Economic indicators still point to a possible recession. Businesses contend with a new labor landscape as qualified talent is harder to find and keep, and employee disengagement is rising. Karla Jo Helms of JOTO PR Disruptors, an 'Anti-PR' agency, shares how smart B2B marketing strategies, such as Thought Leadership, position businesses for growth while keeping customer acquisition costs low.
TAMPA BAY, Fla., March 6, 2023 /PRNewswire-PRWeb/ -- The #1 driver of the American economy is shopping, and consumers are slowing down as inflation drives prices up while wages lag. At 3.5%, the savings rate is its lowest since 2008 and far below the pre-COVID rate of 9%.(1) Meanwhile, more than two-thirds of workers are holding management accountable for a better workplace, and 56% are only willing to wait 30 to 60 days for changes before leaving.(2) Trends of "quiet quitting" are skyrocketing just as businesses need productive employees, and burnt-out managers are quitting at elevated levels.(3)
Seeing businesses reel from this uncertainty and contract in the face of economic hits, Crisis management veteran Karla Jo Helms of JOTO PR Disruptors, an "Anti-PR" agency that puts innovative tech companies on the map, warns against the long-term repercussions of slashing marketing budgets during economic downturns. Advertising is essential to the U.S. economy, with each $1 invested generating about $21 in sales.(4)
While some indicators point to a soft landing for the United States in any pending global recession, major corporations are tightening their belts.(1) Unfortunately, cutting too much of the marketing budget can have a spiraling negative effect on the gross domestic product (GDP). The total impact of advertising and its multiplier effects account for more than 18.% of the U.S. GDP, supporting nearly 20% of all American jobs.(4)
Ms. Helms forewarns, "Inefficiently cutting its marketing budget exposes a business to losing market share. As the economy recovers, businesses that slowed or lost momentum will have to spend significantly more to recover and compete. Their competitors that increased marketing efficiency by focusing on customer acquisition costs will see accelerated growth."
Customer acquisition cost (CAC) is a key performance indicator that helps businesses grow while avoiding overspending. To calculate CAC for a time frame, divide sales and marketing costs by the number of new customers acquired during that period.(5)
For sustainable health, companies should allocate marketing budgets between sustaining current revenues and growth.(6) Experts recommend a total marketing budget between 6 and 7% of sales revenue.(7) However, Helms states in times of crisis or economic uncertainty, doubling that budget has proven to increase revenues.
"Promote heavily, organize later," says Helms whose experience in crisis management taught her one thing – when crisis looms, communicate more to increase revenues.
With recession fears looming,(1) major companies like H&M, Netflix, and Comcast are cutting marketing budgets.(8) However, studies of the most resilient retailers show they maintain their marketing spending even during a recession. This strategy allows them to gain market share over their competitors during economic contractions.(8)
Ms. Helms says, "Loyal customers drive cash flow and organic growth. During a recession, marketing isn't optional. It's an essential, productive expense that brings in revenues from existing and new customers. The key is using smart marketing strategies to increase visibility and position your business as a thought leader."
Thought leadership is a powerful way to leverage marketing dollars. Nearly 60% of B2B buyers report that thought leadership builds awareness and credibility and is essential to their decision to work with any brand. (12)
"Customer acquisition is less costly and time-consuming when prospects are already familiar with your brand," explains Helms.
To maximize their marketing budget and maintain growth during economic uncertainty, JoTo PR introduces the new Anti-PR Recession-Proof Service for B2B technology companies to optimize their marketing budget and maintain growth.
Familiarity "In a Box" is a multichannel disruptive Anti-PR package for companies challenging the status quo. To learn more, visit https://info.jotopr.com/the-law-of-familiarity.
About JOTO PR Disruptors(TM):
After doing marketing research on a cross-section majority of 5,000 CEOs of fast-growth trajectory companies and finding out exactly how they used PR, how they measure it and how they wanted the PR industry to be different, PR veteran and innovator Karla Jo Helms created JoTo PR(TM) and established its entire business model on those research findings. Astute in recognizing industry changes since its launch in 2009, JoTo PR's team utilizes newly established patterns to create timely Anti-PR(TM) campaigns comprising crisis management techniques to put companies on the map. This unique skill enables them to continue to increase the market share and improve return on investment (ROI) for their clients, year after year — beating usual industry standards. Based in Tampa Bay, Florida, JoTo PR is an established international public relations agency. Today, all processes of JoTo are streamlined Anti-PR services that have become the hallmark of the JoTo PR name. For more information, visit JoTo PR online at http://www.jotopr.com
References:
1. Morrow, Allison. "5 Signs the World Is Headed for a Recession | CNN Business." CNN, Cable News Network, 2 Oct. 2022, cnn.com/2022/10/02/business/global-recession-fears-explained.
2. Frohwein, Rob. "The Future of Work: The 6 Biggest Workplace Trends in 2023 & Beyond." BenefitsPRO, 26 Dec. 2022, benefitspro.com/2022/12/26/the-future-of-work-the-6-biggest-workplace-trends-in-2023-beyond/?slreturn=20230115105654.
3. Smith, Morgan. "Hiring Slowdowns, Manager Burnout and Other Trends That Will Shape U.S. Workplaces in 2023, Experts Say." CNBC, CNBC, 26 Jan. 2023, cnbc.com/2023/01/26/the-top-work-trends-that-will-dominate-the-us-in-2023.html.
4. PRNewswire. "Study from the Advertising Coalition Finds Advertising Drives $7.1 Trillion." MarTech Series, 26 May 2022, martechseries.com/sales-marketing/study-from-the-advertising-coalition-finds-advertising-drives-7-1-trillion-in-us-sales/.
5. Bernazzani, Sophia. "Customer Acquisition Cost: How to Calculate CAC [+Benchmarks & Formulas to Know]." HubSpot Blog, HubSpot, 18 Jan. 2023, blog.hubspot.com/service/what-does-cac-stand-for.
6. Minieri, Thomas. "Council Post: How Much Should You Spend on Marketing." Forbes, Forbes Magazine, 12 Oct. 2022, forbes.com/sites/theyec/2022/04/13/how-much-should-you-spend-on-marketing/?sh=377b484558f9.
7. FedEx. "Four Steps to Determine Small Business Advertising Costs." FedEx, fedex.com/en-us/small-business/articles-insights/determine-advertising-budget.html.
8. Shepherd, Danny. "How to Make the Most of Your Marketing Budget during a Downturn." Advertising Week, 28 Oct. 2022, advertisingweek.com/how-to-make-the-most-of-your-marketing-budget-during-a-downturn/.
9. Gurchiek, Kathy. "Report: Inflation, Labor Shortages Top HR Concerns in 2023." SHRM, SHRM, 31 Jan. 2023, shrm.org/hr-today/news/hr-news/pages/report-inflation-labor-shortages-top-hr-concerns-in-2023.aspx.
10. Espada, Mariah. "What Is Quiet Quitting? Why Companies Worry about New Trend." Time, Time, 23 Aug. 2022, time.com/6208115/quiet-quitting-companies-response/.
11. Barrett, Jeanna. "Growth Marketing Outsourcing: Why It Makes More Sense in 2023." Inc., Inc. Masters, 4 Jan. 2023, inc.com/inc-masters/growth-marketing-outsourcing.html.
12. Edelman. "Earning Trust." LinkedIn, Thought Leadership Impact, business.linkedin.com/marketing-solutions/b2b-thought-leadership-research/earn-trust#:~:text=57%25%20of%20buyers%20say%20that,to%20consider%20working%20with%20them.
Media Contact
Karla Jo Helms, JOTO PR™, 727-777-4619, [email protected]
SOURCE JOTO PR™
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