The COVID-19 pandemic has proven to be a difficult time for small businesses here in Australia and around the world. However, even with the Australian economy in recession, your digital marketing efforts are making the difference between your business surviving and your business ending.
Of course, it’s more than reasonable to be concerned about an economic downturn, but what most business owners don’t realize is that a fluctuating market can become their greatest asset. The key is to understand how consumerism evolves during an economic recession and how to take advantage of that change. This means coming up with a new digital marketing strategy suited to the times.
Now is a better time than ever to maintain your digital marketing efforts. Read on to learn more about the importance of digital marketing during a recession and how to strategize accordingly.
Digital marketing during an economic recession
Australia is in recession. The market is shrinking and your prospects are drying up. You’re probably thinking it’s time to cut costs, and you’re not wrong, but you don’t want to make rash decisions just yet either.
The first thing that business owners tend to cut from their budgets is their digital marketing services. It may seem like your only option, rather than laying off good, mouth-feeding workers – but trust us, now is the time to step up your marketing efforts.
There are two very specific reasons why you shouldn’t give up on your marketing efforts:
- You can’t afford not to communicate with the leads you have left
- Your competitors are most likely putting their marketing efforts on hold
Now is the time to maintain your digital marketing efforts and, if possible, increase them. Let’s expand on the importance of digital marketing during an economic recession:
A smaller market equals a louder voice
As we mentioned, you can’t afford to cut off communication with your current prospects, or your future prospects for that matter. With your competitors cutting costs by ending their digital marketing services and putting their plans on hold, you become more visible in a shrinking market.
With fewer competitors in the pool, you can easily position yourself as the big fish and increase your market share. This is what we like to call becoming recession proof.
Less competition equals more affordable leads
Less competition also lowers the price of digital advertising because competitors reduce their expenses, which reduces your costs per lead. This makes an economic recession an even more attractive time to invest in your digital marketing plan and gain market share.
Even if your ad spend stays the same, your cost per lead should go down. Of course, if you can afford to invest a little more in your marketing efforts, you should. Remember, you don’t just want to convert your existing leads into sales during this time. You also want to try to generate as many new leads as possible.
Less competition means fewer product launches
Marketing campaigns and the products or services they launch are the two key factors in market share growth. If your competition is trying to cut costs, they’re probably not funding new product launches. This is due to lack of funding, which means there will be a lack of market research and development efforts.
Additionally, most consumers are not prepared to spend money on new products during a recession, especially if there is a lack of information behind it.
With your chosen competitors, this is the best time to dive into a conquest of market share by taking advantage of the advertising space and your new or identical products or services.
Your economic slowdown strategy
Going forward with your digital marketing plan during an economic downturn is always a risk, but it’s a risk worth taking. If you reduce your marketing costs, you also reduce your brand awareness, search engine rankings, and brand loyalty. These things are quite expensive to collect, which makes cutting back on your marketing efforts an irresponsible and costly business decision.
Keep in mind that while a recession can make days seem like years, it is a temporary situation. If you invest in your business through digital marketing, you will experience a much better payback period than your competition. However, you must adapt your marketing strategies during a recession to the changing needs of your consumers.
Here’s what you need to focus your marketing efforts on if you want to get through the recession in Australia:
Make your presence more present
Right now, your competition is most likely cutting costs and fading into the shadow of this economic downturn. As their visibility decreases and consumers start spending less, you need to become more visible to change your mind.
Now is not the time to forget it, now is the time to improve your brand’s presence. The first thing your digital marketing strategy should include is brand exposure efforts. This means investing in more advertising space, creating more social media and blogging content, and boosting your SEO. You want to become as visible as possible to reach a larger audience and attract more prospects.
Stay ahead of your competition
Maintaining a business means staying afloat financially and constantly competing with your competition by increasing your sales and customer base. The more customers and sales you have, the greater your market share will be, which equates to a constant stream of income. Most importantly, don’t assume that you are the only one who discovered the secret to profiting from marketing during an economic recession.
Recession or no recession, there is no room for complacency in running a successful business. Whether your competition is trying to save face or trudging through their marketing efforts, you always need to outdo them on every level. Now is the time to be creative and innovative in terms of disseminating your products or services.
This means leveraging all digital marketing platforms and creating messages that will leave an impact long after the recession is over. Not only will your ads be more easily noticed during this time, but they will stay with your audience long after your competition has entered the market.
Switch to more profitable marketing solutions
A strong digital marketing strategy relies on a mixture of time, expertise and money. If you are trying to save money, if you have the skills in-house, there are things you can do yourself that will lower your external costs. Digital marketing doesn’t have to bleed you, especially if you can’t take a break from your current digital marketing service provider. Look for more profitable solutions, think outside the box and put in place a solid plan that you update regularly.
One way to cut costs in digital marketing while maintaining a strong campaign is to enter into a business partnership with influencers who can increase brand awareness and drive sales. It will always cost you something, but that cost will only be a fraction of what you would pay for a full team of digital marketers.
Remember, social media platforms are free. As long as you do your due diligence, you can learn how to successfully implement digital marketing strategies on your own if you can’t afford professional services. The same goes for your SEO efforts, although it may take a bit longer to master than your social media channels.
Measure your progress
Don’t forget to track your spending and your ROI. A recession is not the time to ease up – you want to make sure your ROI is substantial and your marketing efforts are working.
By choosing the right KPIs and metrics to measure your progress, you can significantly strengthen your business’s ability to survive a recession. Having an understanding of your digital marketing metrics will give you a necessary insight into a Customer’s Lifetime Value (LCV), followed by a prediction of its value during a recession.
Plus, these metrics can be leveraged into a strong relationship with your customer base by showing you exactly what keeps each customer loyal. Customer loyalty can come from overwhelming incentives for relevant, informative content that positions you as a trustworthy source. These are things you’ll want to stay on top of, especially during an economic downturn.
Your KPIs and metrics are the very things that let you know what’s working and what isn’t, and right now is not the time to waste money on the things that don’t. .
Don’t be afraid of the economic recession
If we have said it once, we will say it again: Australia’s economic recession is only temporary. Every business has the potential not only to survive, but also to thrive in times of economic downturn. All you have to do is focus your time and effort on a newer and innovative digital marketing strategy to continue to attract and convert leads.
Let’s talk about the health of your marketing strategy. Contact us today for a no-obligation assessment of your company’s digital presence. We have the tools and expertise to help you survive and prosper during this economic recession. You can also take a look at our Digital Health Check to provide an overview of how your digital business is performing overall, or read more digital information for other helpful digital marketing tips and tricks.