Let’s start with the silver lining: Most recessions in the United States last just 17 months.

While that’s not exactly music to anyone’s ears, it’s not a complete cacophony either.

Unfortunately, most businesses overreact at the slightest rattle. We’ve seen this with mass layoffs, consolidation of resources, elimination of products and services — and, all too often, a pullback on marketing. 

But the irony is that investing in your brand can actually act as a shield during economic downtowns. With that in mind, here’s how to make sure yours is ready to weather any storm — and prove the doubters wrong.
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Treat Your Brand as an Ongoing Investment

As a marketer, you know that your brand is your lifeblood. Your brand represents who your organization is, what it stands for and what makes your offerings unique. It also encompasses the emotions, perceptions and experiences that people associate with your products and services. Together, these factors build customer loyalty over time.

But to build a brand that accomplishes all that, you first need to define your core values and unique selling proposition.

Your core values represent the fundamental beliefs and principles that guide your business. They shape your brand’s personality and influence the way you interact with your customers. Meanwhile, your unique selling proposition highlights why people should choose your business over your competitors.

This differentiation creates a memorable brand that acts like a magnet, which sets your business up for long-term success, even when the going gets tough.

In other words, branding is an investment that yields what you put into it, now and well into the future.
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Evolve Your Brand

Recessions, of course, don’t last forever. In the thick of things, that's easy to forget.

Take the current economic downturn, which, as of Q4 2023, is still a bit unclear. We do know, however, that consumer confidence is at an all-time low; in fact, it’s the lowest it’s been in four months.

As a result, consumers have become particularly cautious and frugal. Recession fears could make this shift even more pronounced. As this happens, people will prioritize brands that provide clear value as well as brands that build long-term trust. So you should meet people where they are today.

Then, think longer term: Consider the lingering impact all this economic uncertainty will have on consumers' attitudes, and adapt your brand strategy accordingly. Just don't wait for the economy to shake out before you get moving.

All that is to say, rather than cutting back on your branding, evolve it. Today.
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As Much as Possible, Sustain Your Spending

Still not sure it makes sense to invest in your brand during a recession? Then, just think about this: If you scale back, your competitors might be waiting in the wings. And nothing is more enticing for a showboat brand than a wide-open stage.

What’s more, a lot of challenger brands will pop up during downturns, undercutting bigger organizations not only on marketing but also on price.

If that’s still not enough to convince you, consider this: An analysis covering the recessions that occurred between the 1980s and early 2000s found that advertising during an economic downturn paid off in the long run. Indeed, brands that maintained or raised marketing spending during tough times saw higher increases in market share once the recession was over compared to those that slashed marketing expenses.

One caveat: While continuing your brand-building efforts, be mindful of the messages you’re putting out. Consumers are particularly sensitive during tenuous times. For example, nearly seven out of 10 global consumers said that businesses' behaviors during the COVID-19 pandemic majorly impacted how likely they would be to buy from those brands in the future.
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Build Trust and Loyalty for Your Organization

So how can you build trust and communicate in a way that adds value for your customers? Here are a few ideas.

• Conduct a survey to take out any of the guessing — and know exactly what your customers want right now.
• Invest in personalized interactions, which can be as simple (and as free) as just being human.
• Provide prompt and helpful customer support at every touch point.
• Listen to and apply customer feedback faster than any competitor can.
• Be transparent about what customers can expect from your products and/or services, and alert them of any changes or disruptions.
• Partner with trusted influencers, people your customers already have an affinity for.

You might also want to prioritize organic channels — such as social media, blog articles, search, email and newsletters — which will help your dollars go further.
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Monitor & Measure Your Brand Health

If you really want to understand if your organization is making the right moves during a recession, you might even consider a brand-tracking study. These studies are developed in partnership with a research expert, who aligns with you on your goals and KPIs, and then surveys your audience to assess the health of your brand over time.

If this is of interest, we covered branding ROI and brand-tracking studies more in depth here.

As an alternative or as a supplement, you can also engage in social listening or set up an Net Promoter Score survey of your customers.
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Brands That Thrived in a Recession

In times of economic uncertainty, some brands rise above the rest. Below are a few examples that might provide some inspiration for your organization.
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Microsoft During the 1973 Oil Crisis

What Worked

1. Adapting a business-to-business focus: Microsoft recognized the emerging personal computer market and shifted its focus from pure software development to also supporting hardware manufacturers.
   
   
2. Forging strategic partnerships: Microsoft forged partnerships with major computer manufacturers, such as IBM, to ensure its software was bundled with computer hardware, giving it a dominant position in the market.
   
   
3. Continuously innovating: Microsoft improved its software, launching successful products like MS-DOS, which became the standard operating system for IBM-compatible personal computers. This innovation helped Microsoft remain an industry leader during the economic downturn.
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Citigroup During the Great Recession (2007-09)

What Worked

1. Diversifying and managing risk: Citigroup recognized the importance of diversifying its business and managing risks more effectively. By expanding into different markets and asset classes, the brand reduced its reliance on a single sector and mitigated potential losses during the crisis.
   
   
2. Getting government support: Citigroup took advantage of government support programs, such as the Troubled Asset Relief Program, which provided capital injections to stabilize financial institutions. This support bolstered the brand’s financial position and instilled confidence in investors and stakeholders.
   
   
3. Focusing on core operations: Citigroup underwent restructuring efforts to refocus on its core banking operations. This involved divesting non-core assets and businesses, streamlining operations and improving efficiency. By simplifying its operations, Citigroup enhanced profitability and deepened its market footing.
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Amazon During the 2008 Financial Crisis

What Worked

1. Diversifying products and services: Amazon expanded its offerings beyond books, capitalizing on its e-commerce platform to sell various products. This diversification helped the brand maintain sales and attract a wider customer base.
   
   
2. Focusing on value and convenience: Amazon emphasized competitive pricing and convenient online shopping experiences, appealing to cost-conscious consumers looking for deals during the recession.
   
   
3. Investing in new technology: The introduction of the Kindle e-reader and Amazon Web Services during the recession showcased Amazon’s commitment to innovation and technology, solidifying its position as a market leader.
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Netflix During the 2008 Financial Crisis

What Worked

1. Shifting focus to streaming: During the recession, Netflix transitioned from a DVD-by-mail service to a streaming platform. This move allowed customers to access a vast library of content at a lower cost, appealing to budget-conscious consumers.
   
   
2. Creating original content and forging strategic partnerships: Netflix invested in original content and secured partnerships with established media companies. These efforts differentiated the brand and provided a competitive edge, attracting and retaining subscribers.
   
   
3. Doubling down on a customer-centric approach: Netflix focused on enhancing the customer experience by introducing personalized recommendations and user-friendly interfaces. This emphasis on customer satisfaction contributed to its growth during the recession.
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Looking Ahead

While stories of iconic brands like Netflix, Amazon, Citigroup and Microsoft are inspiring, recessions are still daunting for any business, especially smaller players in the market.

But the takeaway for every organization is to remain future focused. By staying front and center, and actively engaging with your customers, you will build trust, loyalty and brand recognition that extends well beyond economic downturns.

Remember, recessions are temporary, but the benefits of a strong brand are enduring.