Times are tough. Not a day goes by where the state of the economy isn’t scrutinized in the news. Inflation is up. Spending is down. Consumer confidence can scarcely be found.
And amidst the turmoil, marketers are increasingly squeezed by management to cut costs while increasing profits.
In such dire economic times, organizations need to ask themselves if smart marketing—and not budget cuts—will help them profit during a slowdown in consumer spending. Logic often finds itself sidelined as marketers, under increased scrutiny from people who may not understand the science of their craft, feel forced into arbitrary cost-cutting. After all, marketing is a cost.
The smart marketer knows that even in tight economic times, budget cuts to marketing often only result in lost sales, <I>not</I> improved revenues. Now is the time for marketers to make this fact known.
Here are a few key steps every marketer today must employ to shift perceptions of their discipline from discretionary cost center to proven and essential value generator.
Plan proactively
Marketers need to be realistic. Cutbacks in marketing are likely, particularly in traditional, above-the-line media spending. Step one is to make intelligent use of existing budgets to drive results and value. Marketers need to be prepared to make some tough decisions. Don’t deny this is a big challenge. Then, create a compelling business case for each investment.
It’s important to remind decision makers looking to cut your budget that direct marketing techniques are highly effective and more measurable than other marketing tools. The discipline is effective, economical and personal—and you can prove its value over time.
Manage the management
Protecting marketing budgets means that marketers must convince the finance department their programs will deliver a profit. Present highly visible demonstrations of return on investment by defining how campaigns will be measured and gaining agreement from management and finance in advance. Such metrics are essential to supporting business cases and justifying marketing spend in a slow economy. Ultimately, marketers need to involve rather than inform decision makers in this critical area.
Adapt your products and services
Assess the environment and tailor your offerings to today’s market climate. Start by simply asking your customers what they need from you. Companies that fail to engage with customers during a slowdown will lose business to competitors that can offer cheaper products or services of the same quality.
Brands need to plan ahead and—if necessary—revise their customer interaction strategies. This means protecting and accelerating expenditures on customer experience programs, as they play a key role in managing customer interactions and driving brand perception.
Though often common sense, these strategies aren’t always common practice. Keep these steps top of mind and you’ll elevate the value of your department—and solidify marketing’s position as an invaluable asset that must be maintained and supported through thick and thin.
Nancy Shaver is an insight strategist for Experian Marketing Services.
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