Four ways to win in a recession
1. Increase accounts en masse
Businesses that come out of this with the most customers will win. So, in addition to
stopping your existing base from churning, you need to acquire as many new accounts as possible.
One way to do this is to implement a freemium model as part of your acquisition strategy. This way, you can get more daily active users on your product. Users that you can then nurture into paying customers when they’re ready to buy.
In addition, customers who convert from freemium go on to become the most valuable. In a freemium cohort:
2. Relieve customer anxiety
In a downturn, people crave community and answers. Make sure your company is the one that gives it to them.
Some ways to do this are:
- Publish more great content.
- Host more webinars.
- Plan in-person events.
- Build out a community.
Being helpful and adding value in this way will help you to convert customers now and also be the brand your prospects remember when they are ready to buy.
3. Go after competitors
Just like you and your customers, your competitors’ customers are reviewing their own spend and looking at alternative solutions.
Your job is to make sure that it’s you they flock to you by raising your brand awareness and showing where you add value:
- Email them or visit them in person.
- Send them the helpful content you created for step two.
- Update your competitor pages with clear differentiators.
Once you’re through the door, recession position your product — that is tell them how you help them do more with less.
And when you’re hit with the objection "we'd love to switch, but we've got seven months left on our contract" you close the deal by offering to give your product away for free for the rest of your competitor's contract. It might seem like a lot of money but really is seven months free for a 60-month+ partnership too much when the alternative is no customer?