Ah, if only we got a dollar every time we heard the word “recession” this year…
Uncertainty has been looming over businesses for some time now. And according to Patrick Campbell, the slowdown is just getting started.
How bad will the recession be?
After analyzing revenue data from 27.2k companies: it's worse than we thought.
– B2B getting hit hardest since '08
– Consumer $$ tankingWhat should you do?
– 6 ways to not lose in recessions
– 4 ways companies win in themThread time 🧵
— Patrick Campbell (@Patticus) November 9, 2022
The domino effect caused by B2B markets impacting B2C markets is already in full swing. Patrick says new sales are slowing by 20-30%, and churn rate is increasing by 20%.
So what should you do? You can sit in a dark corner hoping the great recession monster won’t take notice… or, you can face it with recession-proof gear.
Patrick offers a few interesting tips that can help you survive and win during uncertain times. Let’s get into ‘em…
Shore up customers. They’re facing doubts and cutting costs, too. So do things that will make them stay. Try to convert monthly into annual subscriptions to boost lifetime value by as much as 800%.
Also, send reactivation campaigns every 60 days to bring 5% of your churn back. Fix payment failures, too—they account for 20-40% of your churn.
Increase accounts and potential customers. Don’t focus on short-term gains. Whoever has the highest user base after the recession passes will win the long game.
Implement freemium, offer more free stuff, and do everything to get the leads now instead reaching them out cold in a couple of months.
Try to fend off customer anxiety. A business that acts as a beacon of hope will attract people in troubling periods.
Now’s a great time to answer customers’ burning questions and worries.
Publish content, host webinars, plan in-person events, build community. Not only will you attract leads, you will remain in users’ minds when they’re ready to buy.
These are just a few of Patrick’s tips. We recommend reading the entire thread, as you may salvage some golden nuggets that will help you shake off the incoming storm!