Everyone can hear the air sparking with tension as recession fills the skies with gloomy clouds. Google Trends shows that “how to prepare for recession 2022” is more popular, indicating that Americans are starting to question how their daily lives may be impacted in the coming months.
Nevertheless, the American economy is no baby when it comes to handling this kind of circumstance. The National Bureau of Economic Research’s data show that since World War II, the U.S. stock market has experienced recessions 14% of the time.
The present crisis, according to CBS experts, is the result of the impact of rising interest rates, high inflation, and energy costs due to the conflict in Ukraine as well as a downturn in China’s economy. Therefore, it is plausible to assert that a bear market, also known as a hibernating condition, may be about to begin.
The B2B environment approaches economic crisis, so now is a fantastic time to look more closely at the potential effects that lie ahead, what businesses can do to prepare for them, and how to capitalize on a downturn.
How to Make It Through a Bear Market:
If a corporation is unprepared, bear territory might be frightening. This is a dangerous situation since bear markets frequently coincide with high unemployment rates and economic recessions. However, astute investors discovered a way to profit in a bear market by exploiting the decline in stock prices.
A bear market, as used colloquially, is when an index, like as the S&P 500, the Dow Jones Industrial Average, or even a single company, has dropped by at least 20% from a recent high over a prolonged period of time.
According to Investopedia, a combination of the ongoing COVID-19 pandemic’s repercussions on the global economy and a sudden pricing war between Saudi Arabia and Russia in the oil markets are the direct causes of the impending bear market.
Even more terrifying, the American economy has seen several bear assaults throughout the years:
- Between April 1947 and April 2022, there were fourteen bear markets that were officially recorded.
- The smallest and longest bear markets, respectively, lasted one month and one and a half years.
- The S&P 500 declines range in intensity from a 51.9% to a 20.6 %.
The current bear market is alerting us to the impending storm, in contrast to the setting of a bull market, which is marked by optimism, investor confidence, and anticipation that excellent outcomes would continue. Fortunately, there is still time for firms to strengthen their plans.
How to Make It Through a Recession:
We at Only-B2B have invested a lot of effort in researching the possible effects of a recession on businesses and creating a B2B marketing playbook that enables firms to respond quickly.
According to our data, although it is true that many marketing departments would curtail or even stop their activities out of fear, a sizeable portion of astute marketers will use it as an opportunity to set their brands apart from the competitors.
Direct implications of the recession on B2B businesses:
A recession is difficult to survive. Pipeline expansion will continue to be the key issue in 2022, according to Marketing Charts.
The following problems were also cited by leaders in sales and operations:
- Building/staffing teams
- Expanding addressable market
- Accelerating digital transformation
- New tech stack investments
Source: Marketing Charts
Here are some other pertinent learnings from previous pandemics and recessions on what to anticipate in this next situation:
- It will become more critical than ever to provide evidence of marketing ROI.
- During the recession, advertising expenditures will rise.
- The proper decision-makers will be harder to locate and target.
- Account-based marketing tactics will rise to the top of the priority list.
- Less leads that are “sale-ready” will be entering the pipelines.
- In a recession, the B2B sales cycle will be longer.
However, market turbulence recurs often. “If the future is anything like the past, it is quite probable that the economy will grow over the long term and that financial markets will generate attractive returns for the patient, diversified investors,” says Jeff Sommer, economist and editor at the New York Times.
Small businesses may not experience as severe of a recession’s consequences as larger companies. A Bloomberg story, however, reveals that analysts anticipate one to start in the middle of 2023. The greatest thing B2B businesses can do right now is to restock their emergency supplies, maintain a positive work environment, and have faith in the stability of their customer bases.
But the market is prone to unrest on a regular basis. Jeff Sommer, economist and editor at the New York Times, forecasts: “If the future is anything like the past, it is highly likely that the economy will grow over the long term and that financial markets will produce handsome returns for the patient, diversified investors.”
Small businesses may not experience as severe of a recession’s consequences as larger companies. A Bloomberg report, however, reveals that analysts anticipate one to start in the middle of 2023. The greatest thing B2B businesses can do right now is to restock their emergency supplies, maintain a positive work environment, and have faith in the stability of their customer bases.
How to use B2B marketing to stave off a recession:
There is no getting around the fact that B2B marketers will face more pressure. High-end prospects are now well aware on the operation of their data footprint and the benefits of data-based lead generating tactics. Your sales development representatives’ (SDRs) ability to access a pitch call will be made more difficult by the recession, which is putting everyone’s necks under pressure.
Remember that all businesses are competing for consumers’ attention, which means that the cleverest marketers will continue to discover methods to use the present situation to their advantage.
Only-B2B’s marketing specialists have examined and verified that developing your brand in the following ways is a wonderful method to break down the “not-now” wall even the most anxious customers are already erecting:
Credibility: Help your clients by honestly assessing the situation. This often entails relying on reliable databases to support whatever plan is going to be put to the test; intuition and sentiments should be set aside when making crucial business decisions.
Reliability: The key to success is connection. Daily communication should prioritise frequent, direct, and transparent input from both parties. Both the left and right hands are aware of what the other is doing.Be willing to extend invitations to your clients from other social groups in case such groups might offer them worthwhile commercial chances in a downturn.
Affection: Outbound communication should be intimate and natural. In these turbulent times, concluding a contract is more akin to beginning a romance. Both sides desire the chance to achieve success, and this can only happen if they work together in a sincere, passionate, and responsible manner.
5 Ways to Run Your Business During a Recession
Companies can employ a variety of strategies to reduce risks both before and during a recession. To improve your company during difficult times, abide by these five recommendations:
1. Pay attention to your market.
Crazy experiments are not appropriate right now. Businesses should keep to their strengths. The better off you are if you are more knowledgeable about the sector and proven tactics.
Verify the prospects you have on your target account list once more for qualification and tier placement. Start creating and disseminating material about the recession so they know you are there for them.
2. Establish precise goals.
Don’t place an excessive amount of pressure on your SDRs. Creating monthly goals that reflect the realities of the market is a wonderful way to keep them focused and steady.
You may even want to think about outsourcing SDR teams to help you reach your company objectives as sales teams will become crucial to your existence.
3. Make your outbound tools more effective.
Even while you don’t want to stop using your inbound methods, continuing to close new business will need using outbound techniques.
To ensure optimum performance, all lead generation initiatives, including cold calling scripts, customised emailing templates, social network connections, landing sites, remarketing advertisements, content syndication, and more, should be improved and evaluated.
4. Get your data ready.
Do you trust your data? If not, now is the moment to incorporate every data enrichment tool imaginable to assist your team in scoring leads better, making deals predictions quicker, and having a clear understanding of the behaviour of your prospects.
5. Make use of outside data partners.
Your sales and marketing teams will require high-quality data to function, but getting it will be more difficult. Third-party data providers provide you access to useful data that has been gathered from around the web, and intent data methods are already essential for determining the buyer stage of digital prospects.
Prepare Your Business for Recession
Companies have had success in the past by learning how to endure a recession and prosper after it. According to Only-B2B’s market study, outbound lead generation techniques are durable in downturns, making them a reliable set of resources that B2B decision-makers should focus on in the coming months.
Executives, analysts, and other senior employees must collaborate to put together a bear market scenario for the future. Create a strategy that prioritises consistent profits above your typical income since perseverance ultimately leads to success.
Overall, there are plenty of causes to maintain optimism. With so many resources, platforms, and partners at our disposal, there is no reason we can’t overcome this recession and emerge victorious on the other side. See you on the other side!
Must Read: How to Get Your Leads to the Finish Line
Vikas Bhatt is a demand generation, content syndication and a data cleansing ninja. He is the co-founder of OnlyB2B, a global organization that helps brands and businesses gain maximum leads and skyrocket revenue. You can get in touch with him on firstname.lastname@example.org