3 lessons you can learn from the recessions ”(3 tips to recession-proof your business using a digital approach)”
The Coronavirus is changing consumer behavior and it’s important that you understand these changes and adjust your business practices accordingly. Justreal, CMO Justin Roberts shares some insight.
Today I want to talk to you about four short-term behaviors that we are seeing amidst this crisis amongst all consumers and three tips for how you can make sure your business survives and thrives in this environment. So first just think for a minute about the major incumbents that we see across many different industries. Those players often have a really hard time transitioning their business when things change at a rapid pace. So recently a travel agency out of Nashville, Tennessee laid off 100 employees. They are not set up to really reap the rewards of having an entire population buying digitally. Their digital footprint is nowhere near as strong.
So this is normal-we see this all the time. If we look back in history when there were ice harvesting Barrons selling ice, they didn’t see the transition to people creating whole factories for creating ice. And then from there, those companies didn’t see the advent of that home refrigeration and icemakers right in your own home. And so people continued to miss out on these incredible shifts that can happen sometimes over a long period, sometimes overnight and their business isn’t able to survive. These shifts can actually be an increase in your business if you have strategically positioned your digital market
- People are Now Are Very Germaphobic
The second thing is right now more than ever, and for good reason, people are incredibly germaphobic and that is going to most likely continue right. After we witness something like this with the current Coronavirus, it’s not like when this ends we’re automatically going to go back to our old ways. We are going to continue to think about before we go to a large gathering or a huge public event. We are going to make sure to wash our hands and I think people for a while at least will tend to want to do more things digitally.
- People Will Transition To Everything Digital
This leaves me to point number three-a huge transition to all things digital, whether it’s foregoing a trip to the grocery store because you can order your groceries online and have them delivered to your home right. So a transition to everything digital. Whether it’s working out from home, getting your groceries delivered. Yes, some of those things you’ll continue to go back to doing the way you did before, but a lot of these behaviors are going to carry over.
- People Right Now Want Value
And that leads me to point number four which is a focus on value. So right now when there is so much unknown and uncertainty about the future, about your old job, your income, the amount of money your family will have in the months to come if anyone will be laid off, people are incredibly focused on value. What can I get for the dollar that I’ve earned? And that will continue to carry over as well. A lot of psychologists talk about that a recession or a depression that people go through doesn’t end when that ends, psychologically we carry it with us and even pass some of those values down to our children and we’ve seen this historically in the past with people who went through the great depression, passing a lot of those cost-saving behaviors onto their own children. So those are four ways that the current crisis is impacting us.
3 Ways Businesses Can Adapt- Go Digital And Provide Value
Now let’s think about how we can take the mindset that we know investors have and make it so that our business can thrive going forward and survive this economic downturn. So the three tips I have for you actually come straight from those behaviors. Number one- make everything digital. And number two-focus on value. If you do these two things, your business will be very well positioned to withstand this and thrive in the future. Here at Justreal we plan on showing you how to host effective webinars, how to launch social media strategies that build organic, qualified leads, how to send email marketing campaigns, and build up your list. Everything you need to know about how to prospect in this digital world.
You also want to think about how you are connecting with your current clients digitally. Do you make it very easy for them to get their quarterly statements and reports in a digital manner? Do you make it easy for them to just book a time on your calendar for your quarterly check-in call? All of those things for your current clients should be digital as well.
In terms of focusing on value, there are a few things you should do. Number one- make sure that you provide your customers with detailed information about what you specifically offer and make sure it’s something your customers can benefit from and how clearly stated on your website. There’s been a lot of talk about people being less likely to try something they don’t understand during times of uncertainty. Try to offer more literature that helps your customers feel more knowledgeable about what exactly you offer and what solution it solves.
Another thing I highly suggest you consider structuring your business to a model such as a monthly packaged offer. Having this model is becoming incredibly popular across all industries. It can be automated, so again going back to that digital mindset. And having that ARR, that annual recurring revenue for your business really allows you to know in advance how much money is going to be coming in the door every month and to survive these types of economic downturns and weather the storm.
So again, I’m Justin Roberts from the JustReal team. I hope these tips are helpful to you. Please subscribe to our blog for even more tips. We release a new blog post every week that is just here to help you run your business strategically and if you have any questions at all, don’t hesitate to ask. Stay adaptive and learn from this downturn in your business.