Why you shouldn’t cut your marketing budget during times of economic uncertainty
It’s no secret that costs are rising in all walks of life. As a business owner, this means that you’ll be feeling the pressure both personally and professionally. When costs go up, your natural instinct will be to cut the expenses in your business. Cutting back in certain areas can be a good thing, but if you make cuts in the wrong places, it will cause more harm than good.
One place that many businesses go to in order to reduce their spending is marketing. However, in this post, we’ll explore exactly why you shouldn’t cut back on your marketing budget.
Marketing Generates Income
When times are tough, you need to maintain your income as much as possible. Many see marketing as an expense, but if it’s done correctly, it can be an investment – which means that it makes you money! If you aren’t getting the results that you need from your marketing activity, the trick is to reevaluate your spending rather than cut it. For example, could you be spending on a Dundee web design agency that boosts your web traffic, increases your leads, and in turn, generates income for your business?
Market Retention matters
During times of uncertainty, one of the most valuable things that you can do is to retain your current customers. If you shift your marketing focus from new business to customer retention, you can use your market budget to keep your current customer base and maintain your income. Cutting your marketing budget will harm your ability to do this.
Stay ahead of competitors
If you’ve considered cutting your marketing budget, it’s likely that your competitors are thinking the same thing. If they reduce their marketing activity, this leaves space for you to increase yours. In fact, it opens the door for you to market directly to their customers and bring them over to your business instead of theirs!
Maintaining brand perception
In uncertain times, if a brand disappears from view, people can assume that they are no longer operating. Maintaining your marketing activity will allow you to stay in the minds of your customers so they keep coming back to you.
As tempting as it may be, now is not the time to cut your marketing budget. Instead, your goal should be to evaluate your current spending, and see if you’re getting the results that you should be. If not, then looking into alternative methods or strategies will be the way forward. This way, you can change your marketing budget into an investment rather than just an expenditure.