How To Market In A RecessionApril 15, 2020
Hey Evolving Entrepreneurs,
Should I cut my marketing costs to ‘weather the storm’?
Discontinuing marketing is like fasting. You might feel better for a little while… until your business begins to decline and your ribs start showing.
Marketing is the lifeblood of your business.
Marketing is NOT an expense – it’s an investment.
“During recessions it’s more important than ever to remember that loyal customers are the primary, enduring source of cash flow and organic growth. Marketing isn’t optional—it’s a “good cost,” essential to bringing in revenues from these key customers and others.” – HBR
It can certainly be easy to slip into a scarcity mindset, making you want to hold onto your dollars for dear life. But let’s look at facts: a 7.8% unemployment rate would mean that 92.2% of the population is still working.
And 100% of them still need products and services to make their lives easier.
Consider the marketing advantages that are in your favour:
- Your competition has probably stopped marketing. They are ‘fairweather’ business owners, waiting for everything to blow over before making the effort.
- Due to #1, advertising costs are at a steep discount. Many agencies have seen their cost per lead drop significantly. More on that later.
- People are at home consuming more media than ever. Facebook, Instagram, and other media channels report upwards of a 40% increase in their usage.
- Those who continue to market through the quarantine will experience improved financial performance through the coming years.
It sounds like this could be an ideal time to invest in marketing, no?
Being a successful business owner long-term means thinking long-term: how do you want to emerge from the recession?
Now, if COVID has caused you to lose all of your business, what can you do?
First off, I am truly sorry for your unfortunate circumstances. Secondly, I’ve prepared a case study of a friend’s company who is taking bold action despite the circumstances.
Engine Interactive (EI) is a successful lead generation company for dentists. Because dentists are not considered an essential service, all of their clients have cancelled or paused their contracts. Before the lockdown, their cost per lead was $20-$40.
Not to be deterred, EI created and launched a Facebook campaign in late March 2020 offering a free “COVID-19 Survival Guide for Dentists” as an opt-in for their email.
In less than a month, this campaign has produced 5,000 leads…
…at $0.80 per lead. 25-50x cheaper than their usual cost per lead. Mic drop.
Of course, they haven’t converted any of these leads to paying customers yet. But EI continues to deliver goodwill and valuable content to help dentists during this time…
And whenever quarantine is lifted, there will be a landfall of demand for dental work from everyone who has been stuck at home.
And who are those dentists going to trust to help them capture all that demand?
I would rather be dangerous with 5,000 leads, than safe with a few thousand dollars in the bank.
Is now the time to tighten your purse strings? Or is now the time to invest?
PS: Need guidance on how to grow your business with digital marketing? Schedule a free advising session today and I would be happy to help.
Evolving Entrepreneur Newsletter
for systems, insights, and playbooks to grow your business