Selling successfully in a crisis
From mass layoffs at online furniture retailer Wayfair to bankruptcy at shoe retailer Görtz, the current economic picture is anything but promising. Online marketplaces such as Zalando or About You are now also assuming lower sales growth this year than assumed at the beginning of 2022. The GfK consumer climate index also reflects this mood, as the index value has been falling since the end of 2021 and reached -36.8 points in September 2022. A new record low of -42.5 points is expected for October 2022.
The current status
While the Corona crisis mainly brought advantages for online marketplaces, companies now have to face new challenges. High energy costs and rising inflation make customers less willing to buy. The higher energy costs also increase the production costs, which is why the purchase price is also more expensive in the end. But of course there is always a way to fight such a crisis!
We have formulated 5 tips that will make it easier to overcome the current crisis:
1. Know your goal
Realize why you are doing what you are doing. What is the main strategic goal of your efforts? Review current projects for their profitability and strategic relevance. If it is not strategically relevant to your business, there is no reason to continue it. Better save the costs here!
2. Focus on data and performance
Be sure to use existing data to evaluate your company’s performance. It is important to know where your main turnover comes from and where the biggest deficits in terms of performance are. Then it is best to focus on the largest sales channels, the most important keywords, your largest customers, etc. Optimizations in these areas will help you the most.
3.Improve your marketing efficiency
If you skimp on your marketing spend, you’ll hurt your market share. It is better to try to distribute the budget more efficiently than to spread the budget blindly using the watering can principle. Put your focus on marketing channels that generate revenue. Which marketing channel is strategically relevant in the long term? This is where you should focus more.
4. Improve operation efficiency:
Ask yourself which processes can be automated and which capacities are released in this way? If an activity is repeated often, it should definitely be automated. This is possible, for example, with connector tools, API connections or automated rules.
5. Be resilient
Defend your projects internally against cost reductions when they are strategically important. You should also question activities that continue in a certain way just because that’s the way it’s always been done. There is a lot of room for improvement here! Finally, it is of course always important to stay motivated. This makes it easier for you to discover new possibilities.
The worst of the corona pandemic seems to be over now, but there are always new challenges. Our tips can be used very well at any time to become more economical and efficient. So if you know your strategic goal, rely on data-driven performance reports, improve your marketing and operational efficiencies, and remain resilient, you have the best chance of staying ahead of your competition in the next crisis. So start right now!
Do you need further support to be able to sell even more successfully? We are glad to help you! Simply arrange a non-binding consultation and ask us your questions!