The S&P 500 has declined 24% this year and has hit levels not seen since November 2020. The relevant question for business is always what sharp market movements mean for how they operate and should they be doing anything differently now to prepare for a recession.
Stock markets might presage changing customer sentiment. Reflexively, companies may freeze hiring and limit budget growth, even when they don't have to. However, this is the time when the smartest companies differentiate themselves in the areas of customer service, quality of delivery, employee & community relations, and marketing. Having successfully navigated companies through the financial crisis of 2007–2009 and the pandemic of 2020–2022, here are our takeaways.
Customers are no longer content to be lumped in with your general marketing efforts. A company that takes the time to learn about its customers' needs, and communicates that focus, is on its way to getting on the day-one short list.
Customer-focused marketing is vertical marketing. At a software company in the APM space, one of us developed a vertical strategy that started with analysis of the company's installed customer base. Understanding the trend for which types of companies were already onboard helped develop the list of sectors to focus on. Focusing on the 80/20 rule will bring faster returns versus trying to be all things to all people.
Examples of content marketing developed for verticals include:
Let your current and future customers know you are looking out for them. The sales function isn't just about sales — getting closer to customers requires being there for them even before they are ready to buy. Your reps need marketing materials, system training, licensing, quoting, billing support, and so on. Taking care of your reps is a way to take care of your customers.
For all the talk about customer satisfaction, customer service doesn't live up. What distinguishes companies like HubSpot is their incredible availability and responsiveness. They fundamentally understand that when a user can't get a question answered, it stops them from completing a core part of their job. By having support reps constantly available, knowledgeable, and prepared with helpful tutorial content, HubSpot eliminates the friction of using their product.
In summary, here are three things your marketing department should be doing now to prepare for potential economic turmoil ahead:
Previously published on LinkedIn Pulse.