Here’s How to Determine Your 2017 Marketing Budget [a.k.a. Our Super Simple Formula]
I want to give you permission to spend money on marketing in 2017.
Now, I’m sure you would expect something like that to be said from a marketing firm, but I promise you, it’s not an irresponsible comment.
The reality is that most people spend money on marketing with no consideration for the bigger picture as to why they are spending it and how it will help. They just see it as a “necessary evil” and hope and pray it works.
They don’t have a marketing plan and they don’t have a marketing budget. These two items are what give you permission to spend!
What I want to do with this post is to show you exactly how to solve these problems so you can give yourself permission to spend marketing dollars responsibly in 2017 and GROW YOUR BUSINESS!
First, you need a strategic marketing plan
Hope and pray marketing needs to end in 2016. You need to be deliberate and focused with your marketing in 2017, and that requires a strategic marketing plan.
Fortunately at MEMO Marketing Group, that is one of our specialties.
There are a few key components to a strategic marketing plan. They are:
- Establish a “New Business” Revenue Goal
It’s important you decide how much you want to grow your business in 2017 and do it within reason. Recognize you have to serve existing clients well at the same time you look to find new ones, so select something that would be a stretch, but attainable if all things align correctly.
- Determine a 12-month Revenue Value for Your Ideal Clients.
Think about your best clients (ones you enjoy working with, who think you do a great job, and you make a lot of money from them), and determine what your average yearly revenue amount from them is.
- Recognize Traits that Define These Clients
Remember that you don’t solve problems for companies, you solve problems for people. So focus on finding common traits among each of your top clients. What they see their problems are, what they are like demographically, and anything else that is similar among them. This is an important exercise in finding more just like them.
- Identify the Steps to Your Buyer’s Journey
Every client had to go through a series of steps to make the decision to hire or buy from you. Map those steps out so you can make others go through them as well. We call this a funnel and funnels are a great way to move people through the decision making process.
- Create a List of Tools That Would Help More People Move Through the Funnel
Maybe you recognize that many ideal prospects don’t understand why they should hire you and therefore you need to educate them. There are a variety of ways to do this, but you may find that you need to create more marketing tools to do this. Make a list of the tools you need to create, the current marketing tools you want to modify, and the current marketing tools you realize are not helping you and should be deleted. Then create a schedule and find resources to get the work done.
This is a proactive and strategic marketing plan that works. I know it does because we do so many of them each year for clients. If you want help with yours, contact us and let's see if we could be a good fit for you.
Second, you need a marketing budget
Most people don’t understand what they can afford to spend to acquire a lead. Do you? Do you know what you can invest in marketing to get new business?
Well, here’s your chance to learn. We have created a simple tool that walks you through step by step and in the end, you will know exactly what you should budget for marketing in 2017.
We even created a video to show you how to use it.
In the video, we call this the Lead Cost Formula Spreadsheet because in marketing, you should consider your costs related to what it takes to get qualified leads. Follow the instructions in the video above and you will be well on your way to a new 2017 marketing budget.
And remember, we are always here for questions and advice along the way.
Good luck, and make 2017 your BEST marketing year ever!