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3 Reasons Why You Should Never Cut Your Marketing Budget

by | Mar 24, 2020 | Strategy

As a small business owner, I’m sure you understand the importance of marketing. But did you know that without a consistent marketing strategy you’re really not in control of the growth and success of your business?

In times of uncertainty or unexpected obstacles, it can be tempting to cut your marketing budget to free up resources for other parts of your business.

This may seem like a quick fix, however; it will drastically hurt your business in the long-run. 

Here are 3 reasons why you should never cut your marketing budget if you plan on staying in business.

Why you should never cut your marketing budget?

  1. Stay ahead of your competition.
  2. Doing less won’t get you more.
  3. It weakens your credibility

1. Stay ahead of your competition.

Your competitors are doing everything possible to combat the same unforeseen obstacles you face.

Not only are they continuing to prioritize their marketing budgets, but they are most likely ramping up efforts to be even more aggressive. And they have a major advantage if other small businesses don’t see the value of their marketing dollars.

If you’ve decided to take a back seat, the harsh reality is that your competitors have now positioned themselves as the industry leader in your local market.

Their brand awareness will only increase over time, while yours will drastically decline.

Next time a potential customer goes to visit a business similar to yours, your competitor will be top of mind and most likely win that business.

I looked at my competitors and I thought that, if they could do it, I could do it. And if they are popular and doing well, I could compete with them.  Tommy Hilfiger

2. Doing less won’t get you more.

If you want more out of your business, putting in less isn’t the answer to growth.

Just like everything else in life: personal fitness, learning an instrument or building a relationship – more effort always equals better results. As Thomas Edison said when attempting to create the cotton filament for the incandescent light bulb:

I have not failed. I’ve just found 10,000 ways that won’t work. Thomas Edison

Decent marketing comes from gut decisions, but great marketing comes from making informed, data-driven decisions.

In 2020, all marketing strategies are informed with data. Every effort is trackable. When the data shows you what isn’t working, it’s simply time to refocus your marketing efforts.

A study conducted by Forbes found that companies who adopt data-driven marketing are 6x more likely to be profitable and have an advantage over their competition.

This is the greatest advantage to data-driven marketing. You know something isn’t working, but you don’t have to make a gut decision.

The result of data is certainty and it’s extremely impactful, especially when it’s time to move to a new marketing strategy. With this information, you can be confident in your decision to act deliberately when it’s time to cut something out.

3. It weakens your credibility.

Once you make contact with a potential customer, your biggest mistake is to let them forget about you.

Losing focus on your marketing also means losing touch with an audience who needs to hear from your brand again. To build a loyal customer base, you must stay relevant and top of mind.

Plus, your audience should feel like they can count on you no matter what.

According to an article in Harvard Business Review, 64% of consumers say that shared values are the main reason they have a trusted relationship with a brand.

How can your audience trust that your products will be consistent if your brand values and messaging are inconsistent?

 

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Final word:

Even when you’re struggling as a small business owner, cutting your marketing budget is not the answer.

Don’t give up now. Double down and learn from unexpected hardships.

Determine a more scalable and successful marketing strategy. Ask for help from a local marketing agency that has proven data to back up their strategies.

Do what you need to do, but don’t lose focus on your marketing efforts.

If everything we’ve discussed hasn’t convinced you yet, take it from Phil Knight, former CEO of Nike:

As ever, the accountant in me saw the risk, the entrepreneur saw the possibility. So I split the difference and kept moving forward.  Phil Knight

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