The business landscape can be volatile, with economic crises
posing significant challenges to businesses of all sizes. However, smart and
adaptable companies can not only survive but thrive even in the face of
economic downturns. Most recently, the pandemic proved to us why it's essential
to have the ability to adapt during economic downturns.
One key strategy is to explore and implement new revenue
streams with the power to diversify income sources and provide stability in
uncertain times and economic turmoil.
Below are some practical ideas for businesses to beat the economic crisis with innovative revenue streams.
Offer Virtual Experiences
The pandemic has shifted many activities to virtual
platforms, and businesses can leverage this trend to create virtual
experiences. The number of companies utilising virtual events increased by
1,000% during covid - although that has diminished somewhat - after brands
realised their potential reach. Instead, 90% of marketers are more interested
in the reach of hybrid events, a mix of in-person and virtual elements, to
create one immersive experience. Most mass participation events are hybrid to some degree. The participation reach is
much broader, with a hybrid model
The options for virtual events include virtual events, workshops, classes, or consultations. If you run a travel agency, for instance, you could offer virtual tours or destination-specific webinars. Virtual experiences can provide a cost-effective way to generate revenue, engage with customers globally, and adapt to changing consumer preferences.
Embrace All The E-Commerce Avenues
E-commerce has become increasingly popular, and the pandemic
has accelerated this trend. If your business is primarily brick-and-mortar,
consider establishing an online presence or expanding your e-commerce
offerings. That could involve selling products online, offering digital
services, or creating subscription-based models. E-commerce can provide a
broader customer reach, increase sales, and create a resilient revenue stream.
Don't neglect the new ways of embracing e-commerce, like social media shopping. Social commerce is growing exponentially, with newcomers like TikTok shops highlighting how easy it is to sell online with the click of a button.
Prioritise Customer Retention
Retaining existing customers is more cost-effective than acquiring new ones. Studies
show that onboarding a new customer costs five times as much as keeping a
current customer. Mostly, retention is down to strong relationships and
rewards. Offer incentives, discounts, or loyalty rewards to encourage repeat
business. There are tons of structured reward programs online to sign up to.
According to studies, 90% of brands now have some form of loyalty plan in place
with the aim of retaining loyal customers.
Engage with your customers through personalised
communication, listen to their feedback, and address their needs. Loyal
customers can become brand advocates, refer new customers, and provide a stable
revenue stream.
It's almost essential for brands - particularly SMEs, which
have a high failure rate within the first three years - to look for new revenue
streams. The current global economic crisis means more brands are having to
search for new income streams to cope with rising trading costs.
