The features of the global economic crisis began to loom on the horizon, and companies began to search for a lifeline, and here comes the role Growth marketing
In recent months, a number of companies have gone bankrupt small medium, And lay off a large number of employees in companies
big The most recent was Twitter, Facebook and Google as well intends Other companies lay off a number of their employees to achieve economic balance
And to try to stay on the surface and not Drifting with the tide of financial bankruptcy, and certainly the danger of this crisis knocked on your door and you noticed a sudden decline in activity economist,
In this article, we will explain to you the role of growth marketing in overcoming economic crises and present to you Some proactive solutions to weather the storm and emerge from the crisis stronger than before.
Definition of economic crisis:
It is a state in which the economy suffers from a sudden downturn and a decline in economic growth
accompanies her High levels of unemployment, decline in the value of assets, and instability in financial markets,
effect Economic crises have a negative impact on companies, governments, and entire societies
Social and political unrest.
The impact of the economic crisis on business:
The economic crisis can affect businesses greatly, but at different rates, as some companies declare bankruptcy and others lay off their employees
While other companies achieve significant growth in crises But in general, companies suffer in economic crises from:
- Decreased demand for products and services:Where consumers are more cautious about spending leads to lower demand for non-core goods and services which leads to lower profits
- Downsizing:Economic crises force companies to cut back on staff and make do with a small number of employees who perform indispensable tasks
- Impairment of financial assets:During economic crises, the value of real estate, stocks and bonds decreases, which negatively affects the companies that own these assets.
- Funding weakness:It becomes increasingly difficult to obtain loans or any other form of financing in light of the economic crises. This sometimes makes some companies unable to fulfill their obligations.
The role of growth marketing in saving companies from economic crises
Growth marketing has a major role in helping companies recover from the effects of economic crises by developing strategies And Marketing methods
innovative, and optimizing existing marketing efforts to meet the needs of the target audience as well as focusing on data and continually testing and improving campaigns
and identify the most effective, least costly, and replicable ways to drive growth during challenging times and economic crises.
Here are some of the ways growth marketing can help companies weather economic crises.
Identify cost-effective growth opportunities:
Growth marketers can determine the most effective method using historical data and analytics, for example:
Targeting markets that suffer from a lack of one of the services or products similar to the product or service that we provide, or that could replace it.
And the creation of targeted marketing campaigns that attract customers in these markets, and these markets are usually weak in competition.
Improving existing marketing channels:
Growth marketing makes a redoubled effort to test existing marketing channels to discover untapped opportunities
It can make a leap in growth such as ramping up work on content in social media or search engine optimization (SEO).
Marketing Effort Testing and Optimization:
Growth marketers test paid campaigns, email content, text content, and images on social media platforms, in order to get the most out of their marketing budget.
Increase customer loyalty:
One of the most important goals of growth marketing is to attract and retain customers by analyzing their behavior, understanding and satisfying their needs, in addition to providing the best user experience.
Diversifying marketing channels:
A good growth marketer does not work on one or two channels, no matter how effective they are
More than one front, but this matter is done after a comprehensive study and analysis and not randomly, diversifying marketing channels is essential
Especially during economic crises, growth marketers can help companies identify the most effective channels to drive growth.
Briefly : Growth marketing is an important tool and a lifeboat that helps companies to face economic crises and transfer them safely to the other side.
Benefits of growth marketing during economic crises:
There are many benefits to using growth marketing strategies and tactics during economic crises
1. Increase customer acquisition and retention:
Companies spend a lot of money to acquire customers but often fail to retain them. Growth marketing plays big role in
Increasing customer acquisition prioritizes its work to retain them by providing valuable content, products or services Their problems are solved and proportionate
With their expectations and then providing them with outstanding customer service, there are many methods that companies use
In order to increase customer acquisition and retention, here are some strategies.
The right targeting means directing targeted marketing campaigns that will interact with potential customers and leave a clear resonance with them
Proper targeting depends on studying and understanding the target audience's demographics, needs, behavior, purchasing patterns, and purchasing power.
Using the data and information that we collected about the audience and the customer personalities that we drew previously, we divide the audience
into similar groups and then create marketing campaigns tailored to meet the needs and preferences of each group separately.
Improving the customer journey:
can to improve customer journey Improve corporate marketing efforts and increase customer retention by interacting with them
Their needs, respond to their inquiries and solve their problems from the customer's first contact with the company until after purchase.
customers service :
Providing excellent customer service is an integral step to improving customer journeyBy providing customer service that responds to customer inquiries and addresses their complaints in a timely and good manner, companies can increase customer loyalty and retention. Growth marketers can use customer complaints and feedback to identify areas for improvement in the customer experience.
2. Maximizing return on investment:
Data-driven strategies used by growth marketing help increase your return on investment It also allows marketers to make decisions driven by numbers and analytics.
And less reliance on guesses and thus less risk and greater return on investment,Here are some ways that can help maximize your return on investment:
Determine the most effective marketing channels:
This is done after testing a number of marketing channels and comparing the effort and money invested in them with conversion and interaction rates
output for each channel Thus, increasing investment in the channels that achieve the greatest return on investment and working to improve other channels.
Marketing campaign optimization:
Marketing campaign optimization includes multiple tests of design, text, CTAs and landing pages before the campaign is launched in its final form, as well as optimizing targeting and audience testing.
Personalize the customer experience:
Growth marketing is concerned with designing an ideal customer experience that matches the needs of each customer, which in turn increases conversion rates and increases customer loyalty.
The results of marketing efforts must be continually monitored, collected, and analyzed to identify opportunities for improvement. Simple, continuous improvements enable companies to increase revenue and improve return on investment over time.
3. Expansion into new markets:
Growth marketing plays a key role in helping companies expand into new markets, which is where he focuses his work On scalable methods and repeatable tactics that contribute to growth.
Here are some of the ways growth marketers make decisions about expanding into new markets:
Conducting market research:
The first step before making the decision to expand into new markets includes determining the size and growth rate of this market and understanding it The needs and preferences of the audience in the target market, purchasing power, opportunities and challenges, in addition to analyzing competitors.
Before expanding and spending a lot of money in this market, growth marketers are working on Testing the product or service on a small, specific audience before the final launch. Beta testing helps companies understand the market more broadly, gather feedback, and identify difficulties that the company may face in that market.
Launch targeted campaigns:
With a clear understanding of your target audience in new markets, you can create customized content and adjust your marketing message
To suit the new market, in addition to carrying out targeted marketing campaigns that inform the public about the product or service that you provide
and create a wide resonance in this market,
Testing and optimizing growth marketing campaigns :
To ensure the success of your marketing campaigns in a new market, you must constantly perform numerous tests and improvements.
This will help you determine the most effective strategies in this market.
Define performance indicators (KPIs):
To track the results of your marketing efforts in the new market, you must identify Key performance indicators such as online store traffic, customer acquisition rate, Revenues
Monitoring results will help you understand campaign effectiveness and identify areas for improvement.
These are some of the steps by which you can expand your business and achieve sustainable growth in your current market and in other markets.
Companies that succeeded in using growth marketing to overcome economic crises:
- Airbnb : This company was able to emerge during the financial crisis of 2008 and struggled in a difficult economic environment in order to attract consumers and adopted innovative marketing methods at that time to achieve growth, such as encouraging users to create content and partnering with event organizers, and was able to overcome the difficulties and become a major player in the online travel industry.
- Uber : With the beginning of the year 2020 and the spread of the general closure due to the Corona virus COVID-19, Uber faced great challenges represented in the sharp decline in demand for ride-sharing services. However, it was able to provide new services such as grocery delivery to diversify its revenue sources and continue to grow. It also succeeded in expanding in other markets. New.
These are simple examples, but there are many companies that have managed to overcome crises and drive growth
Such as zoom - Netflix - Shopify and many others.
The importance of being proactive in implementing growth marketing strategies to mitigate the impact of an economic downturn:
What distinguishes successful companies that are able to overcome crises and economic conditions is the advance planning and implementation of strategies that reduce the impact of the downturn The economist, in addition to analyzing and studying all the details of the business, no matter how small or large, and this is exactly what growth marketing does it works Continuously collecting, analyzing and classifying data, studying market trends and customer behavior, and discovering gaps and determine ways Development, improvement and growth opportunities.
The following are some of the methods that growth marketing uses in order to lessen the impact of an economic downturn:
Focus on cost-effective growth marketing opportunities:
Many think that launch Promotional campaigns Paid and successful is the best way to grow, because it brings revenue and results
immediately and quickly, but sometimes, especially in economic crises, companies suffer from restrictions in
budget, which makes it unable to implement huge advertising campaigns like before, and this leads to a severe decline in
sales, so it is important for companies to invest in other marketing channels that may save them in times of crisis,
Such as content marketing, search engine optimization, email marketing, and others.
Economic crises require finding innovative solutions to the problems facing the company and new ways of growth. Encouraging employees to put forward their ideas helps in devising new marketing methods
for example :
Red Bull throws a large number of empty beverage cans into rubbish bins near stadiums and sports venues
Creating social evidence among young people of the quality of this drink and its association with the quality of athletes' performance in addition to
Its sponsorship of many sporting events has strengthened this image.
Taking advantage of economic crises :
Economic crises can create new opportunities for growth either by expanding into new markets or by blocking Gaps created by struggling competitors
Growth marketing helps companies identify and pursue new opportunities.
Meeting customers' changing needs :
During economic crises, customers' needs and preferences change and their purchasing power decreases
Identify changes in customer behavior, and adjust its marketing efforts to meet the changing needs of the target audience.
Diversifying marketing channels :
It is important for companies to distribute their marketing efforts, and not to rely on a specific channel, so that their revenues are not greatly affected A specific problem has occurred with this channel
So companies must identify and experiment with appropriate marketing channels to find the most effective ones.
Growth marketing is a data-driven approach that focuses on identifying and scaling effective marketing channels and methods.
It also adds multiplier value to companies during economic crises because it helps them focus their efforts
Marketing over tactics Which are likely to drive growth New opportunities are identified, through testing
Continuous and iterative on different marketing strategies Growth marketers can help companies
To be proactive in planning and implementing strategies that help achieve sustainable growth In addition
To overcome economic crises and emerge stronger on the other side.