Building Business Processes
How Innovation Keeps Your Business Relevant
The Hidden Cost of Cutting Marketing
Values, Costs and Consequences
I recently stumbled upon Burak Buyukdemir’s satirical “Corporate Playbook for Creating an Innovative Culture” on LinkedIn. The slide stack humorously underscored how innovation is often nothing more than a corporate buzzword, despite claims to the contrary. It got me thinking: why do businesses so often shy away from true innovation, especially when facing challenges? This resistance to embracing something new could well be the reason marketing is often the first cost to get trimmed during tough times.
Marketing is much more than flashy ads and catchy slogans. It’s about creating an environment where your brand connects meaningfully with your audience. Innovation in marketing goes beyond technology—it’s about how you position your business, build relationships, and differentiate from competitors. But when financial stress hits, marketing seems like the easiest thing to cut, even though that might be a costly mistake.
The Innovation Dilemma: Coffee and Culture in a Tile Business
Let’s talk about Wesley, who started a flooring business specialising in tiles. Wesley knew his product well, but he also understood something bigger—business isn’t just about selling tiles; it’s about creating an experience for the customer. His big idea? Serve great coffee to clients, a small touch that made his showroom a place where people wanted to linger. This wasn’t just coffee—it was a symbol of value, a gesture that made customers feel welcome and special.
It wasn’t long before his business became known as a hub for innovation and excellent customer service. The coffee wasn’t just a drink; it was part of the brand’s culture, fostering a sense of belonging and reciprocity, as outlined in Robert Cialdini’s principle of reciprocity. Clients would come in, sip on excellent coffee, and end up buying tiles—not because of a hard sell, but because they felt valued.
Then the accountant got involved. Looking at the books, the R10,000 a month spent on coffee seemed like an unnecessary luxury. With three branches, that bill was tripling, and the cost-cutting began. Coffee disappeared. Sure, the savings were immediate, but the business suffered in more subtle ways. That warm, welcoming culture had cooled, and with it, the innovation that had set Wesley’s tile business apart.
(Edit update – Coffee is flowing once again)
In trying to save a little, Wesley risked losing a lot—because the small things that create an environment for customer loyalty and innovation often go unnoticed until they’re gone.
The Florist Who Lost Their Digital Shop Front
Another client of mine, a florist, was in a similar bind. Work was scarce, and they were considering a drastic pivot into a completely different industry. They had given up their physical store and were relying solely on word of mouth to keep business flowing.
Without a physical shopfront, they had neglected to create a strong digital presence—a virtual shopfront that would attract new clients and keep their brand alive in the minds of past customers.
It took a gentle nudge to remind them of the importance of visibility, whether physical or digital. Six weeks after launching a focused online marketing campaign, their business was back on track. It wasn’t a reinvention, just a return to what worked—adapted to the times.
The Risk of Drastic Cuts: Innovation Stifled, Business Declined
Cutting marketing spend during tough times may seem like a logical decision. After all, it’s easy to see it as an optional extra rather than a necessity. However, when you cut marketing, you’re not just saving money—you’re cutting off your connection to your clients, stifling innovation, and risking long-term damage to your brand.
Take another client I’ve been working with, a small business that supplies used car spares. Recently, they’ve faced some challenges, and their owner, in a bid to save costs, asked if we could cut back on our work together. Now, my services to them are quite affordable for regular newsletters and marketing advice. It’s not a massive expense in the grand scheme of things, but to them, it felt like a cost they could do without.
Here’s the irony: these newsletters and marketing efforts have helped them maintain their position as the leading supplier in the area. Reducing or cutting out marketing is like turning off the lights in a shop—customers can no longer find you.
The Parallels with Business Values
There’s a valuable parallel here with the core values of a business. Just as businesses are reluctant to compromise on their ethical standards or quality of service, they should also be cautious about compromising on innovation and communication. Cutting marketing isn’t just trimming the fat; it’s cutting into the muscle that keeps your business moving forward.
It’s the same with values. If your business values quality, transparency, or customer service, these should be reflected in how you present yourself to the world. Imagine a high-end brand cutting costs by using cheaper materials—customers would notice, and the brand’s reputation would suffer. The same goes for marketing. If you stop communicating your message, your reputation could falter, and regaining that lost trust can be incredibly difficult.
The Small Business Perspective: Innovation Isn’t Optional
For small and medium businesses, innovation isn’t just a luxury; it’s a necessity. In a world where online promotion, AI, and other technologies dominate, staying relevant means continually evolving. The good news? You don’t need a massive budget to be innovative.
Look at what I’ve done for small businesses with limited resources. A used car spares supplier reconnects with their clients through a well-crafted newsletter. A florist rebuilds their business with a stronger online presence. These aren’t grand, sweeping changes; they’re small, consistent efforts that pay off over time.
Why Process Innovation is a Smarter Alternative
Instead of hacking away at your marketing budget, consider an alternative: business process innovation. Improving your internal operations not only saves money but can lead to more effective and efficient delivery of services, freeing up resources for essential areas like marketing.
Businesses often think of innovation as something flashy or tech-driven, but sometimes the most impactful innovations come from improving the day-to-day processes that drive your operations. Process innovation means optimising how work is done, eliminating inefficiencies, and finding smarter ways to deliver your products or services.
The great thing about process innovation is that it’s accessible to businesses of any size. You don’t need a huge budget to make your business more efficient. In fact, small and medium-sized businesses often have an advantage—they can be more agile and quicker to adapt than larger corporations bogged down by bureaucracy.
Think of it this way: If your business is a ship, process innovation is like upgrading the engine so it runs faster and more efficiently, while marketing is like raising the flag that lets people know you’re coming. You need both to steer your business in the right direction.
Consider the Implications
As we move further into an era dominated by digital transformation, the need for small and medium businesses to embrace innovation is more urgent than ever. But innovation doesn’t always have to be cutting-edge technology. Sometimes it’s as simple as great coffee or a newsletter that keeps your clients engaged.
As you evaluate your marketing strategy, consider this: What is the cost of not innovating? How can you create an environment that fosters creativity and connection with your audience, even when times are tough?
You may find that the investments that seem “nice to have” are actually the ones that keep your business thriving. So, before you cut back, think about the long-term impact of losing your visibility, your culture, and your connection to the people who matter most—your clients.
Now is the time to reimagine your marketing strategy and consider how small, thoughtful innovations can keep you ahead of the curve.
Digitally First but Physically Enhanced
The Online Business Model has usurped the Physical Business Presence as the primary business presence. Physical businesses now support the online versions.
This transitioning has been fraught with difficulty but has been terribly exciting. Successful transients are alive with possibilities…