Economists and analysts at some of the world’s largest banks are predicting a recession in 2023 due to an economic downturn. Inflation is expected to rise due to an increase in the money supply, with the U.S. government and the Federal Reserve pushing for more stimulus spending. Banks have also predicted that the Fed will begin to raise interest rates in 2023, which could lead to a reduction of spending and investment. This Wall Street Journal article also notes that the banks are currently recommending caution when it comes to investing and spending, as the recession could have a long-term, negative impact on the economy.
As this global recession is looming on the horizon, and this poses major challenges for small business marketing. Specifically, for those, who will have to adapt and find new ways to continue to connect with consumers who are cutting back on spending. The one high note is that the pandemic has already shown that email can be a powerful tool for building authentic relationships with customers and keeping them informed. Companies that invested in email during the pandemic may be able to rely on those same strategies to weather the coming recession.
One approach that can increase revenue from customers who are feeling the effects of inflation is segmentation. By using targeted messaging and incentives, businesses can entice consumers to continue spending with their brand, despite budget cutbacks and reduced consumer spending.
Another area of focus in 2023 will be the continued growth of customer data platforms (CDPs). These platforms are designed to bridge the gap between data lakes and CRMs, resulting in more intelligent and personalized marketing. As more and more brands and enterprises begin to implement CDPs, the pressure will be on these platforms to prove their value and deliver real ROI.
In addition to these specific challenges, businesses will also be under increased pressure to examine and optimize their martech stacks. Many have already begun to assess whether they have the right technology in place and are looking for new vendors or solutions to improve their marketing efforts.
Overall, this coming year will bring a number of challenges for marking, but by embracing new strategies and technologies, brands can not only survive but also thrive in a recessionary environment. The key is to be proactive and to stay on top of the latest trends and best practices in the industry.