The Recession Marketing Recipe:

When the total market size decreases, money gets tighter and your industry braces for the impact of the impending recession what do you do? Well, one thing is for certain: most of your competitors will reduce their marketing budgets. Had that not been the case, you would have been competing even more fiercely for a fewer number of prospects. But chances are that most will reduce their budgets – so even if you have fewer potential clients you also have fewer companies pursuing them.
This insight captures the tremendous opportunity which lies ahead of us. Those of us who are actually able to help clients close more sales with less advertising through an optimization of the client’s website yielding a significantly higher rate of conversion will prosper in this market climate! The logic is pretty simple: if your website converts better, your cost per sale decreases – that leads to higher profitability – and the money saved can be channeled into more marketing campaigns – which leads to a higher market share.
So the point is: it is always going to be a tremendous competitive advantage to reduce customer acquisition costs faster and better than the next guy, but the opportunity to grab additional market share is even better during an economic downturn, when your competition is cutting back it’s marketing spend.
During a recession its clear that smart companies cant afford not to improve their conversions. If you budgets are tight – then reallocate funds from other areas (corporate branding, forinstance) in favor of increasing your conversions
The recession recipe:
* Optimize your traffic generation – get smart about it!
* Get more sales from the existing traffic
* Lower the cost per customer
* Increase the retention rate
* Raise lifetime value
* Make the effects long lasting
How do you do that? Well, that is how we make our living in Fredericiagade, Copenhagen.