History Shows If You Cut Less During Down Times You’ll Gain More in Better Times

Historically, businesses that have chosen a more progressive strategy of refocusing spending during a recession have outperformed businesses that made sweeping cuts, according to studies that analyzed recent recessions outlined in a blog post Thursday by CXL.com.

One study that focused on what happened during a recession affected a company’s performance after the recession. The study found that “successful leaders, trading lower short-term profitability for long-term gain, refocused rather than cut spending.”

A Harvard Business Review study of 4,700 public companies analyzed three years before, during and after recessions. The study identified the percentage of companies that outperformed their rivals: 21 percent for businesses that opted for a prevention focus (more cost-cutting) and 37 percent for a more progressive focus. The study found that “firms that cut costs faster and deeper than rivals don’t necessarily flourish. They have the lowest profitability (21 percent) of pulling ahead of the competition when times get better.”

Furthermore, a Bain report found that getting it right during the lean years has a huge impact on a company’s growth rate after the economy improves.

1. Connect With Your Customers on Social Media During a Critical Moment

We’re all dealing with the impact the coronavirus outbreak has had on our lives whether you’ve tested positive or not. We’re all taking precautions. We’re locked in our homes and our kids aren’t in school. We can’t visit our friends. We can’t eat at our favorite restaurants or go out to the movies. Sure, all minor conveniences but jarring nonetheless. This is a time to really show empathy to others and help out where you can. This is a time we all need to be sensitive — and not too salesy or pushy — but it’s a great opportunity for your brand to stand out during a difficult time. More people are on social media now while stuck at home, scanning for updates and trying to stay connected in a suddenly isolated nation.

Also, use your business to contribute to area food banks or assist the elderly with their grocery shopping. And promote your good deeds with social media marketing to help build your brand.

2. Make Sure Your Business Can Be Found Online

In case you haven’t noticed, more people are online right now than in their cars or walking the sidewalks. Search traffic has increased significantly over the past week and will continue to climb as we hunker down. We’re all glued to our computers and phones looking for updates within our community. We’re also looking for entertainment and ways to pass the time. For many, that includes shopping online.

Anything online right now will be consumed more than ever before. This is not the time to be hidden online. You should be using search engine optimization (SEO) strategies to climb to the top of Google’s search engine results pages (SERPs) so your business can be easily found. This is not a time for a business to go into a shell and poke out your head every few days to see if the sun has come out.

3. Pay-Per-Click (PPC) Advertising is a Smart Move Right Now

With more people at home in front of their screens, it’s a great opportunity for businesses to use PPC marketing to connect with their customers and gain a competitive advantage. Oh, and it’s a great chance to save some money within your digital marketing budget. On average, cost-per-clicks have decreased by 6 percent across all verticals since last week. CPC is likely to continue to decrease in the coming week, reducing the amount of money an advertiser pays a publisher for every ad click. That gives your business another opportunity to scoop up that lost market share from others pulling back during this time.

4. Stay Ahead or Jump In Front of Your Competition

SEO helps your business increase organic traffic to your website and move past your competition. You want to be on the front page of the Google SERPs — and at the top of the list — so that when your customers search for certain keywords you’re the company they end up calling. To climb to the top of the SERPs takes time and strategic optimization strategies. If you don’t continue to optimize your website and content daily, you lose valuable ground in the search results and your freefall could cost your business thousands of dollars in lost revenue.

What you don’t want to do is halt an SEO campaign. That can be a critical mistake for your business. Your leads and revenue will suffer. But if others choose to pull back on SEO, it’s also a perfect time for your business to push even harder to surpass your competitors.

5. Prepare Your Business For the Bounce-Back Surge

The coronavirus outbreak should fade (just as it has in China) after a few months. That’s when normalcy returns and consumers’ spending habits stabilize. You have to remember that SEO is more of a long-term strategy. What you do today for your SEO campaign will affect your organic search traffic two months from now. Pausing your SEO campaign now could have a detrimental impact on your revenue potential two months from now when the coronavirus starts to become a distant memory.

6. Unique Circumstances Provide Opportunities for a Special Offer

During this uncertain time period, you have the opportunity to show support for your customer base by offering special discounts that will keep your revenue flowing. Identify your product-market fit and create a special offer. Many people are at home browsing, looking for discounts to save money during a time of unrest. It’s a great way to engage with your customers and keep a steady stream of revenue that will keep your doors open. You can push out your special offers through pay-per-click (PPC) advertising and social media.

7. Local SEO is now More Relevant

We’ve all reduced our travel and are staying close to home. In the rare times when we do leave our house, we’re looking for nearby destinations for services and supplies. So you want to make sure your business is using local SEO strategies to optimize your website for “near me” searches. You want customers in your geo region to be able to easily find you online so they turn to you first. At a time when we’re all looking for more convenience, this gives your business a chance to provide assistance during a critical time for families.

8. Be Prepared to Pivot as a Business and Inform Your Customers

In a fluid situation, your business should also be fluid. This is a time that you should find ways to connect with your customers like never before. It shows empathy and keeps you relevant at a time when your business may have been impacted by people staying at home. For instance, restaurants are shutting down right now because customers aren’t dining in. You should make sure you’re offering free delivery services. Just the other day, a local Dallas restaurant emailed offering three ways to get their food into their customers’ hands: delivery, curbside ordering and parking lot pickup. Also, let your customers know you’ve increased your sanitary practices and how you’re doing that specifically.

But other businesses should pivot right now, too, as we stay in. Cosmetic surgeons could offer online consultations, work on their patient engagement with surveys, and do-it-yourself tips, and bolster their online presence by improving online reviews and reputation. These opportunities can be boosted with strategic social media campaigns as well.

9. Don’t Fall Victim to the Panic Move

How much toilet paper do you have at your house right now? If your answer is a closet full, you’re likely one of the people who flocked to the store when the coronavirus hysteria started to accelerate over the weekend. That’s not how you want to react if you want to implement a smart digital marketing strategy. You never want to make a panic move. You always want to use metrics and analyze all of the data you have available before making a decision.

Knee-jerk reactions usually don’t end well in digital marketing. Take caution when quickly reacting to a sudden shift in the economy or market.

10. Use this Down Time to Finish Your Digital To-Do Lists

Now that you’re not commuting to the office or taking in-person meetings, your schedule has likely freed up some time for you. Those marketing items that may have fallen through the cracks and been overlooked can now be addressed.

Perhaps your website needs a fresh look with a redesign. Thrive’s website design professionals can overhaul your website in two months all while working remotely. This is also a great time to have a conversion rate optimization specialist perform a CRO audit of your website to ensure your call-to-actions (CTAs) are turning leads into customers. Also, it’s an ideal time to do an SEO audit of your website to ensure you’re maximizing your optimization strategies.

If you have any questions about how WhisperMED' can help your business grow, please contact us online or call us at 970-209-6939

‍