During a recession, the GDP (gross domestic product) of a country goes negative for two consecutive quarters and so businesses experience lower sales while unemployment rates rise.
This happened to the USA in 2022. And because it's the world's largest economy, a recession there affected the whole world.
Unfortunately, another economic recession is projected to occur by December 2023 with a 47.31% probability. 😭
So, are you worried about how your SaaS company will fare during this time? SaaS marketing during a recession doesn’t sound too good, right?
We have to admit that we’re in economic uncertainty.
That’s why we wrote this post. To give you ideas on how to do lean marketing for your SaaS. You don’t want to put a full stop to your marketing because that would mean leaving your pipeline dry and you wouldn’t want that to happen.
Let’s dive in.
Should you stop marketing during a recession? (5 reasons why you shouldn’t)
It’s true—recessions force most businesses to cut spending. But does that mean you’re supposed to stop marketing during a recession? Well, not really! ✋
Here are five reasons why you should continue marketing your SaaS business.
#1 You can use the recession to boost your visibility
Believe it or not but a recession is actually a great time to increase your web visibility. What others fail to see is that the more visible your business is during a recession, the better your odds of surviving it are.
Communities in social media are a good place to stay engaged organically. Yet, it’s important to note that during recessions, consumers tend to focus on the basics. So you might as well strategically promote your SaaS products or services according to this mindset. 😉
#2 You can use the recession to capture a new audience
No, we’re not celebrating unemployment here, but recessions typically cause an increase in unemployment levels. According to Forbes, more than 60,000 workers have lost their jobs since November 2022. That’s an influx of new people staying at home surfing the web, and for you, they’ll be a newer group of potential customers.
By reinventing your positioning, you can keep up with marketing during a recession. Who knows, your SaaS can reach these people and capture them as a new market.
#3 You can use the recession to take advantage of lower ad prices
Are we exaggerating here? In fact, no.
During recessions, cutting prices is all too common. Most businesses are slashing their budgets during recessions, so even some ad platforms or other marketing tools have lower prices. Smart marketers will take advantage of this temporary shift and adjust their strategies accordingly to benefit from lower prices without sacrificing results.
But yeah, price hikes are a threat—especially when it comes to basic stuff.
#4 You can use the recession to catch up or even dominate your competition
SaaS market domination. Why not!
The recession is an opportunity to gain market share. When others scale back their marketing efforts.
Now is the time to double down and make sure your SaaS is at the top of customers' minds when they search for your products and services. And after the difficult time, it'll surely pay off to meet potential customers first before others do.
#5 You can use the recession to keep your brand momentum alive
You know it all too well—it took a lot of work (and money 💰) to build your brand name.
So don't let all that effort go to waste by stopping your SaaS marketing during a recession. Going radio silent might also give off vibes that you’re pausing operations.
That way, your brand will maintain its market position even once the recession has ended.
To sum it up, you pretty much get it: A recession isn’t the time to stop marketing your SaaS.
So what do you really need when marketing during a recession?
If we’re being honest, marketing during a recession is no easy feat. So having a lower marketing investment that results in a higher value is a good option.
Opt for hiring a content partner like a SaaS copywriting agency—for the price of one full-time specialist. That’s a content marketing partner who’s flexible — and skillful enough — to work as an extension of your SaaS marketing team.
The following benefits can come from cross-functional collaboration with a content partner:
- all marketing materials are consistent in tone, messaging, and branding
- marketing campaigns are aligned with the company's overall strategy and goals
- output is impactful from the expertise of different trained and experienced SaaS writers
So if you want to know in detail, here’s what I mean by a content partner who can wear many hats:
Working with the product team
A content partner working closely with the product team can understand the technical details of the SaaS company's products. He/she can easily create content that demonstrates the unique features of the SaaS and how it is meant to solve a user’s pain.
Working with the customer success team
Together with the customer success team, content partners can fully understand the touchpoints that led to a customer’s AHA moments. If your content partners create value-adding content that reflects this, it can help drive upsell and cross-sell opportunities.
Working with the sales team
Content partners can have a close working relationship with the sales team that’s (of course) the key to better sales enablement. Don't forget that content creation is essential to engaging prospects effectively. So when the content partner gets involved in the planning of sales campaigns, the partnership gives a better understanding of product information plus the customer needs. The factors that will drive customers to convert.
Working with the marketing team
In terms of marketing a SaaS, you know that the copywriter creates the written content—email copy, website copy, or SaaS blogs. So a content partner working with the team responsible for getting the message out there is a match made in heaven. With marketing knowledge and language skills coming together, companies can thrive with content that makes a statement.
6 Tips on what SaaS marketers can do in a recession
Here are other marketing ideas for SaaS marketers to help their companies succeed during a recession.
- Focus on retention
You should focus on keeping your customers rather than acquiring new ones during economic uncertainty. It means spending more time understanding your customers and keeping them happy.
You can also try offering free upgrades or subscription discounts.
- Don’t put all of your eggs in one basket
When it comes to SaaS marketing during a recession, it’s important to diversify your marketing channels. You need to reach as many potential customers as possible during tough times. You can get your message out there and maximize conversions by using multiple channels like content marketing, social media, email marketing, and even traditional media outlets like print and radio.
- Re-evaluate your target audience
In a recession, SaaS marketers need to look carefully at their target audience. Ask yourself, is your current audience still the right one? Well, unfortunately, some customers may be more affected than others. And so, it's important to re-evaluate the segments of your target audience. Take an analytical approach and focus on the data—look at customer demographics, current trends, and user engagement to paint a full picture of who you should target.
- Explore new markets
If your existing customer base suffers from the recession, consider expanding into new markets where there may be more opportunity—exploring markets can be a great strategic decision. Targeting different types of customer segments or different countries may lead to new growth possibilities.
- Offer flexible pricing and payment options
If you’re into B2B SaaS, you understand that businesses may be more sensitive to upfront costs, right? So they may be looking for more flexible pricing and payment options. A tailored solution like that can show that you're aware of the customer's current financial situation and are committed to helping them get the most value from your products or services. By doing this, you are strengthening customer loyalty, too! 😊
- Consider offering value-added services
You can also try expanding on your current product or service offerings when marketing during a recession. Offering packages that provide more educational resources like training, tutorials, or consultations on how customers can get the most benefit out of using your product. Think about what your customers need and find ways to exceed their expectations through your value-added services
- Revisit your goals and strategies
It's important not only to revisit your goals & strategies but also to be prepared to adjust them quickly as the market environment changes. Even small pivots in messaging or targeting can have a big impact if you observe a shift in customer behavior or attitudes. Your objectives may remain the same, but your strategy may need to change in a recession.
Remember: recessions don’t last forever
Yup, recessions are difficult times ( not only for SaaS but for all businesses in general). But with some strategic planning, your SaaS can come out even stronger. It’s normal to feel frustrated but don’t stop marketing during a recession.
Just keep in mind that recessions don’t last forever. Rather than being anxious, be a wise SaaS. Focus on producing high-value content from a content partner that can do a cross-functional collaboration within your company.
At CaaSocio, we believe that collaboration across departments is the key to producing quality content—fail-proof content marketing during a recession. If you're looking for a content partner that can help create quality cross-copy, please don’t hesitate to book a call with us.