The Covid-19 pandemic is not the only situation that has significantly influenced the economic situation of Indonesia and the entire world. Wars, natural disasters, and other events can cause economic crises and recessions. These are associated with rising inflation, high prices and a reduction in demand due to the lower purchasing power of the population. Faced with unforeseen events, entrepreneurs face the challenge of keeping their business and even increasing sales in times of crisis. Is it even possible, and if so, how to do it?
Business in times of crisis – how to maintain and develop it?
A crisis situation such as a pandemic, war, natural disaster, affects both consumers and entrepreneurs. Many companies lose financial liquidity in the face of unforeseen events and are unable to cope with the effects of the crisis. What can be done and how to keep business and sales in difficult times?
How to keep a business in times of crisis? 1. Manage your marketing strategy wisely
In times of crisis and recession, consumers and entrepreneurs cut costs as much as they can. Consumers are buying less and cheaper, paying more and more attention to product prices. Demand in the market is falling, which causes entrepreneurs to lower prices and production costs, reduce employment, postpone investments and look for savings in various ways. One of them is to stop investing in advertising, because it is theoretically the easiest form of minimizing expenses. Is it right? Not necessarily. If you completely stop advertising and promoting your company on the Internet, you will quickly lose the previously achieved results and after the crisis is over, you will have to basically start from scratch. Moreover, you will lose control of the changing market and customer needs.
How to keep a business and a company during a crisis? Do not completely abandon your marketing activities. You can partially limit them, but constantly monitor customer needs, expectations and demand. Match the range of products and supply to this in order not to waste funds.
How to keep a business in times of crisis? 2. Change the rules of audience segmentation
In less turbulent times and in the period of economic development, the traditional methods of segmentation of recipients according to demographic data – gender, age, education, income level – work well. However, in times of crisis and recession, this method may prove to be unreliable. Then it is worth segmenting recipients based on their psychological responses to the crisis. Divide your audience into several categories:
– recipients with the lowest incomes, who are strongly hit by the situation on the market, therefore they minimize costs as much as possible, and people with slightly higher incomes, who, however, are sensitive and are worried about the situation in the country and in the world,
– worried but patient consumers – reduce their expenses, but not as sharply as the first group, are optimistic in the long term and hope to improve the situation and end the crisis,
– affluent consumers who live on a similar level as before the crisis and are not worried about their income,
– live-for-today audience who live today and spend more on experiences than on things (except for electronics); They are usually young people living in rented apartments in large cities – they do not significantly change their shopping habits, but only postpone larger purchases.
Adjust your sales strategy to these types of recipients, think about what product you offer (basic necessities or maybe exclusive products) and direct your advertising, promotional and sales activities to the right group.
How to keep a business in crisis? 3. Strengthen the strength of your brand
A strong brand that has built its position among the recipients is one of the most effective ways to maintain a business and record sales in times of crisis. Therefore, in times of development and crisis, it is worth:
– run a blog to increase website traffic and share knowledge for free,
– take part in industry events and build a personal or corporate brand,
– invest in SEO, which improves the visibility of the website in organic search results,
– offer efficient after-sales service to encourage customers to come back,
– building an emotional bond with users, e.g. through the messages “We’ll survive together”,
– building trust in e-commerce.
How to increase sales in difficult times of crisis? 4. Invest in referral marketing
Do you want to increase sales and keep your company in a crisis time? Ask existing customers to recommend your services to companies or people who may benefit from them. You can even create a referral program where a customer who recommends a new customer to you receives a percentage on the first invoice, a discount on purchases, or free delivery if you are running an e-commerce business.
How to increase sales in a crisis? 5. Reach regular customers effectively
How to increase revenues during a crisis? Invest in marketing to existing customers. It is much easier to encourage a customer to buy again than to acquire a new one. If you want to limit your advertising expenses, then target your activities at users who have previously used your company’s services or made purchases from you. It is not only much cheaper, but also more effective. To do this, you can:
– bet on Google Ads advertising in the form of remarketing.
– stay in touch with customers via e-mail marketing,
– offer regular customers a discount or free delivery.
How to increase revenues in times of crisis? 6. Offer periodic promotions
Promotions always attract customers regardless of the times and products you offer. Therefore, use periodic discounts to attract interest. Skillful advertising of promotional prices can make you fulfill many orders in a short time and earn more than if you sold the products at a regular price.
How to keep the company during the crisis? 7. Focus on keeping your customers
Usually, sales drop during a recession or other unforeseen crisis events. If you don’t want to lose your liquidity, you need to focus on keeping your existing customers. How can you do that? Take care of:
– effectiveness of activities,
– customer satisfaction with the results achieved,
– constant contact with customers,
– efficient after-sales service.
Also take care of the effectiveness of activities within the company. Consider if there are any areas in your company that need optimization and where you are wasting your resources. Optimize them or opt out of them altogether.
How to keep a business in times of crisis? 8. Take care of your financial liquidity
Financial liquidity is especially important in times of crisis. Therefore, you need to take care of your financial resources better than before. For this purpose:
– reach customers who do not make payments on time and collect the funds due to you,
– focus on cooperation with clients with a stable position on the market,
– terminate the cooperation agreement yourself, if the customer has not been paying for services for several months.
How to increase sales in difficult times? 9. Build multiple landing pages
Many ecommerce owners only create one landing page for their Google Ads campaigns. This is a mistake. It is a good idea to create a separate landing page for each ad group, on which you can place information related to the keyword and the content of the ad.
How to improve your conversion rate during crisis and recession? 10. Reach mobile users
There is nothing worse than losing a large proportion of your users, that is, the audience using mobile devices. Reach out to them. How to do it? Make sure that your company’s website works properly on smartphones and tablets and allows you to complete the order, use the contact form or make a payment. For this purpose:
– use the Mobile Friendly Test tool and check the website adaptation to mobile devices,
– check in Google Search Console. are there any errors related to mobile operation (too small font, too small gaps between clickable elements, etc.),
– run your website on your smartphone on different browsers and see if you can use the website freely.
How to increase sales in a crisis? 11. Use video marketing
Images on websites are standard, but you can go a step further and use video content. With their help you can:
– increase sales and conversion rate,
– improve the user experience on the website,
– increase user engagement on the site.
How to prepare a recording for video marketing?
– Show your product in action and show users how they can benefit from it.
– Add a product review in the form of a video.
– Share customer testimonials in the form of a video.
– Start your own YouTube channel and regularly publish valuable video content there.
How to keep a business in times of crisis? 12. Obtain reviews about the company, products or services
Social trust evidence is a great way to reach new customers and convince them to buy or use a service. Therefore, make sure you get opinions about your products or services in various channels on the Internet. You can use for this purpose:
– Google My Business cards,
– your website – make sure you can add opinions on the product page or create a special page with a summary of opinions,
– price comparison websites.
How to increase sales in a crisis? 13. Take care of website speed
Page speed, like problems with mobile optimization, can make you lose a lot of potential customers. Internet users are impatient – if a page takes more than 3 seconds to load, they can leave it without waiting. Therefore, work on page speed. Use PageSpeed Insights and see what you can do better. It is definitely worth:
– use modern graphic formats – JPG and JPEG,
– consider using a distributed CDN server network.
Remember that you also need to take care of website speed in the course of economic development, but in the event of a recession, losing a customer just because of a bad website hurts twice.
How to take care of business during a crisis? 14. Test various solutions
Carrying out marketing activities during a crisis is not enough. It is worth regularly testing various solutions and checking their effectiveness. Use A / B testing in marketing. What elements can you test? Among others:
– Google Ads texts,
– call to action content,
– arrangement and colors of buttons.
How to keep sales in times of crisis? 15. Evaluate the effectiveness of marketing activities
In order to be able to respond to the needs of users in times of crisis, you need to track the effectiveness of your actions. This applies not only to sales, but also to internet marketing. How can you do that? Find out:
– the volume and sources of traffic and sales on the site using Google Analytics
– Google visibility using Senuto,
– bounce rate / engagement rate on key pages (offer pages, sales pages) using Google Analytics,
– user traffic on the site (the way the mouse moves, clicks) in tools such as Yandex.metrica,
– conversion rate,
– sales from individual channels (SEO, Google Ads, etc.).
How to increase sales in a crisis? 16. Optimize your marketing budget
It is not difficult to spend money on marketing in difficult times and not generate a return on investment. To make sure you’re spending your money well, you need to optimize your marketing budget. Check which channels generate sales and invest more money in them. Limit your spending on ad channels that don’t generate revenue.
How to keep a business during the crisis? This is a difficult question that cannot always be answered unequivocally. It is worth adapting to the changing market conditions and re-analyzing users. Moreover, don’t scrap your marketing budget – online advertising whose effectiveness is easy to track is your chance to reach your target audience. If you reduce your advertising budget, you can stay behind the competition after the crisis is over. However, remember to optimize your budget and analyze the effectiveness of individual activities and test various solutions. Focus your attention on reaching and retaining existing customers. In this way, you increase the chance of keeping your business in the market and maintaining financial liquidity.