Top priorities of Chief Marketing Officers in navigating economic downturns

The last three-odd years have been uncertain and unpredictable in more than one sense. In 2020, in a spate of a few weeks, the world was plagued with a humongous health emergency due to the Covid-19 pandemic. It soon mutated into economic and social turmoil. It was the beginning of a challenging period for the global economy.

Geo-political confrontations, especially the USA-China trade war and the Ukraine-Russia conflict followed close on the pandemic’s heels. Global supply chains were hit. Fuel prices spiralled upwards further queering the pitch. The result -- worldwide inflation and volatility, leading to severe economic disturbance. The global demand-supply equilibrium was disturbed and since, businesses are trying to form new equations.

In such an uncertain economic scenario, organisations look towards their CXOs, including CMOs to provide necessary insights and direction to ensure continuous and consistent business growth.

Navigating economic turmoil can be challenging. With budgets tightening and demand slowing, it is important to stay strategic and focused on the ever-evolving marketing opportunities. It is the CMO who brings about the necessary change to lead the company towards its vision of growth and stability. With a clear vision of bottom-line value addition and established priorities of the brand, CMOs have to ensure that the organisation meets its short and long-term marketing goals and leaves a successful footprint for the future. They have to adopt an “adaptation” mindset rather than a “reactive” one. It is in these times that it becomes even more important for CMOs to be proactive, effective and efficient.

Customer obsession is critical and even more relevant in trying times, where the brand can demonstrate the true spirit of partnership and add value to their customer’s life.

Navigating instability and economic downturns

A responsible CMO has a pulse of the economy and is nimble in the marketing approach. Wherever s/he discerns any instability or inflationary trend, there will be a need to change tack and navigate accordingly by realigning the organisation’s marketing objectives.

This happened during the pandemic. While many companies did not know how to handle the situation, innovative CMOs guided their organisations towards a better future. This was the time for consolidation and exploiting new opportunities. The CMO needs to advise the organisation accordingly so that it can take advantage of the situation instead of going into a shell. In fact, this was the time where media viewership (across channels) was at its peak and CMOs could take this opportunity of getting a captive audience for emotive and humane brand communication. A dynamic organisation will reduce costs, hedge bets and try and reach out to a new customer base with relevant digital offerings. Instead of adopting a conservative approach, brands need to be encouraged to go in for an investment mind set. This would encompass weathering the storm and enhancing capabilities to endure an economic downturn.

Accelerating adoption of new digital products and platforms

Technology has made the CMO’s life more exciting as well as challenging. Today, the use of technology can enable hyper personalisation at scale and enable a great customer/user experience. Customers have better access to products and services. Banks have to ensure enhanced customer convenience by making banking operations and products simpler. Again, availability of banking at your fingertips should not compromise the safety of banking transactions. These tech-enabled platforms and products heightened the implications during periods where physical engagement was limited due to Covid-induced restrictions. Enterprising CMOs have helped steer their organisations with innovative digital launches for customer convenience and strengthened the value of the brand.

Expanding into new markets, segments, or geographies

It is the CMO who will poke, probe and test waters in search of new markets and opportunities, especially through the digital landscape which is ever evolving. Challenging times can present opportunities for growth and expansion. CMOs will look for new ways to pivot or enter markets.

His/her team will explore the possibility of venturing into new micro segments through personalised targeting methods. Gone are the days of mass acquisition. Now it’s about reaching the relevant cohorts, at the right time.

In challenging times every rupee matters and it is important to focus on ROI for new customer acquisition as well as retention.

Partnerships and integration

The CMO may explore partnerships or alliances for strengthening the product proposition and customer experience and to drive revenue. This is especially important in a downturn.

Risks are abundant during an economic downturn. A clear head and decisive actions are imperative to guide organisations in such a situation. Consequently, the CMO’s role becomes crucial to detect any potential slide and keep the organisation on the growth path.

Disclaimer: The views expressed here are solely those of the authors and do not in any way represent the views of exchange4media.com