By Contributing Author
Setting the right budget for marketing is always a bit of a balancing act. On one hand, you have the financial constraints of your business (or your client’s business) stopping you from pouring everything into the latest, hottest trend in internet marketing. On the other hand, you also need sufficient resources for your marketing efforts to hit their targets effectively.
Will you offer us a hand? Every gift, regardless of size, fuels our future.
Your critical contribution enables us to maintain our independence from shareholders or wealthy owners, allowing us to keep up reporting without bias. It means we can continue to make Jewish Business News available to everyone.
You can support us for as little as $1 via PayPal at [email protected].
Thank you.
Fortunately, you now have more tools and resources to use when budgeting for marketing. At the same time, there are also better ways to achieve more, even when you have a relatively limited budget. Here are the top three ways to justify your marketing budget this year.
Aim for the Right KPIs
Key Performance Indexes or KPIs are the metrics that will measure the success of your marketing campaigns. Whether you’re doing a social media campaign or a full-on below the line activation, there are always measurable metrics on which you can judge the success of your marketing effort. The key here is aiming for the right KPIs.
There are several very interesting KPIs. Customer Acquisition Cost or CAC is a good KPI to track when you’re trying to acquire new users or customers. This is also a handy metric to track when launching a new product and service to the market.
The same can be said for sales growth. Tracking sales growth is not always straightforward, but it is an important measure of success compared to previous marketing efforts. Besides, demonstrating the right amount of sales growth will further justify your marketing efforts – and the costs of running them – you’re planning for the year.
Go into Details
The days of doing one marketing campaign to reach all customers are far gone. Today, especially with internet marketing, highly specific targeting is the way to go. Instead of running a big campaign to reach everyone, you can get better results and justify your marketing budget better by having smaller campaigns aimed at specific market segments.
A good approach is to funnel more resources towards maintaining high-value customers. Customers who have high lifetime value are more likely to increase their purchases with the right marketing campaign aimed specifically at them. At the same time, you can use the insights you get from customers with a high lifetime value to reach potential customers.
A Thorough Budget Analysis
There are reasons why state and federal governments are recruiting more online master in public administration degree holders. Online MPA program graduates from reputable universities such as Rutgers Online are capable of performing a thorough budget analysis and forecasting the impact of a set budget on a larger scale.
The same approach can be implemented in marketing. A thorough budget analysis will help you make accurate predictions. More importantly, it allows you to manage expectations. You will be able to set a more reasonable set of KPIs as a result, which will further help make the entire marketing campaign more efficient in the long run.
If you are having trouble justifying your marketing budget for the year, these three tips we just discussed in this article will help you take steps in the right direction. The right amount of resources will make running an effective marketing campaign a lot easier.
