Co-Founder Taliferro
Introduction
Though we are not a social media agency, like most companies, we have an opinion and a strategy.
A recession is an excellent opportunity for your business if you know how to use it correctly. Your competitors are probably spending less on marketing, which means you can use digital marketing strategies to take advantage of the situation. Digital marketing is an effective way to reach potential customers and grow your business in any economic climate. You don't need to spend thousands of dollars on newspaper ads or television commercials; instead, create content that provides value and builds relationships with your customers. There are numerous ways to get the word out about your business without blowing the budget.
Consumer confidence and spending habits change during a recession
A recession is a period of economic decline. Various factors can trigger it, but the most common cause is a fall in consumer confidence and spending habits.
In a recession, people are less likely to spend money on luxury items like expensive clothing or cars, opting for more reasonably priced purchases like food and utilities. This change in behavior affects businesses across the board—but it also offers an opportunity for savvy marketers who know how to reach their target market through various digital channels.
If you're interested in marketing your business during this time (and who isn't?), then read on for some tips about what works best during recessions.
Digital marketing is less expensive than traditional marketing with higher ROI's
Digital marketing has a higher return on investment than traditional methods, and it's cheaper to implement. Digital marketing costs less than traditional marketing because no materials or physical labor are involved. You don't need to create magazine ads or print them—you can post them online. You don't need to hire an agency that's going to charge more money for their services either; you can do everything yourself.
There is one aspect of digital marketing that will be more expensive than traditional marketing: web development, which includes building your website and getting a domain name for your brand name, so that people will know exactly where they're going when it comes time for them to buy something from your company. However, suppose you're looking at the total cost of ownership (TCO). In that case, this expense should be negligible compared to what else goes into launching a new business venture--and if done correctly, it'll result in increased revenue which helps offset any initial cost outlays anyway.
Provide value and build relationships with your customers
According to a recent survey, the number one thing that customers want from businesses is "high-quality service." Once you've got that, everything else is easy.
If there's one thing we can learn from our parents, quality customer service is more important than ever in a recession. Only 10% of businesses surveyed said they would cut back on providing high-quality customer service as part of their strategy for dealing with a recession. In comparison, 92% said they would maintain or increase their commitment to this vital aspect of a business.
To provide your customers with outstanding service during these challenging times, follow these three steps: be proactive and stay in touch with them; use email marketing and social media platforms like Facebook and Twitter to build relationships with them; and provide value beyond just price—show your customers why they should buy from you instead of someone else.
The recession is just another opportunity for you to reach potential customers and grow your business using digital marketing.
The recession is a time to focus on what you do best. The world is in a state of upheaval, and businesses must respond by doing what they do best.
In this case, you should use your existing infrastructure to grow your business (rather than growing it by acquiring new customers or assets). In short: Use digital marketing.
Digital marketing allows you to reach more people with the same amount of money. It also provides easy tools for improving customer service and increasing sales.
Reduce the cost of advertising
Should you feel a little skittish about spending so much on your marketing, don't worry—there are many non-traditional ways to reach new customers.
Use social media. Social media is free and effective at reaching large numbers of people. You can use Facebook and Twitter to share information with customers or potential customers; use LinkedIn to connect with professional contacts that could lead to sales, or create hashtags for your business and follow other users interested in what you say.
Use online advertising. The internet has changed the face of advertising forever, making it easier for small businesses like yours (especially startups) to advertise online without spending a fortune doing so. If you're unsure how this works, check out Google AdWords or Facebook Ads Manager. These two platforms will give you access to thousands of targeted ads that appear whenever someone searches for specific keywords related to their platform's database.
Improve the efficiency of your product or service
You can improve the efficiency of your product or service by doing such things as:
- Using a new tool
- Re-designing your business model
- Adjusting marketing strategy
Automate interactions with customers
Do you know one of the easiest ways to get more leads and sales? You guessed it: automation.
Email marketing: Your email list is your most valuable asset, so make sure you use it. Send out regular updates about what's new with your company and products; don't just spam people with ads for sales or new offers. When someone does buy something from you, send them a personal thank you note. The more your interactions with customers are personalized, the longer they stay loyal to your brand.
Social media: Keep in touch with followers by posting industry news updates and tips on using current technologies (Facebook Messenger's new feature could help improve customer service). Again, be careful not to push messages at people without providing anything useful—and always respond when someone reaches out directly through this platform.
Focus on leads, not clicks
You've probably heard that click-through rates are down, and you can't be blamed for thinking this is terrible news. After all, if fewer people click on your ads as compared to before, fewer people are seeing your ads—which means fewer conversions.
But what if I told you there was another way of looking at things? What if we made more of an effort to focus on leads instead of clicks?
Here's how I see it: the best digital marketers don't worry about getting the most clicks. Instead, they focus on creating quality content that attracts high-quality leads (i.e., potential customers). And because those leads are more likely than not going to convert into customers or clients at some point in time anyway, that approach has a higher ROI overall than focusing solely on driving tons of traffic through Google AdWords campaigns but failing miserably at converting them into actual sales or appointments with qualified prospects who want what we have on offer right now.
Content Marketing
content marketing is a great way to build relationships with your customers. It also helps them understand what you do and why you are the best choice for them. In addition, content marketing allows you to build trust with your customer base.
Plan Ahead with a Digital Strategy
Digital marketing is a broad, complex field that spans social media platforms and search engines. That's why it's essential to plan with a digital strategy that fits your goals and objectives as a business. An excellent place to start is by defining your target audience. Who are you trying to reach? Once you know who they are, you can focus on delivering messages that resonate with them through the appropriate channels (social media or search engine optimization).
If there were ever a time for businesses to take advantage of digital marketing strategies, this recession would be it. Now is the perfect time for small businesses looking at cutting costs while still reaching their target market effectively.
There are numerous ways to get the word out about your business without blowing the budget.
Use social media: Think of social media as your marketing platform for specific audiences. Whether it's Facebook, Twitter, Pinterest, or Instagram, these sites allow you to connect with potential customers and engage them in a way that will help build awareness for your brand. And don't forget about LinkedIn. It's not just for finding jobs anymore.
Use content marketing: content marketing is an awesome way to create compelling copy (i.e., writing) that will draw people in while making them want more from you—and ultimately lead them back to where they can buy what you're selling or sign-up on whichever list they've opted into receiving emails from your company. You can also use infographics, graphics, and other visuals with information relevant to what someone might want when visiting one of these pages online so they'll be inclined toward clicking through further.
Conclusion
The recession is an excellent opportunity for small businesses to get their feet wet with digital marketing. You don't have to spend a lot of money on fancy equipment or hiring expensive consultants; all you need is some creativity and persistence. Many successful companies began as startups working out of their homes during difficult economic times.
Tyrone Showers