Is Your Digital Marketing Strategy Recession-Proof?
In the current climate, it's uncertain times for many businesses. You’ve likely been watching the recent flurry of headlines with more than a little dread. So, what is going on? The index fell nearly 3,000 points, largely due to coronavirus fears. Is a recession coming? While it should be noted that the markets are often a poor indicator of the nation’s overall economic health, there is good reason to expect that Australia – and the world as a whole – is entering a sharp economic downturn that will soon be felt far beyond the stock market.
Now, we are not financial advisers (far from it), and we can’t exactly be certain of what’s to come. But, that’s quite all right, because we absolutely believe that a smart approach to digital marketing means you don’t need to fret over the inevitable ups and downs of the economy. With second-quarter approaching, the financial landscape feeling uncertain, and over 60% of people spending more time than ever on their devices, it’s time to tighten up your digital marketing strategy and buckle up for the ride.
The slowing global economy can actually present many opportunities – if you know how to spot them. But, winning in this climate depends on how well you strategise and play the game. Act with logic (not emotion) and employ a clear digital strategy; be ready to adapt and pounce quickly on opportunities as they arise.
Here’s why digital marketing is the safest and most strategic investment for your business, especially now:
When managed correctly, Search Engine Optimization (SEO), Search Engine Marketing (SEM), social advertising (ads) organic social media content and Electronic Direct Mail (EDM) are among the most cost-effective ways to find new customers.
In particular, social media, SEO and Email are marketing channels that require a low investment and time input while offering a high and consistent yield. We like to think of these as the utility services of your brand and feel strongly that every business should be nailing these two services before expanding their programs to invest elsewhere. These channels are your bread and butter; they are the front door, the maildrop, the telephone of modern marketing.
Some cost benefits of digital marketing include:
The ability to shift quickly and be responsive. If something isn’t working, you can always adjust in real-time.
The ability to set goals and targets and optimise toward them mid-campaign, instead of waiting until a traditional campaign is over to analyse and pivot. Have a CPC or conversion value in mind before you start. Work towards it and adjust accordingly to get there.
No real overheads: it's done by you or your agency, not a contractor or third party.
Digital marketing allows you to make changes to a campaign in real-time – no waiting on the editor, no calling the publishing house, no halting of radio ad spots. Let's say you launch your Easter campaign with two different creative approaches because you’re not quite sure which one will resonate better with your audience. Within a week, you can begin to look at performance and move your budget into the top-performing campaign, maximising ROI as you go. In this day and age, sometimes there is no initial way to know what will work, and there is no reason to be putting money into a sinking ad.
The ability to shift strategies and tactics quickly via digital marketing allows you to quickly account and adjust for:
Cost per conversion/Cost per click
Audience and targeting
Changes in the marketing message
Competitors’ activity: As competitors consolidate activities, they may leave some customers stranded. Marketing to such potential customers enables you to seize market share.
You can look back over past campaigns and see what worked and what didn't. The data is all at your fingertips; it’s just a matter of developing a clear window into that data. Take the time to build sound, easy-to-understand dashboards, so that you can make considered and informed decisions about your business.
The measurability afforded by digital marketing allows you to closely track:
Any conversion: Purchase, form fill, registration, or download
Conversion rates from any channel
Customer lifetime value
The moment your customer has made their first purchase, you have the data you need to expand the relationship and better serve their needs. Have your customers gone dark on you? Create a re-engagement strategy; give them a reason to come back and do business with you.
For example, you might engage customers in the following ways:
Launch a targeted email campaign to suggest products often purchased together. Remind your customers to reorder a past purchase or provide related content they might enjoy, such as “gift ideas for Easter under $50”.
Deploy retargeting ads to reach out to past purchasers, or engaged visitors to your website that did not convert.
Create a sales funnel and offer them something for free to get them back into the funnel.
Use their data to personalise selling points.
There are many ways to identify new growth opportunities via digital marketing. Use these patterns to find new opportunities.
Re-align your offering and business strategy with changes in consumer behaviour and needs.
What kind of engagement do you get with a certain type of post?
What email topics or products drive high open rates?
What audiences respond to which messaging?
What pages are people visiting on your site? How long are they spending there?
What pages do website visitors abandon?
What kinds of offers do your customers respond to?
What is your click-through rate on an ad?
Now, let's remember that when times get tough, people get creative. Consider the innovations required to be smarter in your market. Consider the online digital marketing courses you can take while quarantined.
The old-school response of downsizing activities in a slowing economy is not the move to make, particularly in our modern, ever-changing society. With our current technology and knowledge, experts recommend increasing your marketing strategy and introducing new plans to suit the climate. Remember: marketing is an investment for sales growth and future business – you only get if you put in.
Need help getting organised with all the newest digital marketing techniques and services? Looking for guidance on how to maximise your investment? You’re in luck – that’s what we do best!
Information and statistics of industry trends and Dow Jones figures gathered from the below sources.
Australianbusiness.com.au, vox.com and dnyuz.com