Magnusson & Co

M&Co Insights

Marketing your construction business in a downturn

BY KIRSTEN MAGNUSSON

The New Zealand building and construction industry is facing challenging times, but it doesn’t have to be all doom and gloom. In a downturn, you can leverage your marketing to maintain and even grow your business by focusing on a few key strategies. Psychologically, when times are tough working on your brand and marketing is a good thing. Not only does this keep you busy, it sends a message to your staff that the business can pivot. Perhaps most importantly, it tells the market that you’re confident, and not afraid to commit and try something new even when the economy suggests otherwise.

1. Strengthen Relationships with Existing Clients

It’s so much easier and cheaper to retain a client than it is to find a new client. 

• Personalise your Communication. Keep your clients up-to-date about project progress and company news through personalised emails and newsletters. Pick up the phone if you can, there’s nothing like the personal touch. Maybe go for a coffee or a beer.  Encourage your team to do the same.
• Feedback is key: Don’t wait for your client to get annoyed. Ask for feedback regularly to understand pain points and improve your service offering accordingly.

2. Showcase your Expertise and Value

• Content Marketing: Publish case studies, website news stories and LinkedIn posts highlighting your successful projects and industry expertise.
• Webinars and Workshops: Host online events to share your knowledge on industry trends, best practices, and innovative solutions. Work with your industry colleagues to share the workload, costs and leverage each others’ brands. 
• Thought Leadership: Contribute articles to industry publications and participate in relevant forums and conferences. If you belong to an industry organisation, get in touch and see if you can share your content through their channels. 

3. Diversify your Services and Markets

• New Service Offerings: Introduce complementary services that meet the needs of the current market. Maybe there’s an opportunity to provide a maintenance service or a shift from new builds to renovation. 
• Market Expansion: Explore opportunities in new markets or industry sectors that are less affected by the downturn. If you provide a service, maybe you can extend your offer to Australia, where the economy is more buoyant.

4. Make the most of Customer Testimonials and Case Studies

Every company has at least one success story. 

• Case studies are a great way to demonstrate how your company has successfully navigated challenging projects or economic conditions. 

Make the effort to get professional photos of your work (this will make all the difference) and spend some time getting the wording right – you want to come across as approachable, professional and interesting. 

Post on your website, then share across LinkedIn and your other social channels. Encourage your staff to share, comment and like too. (Important – when your colleagues post, support them with a comment or a like. They will hopefully return the favour, extending your social reach.)

• Testimonials: Feature client testimonials on your website and marketing materials to build credibility and trust.

5. Focus on Cost Efficiency and Your Value Proposition

• Cost Savings: Highlight any cost-saving measures or efficiencies your company can offer clients. Maybe you have a streamlined design process that saves time, or a product that can save costs over the life of the building. Clearly communicate this to your market. 
• Clear Value Communication: Your value proposition has never been more important. Understand what you offer, and what makes you different to your competitors and communicate that to your market. 

6. Strategic Partnerships and Alliances:

• Collaborate: Partner with related businesses to offer bundled services or joint solutions that add value. For example, if you’re a structural engineer, you could consider partnering with a steel fabricator. Work together to leverage your brands and your resources.
• Networking: Join your industry association and go along to the events. Aim to build relationships, gain referrals, and support others who might be having a rough time right now.

7. Marketing Messaging

You must adapt your messaging to the market. You may have noticed how some TV ads used to yell to entice you to buy – words like “hurry now” and “sale ends soon”. Now you’ll hear a more encouraging and understanding tone. It’s no different for the construction industry.

• Be Empathetic and Supportive: Craft your marketing messages so they show you understand the challenges your clients are facing.
• Be Solution-Oriented: Focus on how your products or services can solve specific problems or improve efficiencies for clients during tough times.

These strategies will help you maintain visibility in the market, reinforce your relationships with your clients, and position yourself and your business as a reliable and innovative partner.

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