It isn’t an easy feat to grow any business in a down economy, but we can’t pretend that it isn’t more straightforward to achieve this feat with an online business than a brick and mortar business. Starting a business requires a lot from you, especially since you want to see it grow into something very profitable. It requires even more energy, hard work, consistency, and sacrifice if you are trying to do this in a down economy.
Due to the coronavirus pandemic, we are likely to be heading into a global recession and might take a while to recover fully. Does this mean that you can’t run your online business successfully still? Definitely not! It just means that you aren’t going to play by the books when it comes to e-commerce marketing. There are many things that you would have to do differently to survive. But what are those things that you have to do to grow your eCommerce business in a down economy? In this article by top essay writing services UK and posted in the dissertation today platform, we examine a few tips to keep your online business afloat.
Focus on the customers with the highest value
At a time when the market is at a dip, your response should not be to offer excessive discounts in a bid to win over numerous customers. The truth is, many customers don’t always relate to more profit. You could bring over new people by offering mouth-watering discounts, but this is only because times are tough, and they are looking for the cheapest deal for themselves. These people are only with you for a low price. They are off as soon as they get a better deal. Guess what? During an economic downturn, they are likely to get better deals than yours. The question is, how much percentage of your profit will you continue to lose to keep them?
Instead of doing this, you can focus on your best customers and look to offer them the best and most exemplary experience. These customers are those that have very high customer lifetime value to your business. They are the ones that are loyal to your business and will continue to buy from you over and over again because of your excellent service.
Ones you know who these people are among your customers, optimize your website to suit them. This will ensure that they continue to get the best experience shopping with you. As long as they keep getting quality service, they are not likely to jump-ship. They will remain loyal to your brand, and you will make sales from them without cutting off your profit, or at leastnot excessively.
Focus on channels with high-value acquisitions
Since you are into eCommerce, you should know that not all channels are suitable for your business. That’s why your time and resources should be focused on those channels with a higher conversion rate. Different marketing channels have their own unique effect on your eCommerce business. And their ROIs are definitely not the same. During a downturn economy, your energy and focus should be on those with a high value.
Once you determine the channels that bring you the most ROI, then focus on this channel. The next thing for you is to try to work on the traffic that you get from these channels so that you can improve your conversion rate. When you try to optimize conversion from your best-performing channels, you tend to get a compound effect. According to essay writers at assignment writing service, as you continue to stack improvements one on the other, your revenue will also continue to increase exponentially.
Take social media seriously
There are different social media platforms that businesses already use to promote themselves. Most eCommerce businesses already have an account in one or more social networks such as Instagram, Facebook, twitter, youtube, etc. You probably already have one too.
These platforms allow you to advertise your product or service to your target audience for free. However, one thing that you should also know is that advertising on social media can be tricky. For instance, posting on Facebook is free. But as of 2018, the organic reach of a Facebook post is around 1.2%. This means that not many people will get to see your post and interact with it. It doesn’t matter how informative or engaging it is. If they don’t see it, they can’t interact with it.
However, you can get more results from sponsored posts. Businesses have had to pay a token to reach a broader and larger audience. This will allow more people to see your post, then they can interact with it, and from there you can start working on making more conversions. So, the best way to use social media is by sponsoring your posts. If people don’t see it, then you will keep posting in vain.
Maximize your profitability
The primary factor to keep your business growth during an economic downturn is to ensure that you continue to make a profit and maximize those profits. This will require you to have a clear focus on the profits that you make, how you make them, and stick to that. Obviously, you won’t be able to get bank loans because of the recession, so your only means to grow is with the profit that you make. This only means that you have to work with a very high level of efficiency.
You need to, first of all, determine the platforms that deliver for you best. After getting the right data and analyzing it, you’ll have a good idea of how far you’ve come and how far you are going. You can then carry out your campaigns on the platforms that work best for you; then, you put in your resources and time. With a limited budget, resource, and workforce, authors at the dissertation service put it that online businesses have to put in their best efforts on areas where they can get the highest ROI and conversions.
While the economy might continue to take its own, especially after being hit by the COVID-19 pandemic, and market conditions also continue to worsen. You can still establish your eCommerce business during this economic downturn and do well with it. The golden rule is to focus on people and platforms that offer the best ROI and work efficiently. You might even have to spend some little change, but make sure you receive it back in multiple folds.
We understand that not all eCommerce businesses will be able to grow in a downturn economy. That’s why we have these tips. With these tips, you can keep your business afloat and do well while the economy recovers. You’ll boom by the time the economy improves.