In 2021, marked by pandemic-driven confinement and a trillion-dollar US stimulus package, there was a massive uptick in online business startups and sales. But lately, there has undeniably been an apparent shift in consumer spending behavior, exacerbated by soaring interest rates and a late 2023 recession declaration. “As 2024 approaches, there will be a discernible divide between sustainable businesses and those fated to fail,” according to the CEO of Dimel Media, Anders Lawets. But as the economy contracts, opportunities emerge, and with the right strategies in place, businesses can rise stronger than ever.
Organic posts, website design, new platforms, software to do this, and pixels for that. At Dimel Media, they call it “The Trend-chaser’s Stagnation,” stating that it’s become harder than ever for e-commerce owners to get clarity into what moves the needle and easy to get caught up in ‘busy work’ that doesn’t yield exponential output at will. From working with numerous brands worldwide, including running their own e-com brands, Dimel Media says the goal is to create empirical environments where one plus one equals three.
If a business is not doing North of $250,000 per month, the only thing the business owner should focus their time on is customer acquisition through paid media. Nothing has more exponential upside leverage. When a scalable system is in place, where new customers come in at a profit every month, that’s when the business owner starts trading money for time. The ability to create demand, on demand, at scale, is the ultimate form of security.
In economic contraction, there’s a tendency for businesses to ‘squeeze the sponge,’ as Dimel Media calls it. Where they ‘maximize’ profits by cutting acquisition spend and solely focusing on selling to existing customers. This short-term profitability trade can kill a brand. The media efficiency ratio will be high, and the PnL will look solid, yet the active customer base actually shrinks. Instead, fix the acquisition problem and capitalize on businesses retracting ad budgets while pushing forward and stealing market shares.
What’s noteworthy about Dimel Media is their ability to craft creatives that captivate millions of people on social platforms, but one doesn’t have to be a master at persuasive messaging for cold traffic acquisition to work, they claim. In many cases, it can be fixed by being strategic about the numbers. LTV is often mentioned in this equation, but hardly practical according to Dimel Media, as the brands they work with would’ve run out of cash before the LTV of a customer was realized. Instead, set an actionable timeframe to realize the second purchase of a customer that aligns with what the cash flow can sustain at scale.
Lastly, Dimel Media stresses the importance of AI. During economic expansion, it is easy to become complacent, hiring more staff and buying software that’s not actually needed. But for those who understand how to leverage AI, one employee can do the work of ten.
Connect with Anders and Dimel Media on Instagram and LinkedIn.
Media ContactCompany Name: Dimel MediaContact Person: Anders LawetsEmail: Send EmailCountry: DenmarkWebsite: https://www.dimelmedia.com/
