How SMEs can Re-Target New Markets in an Economic Recession
Whilst the recent pandemic-induced recession has dealt severe blows to many businesses in Australia, there is light at the end of the tunnel. That’s because even in a recession there are ways for SMEs to move forward by retargeting new markets to drive business growth. However, you might need to think outside the box and consider new ways to approach these markets. With a little innovative thinking and a passion for your business, success is achievable, despite the recession.
What’s Retargeting and how can it help your Business?
Retargeting a new market means that you reengage people with your products, whether they have purchased your products or not. For example, many people may have been exposed to your products via an email or social media campaign; some may have bought, whilst others may not have purchased anything to date. Research, however, has shown that it can easily take up to six engagements with a brand before a conversion takes place. So, retargeting this new market makes good business sense because it provides more chances to increase conversions within an existing targeted market.
Another way to retarget people is to present existing customers who have already made a purchase with new products. This is because if they have already purchased a product from your brand, they are more likely to do so again, compared to people who haven’t previously converted. Retargeting these new markets has shown to be much more cost-effective than trying to target people who are unlikely to have come into contact with your company. In other words, expanding your product line and diversifying your offerings, as well as building a loyal following of customers by retargeting new markets helps to drive business growth in an economic downturn.
Optimising Retargeting for your Business
As mentioned above, there are two ways to approach retargeting. Firstly, you can re-engage people who have not made a purchase, and secondly, you can reengage existing customers with your new product line. Neither one of these strategies is more difficult than the other, and in fact, a combination of both will stand you in good stead.
However, regardless of the strategy you select, your first step should be to understand your target market’s pain points and refine your own understanding of how your products can address these points. This will help you to fine-tune your target audience (if necessary) and create campaigns that clearly demonstrate how your products address these pain points.
As you can appreciate, retargeting new markets involves a coherent marketing campaign, generally involving a mix of organic traffic and paid ads, including media and Google adverts. In fact, if you have already used Facebook ads you will have noticed that they help you to create specific retargeting campaigns, based on your previous ads with them. A great number of companies use these retargeting campaigns to drive more traffic to their businesses and they have proven to be extremely effective.
So, if you are struggling to see your way forward in the current recession, retargeting new markets and diversifying your product lines should position your SME to weather the current recession.
Risk Guidance is here to support you through your journey and make it their business to understand yours. To decide what type of insurance policies are suitable for your SME, talk to Risk Guidance Insurance today.
This article originally appeared on Risk Guidance Insurance Blog and has been published here with permission.
Advisr does not provide advice and does not hold a financial service license (AFSL). All information above has been provided by Risk Guidance Insurance.