One thing that business leaders should be aware of is that economic downturns are inevitable, just as change is inevitable. Yet, most businesses are often unprepared when economic downturns happen. No wonder more than 100,000 businesses have shut down. The leaders of enterprises are left standing clueless concerning what strategies to adopt for business survival during a recession. Most entrepreneurs are also wondering how the recession affects marketing.
The answer to the question of survival during this time of economic recession lies in partnering with an expert. There are several agencies out there that have an idea of how companies can stay afloat. One of these agencies is Convert ROI by David Schloss.
About David Schloss
David Schloss is an online entrepreneur and marketing expert. He is considered one of the top social advertising trainers and has been rated as one of the top “Experts to Watch” by Forbes Magazine. Over the years, David has helped hundreds of businesses improve their website traffic, customer acquisition, and revenue using social media advertising. One of his expertise is in the psychology of running a high yielding Facebook Ad. Campaign. He helps his clients yield high conversions from Facebook ads, whether it’s through his fully managed private client work, consulting, intensive training events, or keynote speaking.
David is the Founder of Convert ROI, a highly successful digital marketing agency that focuses exclusively on Facebook and Instagram ads. The company, founded in 2013, works with clients interested in an integrated advertising approach. The agency helps businesses to succeed by taking complicated social ad plans and seamlessly turning them into easy-to-follow revenue-producing campaigns. Through the agency, David has managed over $2.5 million per month in paid advertising via social advertising channels. So far, they have worked with over 400 companies, including businesses listed on the Dow Jones, Nasdaq, and Fortune 500.
Helping Businesses Scale-up Through An Economic Downturn
Small to midsize businesses play an essential role in the economy. They are the platforms through which the market can bounce back after the recession. For instance, during the Great Depression, 92% of job growth was from mid-market companies. However, for businesses to play a role in the bouncing back of the economy, they first need to manage the chaos. According to David, businesses manage chaos by adapting fast to the present changes, such as transitioning to remote working and scaling back on costs. If you don’t have a recession plan yet, then this is the right time to craft one.
One of the ways that companies scale up through an economic downturn is by focusing on existing customers. David says that although there is no playbook on how to market to existing customers during the COVID-19 era, there are still subtle ways that businesses can use to connect with their customers. The key is to understand consumer psychology during an economic downturn and then fine-tune your marketing campaign in response to this psychology.
During recessions, customers are not motivated to purchase things that they consider ‘luxuries.’ Instead, customers limit their spending and prioritize other things, including safety from the pandemic. Companies, on the other end, are postponing investments, reducing costs and prices. However, David notes that one thing businesses should refrain from is slashing costs indiscriminately. Cutting marketing costs, for instance, is not advisable as you can still market your product to communicate that your company still exists.
Scale Your Business By Changing Your Marketing Tactic
This is the time when enterprises should use their content, including the images and tone. Your images should bear in mind the emotional state of your target audience at this point. We find ourselves at a time with a high unemployment rate, general anxiety, and economic uncertainty. As such, you should be mindful of your tone at such a time, light humor, for instance, may not be well received.
By the end of the day, companies make sales because people have the purchasing power. Therefore, in this COVID-19 pandemic, businesses need to understand that the psychology of the consumer has changed. Right now, most people do not have disposable income. Also, factors such as uncertainty about the future and well-being of friends and families demotivate the need to indulge in senseless consumption. When enterprises understand this psychology, they will be in a better position to change their marketing campaign.
David Schloss is a paid traffic and customer acquisition expert. Even though we are in a time of economic downturn, David can help you figure out how to help your business survive during this pandemic.