How To Cut Your Business Marketing Costs in 2023
In whatever business you are, you wouldn’t want to overspend. It is imperative in turbulent times. As governments worldwide raise interest rates, inflation is bound to go up. It would impact your marketing budgets.
In the last two years, we saw businesses go through a roller coaster ride as the pandemic hit the world. Business entities were forced to cut down their marketing and other budgets.
Cut Your Business Marketing Costs
So how do you cut your marketing costs? Find out in this article.
Review Your Marketing Budget
One of the effective ways to cut down your marketing budget is first to review your marketing costs. You may split this into broad heads of marketing- content marketing, social marketing, email marketing, social media, SEO, SEM, etc.
Then run an output and variance analysis on all these heads. This exercise will give you a comprehensive analysis of your current state of affairs. In some instances, you’ll see areas where you’re overspending.
Rationalize your Team Cost and Outsource
You may also want to rationalize your team to cut down on costs. During the pandemic, remote work has helped many organizations cut down on office rental costs. Outsourcing also helps in this regard.
Explore various marketing tools like AdBraze, which can help boost your website and marketing needs.
Review Your Customers
Filter down your customers. You may be overspending on customers who don’t stick around for long. Or maybe, targeting geography, which has not been producing results for long.
As you see, the results come out of the geographies, which are not yielding results.
Cut down the Marketing Channels
Narrow down and go thin on some of the marketing tools and channels.
For instance, writing blogs may not be worth your time when you’re in a state of crisis. Email marketing and social media may be better.
Automate and Switch to Free Tools
Try to automate some of the marketing requirements using digital tools. Also, after purchasing those tools you may need to track tools you purchase. You may introduce chatbots to connect with users.
You may submit an automated email sender. Switching to free tools will also help cut down the cost instead of paid ones. You can also rehash old content to sail through the period.
Double-up the Productive Leads
Run a 360-degree analysis on where you are getting the maximum leads from and double-up the most beneficial areas.
Focus on Referral Marketing
Referral marketing is also a very effective strategy to cut down on costs. Start with your trusted or repeat customers who can help with referrals to make this work.
You may provide incentives or rewards for users giving referrals. Word of mouth referencing is another powerful tool. When customers start talking, your job is done.
Another way is to use social media more often. The free features can also turn around your fortunes on social media if one post goes viral. It is one of the best ways these days to get noticed.
Talking about free resources, dozens of marketing tools are available on the internet. To cut down your cost, use analytical tools that will tell you about your current leads and revenue sources.
A crucial broad metric you may look at is Zero-based budgeting against traditional marketing. Zero-based budgeting is a method in which the budget is calculated from scratch, i.e., zero. You first take the initial operating cost and then build upon it. The budget is then worked out by adding costs of various channels, spending, and marketing strategies.
One may think this may work efficiently for a small organization or a startup. But many multinational giants such as Unilever have adopted this strategy, and it has worked wonders for them.
This strategy helps you decide with a fresh approach what marketing channels are essential and those that are not yielding great results. It enables you to decide based on performance marketing. Every pound you spend is justified with this approach. Your spending becomes more productive with this approach.
Apply the Law of Diminish Returns
Last but certainly not the end of the possible list, you should apply the theory of diminishing return.
There is a point of saturation in every process or set of operations. It is a point beyond which the output does not increase despite increasing spending. This theory applied to marketing spending too.
There are a whole host of methods and strategies to cut costs. It would be best if you used your own judgment to decide what suits your business. Some expenses may be more important than others for a line of business.
November 7, 2023