I’m fortunate enough to work on the GameStop business, who has been highlighted as a recession success story, which made me interested in looking at how the gaming industry as a whole has faired in this economic collapse.
Really, the entire industry has been held up in the recent economic crisis as “recession-proof,” that regardless of how far the economy goes down the tank, video games have continued to shatter expectations. In fact, this is the second recession that video games have trekked through, having kept strong through 2001 as well.
There are a few oft-cited themes when analysts have tried to tackle the question: Why are video games recession-proof?
Responses tend to center around ideas like:
Gaming industry has benefited from the trend “staycationing,” and escaping into the world of “Fallout 3” is cheaper and easier than booking a trip to Anchorage.
During hard times, stress and depression is higher, and depressed people seek refuge in escapist entertainment, like video games. The rest of the entertainment industry, like music and movies, also benefits from this definition.
Console cycle, the 4 or 5-year period when a new generation of console arrives, drives incremental sales with games that look and play a little better than their predecessors
We think that in addition to all of that “natural” recession Teflon, the gaming industry has done an amazing job using marketing strategies to help. For instance, publishers will often release a demo version of an upcoming game for free download over Xbox Live or PSN and learn from the comments made across the social web by monitoring conversations happening online about the game.
However, most industries don’t have the benefit of a rabid fan base and accessible escapism, but fear not! There are a few marketing strategies that any company in any industry could use to help make their business “recession-proof.”
1. Market to your current customer
We know that new customers always cost more than keeping your current customers, and a solid CRM program can be a direct and low-cost way to increase sales while staying in touch and relevant. Start with messages that offer value-adds to enhance the experience of using your product or service rather than slashing prices.
2. Gather insight
Your customer has changed drastically as a result of the crisis, so having an understanding of their current mindset, needs, desires, and preferences is absolutely critical to communicating to them in a relevant manner. Perhaps identifying additional target segments that have a new desire for your product or service would help to sustain you during the recession. Start by using some of the multitude of new and innovative research technologies available to you, like social media monitoring, online focus groups, or even simple online surveys and answer those questions about how your customer’s mindset has changed as a result of the recession.
Above all, continue to get the word out about your business. Even if you can’t afford a full-scale marketing program, continue the more targeted tactics that will keep new and current customers coming through the door.
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