While recent studies have shown a 28% drop in marketing spend, history also shows that brands who continue to invest in marketing during a period of economic unrest always come out on top.
In this discussion featuring Emily Collins, Interim Research Director, Forrester we talk about the impact of COVID-19 and how non-essential brands can compete in the market, tactics for reacquiring your customers, the ‘buy now, pay later’ trend and delivering value to your customers without discounting.
In a recent Annex Cloud Market Movers video discussion, Jeff Herrera, CMO at Annex Cloud talks with industry analyst Emily Collins, Interim Research Director at Forrester, to gauge what brands and retailers are doing now after the initial shock of the pandemic, the importance of customer retention, prioritizing marketing investments, and highlighting various considerations for non-essential brands to effectively compete and win in this very volatile and uncertain economic environment.
Forrester is projecting declining spend in marketing technologies, on media and on headcount throughout 2021. Some companies are actively exploring “Buy Now Pay Later” options. Nordstrom, for example, is offering $25 for every gift card purchase right now to spend on future purchases. Alternatively, brick and mortar companies are thinking about introducing curbside pickup. Starbucks for instance is looking to close down 400 retail locations and replace them with 300 pick-up only stores.
Companies need to have a laser focused approach on customer retention despite the slow economic downturn. Research has shown that brands who continue to market during an economic downturn come out better and grow faster. Mackenzie-Childs, a fully integrated designer, manufacturer, and multichannel merchant of high-quality, handcrafted ceramic and enamel tableware, furniture, and home and garden accessories, recently said,
Omni-channel companies are also altering customer retention strategies to account for the fact that customers may not be comfortable going to a mall for the foreseeable future. For example, Ulta, which has an Ultimate Beauty Program, saw lower overall sales volume in Q1, but their e-commerce sales more than doubled. They are introducing services like curbside pickup and augmented reality as a substitute for that in-store try-on experience.
CMO, Annex Cloud
Interim Research Director, Forrester