or to offer goods from a man­u­fac­tur­er that has fallen into disrepute.

Crisis marketing offers various tactics that are useful for local SMBs as well as digital service providers.

A slogan like “Stingy is cool” or using the value of luxury as part of your brand identity can seem in­ap­pro­pri­ate during times of economic hardship. In a crisis, customers set different pri­or­i­ties and change their needs. Instead, choose re­spon­si­ble messaging that focuses on security and re­li­a­bil­i­ty. The hip base jumper may no longer be the ap­pro­pri­ate face for an outdoor clothing brand. If the sales crisis is based on a change in clientele, a new image can help. Diversity branding focuses on an in­creas­ing­ly diverse society. Check your marketing for clichés and prej­u­dices and consider new concepts if necessary.

Besides the right marketing message, crisis marketing also relies on the right choice of target audience and ad­ver­tis­ing channels. This depends on the type of crisis and how it has affected your business. A radical decrease in your ad­ver­tis­ing budget is only rec­om­mend­ed if you could avert a serious liquidity crisis or bank­rupt­cy with the funds released. With small budgets, the most promising thing to do is to keep in touch with existing customers. This can be done via regular Instagram posts and newslet­ters or brochures.

Campaigns like “Friends refer friends” or trial offers can boost customer retention and attract new customers. Vouchers are also a great way to encourage existing and new customers to shop. They lower the barrier to testing unknown products. As a rule, voucher holders purchase a product that goes beyond the value of the coupon and then often enjoy related products. Therefore, vouchers are also a good way to get sales issues under control. Restau­rants, hair salons and handymen can offer vouchers for their services just as much as online shops, digital start-ups or in­de­pen­dent graphic designers.

It’s better to rely on a few select channels during crisis marketing in order to react promptly. However, a website alone is not enough for a digital company. Both local busi­ness­es and digital companies should consider the following: social media marketing can reach lots of people in real-time, but it doesn’t run itself. Facebook, Instagram and other channels demand much time and main­te­nance and can quickly get out of hand. A good al­ter­na­tive to a social media news feed is a newslet­ter. They’re cheap, simple and easy to control thanks to automated email solutions. It’s important that you offer your customers a value exchange. Even the smallest hair­dress­ing salon can make good use of a newslet­ter. Useful content on deals or hair care tips get the attention of potential new customers, es­pe­cial­ly if you use well thought out subject lines in your newslet­ter. Digital service providers can use ad­ver­to­ri­als or free whitepa­pers to generate leads and convey expertise and re­li­a­bil­i­ty.

For this type of crisis marketing, the following tip is useful: a good core message can restore your business’s image and even improve it. Rely on your values and strengths. Identify core audiences that may seem skeptical at first. Ask yourself how you can reach them and measure the results of your com­mu­ni­ca­tion. It’s useful to create an FAQ for your online shop to answer potential questions consumers may have. That’s vital when you’re selling products that require ex­pla­na­tion such as insurance or software. You can discuss more extensive topics in blog posts. But ensure that blog posts always maintain trust­wor­thi­ness and com­pe­tence.

Based on the feedback from customer service and the number of trans­ac­tions, you can find out whether your tactics are working. As a local business, evaluate the reviews and ratings on platforms such as Google Reviews or Yelp in order to derive further measures.

Great reviews build customer trust and are in­te­grat­ed into search engine rankings. This can be as effective as rec­om­men­da­tions from friends or ac­quain­tances. This type of crisis marketing ensures your customers will return, es­pe­cial­ly during difficult times. Of course, reviews are always a tricky thing because it is dis­sat­is­fied customers that are active on these portals. Always respond to any criticism - no matter how un­jus­ti­fied it may seem. Refute them in a factual tone, be con­struc­tive and offer a solution. As a retailer, you should also target regular customers and ask them to rate your business. You can gain reviews using a cor­re­spond­ing sign during checkout. Online shops, in turn, can reward reviewers by offering discounts. In that case, it makes sense to integrate a function for star ratings into the shop system. This makes it easier for customers to give feedback.

In addition, seals of approval and buyer pro­tec­tion can work wonders for online shops. You can also list your company in business di­rec­to­ries – digitally or offline. Google often rates online entries as a quality factor. At the same time, your company will be easier to find. Some online di­rec­to­ries also allow customer ratings. However, business owners should look for reputable industry listings.

There are some crisis marketing tips that are par­tic­u­lar­ly suitable for local busi­ness­es that do not yet have an es­tab­lished website. This may include bars, hair salons, fashion boutiques and other retail stores as well as SMBs or small craft busi­ness­es.

A digital strategy can help local busi­ness­es weather a crisis. A website allows you to retain customers and stand out from the com­pe­ti­tion, es­pe­cial­ly during a lockdown. A digital sales platform is worth­while when your products are suitable for online sales. This allows you to reach buyers located outside of your local range and es­pe­cial­ly those who prefer to shop online. Retailers are by no means dependent on the expertise of external ad­ver­tis­ing agencies. There are plenty of simple shop solutions for setting up your own e-commerce platform using a website builder. Payment pro­cess­ing is often con­sid­ered tricky. But there are also several payment options that can be easily in­te­grat­ed into a shop system.

In some cases, digital trans­ac­tions can be worth it for local service providers. For example, special online platforms can be helpful to make booking ap­point­ments easier for your customers.

Similar systems can be used to book tables or reserve takeout from restau­rants. Small eateries where seats are limited can increase sales by offering to-go options. Travel agencies, insurance sellers and opticians can also take service orders online. This eases the process of making an ap­point­ment and minimizes waiting times.

You could also work with QR codes, for example by dis­play­ing them in your store­front or on flyers. This ensures that customers can easily find you online if they own a smart­phone.

For complex mer­chan­dise systems and stores a little more know-how is required. A series of free or state-funded advisory services and workshops may be provided by state au­thor­i­ties and business as­so­ci­a­tions. For example, Digital.gov by the US gov­ern­ment provides guidance on driving dig­i­tal­iza­tion in business. E-commerce platforms like Amazon or eBay are also a good choice for selling products but note that there’ll be plenty of com­peti­tors selling similar items.

Local and re­gion­al­ly acting phar­ma­cies, lawyers, florists and dentists can reach more clients by es­tab­lish­ing a web presence and boosting vis­i­bil­i­ty by online marketing measures. You can easily create your own business website using MyWebsite Now without any prior pro­gram­ming skills. Or for an even smoother ex­pe­ri­ence, consider IONOS Website Design Service.

When adjusting for search engine op­ti­miza­tion  (SEO), focus on your local en­vi­ron­ment. Integrate matching keywords into your ad­ver­tis­ing texts as a SEO basis that potential customers could be searching for when looking for products like the ones you offer. This increases your chances of being listed by Google under relevant search matches. Companies that are listed among the top five search results on Google perform best because people rarely make the effort of scrolling to the bottom of a search page. A hair stylist could use keywords such as “hair stylist” or “getting a haircut”. However, this would be far too broad for a local hair salon. By re­strict­ing your keywords to a local search, you’ll reach nearby clients. If your salon spe­cial­izes in certain hair styles or ex­ten­sions, keyword com­bi­na­tions like “hair ex­ten­sions Brooklyn” could be useful.

Many customers will be searching for local services on Google. When on the go, Google Maps even shows closest matches of search queries. So make sure your company is listed here. Another simple but similarly effective option is a business entry on  Google My­Busi­ness. Getting listed is easy: simply provide your address and business hours. Customers can also leave reviews on Google. Pictures are an important part of this. A profile picture will make your company look more at­trac­tive. Bars, yoga studios or fitness clubs should advertise their premises, equipment and teams using photos. This lends your entries a personal touch and potential customers get a better image of your business and your services. Google also provides a news function that in­te­grates the latest updates such as discounts or offers.

Paid Google ads can also be useful to entice customers to visit your website. But to use Google ads, your business will need to have a budget available for crisis marketing. One useful tip is to place an ad for a limited time on Google Adwords. This means you only pay when someone clicks on your ad. Ads are useful alongside search engine op­ti­miza­tion, since they ensure that a company will still appear in a prominent place in the search results in the form of an ad. SEA (Search Engine Ad­ver­tis­ing) is worth­while in con­nec­tion with com­pe­ti­tions or discount campaigns, for example. And since even smaller amounts can have an effect, Google ad­ver­tis­ing works with limited financial resources. Because you can set costs and runtime and pause or stop ads, you retain full control over your ad budget.

Another advantage of SEA is that you can reach more people that form part of your target group. This can generate higher sales because the ads are targeted according to pa­ra­me­ters that you define.

As a retailer, you should focus on providing a good service and excellent customer service, es­pe­cial­ly when it comes to crisis marketing. You’ll score plenty of points with customers this way. Personal contact can increase purchase decisions. Customers who feel that they are in good hands are more inclined to return to a retailer. An eval­u­a­tion of online customer ratings or a survey of sellers or customers can be very in­for­ma­tive. This allows you to spot areas where there may still be problems. By the way, studies have shown that most consumers are willing to pay more for good service.

Simple things like small talk or gift wrapping have a positive effect. Much can also be done at the after-sales stage. A furniture retailer that not only organizes delivery of a washing machine or antique piece of furniture, but also provides options for assembly, will score higher with customers. Customers are happy to pay more for these services. People who have less money at their disposal during an economic crisis might not want to replace their broken washing machine straight away, but have it repaired. The offer of a repair service or spare parts can thus con­sti­tute an ad­di­tion­al source of income in times of crisis.

If there is any sign of declining sales, it is advisable to take a good long look at your offering. The following questions are helpful:

1. Are the goods and services offered up to date?
2. Is the quality still good?
3. Do customers currently prefer other products?
4. Will another product line attract more people to the business?
5. Would it make sense to adjust the range sea­son­al­ly?

For example, a grocery store should replace foods that have become unpopular following a wider food safety scandal or poor health record. Values and buying behaviors tend to change. Perhaps organic, fair trade or vegan food will be more popular with your customers. Fewer people now tend to sign up for dance or language classes that continue over several months. In that case, you can adjust your services to provide shorter weekend retreats or evening classes. A growing number of people now also use online training. Blended learning offers or complete online courses make learning more flexible. Restau­rants may offset declining visitor numbers with catering services for weddings or company parties. A newsstand or bookstore can attract more customers in the morning by offering coffee to go.

Make your unique selling propo­si­tion stand out and show that your products aren’t run-of-the-mill. A more holistic store concept improves the shopping ex­pe­ri­ence and prevents retailers from losing customers to Amazon. Skilled shop dec­o­ra­tions and an at­trac­tive interior design attract guests to a restau­rant or store. A specialty shop for high-quality espresso machines could present the machines in a homey at­mos­phere with a touch of Bella Italia and offer for customers to test the machine and taste it. Offering workshops with a pro­fes­sion­al barista and other special events encourage sales and embed the product as part of an ex­pe­ri­ence.

Crisis marketing for online shops and digital service providers cor­re­sponds in some areas to that of local companies. But there are often dif­fer­ences in approach and focus.

Have you lost orders? Or maybe costly YouTube ads and clas­si­fied ads in trade magazines aren’t having the desired effect? For crisis marketing it is important to put existing channels to the test. Perhaps your target group now prefers to use TikTok. Switching to TikTok ad­ver­tis­ing could be a worth­while swap. On the other hand, Xing, LinkedIn and press portals are suitable for ad­dress­ing industry-specific target groups and B2B customers when you have a smaller ad­ver­tis­ing budget. Unlike locally based companies, digital companies should rely on multiple channels. You can assume that many customers are web savvy and use different platforms.

To reengage your existing customers, email marketing campaigns can be useful.

Start-ups can make a name for them­selves by working with in­flu­encers. YouTubers and bloggers strength­en a brand. SMBs shouldn’t skimp on customer ref­er­ences. You can generate more tes­ti­mo­ni­als and rec­om­men­da­tions by offering products or services on a trial basis or free of charge.

Companies that already had a presence on various social media platforms before the crisis should maintain them. When a scandal hits your company, you should bundle human resources for these channels. Users usually expect busi­ness­es to be available around the clock and to react promptly to posts.

In the event of falling sales, it is important to gain targeted followers and to question previous tactics. Often companies simply post the same post on different channels without con­sid­er­ing the unique en­vi­ron­ment of each channel. A personal note is better on Facebook and a factual news post works much better on LinkedIn. So­phis­ti­cat­ed visual sto­ry­telling is a great strategy on Instagram, Pinterest and Tumblr. With a social buy button you can also sell online products outside of your website.

For companies that operate pre­dom­i­nant­ly digitally, search engine op­ti­miza­tion and paid ads are vital. Often, smaller companies don’t use extensive mon­i­tor­ing to readjust their measures when it becomes necessary. There are tools that sig­nif­i­cant­ly reduce the effort needed for op­ti­miza­tion. An example is the rank­ing­Coach tool, which is suitable for both SEO and SEA ac­tiv­i­ties.

Make sure you also check the technical SEO aspects of your ad­ver­tis­ing offering. If your brand-new online shop does not generate the desired turnover, this could be due to the technical structure of your website. Perhaps the loading times are too long, the design is not re­spon­sive enough, usability is un­sat­is­fac­to­ry – these issues scare away mobile users. Sometimes the problem lies in the payment or goods system that fails to record when products are out of stock.

Products and service offers are an important component of crisis marketing for digital companies as well. For example, digital education providers could stagger their course offering. Multi-level trainings create suitable options for beginners and advanced users alike. A deep dive course keeps customers engaged. Dif­fer­en­ti­at­ing prices through premium and sub­scrip­tion models or free trial courses helps to extend the range. In general, it is worth­while to put together service packages or to offer ad­di­tion­al support following suc­cess­ful orders.

You can lower the in­hi­bi­tion threshold for con­tact­ing your company by using chats, WhatsApp messages and Skype calls. Not all customers will like options such as email or Skype. Calls are still a viable means to contact a business. Potential customers also ap­pre­ci­ate good content with added value, which presents your offer in detail and brings out the USPs or simply provides free tutorials or useful in­for­ma­tion related to the topic.