We are all under pressure to reduce marketing costs in order to demonstrate how well campaigns are performing. We often waste a good percentage of our marketing budgets engaging in activities, processes or simply following out-dated strategies.
Honesty, openness and transparency are key fundamentals for all marketers. Take a hard and objective review at your campaigns and ask yourself – are they delivering the required results? If not, decide how to optimise them, or simply pause or cease those not working and review other channels better suited to engaging your target audience with your product and or service instead.
Start with Easy Cuts
Making budget cuts is always challenging. But if you’re ready to reduce your spend, start with projects that do not produce sales. It might be discouraging to admit that a bright idea has not performed to expectation, but it is better to accept defeat and save longer term damage to your company’s wallet.
Get rid of those projects that are costing you unnecessary coin. Example, social campaigns that aren’t receiving clicks or print ads that aren’t generating leads.
Marketers should utilise Google Analytics or any platform-specific analytics programs to identify low producing marketing schemes are low producers to shed. You’ll be better off making the easy cut firsts in order to allocate this spend in other areas of your business.
Analyse your Database
Whether executing direct mail or email campaigns, you need to ensure your marketing your message to prospects who a) can be contacted and b) want to be contacted. Strict white-listing is paramount!
Routinely analysing and optimising your database is a simple way to manage costs.
Take direct mail for example. While businesses move away from print, direct mail is still a viable channel. But the cardinal sin is not conducting strict white-listing which results in marketing wastage spent on as sending mail to people who have either moved or stopped engaging with your brand. Same principles would apply to your direct email lists. Set reasonable parameters for non-engagement, or white-wash dodgy looking email aliases. Only distribute to those you know are still actively engaged, otherwise it’s more marketing dollar down the proverbial toilet.
Segmentation is only effective if you get your data selections right.
Spend Budget Effectively
A smart marketer will be able to answer this question immediately. So, how would you market yourself? All businesses need to market their r brand efficiently and effectively in areas where its key target audiences engage.
Digital marketing provides marketers with so many opportunities to analyse campaigns and divert resources into the best performing campaigns.Check out our blog on 3 Ways to Maximize ROI
However, just before you invest all your budget into digital marketing, firstly understand your key target demographic.
- Have you invested time into determining your audience persona?
- Have you optimised your message?
- Are you segmenting according to audience profile?
- Are you using text, or a mix of video, images, infographics etc?
- Are you promoting blogs, content, white papers, customer testimonials?
- Within this layer of analysis are critical questions which the statistics don’t tell you – namely which tactics work best in each individual environment, and help us achieve our ultimate goal?
The final, key barometer is understanding the volume of customers each campaign is driving.
There are similar conclusions when calculating marketing ROI. In short, your strategy direction and end goal must be unified, and this should reflect in the undercurrent of all your campaigns. Simple sanity check – what’s your desired goal? Acquiring targeted, consented customer leads. What are you good at? Powering better acquisition for aspiring businesses– otherwise we’re spending money just for posterity.
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