Inventory shortages are bound to happen in any industry, especially while the pandemic continues to cause manufacturing delays. As companies sell off their inventory, they may be tempted to stop advertising in order to staunch the flow of customers. However, this can often end up doing more harm than good. Here are some reasons why businesses should keep advertising even when inventory is low.
1. Advertising Maintains Brand Awareness
Memorable marketing campaigns encourage brand recall and differentiate your brand from competitors. If you suddenly halt your advertising, there's a chance that you won't reach your customers when they need your brand most. Additionally, consumers are constantly bombarded with ads. They're more likely to remember other brands instead of yours if you slow down your advertising.
Chances are, you likely have fewer advertising dollars to utilize if you're struggling with sales. Fortunately, email marketing is one of the most cost-efficient advertising channels. As of 2021, email marketing ROI is $36 for every dollar spent. Some advertisers that utilized A/B testing and dynamic content were able to achieve an ROI of 45:1.
The most successful marketing emails employed the use of live-action video or animated GIFs. Using ads with moving colors or audio in your emails will make them more memorable than simple text posts. However, your success may vary depending on what your audience prefers.
Best of all, email marketing allows you to segment your audience by their interests. Fifty-two percent of consumers expect all of their ads to be personalized. Some users appreciate being notified of all new offers, while others are only interested in select products or services. Content that is tailored to their interests is more likely to be opened instead of tossed in the trash or spam folder.
Social media marketing is another easy and cost-effective way to keep your brand top of mind during slow periods. Making a social media post is free, but there's also the option to use paid social ads. These are designed to appear on the feeds of certain demographic members, even if they don't follow your brand.
2. Customers Want to Be Informed About Shortages
Nobody wants to waste their marketing budget when they don't have the inventory to meet consumer demand. However, you don't have to focus strictly on selling your products and services. Be honest with your customers about your inventory shortages and when they can expect their favorite items to be back in stock.
Brands that are genuine make a better impression on their customer base. Brand authenticity is the most important factor for 86% of consumers before making a purchase. Consumers feel more comfortable doing business with brands they can trust, not those that offer the best deals.
Eighty-one percent of consumers want their favorite companies to be transparent on social media. However, only 15% of brands meet that requirement. If you can prove your transparency to your customers, you're set up to exceed the majority of your competitors.
3. You Must Be Ready to Act When Inventory Returns
Eventually, things will return to normal and inventory will be flowing across all industries. Don't let your marketing strategy stagnate while you wait. Continue to advertise the benefits of the products you do have.
This is also the perfect time to look at your advertising strategy and decide if it needs some revisions. Customers' needs are constantly changing, especially with the uncertainties of the pandemic. Make sure that you're still creating relevant ads to keep a steady flow of customers when your inventory is replenished.
Most importantly, don't forget to share the good news with your audience when inventory arrives! Send out emails or make posts about the products on social media as soon as they're available. Use analytics tools to gauge the best times to reach interested customers.
Why Businesses Should Advertise When Inventory is Low
Low inventory doesn't have to make a negative impact on your company's revenue. With consistent advertising, you'll maintain your brand awareness and have a better relationship with your audience. Still, it can be stressful to manage marketing strategies while trying your best to procure new inventory. A trusted media partner can help you develop the best long-term branding and advertising strategy.