Life as we know it, is changing drastically. Our Post-Corona world is different in many ways. Business is no exception. With the possibility of an economic recession looming overhead like a dark cloud, potential customers are watching their spending for fear of becoming poor. Many are wary about making purchases and thereby buying less. This influences the volume of sales drastically and causes businesses to operate on leaner budgets. Ultimately, business owners are forced to make compromising decisions.
Not every brand is adversely affected; some may actually come out of this bigger and better. The first step to tackling an economic recession begins with understanding your customer.
Analyzing Your Customers
Based on their response to an economic slowdown, a Harvard Business School study divided customers into 4 categories:
- Slam on the brakes—They halt all non-essential purchases
- Pained but patient—They pull back strongly on purchases
- Comfortably well off—They spend their money with purpose and are less affected by the immediate crunch
- Live for today—They put their head in the sand and act like nothing is wrong
During a slowdown, even the comfortably well-off customers are a bit more cautious. Purchase decisions come down to the overall customer experience. They want to make low-risk purchases with quality assurances, guarantees and lenient return policies. As a business owner, if you haven’t considered this yet, you had better start now!
Add Ads Instead of Subtracting
Many people still prefer to stay home, so they are spending more time online and watching TV. Tight business budgets are causing some brands to pull out of the marketing race. However, there has been a significant dip in Media Advertising that is causing Daytime and Primetime marketing slots to become a little cheaper. More affordable Media Advertising options are streaming services like Hulu, Netflix and YouTube and Connected TV like Fire TV, Tubi TV and Roku TV. Facebook impressions are costing less also. In addition, you may want to take advantage of High-Quality SEO backlinks for your website that are currently at bargain prices.
There are lessons learned from every crisis. The great recession of 2007 taught us a crucial lesson: Brands that increase advertising during a recession, while their competitors are cutting back, can improve their market share! Who knew? So maybe it is a good time to become more visible and get ahead of your competitors. This will pay great dividends once the threat of recession ends.
Leverage the Power of Organic Search
Since a recession is probably in our near future, Pay-Per-Click services will be cheaper. But on the other hand, effective conversion costs may remain the same because customers are more careful when making decisions about which product or service is best.
Today’s customers spend a lot of time researching products, jumping from one brand to another. Why not give them some outstanding organic content that mirrors their expectations for the product or service? They will most likely complete the purchase instantly, or save for later.
As customers spend more time reading about products, they could give your website the necessary push to climb in search rankings. If your search rankings are higher, you will have more organic conversions.
Get on Quora
Quora is a high domain authority platform that is featured on the first page of the google search results. If your website hasn’t made it to the top of the google search rankings yet, this would be the perfect time to start answering relevant questions on Quora. Just leave a link at the end of every answer and tell people how your brand outshines the rest.
Potential customers will come looking for it. All this will cost is a little of your time.
The price-conscious customer can’t resist a good deal and neither should you. For example, if someone sees your advertisement and comes in your store to buy a mattress, offer them a discount to add a couple of pillows. You only pay to advertise the mattress; it doesn’t cost anything to sell the pillows.
Because of the economy, you should probably temporarily rethink your selling prices. This does not have to hurt your profit if you offer aggressive discounts on the pricing of a basic model or smaller package. Then you can use upselling to convince your customer to buy the premium version or the bigger package.
Shift Your Focus to Email Marketing
When was the last time people had time to go through every e-mail? Probably 10 years ago, but it is still an effective marketing tool.
Since customers are spending more time indoors, why not wish them well with a friendly email and follow up with another one asking for a review. Or just send them a discount coupon for referring others. A referred sale costs only the discount; keep it equal to your marketing budget for a single sale and your profit remains unaffected.
Embrace the Power of Creativity
Although most travel restrictions have been lifted, people are still not travelling at pre-pandemic levels. Spending more time online and a slowed-down lifestyle makes them more receptive to media messages. This is an opportunity for you to deliver compelling and convincing content. Just keep the content encouraging and uplifting—make them feel safe and hopeful. They have been through enough the last couple of years. Your content can be in the form of Blogs, Infographics, Creatives, or you can unleash the power of digital videos. Since people are interacting more on virtual platforms, chances are good that your brand may even go viral.
At a time when other businesses may be curtailing their market presence by cutting down on marketing expenditures, it would be wise for you to jump in and take center stage. Keep in mind that a recession is temporary, but hopefully your brand is not. When purchasing habits return to normal, your brand can be already established in the market.
If you have the budget for it, you may want to get a marketing agency on board that understands your vision completely and can design a flexible marketing plan. If not, educate yourself in this area. We offer a couple of eBooks that can help. Take whatever steps you need to ensure that this is a time of progression for your business instead of a recession.