At the end of June, news of a planned government ad campaign (led by David Buttress) to encourage brands to divert marketing spend into cutting prices caused outrage in the marketing industry. I won't repeat my response here!
However, a few weeks later, a government spokesperson confirmed there are no plans to put a budget behind a marketing push for Buttress’ work. So either they've seen sense, or the government is distracted by more pressing matters right now.
Cutting marketing spend to pass on cost savings to customers or reduce outgoings may seem a sensible option in the current economy. But it'll only provide short-term gain and cause long-term harm. So, hold onto your hat and keep investing but make your budget work harder.
Work your marketing budget
1. Review your clients
- Who are your most important (the ones you can't afford to lose)?
- Who has the potential to give you more work?
- Who would you like to lose?
Focus your marketing budget on the first two. Upselling to your existing customer base is more cost-effective, with a higher success rate and a better return on investment than marketing to prospects.
2. Go niche
Identify a specific target audience and market to those people only. A scattergun approach costs more and is ineffective as you can't deliver a message that resonates with all.
3. Digitalise
Switch from print to digital (assuming that fits your target audience). Email newsletters, pdf brochures and online adverts will save print and postage costs. They're also more trackable, enabling you to evaluate and measure effectiveness.
4. Cleanse your database
Review and clean up your CRM database, so you don't waste money marketing to people who are no longer relevant or will never become your customer.
5. Repurpose
Work your content. When you create a piece of marketing content, rehash it to use elsewhere. For example, a blog post can be shared on social media (either as snippets or in its entirety) or used in your email newsletter.
6. Focus
Limit the number of marketing initiatives and activities focusing on those that work best. But don't put all your eggs in one basket. Instead, deploy a mix of complementary activities.
7. Collaborate
Link up with a synergistic business and do joint marketing initiatives. You'll get the benefit of cost-sharing and the opportunity to gain access to their contact database and brand endorsement.
8. Evaluate
Regularly assess your marketing to determine what's working and what isn't. If you're unsure, ask new clients how they found you and regularly scrutinise your Google and social media analytics. Then, do more of what works and ditch the marketing that isn't working.
9. Outsource
It's more cost-efficient to hire a marketing expert who knows what they're doing rather than hiring a novice or trying to do the work yourself. A professional marketer will know what will work best for your objectives and budget and prevent cost-wasting activities.