We are on the precipice of a boom in hacking by small startups, disrupting medium to large enterprises and established tech companies, especially those backed by venture capital. This shift is starting right now, fueled by recession fears.
What do Chief Marketing Officers (CMOs) do when they face economic headwinds and sales start to drop? Marketing becomes more difficult. I'm not talking about the top 1% of marketers, but the average tech CMO whose entire executive team outsources creativity. Their idea of marketing is to acquire a budget and spend it.
These average tech CMOs look at the economic landscape and recession indicators, acknowledging the high chance of entering a recession. The smart move they make is to consider two strategies:
Team Player Approach: They pitch in as team players, helping to find headcount for layoffs, saving budget, and trimming costs. They highlight how well their team is doing, while downplaying the dropping marketing conversion rates and fewer leads in the funnel. They know they are fighting against market forces, and even if they maintain their effectiveness, metrics will drop.
Opportunity for Small Startups: If you're a small startup, this is your chance to "eat their lunch." As larger companies drop their Google ads and stop spending on new campaigns, you can seize the opportunity. Don't let it slip by. As a low-cost competitor to a major product, it's easier to cut expenses in half than to lay someone off.
Think about your target audience and the established product that every other venture-backed company chooses. Position yourself as the cost-effective alternative. Be the product that people switch to, allowing them to report to their bosses that they are cutting costs. For example, switching from Intercom to Crisp could save $1,000 a month.
If you can be that alternative, you can potentially capture a third of the market from your biggest competitors over the next year. While others are minimizing costs and laying off staff, go out there, give it your all, and make some money.
