Written by David Broudie, Chief Sales Officer at SocialEyes Communications Inc.
There has been lots of talk about an impending recession – or are we already in one? Many businesses and business owners are nervous about this potential economic decline and are cutting back on expenses and employees. Businesses face a tough time during such periods, and in the past, many were forced to shut down. However, with proper planning and a robust digital strategy, businesses can survive and thrive during economic uncertainty.
This article will discuss how businesses can recession-proof their businesses and operations through digital marketing.
- Diversifying your revenue streams
One of the most important steps to recession-proof your business is diversifying your revenue streams. This can be attained by offering new products or services, entering new markets, or expanding your client base. For example, consider moving some of your operations online if your business primarily relies on in-person sales. This will allow you to reach a wider client base and provide clients with a convenient and safe experience.
- Build brand awareness
Building brand awareness is an essential part of any digital marketing strategy. It allows you to reach a broader and more targeted audience, increase brand recognition, and establish a solid online presence. This is particularly important during a recession when consumers are more cautious about spending their money. In addition, by establishing a strong brand, you can build trust and credibility with your target audience and increase customer loyalty.
- Utilize digital marketing platforms
Digital marketing platforms such as social media, email marketing, and search engine optimization (SEO) can assist in reaching a larger audience and increase brand awareness. Creating a strong online presence can increase engagement, generate leads, and improve conversion rates. Additionally, digital marketing channels are relatively low-cost compared to traditional marketing methods, which makes them a cost-effective way to reach your target audience.
- Focus on value
During a recession, consumers tend to be more budget-conscious, so focusing on value is essential. This means offering products or services that provide real value to your clients/customers. Doing so can increase customer loyalty, reduce customer churn, and increase repeat business. Additionally, focusing on value will help you stand out from your competitors and differentiate yourself in the marketplace.
- Data-driven decision making
Data-driven decision-making is crucial in any business and is especially important during a recession. Using data to guide your decisions, you can identify areas of your business that need improvement and make changes to increase efficiency and reduce costs. Additionally, data can help you understand your target audience and adjust your marketing strategies to meet their needs.
- Adapt to changing market conditions
Adaptability is key in any business and imperative during a recession. By being flexible, adaptable and open to change, you can implement necessary adjustments to keep your business afloat. This could involve pivoting your business model, introducing new distribution channels, entering new markets, or offering new products or services.
Let’s look at a couple businesses that took off during a recession:
1.) Peloton: a manufacturer of high-end exercise equipment (stationary bikes and treadmills) that can be used at home. The company was founded in 2012, and it took off during the Great Recession by offering consumers a convenient and low-cost alternative to gym memberships. Peloton had a very hefty digital marketing and social media targeted ad strategy to reach its target audience and establish itself as a leader in the industry. They focused on value and were able to attract and retain customers by providing high-quality workout experiences for a fraction of a gym membership.
2.) Airbnb: another business founded and took off during the 2008 recession was Airbnb – which disrupted the traditional hospitality industry by allowing individuals to rent out their homes or spare rooms. Airbnb utilized digital marketing, social media and influencer marketing to build its brand and attract users/customers. Additionally, Airbnb focuses on providing a high-quality customer experience, a user-friendly platform and easy and affordable payment options to attract and retain customers. Today, Airbnb is one of the world’s largest online travel companies and continues to thrive and grow despite economic uncertainty.
In conclusion, a recession can pose significant challenges for businesses, but with a well-thought-out digital marketing strategy, businesses can survive and thrive during difficult times. By implementing tactics such as diversifying revenue streams, utilizing digital channels, placing a focus on value, enhancing brand awareness, making data-driven decisions, improving customer experiences, and adapting to shifting market conditions, you can position your business for success and even the most challenging economic storms.
SocialEyes Communications Inc. is a North American Full-Service Digital Marketing Firm located in Toronto, Ontario.
We build custom and measurable marketing solutions to help our clients thrive and achieve their business goals offering a boutique customer experience.
www.socialeyescommunications.com
https://www.facebook.com/socialeyescommunications/?_rdc=1&_rdr
