Typically one of the first things that companies do when sales slow down is downsize (i.e lay people off) and cut budgets in an effort to preserve cash before the sales cycle turns positive again. I can never understand why companies cut sales people during slow periods especially when these people are on a variable versus fixed compensation model.
Also, marketing always seems to be at the top of the list when it comes to budget cuts when times are tough. Yet, when you look at what carries the day when times are tough it’s a strong brand. Strong brands are built over time not overnight which means that companies need to invest in marketing over a long period of time. Now, one could argue that since the company had already invested in marketing that it is a perfect time to reduce budgets. But think about it, customers are looking for the brands that are reliable, offer value and perform so it’s the perfect time to promote them.
It’s during slow sales cycles that companies reap the benefits of that investment with a strong brand that can carry the company with customers. Strong brands usually come with loyal customers who will keep buying even when times are tough.
So don’t cut your budgets just reallocate them to more direct programs that focus on existing customers that could be buying more from you rather than chasing new business. It’s your existing customers that know your brand and will require less effort to affect a change in buying behaviour.
To learn more about how we can help you maximize your marketing efforts contact us today at 1-416-435-5290