Well, it’s about time we had a discussion about ecommerce marketing strategies during an economic recession.
Not an easy subject to discuss, but it is looking more and more like this is a reality we will all need to contend with.
In times of financial uncertainty, businesses often wonder how to navigate the storm and emerge stronger in the digital landscape.
In this blog post, we’ll answer some key questions about marketing during a recession and provide practical strategies to help your online business not only survive but thrive in challenging times. So, let’s dive in!
During a Recession – Where Should You Focus?
When it comes to marketing during a recession, ecommerce brands need to adapt their strategies to the digital realm. There is no one-size-fits-all—however, there are some key elements of a successful strategy.
Understand shifting consumer behavior: Identify how your target audience’s online shopping habits and preferences change during a recession.
Tailor your messaging and offerings to meet their needs effectively. Are you seeing more organic traffic, more social media activity? You will need to adapt your marketing to this changing behavior.
Emphasize value and affordability: Highlight the cost-saving benefits and value propositions of your products or services to resonate with cost-conscious consumers who are seeking affordable options.
If you can’t use this approach, consider a “product longevity” approach showing how your product will last longer than your competition.
Utilize targeted digital marketing campaigns: Leverage data and analytics to segment your online audience, refine your messaging, and optimize your marketing spend for maximum impact. Focus on platforms and channels where your target audience is most active.
You can personalize it to a pretty granular level. Your website, social, SMS, email—if you can segment it, personalize it.
Enhance your online presence: Invest in search engine optimization (SEO) to improve your website’s visibility on search engine results pages. Leverage social media marketing, influencer partnerships, and email marketing to engage with your audience and drive traffic to your ecommerce platform.
All in all, your organic customers are your most profitable—harnessing the buying power of these ecommerce customers can help see you through the dark times.
Ecommerce Advertising During a Recession
Digital advertising can be a powerful tool for online businesses during a recession. With more people spending time online, the digital landscape becomes even more enticing.
Here are a few reasons why tailoring and optimizing your online advertising can perform well during a recession:
Cost-effectiveness: Online advertising often provides better cost per conversion compared to traditional offline advertising methods.
Remarketing using offline conversions and customer data can also be an even lower-cost approach to apply to your Google and social media advertising.
Targeted reach: Through digital platforms, you can precisely target your audience based on demographics, interests, and online behavior, ensuring your marketing efforts are reaching the right people at the right time.
You can also use customer purchasing “triggers” to target customers by products purchased in the past—you don’t want to offer them something they already have.
Measurable results: Online advertising platforms offer robust analytics and reporting, allowing you to track your campaigns’ performance, make data-driven decisions, and optimize your strategies for maximum return on investment.
This is critical for optimizing your campaigns and focusing your ad spend on your highest-performing ads or ad groups. Without data, you are flying blind.
Thriving During a Recession
To make your online business thrive in a recession, you need to balance your marketing investment throughout the marketing funnel (aka the buyer’s journey). To get you through uncertain times you want to focus on those lower-cost but higher-impact channels wherever possible.
Optimize your website: Ensure your ecommerce site is user-friendly, visually appealing, and optimized for mobile devices. Streamline the purchasing process to minimize friction and maximize conversions.
Updating even minor navigation, product page categories, etc., can make a huge difference. When customers are being more cautious with their spending, you want the experience to be as smooth as possible.
Personalize the online shopping experience: Leverage customer data to deliver personalized product recommendations, tailored promotions, and relevant content. Provide exceptional customer service through live chat support, responsive email communication, and timely order fulfillment.
Experience is king, if you can upgrade the experience, even 1%, do it.
Expand your online reach: Explore partnerships with online influencers, bloggers, or content creators in your niche to expand your online presence and reach new audiences. Collaborate on content creation, reviews, or giveaways to increase brand awareness.
If you know of a complementary brand online that is in the same boat as your brand, teaming up could be a great move. Power in numbers!
Leverage social media platforms: Engage with your audience on social media channels where they are active. Share user-generated content, behind-the-scenes glimpses, and interactive posts to foster a sense of community and build brand loyalty.
Time will be your biggest investment, but this is the time you should be communicating more, not less. And—to make an important distinction—be sure you spend more time engaging with your audience than simply posting.
Does Marketing Online Matter During a Recession?
Marketing is crucial for online businesses during a recession. The fact is you can’t drive on an empty tank of gas, and turning off the spigot (so to speak) completely will just leave you further behind when the tide turns. Here are a few things to consider:
Increased online activity: During economic downturns, people spend more time online, making it essential for your business to maintain visibility and engage with your target audience through strategic marketing efforts.
Online activity may shift, but it doesn’t stop. Your analytics will play a huge part in understanding the mindset of your customers during a recession.
Enhanced brand differentiation: With increased competition online, effective marketing helps your business stand out from the crowd and highlight your unique value proposition.
You may need to pivot to new differentiators that speak to your customers’ new friction points based on tighter economic times.
Building customer loyalty: By staying engaged with your customers through consistent marketing efforts, you can foster loyalty and maintain strong relationships. This is especially important during a recession when customer retention becomes crucial for long-term success.
If you can ramp up loyalty efforts now you will also be able to reap the benefits when the economy turns around.
Adapting to changing consumer behavior: Marketing allows you to stay attuned to shifting consumer needs and preferences. By understanding how your target audience’s online shopping habits evolve during a recession, you can tailor your strategies to meet their changing demands.
Is your product a necessity or a “nice to have?” You may need to pivot your messaging depending where on the “needs spectrum” your product lands.
What Can Ecommerce Brands Do?
In addition to the strategies mentioned above, here are some specific actions ecommerce businesses can take to sustain and even thrive during a recession:
Offer special promotions and discounts: Create compelling offers to entice customers and provide an extra incentive to make purchases. Consider limited-time discounts, bundle deals, or free shipping to attract price-conscious shoppers.
Remember, new customers are likely going to need a different promotional hook than returning customers. You might even consider using a “loss leader” approach to bring them in and then make up the difference via repeat purchases.
Leverage social proof content: Encourage customers to share their experiences with your products or services through reviews, testimonials, or social media posts. User-generated content not only builds credibility but also serves as authentic social proof for potential customers.
When customers are pinching pennies, leveraging social proof can (and will) be immensely powerful.
Upgrade your content marketing: Create valuable and relevant content, such as blog articles, videos, or tutorials, to engage your audience and establish your brand as a knowledgeable authority in your industry. Share this content through your website, social media channels, and email newsletters to drive traffic and nurture customer relationships.
The majority of the buyer’s journey is spend in the consideration phase (mid-funnel), so double down on your content marketing to take advantage of this.
You Got This!
Marketing during an economic recession requires online businesses to adapt their strategies to the digital realm and meet the changing needs of consumers.
By emphasizing value, optimizing your online presence, leveraging targeted digital marketing, and engaging with your audience through various channels, you can position your online business for success.
A recession does not have to hinder your growth.
With a proactive and customer-centric approach, you can thrive, build customer loyalty, and emerge stronger in the online landscape. So, embrace these strategies, stay agile, and keep your online business on the path to success.
If you need a helping hand, contact our team here at National Positions and we will help get you on the right track.