When an economy experiences a recession, consumers tend to tighten their budgets and reduce spending on non-essential items such as furniture. As a result, many furniture stores may be tempted to cut back on their advertising efforts to save money. However, this can be a mistake. Here are a few reasons why it’s important for furniture stores to continue advertising during an anticipated recession:
- Maintain brand visibility: Advertising helps to keep a company’s brand top-of-mind with consumers. When a furniture store reduces its advertising efforts during a recession, it risks becoming less visible to consumers and losing market share to competitors who are still advertising.
- Attract price-sensitive consumers: During a recession, many consumers become more price-sensitive and are more likely to shop around for the best deals. Furniture stores that continue to advertise during a recession can attract these price-sensitive consumers by promoting special offers and discounts.
- Foster customer loyalty: Advertising can help to build customer loyalty by reminding consumers of a furniture store’s existence and the value it offers. When a furniture store cuts back on advertising during a recession, it risks losing loyal customers who may forget about the store or be drawn to a competitor with a more visible presence.
- Prepare for the recovery: While a recession may lead to a temporary dip in demand for furniture, it’s important to remember that economies eventually recover. Furniture stores that continue to advertise during a recession will be better positioned to take advantage of the recovery when it comes.
- People are still buying: No matter what’s going on with the economy, not everyone is affected, and there are still people actively looking to buy furniture. Whether it’s because of graduation, buying a home, moving to find work, marriage, divorce, new baby, or hundreds of other reasons, there are still shoppers in the marketplace, and you want your business to be on the list of places they shop.
While it may be tempting to cut back on advertising to save money, the long-term consequences of reduced visibility and market share can be far more costly.