Yes, absolutely. Marketing can – and should – be a key driver of profitability even when the Australian economy faces headwinds. It’s a common misconception that marketing is the first thing to cut during tough times. In our experience, that’s often the biggest mistake a business can make. While cost control is vital, reducing marketing investment usually leads to reduced revenue, creating a downward spiral. Instead, smart marketing adjustments can actually strengthen your position and improve your bottom line.
The key is to shift focus. During economic downturns, consumer behaviour changes. People become more price-sensitive, more cautious, and more focused on value. Your marketing needs to reflect this. Here’s what we’ve found works best for Australian SMEs:
- Focus on Customer Retention: Acquiring new customers is always more expensive than keeping existing ones. Now is the time to double down on loyalty programs, personalised communication, and exceptional customer service. A small increase in customer retention can have a significant impact on profitability.
- Highlight Value, Not Just Price: Competing solely on price is a race to the bottom. Instead, emphasise the long-term value your product or service provides. What problems do you solve? How do you make your customers’ lives easier? Communicate this clearly.
- Refine Your Targeting: Broad, untargeted marketing becomes less effective when budgets are tighter. We recommend laser-focusing on your most profitable customer segments. Analyse your data to identify who is still buying and tailor your messaging to their specific needs.
- Optimise Conversion Rates: Every marketing dollar needs to work harder. Review your entire customer journey – from initial awareness to final purchase – and identify areas for improvement. A/B testing website copy, streamlining the checkout process, and improving landing page design can all boost conversions.
It’s also important to remember that downturns don’t last forever. Maintaining a consistent brand presence, even at a reduced level, ensures you’re well-positioned to capitalise on the eventual recovery. Thinking ahead to 2026 and 2027, businesses that invested strategically in marketing during leaner times will be the ones best placed to capture market share as conditions improve.
The best next step is to conduct a thorough review of your current marketing activities and identify opportunities to optimise for value and retention. We can help you analyse your data, refine your targeting, and develop a marketing strategy that drives profitability, even in challenging economic times.
