Wednesday, October 22, 2008

One in five companies seeing customers go bankrupt: How will your online marketing respond?

This is scary.

CFO Finance ezine just released a survey of CFOs and credit and collection managers asking if their companies were directly feeling the impact of the current downturn.

82% said yes. Nearly 62% were considering layoffs and nearly 22% said they had customers going bankrupt. This is how they are taking the brunt:

  • access to credit, 18.3%

  • performance of company's investment, 36.5%

  • increase in Days Sales Outstanding (DSO), 36.5%

  • performance of company's 401(k) plan, 76.5%

  • customers going bankrupt, 21.7%

  • drop in sales, 57.4%

  • cutting discretionary spending, 61.7%

  • contemplating layoffs, 39.1%.

(Yes, it is a small sample. But it seems to echo other surveys like this one from Network World.)

How is your online marketing addressing these fears? I've noticed more companies are adding special deals or content directly addressing these economic changes. E-Junkie’s welcomes with this line that gets you humming: “When you find yourself in times of trouble, don’t let it be. If you’ve been laid off, we want to help!” It then offers a special introductory deal to get prospects’ new business ventures up and running.

Posted by Internet Marketing Report Online editor Julie Power.

[Updated title 10/22/2008. Apologies to readers: I initially wrote one in five businesses going bankrupt. Now that is SCARY. The survey found about one in five of the companies we'd surveyed had witnessed customers going bankrupt. A very different result. My apologies.]



K Curtis said...

I think this economy will leave a lot of people jobless and they will flock to the internet in search of a home based business where they control their destiny.

I think online marketing materials are poised to have their best sales year ever.

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Anonymous said...

We just received a bankruptcy notice from one of our B2B customers who owes us more than $5,000.

We were taken by surprise, and now we're looking at any of our accounts that are more than 30 days overdue and no longer shipping products to those customers until they become current.

We're a $3 million a year business, so $5K is a noticeable loss for us.