Budget Like a Boss: marketer’s guide to better planning
Budgeting or root canal? For some marketers, it’s a toss-up. After all, the drilling’s over in an hour or two, while crunching a year’s worth of numbers can take days, weeks or even months. Yet, for all its aggravation, budgeting may be one of marketing’s most vital strategic tasks. Consider these tips to ease the pain of planning.
1. Know your sales funnel.
Deep data insight helps you assess spending performance and efficiency. Check website traffic numbers, lead volume, and cost-per-lead. Don’t forget to cost-out conversion and retention programs.
2. Understand operational costs. Are teams optimally staffed and prepared, or will they need new tools or training to keep pace with digital trends?
3. Align spending to business goals. Cover yourself by mapping the cost of content, collateral, ads, and promotions to projected sales activity. Allocating 7% to 8% of annual revenue to marketing is a common target for many smaller firms.
4. Factor in your growth stage. New companies facing pressure to expedite income and profits may want to invest more in quick-win tactics, such as a dynamic, video-driven website and pay-per-click ad campaigns. Conversely, established firms might pursue a longer-term play that includes earned media, content marketing, and digital campaigns.