Top 5 Tips for Defending Your Marketing Budget in Unprecedented Times | LawVision
As if defending a marketing budget within the law firm wasn’t difficult enough, CMOs are now doing so in a time of unprecedented uncertainty. How do you move forward with building a marketing budget – and defending it – in today’s environment? It certainly won’t be easy, but there are steps you, as a marketing and business development manager, can take to meet the challenges of the triple whammy of the pandemic, recession, and financial uncertainty. .
1. Align with strategic business priorities
Your company may have realigned its strategy in light of this year’s challenges. For example, if your business has a strong focus on the retail and tech sectors, you may be deciding to go into tech in 2020. How do you realign your budget to reflect that? Or you may have already completed a review by a management consultant or an internal review that defines your company’s strategic priorities, and you already have a plan that will underpin your marketing investments.
Has your company decided to “go big” by seeking blockchain customers? Your marketing budget might include developing a blockchain blog or digital newsletter, sponsoring or joining a blockchain business organization, or creating a new blockchain minisite. Cabinet leaders will not be surprised to see these budget lines, as they have already bought into the strategic priorities.
2. Go on the attack.
As heavyweight boxing champion Jack Dempsey said, “the best defense is a good offense.” This approach does not mean that you will go after your COO! But that means staying ahead of the planning/budgeting cycle. You want to prepare and have an analysis ready of what works and what doesn’t. What were the most successful webinars this year, and why? What thought leadership efforts have translated into extra work for the company?
Show that you’ve already given a lot of thought to how best to redeploy your team in the current environment. For example, are the people in charge of your events immersed in how to organize events virtually? Have you adapted to match your thought leadership with the direction the market is taking? For example, for litigators, if your firm represents cruise operators, have your lawyers proactively contacted counsel in the event of a potential dispute? Technology transactional lawyers could identify weaknesses in a client’s supply chain and offer assistance in advising and working with those clients. Anticipate and plan accordingly.
3. Do your homework.
Financial types (i.e. CFOs and COOs) like to see your opinions backed up with data. Can you show that you have advanced your client team’s programs with a higher level of revenue? Using digital advertising and marketing makes it easier (and inexcusable) not to be armed with data when it comes to your marketing efforts, or at least those that can be measured by the number of plays. , open rates and other relevant statistics. And because every other business zigzags, your dollar goes further if you can zag:
• Businesses can get a bigger share of “voice” because most businesses reduce their marketing spend during a recession;
• Counter-cyclical promotion reinforces confidence, makes it possible to overcome inertia and sends reassuring signals to the company’s employees as well as to potential buyers; and
• It reinforces company branding and key messages in times of economic uncertainty and helps justify premium prices.
When presenting your budget, be clear about what you have already considered cutting or what hasn’t worked well. As William M. Washington III, Chief Financial Officer (Americas) of Hogan Lovells, recently told a group of CMOs, “It’s best to come to the table with a prioritized list of what you want and what you need. have already decided to do without. »
4. Be a team player and look for allies.
Marketing is one of the many areas under consideration as it is considered “overhead” in most businesses. It will help to have the support of other colleagues and key stakeholders. For example, are there any joint efforts you are making with your diversity manager to advance company efforts? These activities could include specific business development coaching for lawyers of color. Going to the top of a company with jointly developed and supported programs will add weight and show the kind of internal collaboration that is always valued.
It is important to have champions with practice leaders and other key members of firm management. Test with them some of your ideas and the corresponding budgets. Make sure they’re on board and ready to help you execute on your marketing priorities. Be politically savvy.
5. Stay flexible – It’s going to be a bumpy ride.
Many companies have held up well this year and are likely to make their post-COVID budget forecasts, but are understandably nervous about looking forward to 2021 when we don’t even know when it will be safe to travel again. So consider a tiered approach to your budget. If the company makes x in revenue, here is what we plan to spend on marketing. If the first goes higher than that, have a plan ready to ramp up. Likewise, be ready with a plan if revenue is lower than expected. For many companies, the 2021 budget will be the most illusory in a long time and will be adjusted quarterly and according to events. In other words, have a base plan, a growth plan, and a reduction plan. Contingency planning is always important, but especially so in this environment.
If your business doesn’t have a well-defined strategy, the budget process is where those priorities are resolved. Your budget plan – and the feedback you get from practice leadership – will help you as it guides you in what’s really important for the future of the practice. With careful thought and research, support from other stakeholders, and data at your fingertips, you’ll be prepared for the toughest budget discussions.