Opinion

The cost of doing business

David Sparrow, managing partner, Blabbermouth, explains how businesses can manage the cost of doing business in a cost-of-living crisis.

We’re all familiar with the cost-of-living crisis, but as it continues to rumble on and predictions of a recession loom large, the compulsion for businesses to cut costs is becoming more pressing.

The cost of doing business in a cost-of-living crisis means battling with unpredictable inflation, soaring interest rates, rising gas and electricity bills, supply chain issues from the war in Ukraine and the pandemic, and trying to persuade customers with less cash in their pockets to spend money on their products.

Cost-cutting and streamlining are inevitable in financial crises, but the tendency for businesses to send marketing to the guillotine will restrict the tool most crucial for convincing cash-strapped customers to spend money on their products.

Thoughtful language

Navigating the cost-of-living crisis and all its language complexities needs expert marketing teams to avoid PR disasters.

Sure, businesses aren’t going to suggest that buying a new kettle to help them through the crisis, but slip ups and gaffs are more likely to trip businesses up during times of heightened sensitivities.

During the pandemic, supermarkets stopped taking about putting their prices on lockdown because of smart marketing teams. It’s up to the same teams to find the difficulties and stop them before an unflattering Twitter thread goes live.

And then there’s navigating the inevitable prices rises that many companies will be implementing over the next year. The British Chambers of Commerce reported that 73 per cent of firms say they are raising prices in response to rising costs, with more than 3 in 5 (62 per cent) citing energy bills as driving factor.

While customers may be expecting price rises, it takes a solid marketing team to communicate these rises with empathy.

On top of the financial and linguistic baggage of a cost-of-living crisis, businesses need to fight harder for customers as B2B marketing becomes even more competitive.

Before the crisis, businesses were already having to adapt to new and changing marketing techniques; from social media to inbound marketing strategies, if a business wasn’t savvy enough to compete, it needed to find a team that was.

Now, businesses need to become more aggressive in their tactics and find smart ways to not only capture an audience but be remembered by them.

Expert marketing teams need to be ready to deploy campaigns that can compete in an even more aggressive market. Cutting these teams in the name of saving on cost will lead to companies having less of an edge in securing essential business during the crisis.

An essential cost

We know marketing is an essential cost during the cost-of-living crisis, but that doesn’t mean it has to be in-house. Outsourced marketing will save businesses on recruitment, training, and equipment cost, and for the price of one hire, they’ll be able to gain access to specialist teams with expertise in telecoms marketing and the intricacies of a financial crisis.

Plus, outsourced marketing gives companies that all important luxury – time. Freeing up time and not having to worry about the nuances of marketing management, team management, and performance analysis means they can focus on steering the rest of the business through the uncertain waters of 2023.

Navigating rocky waters

It’s natural in times of financial strife that businesses look for ways of tightening their belts. But cutting back on outsourced marketing teams is not the answer, in fact, outsourced marketing teams are the answer.

Navigating the rocky waters of a cost-of-living crisis and all its complexities make outsourced marketing teams and all their expertise essential for any business looking to make it through the crisis without a PR disaster trailing behind.

Financial crises create unavoidable competition as businesses compete to attract new business and marketing is essential for ensuring organisations have a horse in the race. But what gives outsourced marketing the edge?

Outsourcing marketing is a ready-made cost-saving solution that offers businesses expert marketing and a business savvy team that know how to bring a business through a crisis.

This article appeared in our January 2023 print issue. You can read the magazine in full here.