7 Ways to Successfully Navigate Seasonality, Recessions & Market Shifts

Jun 20

The one consistent thing in business is that it is always changing. Rarely do businesses experience a long-term steady line of sales and engagement without rises and falls.
Customers and markets change, and when they do, business changes. Recessions, seasonality, and other market shifts impact sales, revenue, and how a business is perceived and used by customers. In some cases, these market shifts can cause dips in business that may trigger concern.

But with the right planning, your business can survive market changes and even find opportunities for growth. Let’s look at how marketers and businesses can navigate market shifts and devise strategies to stay resilient and profitable during dips and changes.

7 Ways To Strategically Navigate Market Shifts

If your business is impacted by changes in the market, there are ways to survive shifts and possibly even come out stronger on the other side. To manage changes, here are seven strategic ways to navigate seasonality, recessions, and market shifts.

1. Consider the market shifts that could impact your business.

The best way to manage change is to be prepared for change. Be aware of the market shifts that could potentially impact your business. Market shifts are triggered by situations such as:

Changes in consumer behavior
Changes in consumer demand
National emergencies
Cultural or political shifts
Changes in seasons
Economic periods, such as recessions

To start your strategic planning, consider how your business could be directly impacted by any of these market shifts and what is most likely to make your business most vulnerable. Know what to look for before it happens.

2. Dig into your historical data.

To identify both signs of market shifts and ideas for what to do when one occurs, look at your historical data.

Examine previous down periods to understand how consumer behavior, spending patterns, and industry dynamics impacted your sales and results.
Look at strong periods to identify what led to an uptick in sales and revenue so you can repeat the success when moving into a slow sales period.
Lean into what has worked in the past and focus on marketing tactics that have the highest return on investment.

3. Don’t ignore market shifts, but don’t overcorrect either.

When sales start to slow, it can be stressful. It can cause you to want to ignore the shift or make a drastic change. But resist the urge to underreact or overcorrect.

Don’t hope the problem will go away on its own or completely stop your marketing. Marketing is an essential tool for communicating with your customers and generating revenue. Make a plan to adjust your marketing spend rather than cutting it or continuing on with the same strategies. In most cases, pausing your marketing or advertising efforts is rarely the best answer.

4. Reframe your value propositions.

In a market shift, customer needs, wants, expectations, and options change. As you see a shift in the market, adjust your value propositions to meet the new perspective of customers. Highlight how your offerings can provide solutions and address specific pain points in the new market.

For example, in a recession, consumers tend to become more price-conscious and look for greater value in their purchases. It becomes crucial for marketers to reframe their value propositions to address this shift in consumer mindset and emphasize affordability, quality, and the cost-saving benefits of your products or services.

5. Revisit your pricing strategy.

As the market changes, the amount customers are willing (and able) to pay for your products and services may change too. Revisit your pricing strategy to determine if you need to make adjustments to match new market expectations.

Pricing strategies play a pivotal role in maintaining sales volume and profitability. Consider offering discounts, promotions, or bundles that provide compelling incentives for customers. However, ensure that these strategies are aligned with your brand positioning and long-term profitability goals. Striking the right balance between attractive pricing and maintaining brand equity is crucial.

6. Focus on your most engaged customers.

When sales start to slow, whether due to seasonality, a recession, or some other market change, it's essential to refine your marketing campaigns and focus on reaching the most receptive audience.

Leverage customer segmentation and data analytics to identify the demographics, psychographics, and behaviors of your most loyal and valuable customers. Focus on the customers who bring the most revenue to your business, and tailor your messaging and offers to resonate with them, increasing the likelihood of conversion and customer retention.

7. Add to and diversify your revenue streams.

Market changes present an opportunity for your business to find new ways to serve customers. Consider what new needs customers have and determine how you can shift your products and services to meet the new expectations and demands of your customer base.

Diversification insulates your business from the impact of market shifts, seasonality, and economic changes by providing alternative sources of revenue. Consider how you can:

Launch a new product line or service offering
Expand into complementary markets
Create a less expensive version of your existing products and services
Develop up-sell and cross-sell offerings that appeal to existing customers

Create a Marketing Strategy to Weather Any Market Change

No matter how great your existing marketing strategy, you will need to adjust it at some point. Markets, customers, and the world is always changing, and your marketing and business needs to be ready to change with it.

Build an informed marketing strategy that allows you to succeed in the current environment AND pivot when change is needed.

Being proactive and flexible in your planning allows you to stay ahead of the curve and adjust your marketing efforts accordingly. You’ll be ready to adapt your strategies and tactics swiftly to meet changing demands and seize emerging opportunities.

For help with building a well-planned and adaptable marketing strategy, talk to SpotOn. Our team knows how to build marketing strategies that produce immediate value, weather economic shifts and market changes, and lead to long-term growth and success. Contact SpotOn today.

Raubi Perilli