Ecommerce Marketing In a Recession
How to Adapt and Things you Need to Know
Digital Marketing Looks Different in a Recession:
Ecommerce marketing in a recession can look very different. An economic recession can have a significant impact on digital marketing efforts. As consumers’ purchasing power decreases and businesses’ revenue declines, businesses must adapt their strategies to stay competitive. Here are a few ways that an economic recession can affect digital marketing and some tips for how to navigate these challenges.
One of the most significant effects of an economic recession on digital marketing is a decrease in consumer spending. As people’s disposable income decreases, they are less likely to make large purchases or engage in luxury spending. As a result, businesses may see a decline in sales and revenue. This can make it difficult for marketers to justify the cost of their digital marketing efforts, particularly if they are not seeing a return on investment.
One of the first places for businesses to cut back spending in a recession is with their paid advertising budgets. This means, in some industries, the cost to show up on Google, Meta, etc can become cheaper because there is less competition in the space.
In general, we recommend continuing to spend on social platforms for ads. It can be a great time to run very efficient ads and overtake your competitors.
An economic recession can also lead to changes in consumer behavior. As people’s disposable income decreases, they may be more likely to research products and services online before making a purchase. As a result, marketers should focus on building trust and authority with their audience by providing valuable, informative content. This may include creating educational resources, such as how-to guides and product reviews, that can help people make more informed purchasing decisions.
Ecommerce businesses should consider promoting deals, discounts, and other special offers to attract customers who are looking to stretch their budgets.
Additionally, with the increasing use of digital channels for transactions and communication, it is essential for businesses to ensure the security of their digital assets. As economic downturns often lead to an increase in fraud and cybercrime, businesses should increase their online security efforts to protect their customers and maintain trust.
Ways to Succeed as at Ecommerce Marketing in a Recession
Ecommerce businesses face unique challenges during a recession, as consumers tend to cut back on spending and focus on necessities. However, with the right strategy, ecommerce businesses can still thrive during tough economic times. Here are some ways ecommerce businesses can market online during a recession:
Focus on value
Consumers are looking for the best deals during a recession, so ecommerce businesses should highlight the value of their products and services. This can be done by offering discounts, free shipping, and other promotions. Additionally, businesses can showcase the quality of their products and how they compare to similar products on the market.
Frame your product as a necessity during this time, or something that brings happiness and relief. The average person isn’t splurging on luxuries right now. Adapt your product story if need be.
Leverage social media
Social media is a cost-effective way for ecommerce businesses to reach a large audience. During a recession, businesses can use social media to connect with consumers and build relationships. This can be done by creating engaging content, running contests, and offering exclusive deals to followers.
Optimize for search engines
Search engine optimization (SEO) is crucial for ecommerce businesses during a recession. By optimizing their website for search engines, businesses can increase their visibility and attract more customers. This can be done by using relevant keywords, creating high-quality content, and building backlinks. Having good SEO increases the likelihood of winning free sales from consumers, instead of having to pay to show up through ads.
Having good SEO is also crucial for paid advertising, especially as a lot of paid ads are shifting to being driven by AI. Make sure your H1 tags, meta descriptions etc are optimized so Google can tell exactly what each page is about.
Check out this blog on the ways SEO can benefit your business’ Google ads.
Utilize email marketing
Email marketing is a powerful tool for ecommerce businesses, as it allows them to target specific segments of their audience. During a recession, businesses can use email marketing to promote sales, offer discounts, and showcase new products. Additionally, businesses can use email marketing to gather customer feedback and improve their products and services.
This is a very cost effective and efficient way to communicate with people who have already expressed interest in your products. Never underestimate the power of a large and engaged email list. We recommend emailing your list once a week to establish trust and grow engagement.
Emphasize customer service:
In a recession, businesses must be more responsive to customers. Ecommerce businesses should ensure that they have a high level of customer service. This can be done by responding quickly to customer inquiries, offering free returns, and providing helpful advice.
Embrace online marketplaces:
Online marketplaces such as Amazon, Etsy, and Ebay, can be a great way for ecommerce businesses to reach new customers. By listing their products on these marketplaces, businesses can increase their visibility and attract more customers. Additionally, businesses can leverage the trust that these marketplaces have built with consumers.
When money is tight, people are less likely to take a risk with their money. Purchasing from a well known and trusted platform is not a risk.
Focus on niche market
In a recession, businesses should focus on serving a niche market. By identifying a specific group of customers and catering to their needs, businesses can differentiate themselves from the competition and attract more customers.
Build trust:
In times of economic uncertainty, trust is more important than ever. Ecommerce businesses should strive to build trust with their customers by being transparent, offering a money-back guarantee, and protecting their customers’ personal information.
It is important for your consumers to trust and love the brand. The emotional connection to the brand will increase the probability they will be loyal to you and purchase from you, even when money is tight.
Be personable as a brand. Recognize that a lot of your customers are most likely struggling financially. If possible, launch a campaign that aims to alleviate some financial stress or bring some happiness into your customers’ lives. Never underestimate how far a small act of kindness from a brand can go. You will attain lifelong customers.
In conclusion, ecommerce marketing in a recession can still be very successful. Focus on value, leveraging social media, optimizing for search engines, utilizing email marketing, emphasizing customer service, embracing online marketplaces, focusing on a niche market, and building trust with their customers. With the right strategy and approach, ecommerce businesses can navigate the challenges of a recession and continue to grow.
Schedule a call with Murray Marketing Team for a free account audit. We would love to partner with you during this time to help your brand win, even during a recession!