What’s the No. 1 job for CMOs in a recession?
The most important thing you can do to recession-proof your business is to have conversations with your people. Not as a marketer, not as a CMO, but as a leader—really help them understand how you are preparing your business to navigate a recession and be in a healthy place.
You can’t forget to communicate the “what” and the “why” to your team so that they can work in an environment where they feel safe. People can’t do their best work if they don’t feel safe. They can’t innovate if they don’t feel safe.
How do you adjust budgets for a recession?
When you start the budget year, you have an idea of how much you will spend on marketing, demand gen, technology and new headcount. All those change from month to month based on revenue, cost of goods sold, margin, etc. Even outside of a recession, we’re trying to pull levers and expenses every day.
If the company is not performing, or we feel like it may not perform in the near future as expected, we have a fiduciary obligation to reduce spending. And it’s not freezing things, it’s simply pushing it out to see when it is responsible to spend it.
What expenses might be delayed in 2023?
We are looking at things like pushing certain hires out to protect our current talent and ensure we’re hiring responsibly. We are not taking on new responsibilities, strategies or tactics for which we’re not ready. We are also looking at being a little more responsible with our discretionary marketing spend.