Wrestle that marketing axe away from your CFO

When businesses slow down, CFOs begin to get nervous. If they decide to tighten their belt, marketing budgets are usually the first to get cut. This is often a shortsighted and reactionary move. If marketing is the fuel for your sales team, the last thing you want to do is suck all of the oxygen out of the room.

If business is slowing, working your existing relationships and retaining customers is vital. But, when the economy slows, they might be cutting back, as well. So it’s imperative that you continue to invest in attracting new customers to fill the voids and help stabilize your revenue.

Certainly, all marketing efforts should be regularly evaluated for efficiency and effectiveness. You want to make sure you’re in the right channels, sending the right message, and spending wisely. But marketing is a long game. The returns typically aren’t immediate.

Those in your accounting department might only see things in black and red and quarter-to-quarter. It’s important to make your case and educate them about why this is the time to double-down on marketing.

Some things to consider before you cut your marketing budget:

• Your revenue may plateau. If marketing is paused during a slowdown, you’ll likely fail to attract new business.
• If your competitors are more aggressive, they could take market share away from you.
• You may be conspicuous in your absence or simply disappear from your prospects’ radar.
• Your brand awareness will begin to wither and lose any momentum you may have built, leaving you to play catch-up when things pick up.
• With decreased brand exposure, your sales cycles could get longer as you need to re-educate your market.

Here are some considerations and ways to keep your foot on the gas pedal:

• During downturns, your competitors might be dialing back their efforts, leaving a huge opportunity for you to fill the void and take market share away from them.
• View your marketing as a mid- to long-term investment instead of a short-term expense and stick to a consistent, calculated, and deliberate plan.
• Survey your current customers to reaffirm your relationship with them, identify their changing habits, and uncover additional needs you can meet.
• Identify strategies that get the most out of your marketing dollars.
• Explore more cost-effective channels and tactics, like social media, SEO, and SEM, to reach your target markets.
• Consider temporary price cuts, discounts, and point-of-purchase incentives to help drive sales.
• Develop referral and brand loyalty programs to keep your existing clients engaged and on board.
• Widen your sales funnel to engage potential buyers who might need an extra nudge or two out of the fringes.

Never stop marketing. Just get smarter about it.

Businesses that continue to invest in marketing during downturns typically bounce back quicker and stronger. Arbitrarily cutting your marketing can kill momentum, miss out on new business, and undermine your long-term growth. If everyone else is slowing down, view it as an opportunity to maintain or increase your budget to grab market share.

Before your CFO places your marketing budget on the chopping block, demonstrate to them that you understand their financial obligations and explore smart changes together.