How CMO’s Can Emerge Stronger During the 2022/2023 Recession
Estimated Reading Time: 2 minutes
According to Gartner, 70% of companies don’t regain their pre-recession growth levels in the 3-years following a recession, and only 5% of companies consistently achieve profitable growth above their competitors coming out of recession (simultaneously growing revenue and profit margin quarter-to-quarter). These are staggering numbers. The question is, WHY?
Analysts like McKinsey have deemed that digital leaders are 3x more likely to achieve above-industry revenue and margin growth during a recession. But what defines a ‘digital leader’ and how, during a recession, do you pivot to achieve these necessary accelerations that allow you not just to survive but thrive?
What is a Digital Leader?
Digital transformation is the adoption of digital technology to improve efficiency, value, or innovation. A lot of people think that digitizing is the same as digitally transforming. Let me be clear. It is not! Digital transformation is about implementing a change in the process.
- How you become more effective
- How you become more efficient
- How you differentiate yourself
- How do you grow revenue
- How you engage with customers
In 2022, digital investments were focused primarily on customer engagement due to COVID-19 shifting how and when customers wanted to experience.
The constant evolution in how buyers want to digitally consume information and how quickly businesses acquire, merge, and launch products and solutions requires a MUCH more agile approach in how and where they tell their story.
The Digital Pivot – Change is Hard
“I’m telling my teams to fund digital acceleration by finding savings and inefficiencies.” – CFO
“I need to reallocate resources and money to fund higher yield activities.” – CMO
“We’re going to freeze or slow down hiring and do more with the resources and talent we have” – CEO
Preparing now enables companies to gain market share and accelerate: Winners pulled away from losers during the last recession and widened the profit and market-cap gap during the subsequent expansion, Bain’s analysis of nearly 3,900 companies worldwide shows.
How you change makes all the difference to your success following a recession. If you don’t evolve – you will never catch up.
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Smart marketing leaders know digital transformation is an ongoing process vital to surviving recessions. Learn how they’re using technology to meet evolving buyer demands.