How to sell in a recession

Spoiler alert – you have to keep selling!

Fact – there are still lots of people spending money and they won’t stop.

However you feel about the state of things right now – and I’m sure that’s probably a mixture of uncertainty and apprehension about whatever this ‘recession’ is going to look like and what it means for you – fear not. Because as a business owner there are things you can do to make your business air tight so you can ride this wave. 

And I’m going to take you through them right now. So go and grab a brew and a pad and pen and most importantly grab your ‘I can do this’ attitude so you can get a list together of things you can do in your own business. There’s always something.

Get everything tight!

Yes that’s right. Now more than ever you need to have all your ducks in a row (I hate that saying). But it’s true, your user experience has to be smooth and top notch because your customer is about to become less loyal and more willing to look elsewhere and shop around. So, what can you look at:

1.     Optimise your website

If your website isn’t great or there are improvements you can make then now is the time to do it. There is no point sending traffic to it if you can’t make the most of it and your bounce rates are something Tiger would be proud of. And don’t over complicate this, it doesn’t take thousands of pounds to optimise, often the things that really need doing are simple. Don’t get carried away with the shade of pink not being quite right because that won’t get you sales.

2.     Your customer service

Unfortunately when you do something wrong your customer is right there to point it out but do something good and you often don’t hear about it. That’s just good ‘ol human nature. Your customer service should wrap up everything you stand for. And let me tell you what the most common thing businesses do or don’t do in this case – they don’t communicate with their customers enough. Think of your customers as that house plant you bought and probably let die. Ok, so we’re not going to go that far but my point is they need tender love and care and ideally not a foot out of line (although we’re all human). Even if you’re simply reassuring them that their order is being dealt with, your customer now more than ever will appreciate this. It might sound trivial but knowing you’re there like a virtual arm around them will increase their trust of you ten fold.

3.     Loyalty scheme

I might actually be sick of talking about these now…only joking I never will be and that’s because they work a treat and right now you want to be nurturing your current customers (but more about that later).

4.     EMAIL

OMG this is the one! Your flows and your campaigns are key. If you already have them going then take another look and see where you can improve. Think about how your customer shops and what you can add in to try and get them over the line to purchase. For example, can you introduce an exit pop up when they leave a certain collection or can you add in a flow when they order from a specific collection trying to sell them something matching or complimentary? And if you don’t have email marketing set up, I’ll take this opportunity to remind you that you’re running a business and it’s 2022!

Focus on the right things 

That thing that you’ve wanting to do for ages because it’s a nice to have and looks great, forget it for now. You really need to be able to pull out the crucial steps you need to take to make you bulletproof and that amend to your logo isn’t going to do that right now.

Prioritise, prioritise, prioritise! And repeat again.

Don’t try and get every single thing done, just work through your list in the time you have – done is always better than perfect as long as you’re moving forward.

Let your figures guide you

The apprehension of what might happen, like is there going to be a recession? What will it mean for me and my family? My business? How long will it last? STOP!!! Yes, it’s happening (whatever it is) and it’s going to affect you personally along with everyone else but what you must not do is to mentally burn yourself out before anything has even happened.

And what better a thing in your business to ground you than your figures. Yes, I love looking at the stats but that’s because it’s like following the sat nav driving to somewhere new – you’re going to get there if you follow the instructions (well hopefully anyway).

Your figures should always guide you, especially in emotional times. Make your decisions based on your figures and not your feelings. Easier said than done I know but it really does work.

Lean in

Whatever you’re seeing success with now – push it harder and further. (Disclaimer - I’m going to sound like I’m contradicting myself in my next point but both apply). If you are making profit right now then why can’t you make more? And this might be your chance to make more whilst you can. Now this often depends on cash flow (the common reason our businesses get stuck) but if you can right now then DO IT! Always make hay whilst the sun shines because otherwise, with the wonderful blessing that is hindsight, you’ll 100% regret it.

Try new things

Yes, your focus needs to be on what’s working right now but never take your eye off trying new things. This is the time to test EVERYTHING! Because why not? If you’re not on TikTok then give that a go. If you’re running ads make sure you’re testing everything so you can really laser focus on what’s working for you.

See if you can get your product in the hands of some micro influencers that can provide you with amazing content for ‘free’. Anything you’ve thought about trying, now is your time.

Try the things that used to work

Think back to before the world went crazy in 2019 and previous and think about what used to work and if the first thing that springs to mind is the algorithm then please MOVE ON for everyone’s sake! I beg you. But seriously have a think about your ‘old’ growth tactics and see if you can apply any of them now.

Your costs

Where can you save money? The age old question. But for most people there is definitely somewhere you can cut costs in your business. Have a look at everything outgoing and see where you can save – every penny counts.

See if there is a way you can cut costs when it comes to getting that new customer to buy from you too. For example, is there a way to lure in that first time customer because you know you’re going to get the profit in the 2nd and 3rd order? This all comes down more often than not to your offers and how they stack up.

Your first time customer will want one and it’s up to you to engineer your products so you still make profit or accept a break even, but they feel like they’re getting a deal. There are still people spending in a recession, you just have to find them. Be confident.

When there is a downturn, businesses with huge overheads often suffer as cash flow dries up and the bills keep coming in – be prepared and see what you can cut now. Or at least have a plan in place.

Keep your customers

During hard times, it’s much easier to keep your current customers than trying to drive new ones. They’ve already got that trust in you, they’re familiar with your brand and they know what to expect. So that means loyalty schemes, nurturing them in your email flows and generally connecting with them to build your community making sure it’s strong. Now’s the time to really push hard for repeat customers.

Your community is going to be key here and the bigger you can build it the better. But there’s another thing you can try and do…

Get them to spend more! They’re going to shop with you anyway so why not try and get them to increase their average order value. Here’s how…

Offers and up-sells

Retaining your current customers and getting them to buy more will mean an increase in AOV (average order value) and also in your lifetime customer value and those 2 things are key to building a successful business.

Try and add some up-sells at product page, basket page and even some post purchase up-sells. What harm can it do you? And you might find that you really hit on something good here.

Yes, people are still spending their money but they’re expecting an offer and it’s up to you to put the correct offer in front of them, so what’s it going to be? Think about what’s appropriate for the current tightening of the purse strings and make sure your language and the way you talk to them fits.

And by this I don’t mean you have to give your product away because everyone is skint, I mean just being good at reading the room. Remember when Covid hit and some businesses felt like they had to stop selling? This was not reading the room, this was blind panic. So let’s not go down that road again. It’s about being tactful at a time when things are tough but it’s also about identifying the opportunity.

Sell better

How can you actually sell your products better? Is there a way you can improve the whole buying experience? How can you persuade them better? Think about the different styles of salesperson you get in different bricks and mortar stores. Compare them and think about anything you could introduce about that experience that might improve the experience of your own customers when shopping with your business. Customers want a personalised experience and that’s not just their name in the opening line of your emails, they want to feel wanted and looked after.

Can you sell more on your stories rather than the grid? When you talk about your product people buy it, funny that isn’t it? So, when you feel like you’re talked about it too much, then talk about it some more. What’s the worst that can happen?

Do you need to pivot?

If you were your customer would you want your product? A hard question to answer I know, but the truth is you have to be honest with yourself. With any recession or downturn in the economy there is ALWAYS opportunity and now might be the time for you to switch things up.

If there’s something else you think you could be doing, a product you can introduce that’s brand new or a way to change or adapt your business in some way for the better then now is the time to do it.

Burying your head and hoping for the best never worked for anyone in the history of burying heads.

Before I go… 

The main thread here is to focus entirely on your consumers and what they’re going to want in this environment. Once you get a feel for this, you can work on presenting your offering in a way that’s appropriate and hits the spot for them.

Don’t panic and certainly don’t let it paralyse you – action is what is needed now.

Keep everything you can tight – your processes, systems and your costs.

My bet is that as Autumn and Winter hit people will be spending more time on their phones as they stay in more, spending less on going out socialising so how you can you make the most of these eyes online?

And remember – there is always opportunity you just have to find it