The biggest fear of almost every entrepreneur is a recession. It’s an uncertain time in which we have tough pills to swallow. But to say that the recession would take down your business and force you into filing for bankruptcy is not always the case. Because it all depends on how you approach and do business.
The COVID-19 recession was absolutely a huge win for a few e-commerce businesses. Because people are practicing social distancing, and they’re spending almost all their days inside their houses. The best way for them to shop is by ordering online.
In the following few lines, I will share with you the must-dos to help you out survive the Bogeyman of the etrepreneurial world, and hopefully by the end of this article you’ll take action and secure your slice of the pie.
Understand Your finances.
know what influences your charts the most.
The first step will always be understanding your charts and knowing what makes them go up, and what brings them down. What are the campaigns that are resulting in the highest ROIs, and find out where the buckets are dripping. This way, you’ll always be on top of your game, and know what to cut down, and when.
look at it as your business’s money, not yours.
Starters always look at the profits as their own money, which is a huge mistake. So instead of spending all that cash on nice cars and binge partying all night long, entrepreneurs should always pay themselves a salary, and keep the rest in their business’s bank account to invest in more creative ways of acquiring new customers and keeping them coming.
don’t put all eggs in one basket.
stop counting on one traffic source.
All the guys I shared my e-commerce passion with when I was getting started used Facebook, and only Facebook to acquire customers, and they were missing out on a lot of growth.
By having one traffic source, you are risking your chances of keeping the ball rolling in case things changed.
For example, when the market started to plunge during March due to COVID-19, we noticed that the cost per purchase for most of our ads on Facebook went up which is actually normal because In times like these, people become uncertain, and as a consequence, they cut down on what’s not necessary.
Over 90% of the ads we were running were not profitable anymore we had to shut them down. That’s a 90% drop in our profits if we were counting only on Facebook Ads.
Another thing I hate about one traffic source is that you’re missing out on more profitable traffic sources. So if you’d like to recession-proof your Shopify store, I invite you to explore more traffic sources. and I highly recommend that you start with one of the following:
- Youtube Ads: If your ads are doing good on Facebook, there’s a huge chance they’ll perform better on Youtube. However, make sure you have UTMs set up on the URLs you send traffic to, and have Enhanced Ecommerce set up correctly on your store, so you’ll be able to have instant analytics on how your ads are performing.
- PPC: Most of our profits from Paid Traffic come from PPC campaigns. Also, No other paid traffic source can beat the stability of their performance. no wonder why big brands go crazy about it.
- Content Marketing & SEO: I prefer to look at being a content marketer as being the commander chief of an army of sales people calling people all day and all night to close deals. Let me explain: When you write a very valuable piece of content that talks of how your product or service helps solve your prospects’ problem, and then you rank that content on search engines, what do you think will happen? A lot of people will be looking on search engines for the solution to their problem, and they’ll find your article, and then buy from you. That’s the highest quality traffic you could ever wish for because it’s buyer intent traffic, and it’s FREE… So in a recession, Content Marketing will keep your business rolling.
- Micro-Influencers: You may not be able to afford to work with big-name influencers, but you can surely work with micro-influencers that will be very happy to work with you to secure some cash in hard times. Micro-influencers have a better ROI than Macro-influencers due to the fact that people trust them, and would follow their recommendations.
- Referral Marketing: You can easily set up a referral marketing program on your Shopify store, and then automate sending emails to your happy customers so they can refer a friend for a commission or loyalty points. You may as well work with micro-influencers on this, send them free products, and give them a small commission for every customer they refer.
expand to other marketplaces.
Another way of staying away from bankruptcy during hard times is by listing your products in multiple marketplaces. The best place to start is Amazon and Facebook Marketplace. But make sure you don’t stop at there.
Find all the marketplaces out there that integrate with Shopify in one way or another, do your research to see if your ideal customer lives there. If so, go for it.
turn customer satisfaction into your goal
Extremly good customer support.
You cant name a brand that made it big that doesn’t have a very excellent customer support (Let’s not talk about Facebook and Google for christ’s sake: They’re not selling products to you, you are the product… Wink, wink)
Look at the likes of Amazon, Shopify, Stripe, and Namecheap. If you had a problem and need their help, they’ll be there for you before you realize.
So if you’re serious about having a recession-proof Shopify store, aim at drastically improving your customer support.
Highest Quality products.
If your current manufacturer or supplier is not supplying you with the finest quality products, you’re better off without him. There are dozens of suppliers out there that are willing to go an extra mile for you to be satisfied, and stay doing business with them. So why you’re holding onto someone that doesn’t have the values that’ll recession-proof your Shopify store?
I personally know dropshippers that can get products to their customers overseas in less than 7 days, so what the actual f*ck that is stopping you from delivering your products fast? If your customers don’t receive the products they ordered fast, why would you think they will come back and order from you again?
Pay over time.
When you offer customers the chance to order the products from you while splitting the payment over a few months, these customers will come back and order from you whether the economy is surging or plunging.
The likes of Afterpay will allow you to accept payments over time from your customer. But make sure you look at all the available options, learn more about their fees, how long do they hold your money, and when do they pay you out, so you can choose the one that’ll fit your business model.
As an entrepreneur selling physical products, I’d like my customer to have an extremely good experience, from start to finish. That’s why I make sure the packages they receive are more like gift boxes.
Nothing beats the look on your customers’ eyes when they unwrap the delivery they just got, to find out there’s a cute gift box inside of it. That will surely prevent them from opening disputes against you. And more importantly, they’ll come back for more, and support you in the hardest times.
always be in front of your prospect’s eyes
leverage the power of social media.
Social media is very powerful. It can influence what we do and how we do it. And since almost everyone now is busy scrolling, it’s a great idea to introduce yourself to them through it.
You can grow your social media following by collaborating with pages that have the same interests as yours, you may as well retarget your website traffic and customers with an ad. And once you get some traction on the social media accounts that matter the most for you, the next move is to keep your posts on your followers’ feeds, and to keep yourself up in the stories area.
That way you can guarantee people will remember you, and come back to you when they need something that you can help them with. You will also make sure you get organic growth on social media by being consistent at producing content that your followers love.
keep in touch with customers through email
A lot of entrepreneurs don’t currently have onboarding email sequences set up in place. To me, that’s madness. If the people on your list don’t hear from you every once in a while, they’ll certainly forget about you. And you don’t want that to happen.
So the first thing you need to do in case you’re not using email to get back customers is to set up a welcome email, followed by emails with content related to your niche.
You want to send at least 1 email a week. Make your emails friendly, say jokes from a time to another (if you’re selling grills, you’ll probably want to make fun of vegans and vegetarians) and there’s nothing bad about adding a part at the end of your emails in which you showcase 2 or 3 products.
After a few emails, you’ll be able to segment leads that open and click your emails from those that don’t, so you can send them content tailored for them, and let them know when you launch a new product or so.
That way you make sure you build a relationship with your customers, and actually have them think about you from a time to another…
What you should be doing right now is to write down your plan to save your Shopify store from the recession, and don’t spend too much time writing down the plan, because spreadsheeting ain’t action.
If you need help with anything from what we mentioned above, make sure to contact us, we can take a look at your store, and eventually let you know where should you start improving, and how. We can also help you with Content Marketing, SEO, Branding, and a lot more.