How SMEs can retarget new markets in an economic recession

How SMEs can retarget 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, but 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 Facebook and Google ads. 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.

Our advisers are 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 an insurance specialist today and find your local adviser.

General Advice Warning

The information provided is to be regarded as general advice. Whilst we may have collected risk information, your personal objectives, needs or financial situations were not taken into account when preparing this information. We recommend that you consider the suitability of this general advice, in respect of your objectives, financial situation and needs before acting on it.

SME Business Insurance

Business Insurance is used by many businesses, but it’s best suited to SME-type operators.

SME Business Insurance

What is SME Business Insurance?

Any business in Australia, including small to medium-sized businesses, will benefit from an added layer of financial security in the form of an SME Business Insurance cover. This provides owners and businesses with protection against financial risks and the loss of key assets. It also protects customers, employees, suppliers, and contractors.

Some types of insurance are mandatory, like Workers' Compensation, Professional Indemnity, or CTP Insurance for motor vehicles – these are called statutory insurance covers. Other types of insurance are optional, but they are important ways of reducing business risk and protecting your finances and assets.

What does SME Business Insurance cover?

Property Damage – cover ranges from fire, storm, lightning and other perils to any type of accidental loss or damage. The property insured includes damage to buildings, contents, stock, plant and equipment, raw materials, and consumer goods.
Business Interruption – covers weekly amounts or net profit loss and ongoing fixed costs following property loss or damage. Also referred to as Loss of Profits or Consequential Loss Insurance.
Burglary/Theft - covers break-in at the business premises and the damage is done, as well as theft of goods or stock;
Money - covers theft of money in various locations (during transit, in a locked safe, or in a private residence) at any time (within and outside business hours).
Liability - covers a variety of statutory and civil legal liability, including personal injury and property damage, environmental liability, management liability, statutory liability, professional liability, aviation, marine and motor vehicle-related liability;
General Property - covers specified portable property against accidental loss or damage once it is taken off the premises, within Australia or overseas;
Equipment - covers sudden internal derangement and accidental loss or damage to plant, equipment and machinery, as well as computer and other electronic equipment. Loss of stock and business interruption cover can also be part of this insurance.
Motor vehicle & mobile plant – covers registered and unregistered motor vehicles, mobile plant & equipment, farm equipment, construction plant, as well as attachments and trailers. This insurance can also cover loss of income, downtime and hire costs of replacement equipment.

Speak to an insurance expert

It is our business to understand your objectives, needs, financial situation and risk profile and provide you and your business with tailored risk and insurance advice.
This is how we work with your business:

1.   We analyse your objectives, needs, financial situation and risk profile to develop appropriate strategies and solutions.
2.   With your input, we undertake risk assessments and conduct market research to determine the most suitable insurance product(s) for your key risk exposure.
3.   Your insurance adviser will present appropriate strategies and solutions and also negotiate and place insurance covers agreed.

Frequently Asked Questions

How can insurance help small businesses in Australia?
- In Australia, small businesses are encouraged to invest in business insurance to help protect their business from costly eventualities like damage to property and liability claims. Investing in a comprehensive yet affordable insurance policy promotes the continuity of the business in times of losses or great financial trouble.
What does SME stand for?
Small-to-medium enterprises (SMEs) are businesses whose revenue, number of employees and assets do not exceed a certain threshold. Each country or industry defines a set of criteria to determine whether an organisation falls under the SME category.
How can insurance help small entrepreneurs or SMEs, or how it relates to risk management?
Risk transfer is one of the treatment approaches in managing risks in business, and insurance is an example of risk transfer. It’s a strategy that SMEs employ to shift a risk or a liability from one party to another when that party specialises in managing a specific kind of risk/liability.
Why is insurance important for business owners?
Getting an insurance policy for your business is important, as it cushions or completely shields you from the hefty costs of certain unforeseen issues (accidents, damages to properties, effects of force), legal claims, and other liabilities. Without insurance, business owners might be forced to foot the bill out of their own pocket.