Small businesses are being heavily impacted by the economic downturn caused by the COVID-19 outbreak. Owning a small business in the current climate is undoubtedly a very difficult position to be in.
During this time of uncertainty, I want to offer some extra support to businesses out there who are after some marketing guidance, as well as share some insights from my experience over the years.
I saw the birth of digital marketing off the back of the GFC in 2007 and was inspired to develop and upskill myself, while being continuously frustrated and disappointed by the lack of foresight from Enterprise marketers. This led to me founding my own business, FocusedGrowth®, in 2017.
This is a really difficult time for small businesses and consumers alike, so it can feel like pulling the plug on marketing budgets is the right answer. When it comes to digital marketing specifically, this couldn’t be further from the truth. In reality, if there were a time to go all-in with digital, it’s now.
1. It’s a cost-effective marketing strategy
Digital marketing is incredibly cost-effective when compared with other advertising strategies. It allows a more nuanced and targeted approach to marketing that other forms do not. Messages can be tailored for specific audiences, meaning that you’re paying less to reach the right people at the right time, not paying more to reach a higher volume of people.
During the GFC, marketers spent 14% more on digital advertising in the first 9 months of 2008, than they did for the entirety of the previous year. In periods of recession, consumers move towards social media platforms to experience stronger feelings of connectedness amidst adversity. This is even more relevant now, with people in a state of self-isolation due to the outbreak of COVID-19, and spending most of their time online trying to stay in touch and sate their boredom.
2. Strike while the competition sleeps
Be where customers are looking, especially as there may be a lull in your competitors’ marketing efforts at the moment. Historically, businesses that continued to spend on their marketing efforts during times of recession are the ones that regained their footing the fastest.
I encourage small business owners to act swiftly. Small businesses have the advantage of being able to make agile marketing decisions that larger corporations often take longer to settle on and roll out. Get in before the Enterprises begin shifting their marketing focuses digitally. It will give smaller businesses a chance to compete without going up against big corporate budgets in live digital auctions.
3. Opportunity for short-term and long-term strategy
Now is a really good time to be looking into your long-term content marketing strategy to build your digital authority. As such, any content marketing strategy is underpinned by a highly targeted Search Engine Optimisation (SEO) campaign. When the dust settles you want your brand to be the one with the highest authority.
SEO will help you tidy up your web presence for when things are back to business as usual. If competitors begin to wind back their digital marketing efforts and you have been working on optimising your organic listing, this will enable you to rank higher and be seen more often for relevant searches.
In the meantime, kicking off an Email Marketing campaign is a cost-effective (no media costs involved), and more direct way of engaging with your audiences. Just make sure your message is supportive and sensitive to the situation at hand.
This is not the time to monetise, but rather, keep your community engaged and informed. The brands who focus on building genuine relationships right now will benefit in the long run. Perhaps use it as an opportunity to check in with your current customers, make sure they’re okay and let them know that you’re still in operation and here for them if they need any assistance.
4. Consumers Are Still Buying
Don’t forget that there are consumers out there who are still buying!
With digital solutions being agile and arguably the easiest to use when pivoting a business’ marketing strategy, it’s the right place to allocate and retain your marketing budget in order to stay in front of prospective clients.
According to The Harvard Business Review, there are four different segments of people who prioritise their purchases in different ways, during periods like the GFC or the global COVID-19 pandemic that we’re facing now. This is referred to as ‘Recession Psychology’.
Only some consumers will fall into the ‘slam-on-the-brakes’ category when it comes to spending. It’s true that many might be more cautious at this time, but this also gives small businesses the opportunity to demonstrate and provide value for these prospective clients when they need it most.
To assist with this, the Australian government is in the process of releasing stimulus packages in order to encourage people to continue spending and support local businesses like yours.
Additionally, consumers who are in the later stages of the buying cycle for various goods and services are still likely to go ahead. These prospective clients have a higher intent to purchase and are therefore more valuable, so your business is going to want to be there when they are ready to buy.
5. Cleaner Traffic
Consumers with a lower intent to buy are less likely to be searching during this time, meaning that the traffic coming through your online advertising is going to be ‘cleaner’ and more relevant for your business.
Now is the time to ensure your campaigns are using highly-targeted keywords and are tailored to very specific audiences and demographics, in order to capture these searchers with high buying intent. This should mean a higher return for your ad spend.
During this time, people are mostly limited to doing their research for goods and services on the internet, such that when they do decide to buy, it will be because of what they saw online.
At FocusedGrowth®, we want to help small businesses in whatever way we can during this challenging time. That’s why I am offering a complimentary digital marketing audit for your business. Get in touch with me here to schedule your appointment – remote session of course 🙂
Stay safe everyone, Noah Myint.