The recent pandemic has driven economies to the brink of a global recession. What started as a mild slowdown could now potentially turn out to be an economic avalanche. According to a recent report published in The New York Times, Australia has plunged into its first recession in 30 years. Another study published by Fast Company suggests that 21% of business leaders predicted an economic downturn in the next two years for the world economy. So, the economic recession is very much a reality today and can severely damage businesses all over the world.
The good news is that like every recession in history; this will also run its course and fade away. While the economy is in recession, businesses tend to be cautious of expenditure and adopt more austere measures to sail against the winds. This is crucial; however, it cannot be a permanent solution. Like in life, business leaders also need to hope for a good time. But it is equally important to prepare for the worst. Therefore, making business recession-proof through various digital marketing initiatives is a way to adopt today.
How can digital marketing help you sail against the winds?
In times of recessions, consumers deliberate much before putting their money on any endeavour. They look for the reputation and trust that a company has made in the market before choosing it as a partner. Therefore, the chances to attract potential customers solely rest on the reputation you have built in the marketplace, the visibility you have achieved and the message you send to your target audience. Digital marketing is one such platform from which you combine brand building with a smart media strategy to get through trying times of downturn.
To keep you sailing through this, your potential customers should know that you are the best option they have got in the market to do business. Positive brand building initiatives by professional digital marketers can be a game-changer in these times. Your lead generating activities through social media optimization and SEO activities can put you on the growth path even if your deals are not closed immediately. If you have leads at a slowdown time, you will have something to work on rather than having no opportunities when things are booming again.
Digital marketing efforts at a time of recessions
Aim for a wider reach
Today almost everybody is online and businesses have their online presence. Pandemic has also fueled digital transformation and many marketing teams are entirely reliant on digital marketing. Getting wider reach for your business was never so convenient and indispensable, especially with widespread digital transformations. Multiple channels such as websites, social media, email, newsletters, etc. are handy in gaining wider reach for your business.
Invest in targeted marketing
Traditionally, the business was all about going out and selling your products or services in the local market. Digital marketing changed them all. Now the entire world is your potential market. Therefore, it is more crucial to focus on targeted marketing. To bolster our business prospects, we need to up-skill our digital capabilities and focus our business according to the target customers’ demographics, interests, and age group. Target marketing paves the way to reach your customers and serve them directly.
Work on data-driven insights
Even in times of recession, knowing your customers and their preferences is critical. This can help in creating fool-proof marketing strategies to fulfil their requirements. Smart use of data gathering and tracking programs such as Google Analytics will give a comprehensive data-driven insight, so you learn about the pattern of sales reports and consumer trends. Through this, you can track the best performing campaigns and continue running them so that business remains trickling in during times of recession as well.
Work on Customer Retention
There is no denying that getting a new customer in an economic slowdown is an uphill task. The best and probably only way to sustain the tough times is to retain customers. The best businesses in the world thrive on repeat customers. An increase of 5% in customer retention can bring 25% to 95% more in profits. Therefore, retaining and keeping your customer engaged are the ways to go if you want to make your business recession-free. Customer engagement can be enhanced through promoting interaction on various digital channels, including discounts on your website, targeted high-quality content, informative emailers, entertaining social media posts, etc. Also, following up with customers after purchase to know customer experience can go a long way in client retention.
Recession is no daily share market crashes that the economy may recover just as quickly. Yes, recessions are also not a permanent phenomenon and fade away, but their repercussions are far-reaching and can debilitate a nation’s economy. In these times, you have to build and defend your brand image through smart digital marketing strategies. O3 Digital is one of Australia’s reputed digital marketing agencies, which helps you increase your online reach and leverage its expertise and experience in SEO and social media marketing.