Recession proofing abandons the reality of the coming economic hardships facing businesses, workers and consumers, says digital marketer Ali Payani, CEO and co-founder of Los Angeles-based growth agency LookinLA. He says that the narrative around recession-proofing also neglects the power of marketing to rapidly expand success to create more business to weather the coming storm.
“Winter is coming, leaders ought to realize that these next few months are critical to survive the recession and also to position their companies to not only weather what’s coming, but thrive despite all odds,” said Payani. “As an immigrant entrepreneur and as a founder I have experience and insight that that informs my viewpoint that ‘recession proofing’ is limiting people’s full potential.”
Last week, the heads of the International Monetary Fund and World Bank sounded the alarms of a likely global recession as international economies wane and rapidly rising inflation forces the Federal Reserve to raise skyrocketing interest rates.
The American labor market is maintaining condition, but borrowing costs are starting to bite, per IMF Managing Director Kristalinea Georgieva.
According to Bloomberg, the IMF calculates at least 30 percent of the planetary economy will experience at least two quarters of contraction and that the lost output through 2026 will spike to $4 trillion.
“Things are more likely to get worse before it gets better,” Georgieva said, adding that the Russian invasion of Ukraine that began in February has dramatically changed the IMF’s outlook on the economy. “The risks of recession are rising,” she said at Georgetown University, warning that global citizens will be subjected to a “period of historic fragility.”
Payani says with the IMF’s signals, companies can’t be thinking only in terms of “what’s my ROI if I do marketing,” and that “company’s should massively overhaul their marketing, starting yesterday.”
What most companies are missing when it comes to marketing stems from generational factors, Payani explained.
“When you use the word marketing today, the real true meaning of that is misunderstood. Too many people think marketing is sending out some emails, or paying to push content.
“When in fact, digital transformations and marketing are wildly much more expansive plays.
“If companies can get it right today, and implement transformational marketing well, they will see increased revenues to buffer their company when the recession hits, but also ride the wave of the recession instead of succumbing to it,” Payani concluded.
More info at www.lookinla.com.