So, it’s the end of the year and you’ve been planning your marketing budget. Right? Good, I’m going to pretend that you’ve been doing that. If not, it’s time to reevaluate. Good thing you’re on our list! We at Ilfusion want to help you with your marketing budget for 2014. Even if you’re not including our agency services in your process, it’s important for you to consider some the following factors when budgeting for your next year.
1. What Was Your Revenue vs. Marketing Spend ratio?
Depending on your industry and the competitive landscape, a good starting point for your marketing budget discussion is about 10% of your total revenue. It may not be all directed at an agency. In fact, if someone recommends that 10% of your budget goes to an agency, they’re probably an agency. Look at your website, landing pages, email templates, social schedule, advertising spend (print, adwords, retargeting, tv, radio), your advertising collateral and any other factors you see contributing to your marketing efforts during the year.
2. Looking Back: What Worked and What Didn’t
What worked? What about your spend contributed directly to your bottom line? ROI is important, but it isn’t everything in marketing. How are prospects and customers engaging with your brand online? Is your online presence active enough for your goals? Do you have engagement goals? Have your marketing staff compose a 1-2 page summary of the year’s marketing efforts with a supplemental budget vs. reality spreadsheet. Now you’re starting to really see what’s going on with your marketing strategy and where you should make tweaks.
3. Plan Your Year
Set your goals. What are you looking to make in revenue for this year? What’s your minimum acceptable revenue needed to pay the bills? Now, let’s work backwards. In order to gain this amount of revenue, what should your sales be of each product line or service? In order to sell that much, what’s your average lead time? How many communications with you must a customer engage in before purchasing? Now, what’s your strategy to ensure that the right communications reach the appropriate amount of people to ensure that conversion rate? Want some help?
Call or e-mail us today to sign up for a free 2014 Marketing Budget Review! Our team will take a how your marketing budget compares to your plan and give you an honest assessment.