Six in 10 small to medium businesses will slash their marketing budgets or see them remain static for 2023.
New data from customer data platform Klaviyo has revealed a disconnect between budget predictions and ambitious marketing plans. Just over two-thirds (67%) of the 1,000 decision makers surveyed stated that despite budget cuts, their main priority will be to acquire new customers. According to research from FindOutNow, the cost of acquiring customers could be up to five times more than that to retain existing ones.
“It costs much more to acquire a new customer than it does to build loyalty with existing ones,” said Gemma Banks, Klaviyo’s Senior Director of Marketing. “Deploying personalised marketing strategies alongside specific customer acquisition targets will help to do more with less and navigate the choppy waters of the 2023 economy.”
Just 10% of respondents, who worked in small to medium businesses across the UK, said their budgets will be increased for 2023.
Facebook marketing is a priority over Twitter and TikTok
Almost a third (32%) of respondents said that when it comes to priorities, Facebook Marketing will be part of their marketing strategy.
Only 6% will be prioritising Twitter, which isn’t surprising given the recent turbulence since it was bought by Elon Musk, but just 5% will focus on TikTok. Klaviyo said the findings suggested younger demographics aren’t a priority audience.
More than one in 10 (15%) will be focusing on LinkedIn – implying a more corporate focus for 2023.
Email marketing will be a focus for a fifth (21%) of the SMBs represented in the survey but just a handful (1%) are prioritising SMS marketing next year.
Banks said: “SMB leaders have to be smart about their spending. In times like these, it’s best to prioritise the channels that give a better return versus those that take years to see any form of payback.”