Many people are feeling the pinch at the moment and lots of businesses are feeling this too (you can read all about this across media outlets and institutions such as ANZ, The NZ Herald, (and here) Auckland Business Chamber, and interest.co.nz).
How does this impact your marketing efforts in the foreseeable future?
Statements such as this from Simon Bridges, CEO of the Auckland Business Chamber, “68% of business owners believe the current state of the New Zealand economy is either poor or very poor. Over half (54.5%) expect the economy to decline over the next 12 months, with only 14% expecting an improvement. An indication that the tough times are set to continue for the foreseeable future,” are everywhere. Littering the media and scaring even the most confident of business owners.
When it comes to your marketing and promotions during times of challenge, what actions should you be taking?
1. Make sure you know your numbers
This one applies at any stage in business, but is often overlooked. You need to know how much profit you make from selling a single product or service. Once you know this you know at what point you are making profit in your business (which is of course the goal!) and then you can work out what you have available to spend on marketing and what you need to make from every $1 you spend on marketing (and bringing in more sales!).
There are heaps of great free calculators online to help you work this out (such as this one from Calculate.co.nz)
Without understanding your basic numbers you don’t know what is making you money and what might need cutting.
2. Don’t rush out to slash marketing budgets
Reducing costs is commonly discussed with accountants, but it is super important to look at the complete picture here. If you remove or reduce your advertising or marketing budget, what is the direct and real effect you will feel from this. For example, if your social ads generate 5000 new monthly website visitors and 100 sales, valued at an average of $45 each per month, be very cautious when looking to reduce your ad spend, as what will your income look like without those 100 extra sales being generated.
Another huge benefit of continuing to have a strong marketing focus in times of downturn is that you become more likely to stand out. Competition is generally less, which can mean you are seen more, and it is cheaper to be seen. Then when things pick up, potential customers are thinking of your business over others, as you have worked on your awareness, growing your audience and keeping in front of the mind.
3. Focus on your existing customers
Your existing customers already know you, like you and trust you and are a great place for you to maintain a stable income and to sell further products or services too. Find out what this group likes about your business and do more of what they like. Whether that means creating certain types of social media posts, special offers or sending more emails.
Referrals from these customers are also extremely powerful in any industry. My advice would be don’t be afraid to ask for reviews and referrals.
4. Collaborate and innovate
Use these times to work on service or product development to grow sales (and set you up for the future as well!).
Collaborations can help you reach new audiences and can be as simple as a joint giveaway or a collaborative product. Don’t be afraid to reach out to other businesses and create connections, the worst they can say is no.
Innovation can help you see gaps in the market to help you grow your business or meet new needs that come out of the economic environment. We know from recent times that the ability to pivot and see opportunities can make extremely successful businesses.
Through innovation and collaboration, you can reach new audiences, better serve your customers and possibly even grow your business during a recession!
These are just four of my top tips for marketing your business during challenging economic times. There are endless lists of things you can do, depending on your industry. If you would like to chat more feel free to get in contact with us 🙂
