The Covid economy was highly profitable because many legal tech providers and customers sought technology to improve their remote operations. Coupled with low-interest rates and a substantial investment market, we experienced significant growth. Now, as the economy sinks and interest rates rise, the economy's future is more uncertain. Many legal tech buyers are reducing overhead, and vendors may feel pressure to increase value and pricing transparency. Bells and whistles are out; efficiency and ROI are in.
Historically, when the economy has suffered a downturn, we've repeatedly experienced the kneejerk reaction that marketing is expendable, but experienced leaders know that reducing marketing investments kills sales. No company grows by saving. In fact, brands that increase advertising during slowdowns historically outpace those that cut back, improving their market share and return on investment at a lower cost than during economic growth periods.
The key is investing wisely in marketing and identifying what you need vs. what you want. Online and networking opportunities are low-cost channels to keep your marketing engine going when budgets are tight. Your buyers are more active there are well.
While live events are making a welcome comeback following the pandemic, live events may suffer and may experience lower engagement since travel and event costs are seen as expendable. Talk with event organizers and ask hard questions about their ROI.
As buyers become more selective, adapt your messaging to focus on how your product/service will deliver better ROI. With increasing pressure to reduce costs, your audience will spend more time evaluating options and planning costs. You need to be clear now more than ever about how legal tech buyers are redefining value and responding to financial tightening. Reach out to current customers and clarify the value of your product/service, and promote it to potential customers on multiple channels, potentially over a longer buying cycle, with content that focuses on the needs they are currently experiencing – the ability to save time, attract and retain top talent, and provide more value.
Finally, remember that marketing during economic uncertainty requires you to focus on the long-term. Prioritize growing your marketing share by implementing strategies to position your brand to meet your customers' needs well beyond the current buying cycles. Additionally, the key to remaining viable is to operate more efficiently. Identify your most effective channels and tactics to plan how you can best use your budget to reach the market. Done well, your investment in marketing over the upcoming months and years will position your business for long-term growth.