With Experian statistics showing that insolvency rates are down from 2009 and bills are being paid faster than this time last year, it seems the UK economy is showing signs of stabilisation. It’s too soon to tell yet whether we are saying goodbye to the longest recession since the war or whether there will be a double dip, but we can uncover what surviving businesses have done and what steps they are taking to adapt and thrive in the future.
A business’ first instinct in times of uncertainty might be to cut non-essential spending and, for many, marketing activity falls into this category. However, with increased sales being the key objective of much marketing activity, this represents a false economy.
Marketing and sales activity might rightly continue to focus on new customer acquisition, but it should be part of a suite of activities, including maintaining and developing existing customer relationships. Losing focus (or resources) on any of these areas can lead to significant problems.
In addition, the importance of the most up-to-date and accurate data, and informative analysis has never been so important. Being correctly equipped and having the right plan will ultimately enable organisations to chart their course through difficult times.
Why spending in a recession works
Of course, not everyone agrees with the theory a theory that we as information providers propose. Many companies did cut marketing budgets, tried to cut corners with data and analytics or simply put a stop to marketing activity. This may not have been good news for them, but it wasn’t bad news for everyone.
The more companies that cut, the more opportunities for success there are for people that continue with marketing efforts. The competition for business is less and the audiences that are targeted are more receptive and open to persuasion.
As always, but particularly in this climate, marketing spend has to be justified to ensure that the return on investment on campaigns can be monitored with web analytics tools, as well as making sure that cost per enquiry and lead generation can be tracked.
Record triumphs and failures
It is vital that every aspect of a campaign is recorded, starting with the inputs which data provider(s) were chosen, what data items were used and how it was selected to the outcomes and not just the positive ones. It is important to monitor which campaigns or what aspects of those campaigns were unsuccessful.
In between these, information on the communication itself is also critical what channel was used, how and when was it delivered, was there follow-up? These can all be used to analyse and interpret the success of marketing activity.
Retain every item of information so that you know what has been successful and what is worth continuing to invest in for the future. This way, in the event that the economy does begin to destabilise again, hard and fast examples of why the money is being well spent and the revenue it is returning are available to you.
Check credit rating
In addition, feedback that we’ve been receiving from our clients is that handling risk has also been a huge contributor to their businesses surviving. The time and effort involved in chasing late payers or going through the courts with companies that are going into administration has often pushed resources to the absolute limit and caused a domino effect of struggling companies dealing with each other and falling one-by-one.
Being equipped with knowledge about the financial health of other businesses that you might want to work with is essential and simple. With tools such as pre-screening for sales leads and standard business credit checks for suppliers, it is possible to ensure that all resources are being used to safeguard against becoming part of a downward trend.
The flip side of this is knowing what other companies are being told about you. After all, as you are credit checking others, they are equally as likely to be credit checking you, so it is vital to stay familiar with your score and keep on top of your reputation.
As the phoenix attempts to rise from the ashes of the recession, the face of marketing has changed. The most successful firms have been those that have realised that quality (rather than quantity) is key. The need for marketers to justify their existence has made everyone realise its value when it is done well, and this has often resulted in a better cohesion with sales and finance functions. This way of working should continue and will no doubt encourage a shift in focus to growth and intelligent investment for the future.
