The economy is slowing down. Getting customers is getting more difficult. Recessions are inevitable, and you’ll inevitably go through one – or multiple as a business leader. So how do you ensure that your business survives the economic downturn? Proven strategies to help businesses endure a recession can be found in every industry, from retail to hospitality. In this blog post, we’ve gathered our top four proven strategies for surviving a recession!
What is a recession?
Several economic experts are saying that we are on the brink of another recession. An economic recession is a period of an economic downturn that is characterized by a decrease in economic activity, such as a decline in the gross domestic product, also known as GDP, and an increase in unemployment. Recessions are typically defined as two consecutive quarters of negative economic growth, but other indicators, such as a decline in retail sales, industrial production, and business investments can also identify them.
Now many entrepreneurs and service-based sales professionals will use the economy as a reason that we can’t generate sales. However, there are also those businesses that have figured out how to survive the recession and thrive after that. So what did those companies do? Let’s break it down.
First, they are incredibly clear on who their target market is.
If you’re trying to sell to everyone or you’re trying to market to everyone, you’re not marketing to anyone. So they got really clear ‘who is the market that I’m serving? What problem do I solve for them? And how am I going to get my message out? Who is going to benefit from my services?’ If you can answer those questions instantly, you’re already on the right track.
Second, they’ve adjusted their pricing metrics.
Now, this doesn’t always mean lowering the price. This means making adjustments in your product or service offering that will incentivize customers to come to spend some time with you. For example, if you’re a service provider in the beauty industry and you have repeat clientele, can you give an incentive or a discount on the very first visit? If you’re a service provider, can you offer a guarantee, fully refunded guarantee on the quality of your work? And others.
The way you present your price to a customer has a direct reflection on whether they see value in it, or whether they think it’s too expensive. So we have to present in a manner that’s feasible for them. Now, look, we love high commissions. I’m all for that. However, think about your relationship with your customer as a date.
You take some time to enjoy the bread, water, appetizer, and salad before you go for the main entree. In your pricing, this means finding ways to get your customer to say yes to purchasing something of smaller value first before you continue to grab the additional value. You have to make some sort of pricing adjustment if you’re struggling to get customers during this economic recession.
These are examples of what companies did to survive the previous economic recession.
Third, those that were savvy in digital marketing excelled exponentially.
And those that stood with what they’ve always done didn’t do so well. Now, let’s just talk about digital marketing for a quick second. If you are familiar with the concept of funnels, then you know how to use social media ads, get their emails, then direct them to your products. That is the norm. So how do you expand in digital marketing? You can do 360 marketing where you find your avatar in every place. Get creative and find additional ways to get your product or service placed in front of your prospect’s eyes. Are you text marketing right now? Do you have a chatbot on your website right now? Are there different ways to keep this dialogue going with any potential customer? The world of digital marketing is consistently evolving, and you want to make sure you stay on the cutting edge. The market is changing, the consumers are savvier, and every other small business owner is doing it. So stay on the cutting edge and ensure you’re using a digital marketing program.
Finally, they expanded their service portfolio.
One, if you’re incredibly clear on the target market you’re serving, think about how you can expand your service portfolio on what it is that you offer them. What can you do that’s lateral within what your avatar cares about, what my business cares about, and what’s in alignment? For example, I do sales training and consulting for small businesses that are service-based. And so one of the expansions we’ve created is, taking the exact CRM we use in our system and implementing it into our customers.
If you expand your services and you have existing customers that are willing to spend more money with you, while the cost of client acquisition is zero, then take that upsell in revenue. So how can you expand your services?
During the last economic recession, numerous companies survived and thrived exponentially. Is it going to be you during this next one?
If you want more of the best recession-proof strategies that were industry specific, click here and book a call with me! I’d love to hear from you, and I’d love to share some strategies that are applicable to your industry.