In our experience, many small business come to the table with a marketing budget in mind, but oftentimes their budget starts and ends with a price tag. To truly set a budget that will work for your business, it’s important to keep a lot of factors in mind. Below are a few important tips to help you start viewing your budget as less of a line item expense and more of an integrated part of your business plan.
Consider Cost Per Client or Customer
One of the simplest ways to start determining your marketing budget is by figuring out how much new clients are worth to you, and how much you’re willing to spend to get them.
For example, if each new customer generates a profit of $5 for your company and you’re interested in immediate ROI, you’ll know that your marketing plan has to involve bringing in new customers at less than $5 each. Otherwise, you’d be losing money.
Invest in Your Existing Clients
We know those new clients are your Holy Grail, but don’t forget to invest in the loyalty of your current audience. Be sure to allocate parts of your budget to nurturing those clients with sustained communication and outreach. Continued engagement can create a loyal base who will market your brand for you, all for less than it costs to bring in new clients.
Define Your Goals & Objectives
If you go into a marketing plan and budget without specific goals in mind, you’ll never really know if your investment was worth it. Set your goals and define how you’ll measure if you’ve reached them throughout the year.
This step is also key to figuring out where your budget should be allocated. For example, if you want to build social awareness you may allocate a larger portion of your marketing budget to facebook ads.
Don’t Let Your Budget Get Stale
The point of those goals and objectives is to constantly be evaluating your budget and make smart decisions on how to use it throughout the year. If your marketing efforts aren’t giving you a return, consider shifting your money and resources. You don’t want end up wasting your budget on a tactic that’s not working.
On the Flip Side, Don’t Jump Ship Too Soon
When you’re putting money towards marketing it can be frustrating when you don’t see a return right away. However, marketing can’t always be reduced to a strict numbers game. Particularly with content marketing, social media marketing, and brand development, it can take a while to generate enough momentum to see results.
Ignore your instincts to bail, and allow proper time to accurately track performance. You can waste money just as easily by jumping from tactic to tactic without giving your efforts time to sink in and show if their valuable or not.
These tips are just the starting point for setting and utilizing your marketing budget wisely. We love sharing practical tips like this on the regular. Be sure to follow us @LittleJackmktg on