5 Tips to Recession-Proof Your Marketing Investments

March 26, 2020

Unfortunately, recessions are an inevitable part of doing business in a fluid economy. If you’re in business for a long period of time, you’re bound to encounter one. 

Luckily, in the marketing sphere, there are actions you can take to mitigate the effects of a recession on your business. Read on to discover 5 tips to recession-proof your marketing investments and learn how ObservePoint can help you execute on them. 

1. Continue to Invest in Business Intelligence and Analytics

Being a data-driven business is even more important during a recession. Here’s what you can do to maintain data-driven decision-making in your organization: 

  • Prioritize business intelligence and analytics. When times get tough, you may be tempted to divert some of your marketing budget away from business intelligence and analytics spending, but this would be a mistake. You need your data the most when you’re swimming in the uncertainty of a recession.
  • Reinforce a data-driven mindset across your organization. You need to keep your team focused on making smart, data-backed decisions during a recession. To accomplish this, you should reinforce this data focus in all business interactions, including team meetings, memos, and miscellaneous communications. 

Here’s how we can help:

Investing in ObservePoint’s MarTech governance and performance measurement solutions will allow you to ensure accurate data collection and obtain actionable insights around every step of your customer journey. As a result, you can prioritize decisions that will most effectively engage your customers and help you move forward with confidence, even during a recession. 

Additionally, our solutions allow you to set permissions and create notifications around data governance, so your team can stay aligned, data-centric, and be alerted to customer data accuracy issues immediately. 


2. Focus on Customer Experiences

The driving force behind your revenue is your customers. In order to ensure great customer experiences you need to do the following:

  • Ensure accurate customer data. Use a MarTech governance and performance measurement solution to ensure your analytics tags are functioning properly and all your customer touchpoints—even offline touchpoints—are standardized for complete customer profile unification.   
  • Align your entire organization around customer-centric goals. Align your organizational language around KPIs, goals, and terminology to help all teams focus on delivering exceptional customer experiences that will keep your audience coming back, even during difficult times.

Here’s how we can help:

Using ObservePoint’s MarTech governance platform, you can receive alerts any time your critical customer journeys break, any time there is a 404 page error, or when page load times dip below your desired threshold. We help ensure your customer journeys are nothing but smooth sailing and that you’re collecting holistic customer experience data.


3. Optimize Your MarTech Utilization

A recent Gartner survey of various CMOs confirms that marketing budgets are heavily weighted on MarTech solutions (MarTech consumes 29% of marketing budgets).1 

Marketing teams can optimize their MarTech utilization through the following actions:

  • Inventory current MarTech tools. List every tool your marketing team is currently using and how much budget each tool is consuming.
  • Analyze MarTech utilization levels and effectiveness. Note and evaluate areas of MarTech overlap and underutilization. Identify the solutions with the most impact on marketing ROI.
  • Consolidate solutions. Consolidate your MarTech solutions to remove overlap and underutilization while still maintaining core functionality to drive ROI. 

Here’s how we can help:

Once you know which tools are providing you with solid ROI, we can help you double check implementation instances and then get the most out of the tools you will continue using. Using Web Audits and Web Journeys, you can scan for site-wide MarTech presence and functionality. ObservePoint is vendor agnostic and can detect any technology deployed on your site, so if there are any rogue implementations that you might have missed or any data collection errors, you will be notified immediately. In the end, you can rest easy knowing the MarTech on your site is authorized, functioning properly, and is delivering the ROI you need to grow your business.


4. Prepare for Budget Cuts

Marketing budgets have remained flat for the past 3-4 years, hovering between 11-12% of company revenue.2 

  • 2016: 12.1%
  • 2017: 11.3% 
  • 2018: 11.2% 

However, in a recession, most companies will face marketing budget cuts. As a result, you should plan ahead so you can avoid a last-minute scramble. The key here is to know your top drivers of marketing ROI and to make those investments your priorities. 

Here’s how we can help:

ObservePoint helps you do more with less. For many, analytics QA testing, data cleansing and unification, and marketing attribution can take a full team and hours of laborious work. We can help you reduce the time spent on validating data by 75% or more, then automatically unify that data—so it’s clean before it exists—and then pull all of your data into advanced attribution models so you can know what’s working and what’s not. This frees up time, budget, and resources that can be dedicated to your most effective marketing efforts. 


5. Invest Where You Can Measure and Where ROI Is Reliable

When budgets get tight due to a recession, you need to be able to prove ROI, and proving ROI requires measurability. Here are some classic channel investments that most easily give you the ability to measure results:

  • Paid Search
  • Organic Search
  • Website Analytics Optimization
  • Email

Targeting where your investments have been most reliable up to this point is another helpful option. Just keep in mind that what works well for one business might not perform well for another. Here are some channels that tend to perform well across many businesses:3 

  • Email Marketing
  • Social Media Marketing
  • Organic Search

Here’s how we can help:

ObservePoint allows you to improve the measurability of all your different channels—even channels involving offline customer touchpoints. With our Strala by ObservePoint’s attribution and performance measurement solution you can increase ROI by going beyond single-touch attribution to accurately measure the performance of each touchpoint, piece of content, and channel along your entire customer journey. Clearly and quickly identifying what drives consistent revenue leads to more effective investments during difficult economic times.


Bonus Tip: Use a performance measurement solution to know what’s working and what’s not

Most data collection, attribution, or ROI technologies give you a limited, vendor-specific look at your marketing efforts that leave you frantically trying to piece together the bigger picture that will guide your business. Now more than ever, you need real-time, holistic insights into all your marketing investments to quickly and clearly know what’s working and what’s not. 

Schedule a demo to see how Strala by ObservePoint helps you: 

  • Track all online and offline customer journeys to make sure you're getting the full picture on your customer experiences
  • Analyze those interactions in a single data set to discover accurate customer insights and see the most promising trends
  • Know where to put your budget to best meet your customer's needs during challenging economic times

 

References:

1. https://www.gartner.com/en/marketing/insights/articles/cmos-spend-more-on-technology-than-talent

2. https://www.gartner.com/en/marketing/insights/articles/8-top-findings-in-gartner-cmo-spend-survey-2018-19

3. https://openviewpartners.com/blog/which-digital-channels-perform-the-best/

 

 

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