The current pandemic situation has not only taken the healthcare sector by a storm but also hurt the global economy.
In times when the abc’s of business are being redefined, the small agency owners are kind of lost in the transition. They are not on the crossroads confused and in doubt as to what should be their next steps.
ContentLoop is a digital marketing agency based out of Singapore focused primarily on facebook marketing. Their current clientele are mainly local companies i.e. gyms, yoga studios, salons, spa etc.
They manage lead generation for their clients.They are specialised in running facebook and google ads as per their clients business fit and what works best for them.
Without further ado, let us quickly dive into the Q&A session that we had with him.
Gridle Asks with Ken Moo
1. What kind of impact has the COVID-19 and the lockdown had on the internal team?
Ken states that the good thing about a digital marketing agency is that the teams can work remotely as well. Operations wise there is no challenge as the nature of work allows teams to work from home as well.
Teams have adapted well and all are working together to battle this situation.
2. Is there any impact on the clients and their approach to work?
One must understand that due to the partial lockdown and the pandemic situation, people are not stepping out of their houses. This has drastically affected the businesses of the clients and in turn hurting the agency’s growth.
Owing to the economic scenario, the agency’s proposal closing rate has dropped dramatically coupled with a drop in revenue.
There has been a drop in conversion rate as well. Cost per thousand impressions has dropped but the cost of acquisition has become much higher as the people see these ads but do not click it leading to a drop in conversions.
Clients want to delay payments up until they are back in the business and cash starts to flow in. This is taking a toll on the agency’s payment cycle. Cash flows that are central to the business are taking the major hit.
3. What are the steps you are taking to mitigate the economic crisis and the economic impact of COVID-19?
Ken makes a very important point. As agency owners and decision makers its really important for us to foresee the situation and start taking measures and steps in that direction.
A forward thinking approach is what all must practice, like they are doing.
Ken states that they as an agency are taking this as an opportunity to pivot into other markets that may be able to sustain economic slowdown.
Instead of just standing at crossroads all confused, they analyzed the situation and started ahead on that journey. They are moving from the local market segment and focusing on markets that are prone or probably able to survive this situation. E.g. They are in talks online education companies and how can their agency help them with their services.
While pivoting and exploring new markets, Ken assures that they are not leaving their existing clients in dark. They are working towards helping them digitally transform their business. For example, they are thinking of having online gym and yoga classes.
As decision makers its crucial to see the future business and market trends to be able to take right steps at the right time.
While doing so, don't neglect your existing clientele as that’s where you started.
Gridle is also doing its bit to help other agencies out there to make the most out of this situation. We have collaborated and gathered all the tools offering COVID special offerings in a single space making it easy for agencies to keep a watchful eye on.
Be positive, work smart and this too shall pass.
Signing off until next time. Sayōnara!