Surviving The Recession
Most small businesses have already started noticing a decline in sales enquiries since autumn 2018 and could feel the effects of the “technical” recession long before the numbers were published. Almost everyone we speak to had cashflow problems during the past few months and most SME’s reported a decline in sales requests. Our latest recession combined with higher fuel costs creates an endless circle of decline and many small businesses will be struggling for survival.
One of the main observations we have noted is the large increase in marketing expenditure on Google and Facebook Ads. Many businesses are competing aggressively to dominate search results to increase their online visibility. This helps them sustain their businesses and cash-flow during the financial slump by generating more clients.
Our advice is to ensure your website is perfectly optimised for sales flow and that your Google Ads have the best possible conversion rate settings. There are many ways to increase your conversions (sales leads) and decrease your cost per conversion using historical data. We can help you build the perfect Google Ads campaign.
What is a Google Ads Conversion Rate?
The industry average for Google Ads conversions is about 2.35% and the top 25% of optimised accounts have a 5.31% conversion rate. We try to aim for a 10%+ conversion rate, but this takes time to build and requires lots of careful optimisations on both the website landing page and the Google Ads account.
Recession Survival Tips:
- Look for new opportunities within your business or new ideas to make the current service more profitable and streamlined.
- Consider expanding to new areas or even globally if you offer a product or service that appeals to a global market. Don’t be afraid to move beyond the local area if your sales are slowing down.
- If your target market is suffering financially, change your offers or evolve your offer to find a new target market.
- During a recession, businesses and people will make hard choices about what expenses to cut. Try to find ways to compromise with a cost-effective solution to maintain the business relationship until finances improve.
- During a recession, people are more focused on price comparison and shift their priority towards value and will usually choose a product or service that represents the best compromise between price and quality.
- Consumers and business are spending money more carefully and tend to do more research when selecting a new product or service provider. Ensure your customer reviews are looking good and use good reviews in your marketing material.
- Use the internet wherever possible! Many stores are closing their physical shop locations and opening virtual eCommerce stores. You save massive amounts per year in rent and offer a more convenient shopping experience for your clients. Woolworths, Take-A-Lot and Domino’s pizza have very user-friendly and efficient online ordering systems.
- Don’t stop advertising! When cash-flow starts to decline, many businesses examine their budgets and start reducing costs including their advertising budget. This is only a short-term solution and cutting your marketing budget will decrease the already dwindling sales and will cause more harm to your cash-flow.
Almost any business can survive an economic rescission if you are committed to improving your business. Work closely with your marketing company to see where you can improve and what else you can do to increase your online visibility, target market and profits. You can survive the storm and emerge stronger.