Deep recessions can bring deep cuts to marketing budgets, seen by management as a quick fix to decrease immediate spends. From outsourcing customer support to reducing customer communication and interaction, marketing budget cuts can take a severe toll on customer retention, revenue and profits.Liz Miller, VP Programming & Operations of The CMO Council, warns that while slashing marketing investments can provide instant gratification, the long term effects on your customers’ experience may not be realized for months. In essence, trimming marketing costs today could very well have a disastrous effect on your customer base in the near and long term future.
Shifting strategies and being savvier can pay off. Executive Director of The CMO Council, Donovan Neale-May, provides practical advice to direct marketing campaigners. Due to the large closing rate of local retail outlets, for instance, consumers are forced to shop directly through the Internet and catalogs. Neale-May states that if he were a marketing strategist, he would:
- Investigate higher investment in direct campaigns
- Step up the investment in direct print and catalog marketing where a demographic analysis reveals retail availability reductions
Tough times may mandate a cost analysis of operating expenses and marketing budgets. The consequence of slashing marketing funds may potentially have a catastrophic effect on your customers’ overall experience. Instead, consider analyzing your direct mail, e-mail and Web initiatives to have more relevancy and return, with trackable metrics. Doing this now will position you on better ground when the recovery happens.
How OlleyMay Can Help
OlleyMay offers personalized direct marketing – a simple, powerful and personal way to get recipients to consider your offer using highly relevant messaging across print, e-mail and Web response pages. Call us today to see how OlleyMay can maximize your direct marketing campaigns at: 914-939-8800.
For the Video of The CMO Council Interview, see: CMO Council (Part 1): Good Advice for Bad Times