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In these bumpy economic conditions one of the first things that happens is that budgets get re-examined. If you’re making revenue and profit this can also happen, so the best thing to do is be prepared. I’ll outline a couple of strategies that you can use, firstly to safeguard your budget;
1) Try this ; “in order to safeguard revenues we have to ensure that we have a decent amount of prospects flowing through the funnels, by decreasing spend we will impact revenues
2) Look at spend; how does spend vs revenue compare YoY. If you’re spending similar this can be justified.
3) A downturn is the best time to win. Whilst others are covering their ass and consolidating you have more opportunity to get out there and scoop up all the customers.
Then the day comes when your protestations don’t work any longer, and you’re forced into a cost-cutting exercise. These five steps will help you do this more effectively;
1) Where aren’t you making much money (geographic area, product line, marketing program). Chop this areas first.
2) Ensure that you have watertight ROI calculations to back up your argument (this is obvious, but still crucial when you’re talking revenue)
3) How has your media costs changed (for us search is flay YoY and display costs have decreased), this will give you a cushion
4) Go back to your budget (tips for creating your budget are here) and look at your testing areas, your big spend. Look at how to prune this from your trial budget and areas which don’t directly contribute to the bottom line.
Good luck with the process
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Brendan McNulty 