4 Strategies for Recession-Proofing your Marketing for Growth in 2023

According to the predictions of economists, who are known for their accuracy, a recession is imminent. As businesses brace themselves for the economic turbulence ahead, they must prioritize their marketing efforts to support growth in the coming year. Therefore, it is crucial to develop effective marketing strategies that can help businesses weather the storm and emerge stronger on the other side.

For marketers to achieve their primary goal of driving profitable growth, we have developed The CMO's Guide for Igniting Profitable Growth in 2023. This comprehensive guide is designed to assist businesses in generating revenue, and building a solid brand is a crucial component of this process. Our blog series will provide a condensed overview of the guide's key points, but for a more in-depth understanding, we encourage you to download the complete guide for exclusive insights. Let us help you achieve your business objectives and drive sustainable growth in the years to come.

Let's get right into the highlights of recession-proofing your marketing efforts without further ado.

1. Incrementality Is Key

Incrementality is far from being just another meaningless buzzword. This concept asserts that marketing expenses play a crucial role in a company's growth by incrementing it. In other words, marketing expenditures should contribute to the expansion of the business. Considering the return on investment (ROI) when planning marketing strategies is essential. By doing so, companies can ensure that their marketing efforts are practical and profitable. Therefore, it's crucial to understand the concept of incrementality and its significance in marketing.

In most cases, marketing teams will concentrate on attribution, frequently resulting in waste. Assigning credit to an arbitrary touchpoint (usually the final one) is common practice because attribution tools need to adequately track the complex, non-linear customer journey. Instead, marketers should spend money on incremental strategies that are most likely to result in net new revenue that would only have been generated with marketing. Classic A/B tests or Matched Market Tests (MMTs) can help brands get started.

2. Set Your Return On Investment

Intelligent marketers concerned with efficiency must comprehend the return from internal efforts. Which tasks were finished this quarter? What divisions received funding? What tests were conducted? What were the effects of those allocations on the business? For marketers wanting to get more done with fewer resources, determining which resources have the highest return on investment should be a top goal.

3. Establish Partnerships That Are Profitable And Measurable

Collaborating on content or product mashups with non-competing businesses can lead to new audiences, revenue streams, and opportunities. This can be especially advantageous when resources are limited. Companies can leverage each other's strengths and reach a wider audience by working together. This type of collaboration can also create innovative products or services that would not have been possible otherwise. In today's competitive market, exploring all avenues for growth and success is essential, and collaborating with other businesses is a smart and strategic way to do so.

Informative tip: Make sure to follow the return. It is easier to sell internally if you hold your partners accountable for making more money through efficiency, increased customer value, lower costs at the same or higher service level, or both. After all, everyone in the company wants positive cash flow, and there is no better way to accomplish this than by relying on a scalable external resource.

4. Resolving The Conflicts Between Brand And Performance

In a tale that dates back thousands of years, brand building and performance frequently compete. However, they are both facets of the same coin working toward the same objective: to get back the money you invested. Performance marketing, however, can quickly turn a profit, unlike brand marketing, which may take months or even years to pay off.

Marketing leaders must comprehend the company's financial objectives and responsibilities to recommend a successful split between brand and performance. A typical split is 60% brand and 40% execution. However, it may be prudent to reduce brand budgets during times of profit focus.

It's a fine line to walk. An excessive amount of accentuation on execution advertising and organizations might end up hanging out to dry with stale missions. This is because more people need to be in the awareness phase of the journey, which necessitates either investing in brand marketing or taking time to rebuild naturally.

Conclusion

In conclusion, recession-proofing your marketing for growth in 2023 necessitates a deliberate and strategic approach. Understanding and harnessing the concept of incrementality is vital for ensuring that your marketing investments contribute to business growth. Setting and tracking your return on investment enables you to allocate resources efficiently and effectively. Establishing profitable and measurable partnerships broadens your reach and fosters innovation while simultaneously driving revenue. Lastly, resolving the conflict between brand and performance marketing by balancing their roles in your strategy can lead to a higher return on your investment. As we navigate potential economic uncertainty, these strategies provide a robust framework for resilient marketing that drives growth, even in challenging times.

Do you want to grow with me? For a virtual consultation, contact KLB Solutions LLC's experts.