Companies of all kinds are tightening their budgets by laying off PR and marketing staff and pondering how they can keep momentum going with outside agencies. The fear of spending is strong right now, and with an election year on the horizon, this trend will likely continue. So, how can marketing executives get the most value out of a shrinking budget and achieve organizational goals by focusing on activity linked to sales and revenue growth? Because, at the end of the day, the question being asked is: “Are we willing to reduce costs and, in the process, risk the long-term impact of shutting down some of our most important marketing, communications and brand functions?”
We’ve seen many of our partners—as well as other brands in B2B markets—answer that question resoundingly in the negative, get creative and refocus their investments in smart ways. From research partnerships that maximize owned data to renewed emphasis on customer relationships and in-person interactions, companies and their CMOs are squeezing every last bit of value out of every dollar they have, and getting great results along the way.
We know that when faced with budgetary constraints, marketers become even more keenly aware of the need to operate with increased agility, efficiency and innovation. These leaders desperately need trusted advisers because they must think differently and pivot swiftly to show how a commitment to marketing can employ these strategies to maximize the value from a lower budget. Here are some good strategies to do just that:
- Re-evaluate and prioritize objectives: Before making any decisions, you must review and prioritize the company’s marketing objectives. What are the most important goals? What activities will drive the highest ROI? With a smaller budget, you must concentrate resources on what truly matters. And gather data to back it up.
- Refresh and define your target audience: Partner with sales to pull together all the data on clients and decision-makers. Work with your PR firm’s data scientist to fully define the audience profiles you want to target now. Use those profiles to drive marketing decisions and link to sales. Define how to spend each marketing dollar, and open up smarter conversations with the C-suite.
- Leverage owned channels: With less cash for paid promotions, you will need to focus on owned platforms such as the company’s website, email lists and social media profiles. Content marketing is often a cost-effective method you can use to engage and nurture customers. Maybe now is the time to begin a podcast with invited guests who can raise your brand awareness.
- Data-driven decision-making: Use analytics to measure campaigns’ effectiveness. When you know which channels and tactics are working best, you can allocate resources efficiently. Avoid investing in strategies that don’t show a clear and attractive ROI.
- Focus on retention: Keeping current customers is generally less expensive than doing all the work needed to acquire new ones. Build and execute campaigns to strengthen your existing relationships.
- Engage employees: People who work for you can be brand ambassadors. Encourage them to share positive stories and news about the company on their social channels. That reach can supplement your company’s own channels.
- Collaborate with partners: Identify ways to collaborate with non-competing brands or organizations in ways that benefit all involved. Co-host webinars, co-write content or organize joint promotional campaigns.
- Lean into user-generated content: Encourage satisfied customers to share their experiences. Testimonials, reviews and case studies are often more persuasive than traditional marketing materials.
- Take advantage of free PR opportunities: Guest blogging, podcast interviews and opportunities to speak at virtual conferences are amazing ways for you to spread your message. These might not have the immediate impact of paid placements, however these channels can establish thought leadership and generate organic traffic.
- Engage with community: Dig into online forums, groups and other community-centered platforms related to your industry. This outreach serves as an indirect way of marketing at the same time that you are adding genuine value.
- Experiment and innovate: Test channels or methods you might not have previously considered. Instead of hosting a costly physical event, could a virtual event or webinar be just as effective?
- Negotiate with partners: If you’re facing budget cuts, it’s likely that others are as well. Negotiate with vendors or agencies for better rates or terms. They might be willing to offer a discount to keep your business.
- Lean on technology: Use automation tools to improve efficiency. Email marketing tools can automate campaigns, and social media tools can schedule posts at optimal times.
- Integrate PR and sales: Make sure that PR efforts directly tie into sales. Every PR initiative must have a clear path for your audience to engage with the brand, whether that’s a product demo, a sales call or a direct purchase. Leverage press coverage for sales to include in their engagements with existing and target clients.
- Engage with micro-influencers: Rather than large-scale influencer campaigns, look for micro-influencers in your industry. They might cost you less and have a more engaged audience that is relevant to your product.
- Continuously learn and adapt: The digital marketing landscape changes rapidly. Stay on top of the latest trends, tools and techniques. What worked last year might not work this year, and new, cost-effective strategies are likely just around the corner.
- Trust the data: If digital advertising gives you air cover but no leads, make smart decisions to keep competitors from taking any key spots while lowering your costs!
Lastly, you have to maintain a positive outlook and view these constraints as an opportunity. Bringing trusted advisers together can provide a fresh lens through which you will see how to move forward. Tighter budgets can drive creativity and innovation, helping to uncover new and efficient ways to hit your marketing objectives.
