In a time of economic uncertainty and looming recession, knowing which way to turn for advice can be tricky. You might feel afraid to take any kind of an action because small steps in either direction could have far-reaching consequences. It may be helpful to see how your marketing business stacks up against others in the industry.
In a shrinking economy, marketing is usually the first department to face cuts in both staffing and budget. It’s good news, then, that in a survey conducted by BrightLocal, 54% of businesses are looking at increasing their marketing budgets in 2023.
BrightLocal also found that 76% of marketing organizations are considering introducing new services, and 50% are planning price increases. Marketing professionals often make adjustments in pricing at this time to move some of this rising cost over to the client. Introducing service variety provides better value to the client and helps marketers diversify portfolios.
Remember, clients are usually expecting annual increases, but beware! A sudden, shocking price increase will scare clients away. Go slow and ease into upping your rates as much as possible.
33% of agencies, freelancers and consultants report that it is harder to draw new business. Prospective clients are wary about committing to long contracts owing to concerns about inflation and a recession.
To mitigate this, it’s essential to retain existing clients (44% of whom are looking to spend less). Make sure your clients are motivated to continue working with you. Take inventory of the services you currently provide and look at ways to improve or add to your offering. Think about ways you are unique to your competition and leverage that as much as possible. What are they not providing? Look for gaps and fill them.
If you haven’t already, consider moving marketing over to an agency. You’ll get more bang for your buck and free up your team to focus on hunting for new business.
The general consensus
In response to inflation challenges, 90% of marketers feel optimistic about their business health in 2023. Doing things the way they’ve always been done is not enough to keep up with current trends. Marketers need to adapt to changing circumstances.