Key Marketing Strategies When Budgets Are Tight

In today's macroeconomic landscape, change is the only constant. Tariffs seem to be shifting by the day, global unrest looms large and consumer confidence is shaky. 

For many CPG brands, this means navigating the unpredictable while managing tighter budgets, smaller teams and rising pressure to deliver results. Everyone is juggling the challenge of how to do more with less without losing momentum.

The feeling is familiar. Much like the early days of the COVID-19 pandemic, uncertainty has become the default setting. This change in the marketplace is shifting expectations for both brands and shoppers. 

Marketers are tasked with building strategies for an ever-moving target, even as the rules of the game continue to evolve. And shoppers are still searching for value, connection and excitement from the brands they engage with, but with an increasingly price-conscious mindset.

So, how are brands continuing to show up for shoppers in meaningful ways, even when discounts and dollars are harder to come by? Here are three strategies brands are using in these uncertain economic times to stay competitive and culturally relevant when everyone is on tighter budgets than ever.

Strategy #1: Leaning Into Loyalty

When every dollar counts, loyalty programs are emerging as a powerful alternative to traditional discounting to create emotional as opposed to economic value for brands.

We’ve seen more and more brands begin to lean into dedicated loyalty programs and hubs. These kinds of always-on, branded destinations offer shoppers a way to engage that builds habit and connection. These programs incentivize repeat behavior, but more importantly, they reinforce a brand's role in a shopper's routine.

After all, if brands can get shoppers into a habit of purchasing, there's less fear that the shopper will trade down because of price. The shopper has formed an emotional commitment to the brand and buying becomes second nature — barely even a decision anymore.

Strategy #2: Surprise and Delight Through Sweepstakes and Contests

In times of economic uncertainty for shoppers, a little spontaneity can go a long way.

For brands that are asking shoppers to spend a little more money on a product in a tough economic time, especially premium brands, they need to appeal to shoppers in a way that emphasizes quality and value over price. Sweepstakes and contests are rising in popularity as a way to do just that while differentiating a brand and providing a moment of surprise and delight for shoppers.

More brands are tapping into premium prizes or once-in-a-lifetime experiences that shoppers might not pursue on their own, especially in tough times. Exciting chances to win offer value to shoppers in a different way from discounts or coupons by providing a fun surprise or positive moment during hard times.

If a brand can offer consumers the chance to envision themselves making a life-changing memory thanks to a sweepstakes entry, that shopper is now connected to the brand on an emotional level. This kind of strategic emotional marketing creates lasting positive associations for shoppers, regardless of whether they win the sweepstakes or not.