Survive or Thrive? CEOs Must Invest Now in Marketing

When companies face an economic downturn, like the one caused by the COVID-19 pandemic, they often respond by cutting their marketing budgets. However, numerous studies have shown that this can have the opposite effect of what CEOs intend. Harvard Business School and Boston Consulting Group have both reported that companies that cut costs faster than their rivals will have the lowest probability of succeeding when times get better.

The key to success during a downturn is to invest in marketing tactics and approaches that are effective. McKinsey advises companies to quickly prioritize and scale up new digital capabilities to enable digital touchpoints with their customers. This can be done through interactive applications such as vertical solution storytelling, persona driven messages, photo-realistic 3D product demonstrations, calculators, space configurators, and more.

Research from the University of Illinois and Millward Brown have both shown that these investments yield direct relationships with long-term financial growth. Companies should use this opportunity to upgrade their digital marketing and sales platforms and build interactive customer engagement solutions that will form the foundation of superior long-term market share and financial performance.