| 4 min
August 17th, 2022
Recession is a scary word for many business owners. It often means a time of uncertainty, stagnation and cost-cutting. However, when planned correctly, a recession doesn’t have to be all doom and gloom. Although it’s wise to contain costs, digital marketing and eCommerce growth aren’t impossible.
By working with an eCommerce growth agency or a team of digital marketing experts, you can avoid the dreaded recession flatline and come out the other end successful. Don’t make the mistake of failing to support your brand or avoid examining your core customers’ changing needs for the sake of some short-term uncertainty.
The marketing budget is often one of the first to be cut when an economic downturn hits and, as history has shown us, marketing departments often find themselves in poorly charted waters because they are expected to deliver results with strategies and budgets being unconfirmed or frozen. While this may SEEM like a quick win for business owners, this action can seriously jeopardise performance over the long term.
In this article, we will give you some top tips on eCommerce growth and eCommerce marketing in a recession and how an eCommerce growth agency can help you through this uncertain time.
Tips for eCommerce growth in a recession
Many retailers and eCommerce businesses are feeling overwhelmed and unsure by the uncertainty surrounding today’s economy and impending recession. There is no denying that, although digital brands are the powerhouses of modern commerce, it is clear that they will be some of the first affected by economic decline.
To protect your eCommerce growth as much as possible, here are some tips from a leading eCommerce growth agency.
Keep Improving User Experience
Prices and services may change but a good user experience lasts forever. Finding ways to engage with your customers and provide a flawless purchase experience is more important than ever. Finding the friction points across your website, cleaning up the checkout process and making your online store easy to navigate are all detrimental to a good UX.
In modern eCommerce and online marketing, many customers expect a personalised service. This means anything from product recommendations right through to targeted sales and offers. In fact, UX is so important to eCommerce growth that 58% of consumers won’t buy from a brand that doesn’t provide a valuable customer experience.
If you want to offer a flawless purchase experience and improve your UX, an experience CRO and UX expert can help you:
- Optimise your website for mobile
- Clean up your categories
- Improve your CTAs
- Ensure the best content hierarchy
“People often forget that the customer is human” Taylor Offer, founder of Feat Clothing.
Invest In Value, Not Just Ads
Ads are a long-proven method for eCommerce and retail success. With new advertising management styles and platforms being introduced every year, the opportunity to be creative with your advertising has never been bigger. But sales throughout a recession require much more than funnelling money into PPC and shopping campaigns and hoping for the best. To see real brand loyalty from your customers, your USPs and added value must be represented alongside your ads.
Growth during times of hardship requires a loyal customer base and value for money. Build a level of trust with your target market. Give them solutions, not just ads. Added value is so important in modern eCommerce that 68% of millennials are not likely to buy from brands that don’t have a good loyalty program. This is a clear indication of how important a customer-friendly loyalty program or added value service is.
Understand A Customer’s Lifetime Value
With customer acquisition and the cost per click getting more expensive, it’s time to turn your attention to increasing the customer lifetime value in eCommerce. It is clear to most successful brands (and the eCommerce growth agencies that help them) that repeat customers are detrimental to eCommerce growth. Since most businesses see a momentous increase in profits when customer retention is prioritised, it is suggested that you should do the same.
But what is the secret to keeping your new customers sweet? Communication and action. Look into your sales data and establish who your most valuable customers are and then implement behaviour-based upselling techniques. These upsell/value opportunities could be:
- High-value subscriptions are targeted toward these customers.
- Add a freebie during the checkout process
- Ask for feedback without interrupting shoppers
- Provide a free trial or free delivery
Digital Marketing with an eCommerce growth agency
It is no secret that businesses have to prepare for an incoming recession. Luckily, there is data and experts out there to help you guide your business through it. If historical data has taught us anything, it’s that it’s time to be brave when others get scared.
The natural reaction to a recession is to try and cut costs, reduce prices, and postpone new investments. This is very usually first felt by the marketing department. While no one would judge you for this, it is a short-sighted reaction that could impact your brand in the long run. Companies that adapt their strategies and invest in customer experiences and product offerings in response to shifting demand are more likely than others to achieve eCommerce growth both during and after a recession.
Working with an experienced eCommerce growth and online marketing expert can help you divert your costs, collect usable data to adapt strategies and create profitable marketing campaigns to ease you through these uncertain times. To achieve growth while our competitors begin to sink, drop our team a message today.