Everyone is talking about a recession. You probably hear fear mongering in the news, chatter on social media, or general discourse about a declining economy.
But what does this mean for your business and your marketing department? Whether you are a direct to consumer company, or simply business-to-business, chances are you will need to adjust your marketing approach.
Big brands are quickly pivoting with Meta announcing hiring freezes; Uber making marketing cuts; and Carvana and Netflix rolling out layoffs. In response, CMOs are strategizing about how to prepare for a more challenging business landscape while continuing to meet expectations that they drive more revenue growth with fewer dollars. Such is the reality when an economy sees hiked inflation and unpredictability (read: pandemic). So, what is a company to do? My Social Biz has gathered our top recommendations for your team’s approach to a possible oncoming bear market:
Focus on where you don’t spend budget
Once CMOs identify the areas where their marketing dollars are really pulling their weight, they can fine-tune spending to improve margins and keep pockets of cash where it matters most. Marketers who take this approach are highly successful in a few concentrated areas and essentially absent from other marketing channels. For instance, some companies may focus on paid digital while others may double down on distribution budgets. Depending on the silo that is most impactful for your business, honing on the spend in that area is your best friend.
Empower marketing leadership team with financial assets
This one might seem obvious, but it bears calling out: When resources are precious, your marketing department should be aware of what is making your business money (aka ROI).
Marketers need to be able to conduct a distinct side-by-side analysis of their sales data, total marketing budget and marketing performance. A comparative assessment will uncover historical correlations between marketing investment and revenue growth and ensure optimal budget allocation going forward. In a pinch, hiring freelance financial analysts to power their decision-making with this knowledge on an ongoing basis.
Gain efficiency and try new ways of working
If marketers have learned anything in recent years, it’s that organizational change needs to become the norm—and not just in times of crisis. Whether it’s flexiwork schedules, or outsourcing where outsourcing can be done, there is one bottom line: marketers need a reliable playbook of winning plays that create efficiencies and drive effectiveness.
My Social Biz has decades of experience under their belts during all times of economic certainty and expanding markets. If your team is feeling caught in the headlights, or generally does not know how to re-strategize in anticipation of a market downsize, we are here to help. Give us a call to discuss your options and how to stay nimble in times of uncertainty!