In A Recession, Cut the Fat, Not the Muscle

The whole topic of recession, inflation, pricing, and talent costs has us all exhausted.

So, today I’m just going to look at the upside. Is that ok with you?

Let’s face the music for just a few seconds: many CEOs and CFOs are considering budget cuts—if they haven’t made them already. As is typical in an economic downturn, marketing gets the short end of the stick.?

So, take a deep breath and think of the long game. It’ll be here before you know it.

Random Slashing of Marketing

Budgeting has always been a primary sticking point when it comes to marketing. After all, so many business leaders have experience with waste and risk in marketing. No blame. I get it.

With the looming recession, decisions around marketing investment are going to need to be even more convincing. Yet, those conversations need to take the long view on spending and profitability. If you must make marketing budget cuts, there’s a way to do it that cuts the fat—not the muscle.

1) Retention may be the smartest strategy… right now.

Which prospective customers make the most sense to focus on: your existing customers or prospects? Unfortunately, your budget may not be able to support? both.

Looking back 24 months, retention became an important strategy at the pandemic’s outset. Instead of trying to keep current customers and acquire new ones, companies I know focused resources on the audiences they already “owned” via previous inbound and outbound efforts. If they were wise, they knew not to spread themselves too thin. In some cases, this approach kept businesses afloat until they could find their pandemic bearings.?

We live in a reverse feeding frenzy when times get tough. Your costumes are pulling back, this impacts your bottom line, you cut back. Step back now and ask: which of my customers will fare better during strenuous times. Those are the ones to nurture and support. Of course, if you have a discrete marketing program that speaks directly to all your current customers, you can efficiently share the love without picking favorites. This is the power in having a marketing program that supports and nurtures your existing revenue sources.

Remember, this doesn’t have to be a forever strategy. It can absolutely be the right one? for now.

2) Audit what you have, and use it.

For some companies, today’s messaging cannot be the same as it was in 2019. Different stories need to be told.?

What likely hasn’t changed is your company’s value proposition. The value you provide still gets the job done, and? your pre-pandemic content probably needs a minor tweak or two in order to reflect new sensitivities and learning from this year.? Don’t throw the proverbial baby out.

You may need to allocate resources to refine the message, but those reusable assets can also be repurposed into new, more diverse channels with minimal expenditure. For example, if you have powerful content that’s worked on your blog or website, it can be re-deployed into a LinkedIn newsletter or an email campaign to your database.You’ve got your own in-house recycling plant if done with talent and care —and they’re paid for.?

3) If you’re not cutting your marketing budget, we all still want to spend wisely.

Kudos to companies that have a strong understanding of marketing’s long-term role in generating revenue and value. But, there’s still something to be said about responsible spending.?

If you’re thinking about rebranding, is now the best time? Have you done the deep-dive analysis to justify this spend? If you’re not getting leads or interest directly from? traffic to your website, a complete overhaul today may not be the answer.?

It’s super-valuable to understand where the gaps in your marketing efforts lie—and the appropriate ways to fill them. Sometimes that involves bringing in outside counsel. An outside perspective often brings clarity.

Smart Spending in Uncertain Times

It didn’t take a downturn to highlight marketing’s place in the rank order of? business priorities. I’ve seen more than my fair share of random slashing over the years. Let’s wisely plan and prepare, so the next turn doesn’t take us by surprise.

There’s a video on the Marketing Air Cover ?YouTube channel? called “Retention as a Recession-Proofing Marketing Strategy” where you can think through this concept for your business.

Next up Aligning Business Objectives with Marketing Investment

About Ilene Rosenthal

As a fractional CMO, I help ambitious leadership teams say bye-bye to the waste and risk inherent in most marketing plans.

My clients are ambitious B2B CEOs who have marketing and sales teams in place, but are still frustrated with the return on their marketing investment.

I also run the Marketing Strategy Lab for small business.??

After 16 years in leadership roles on enterprise brands at Y&R, I’m the CEO of White Space Marketing Group, a marketing strategy consultancy established in 2012.

Ilene on LinkedIn?

White Space Marketing Group