A Better Way to Set Your Marketing Budget
The best way to develop a marketing budget is to treat that budget as if it’s an investment — something that delivers an expected, quantified return over time. In order to build a strong business case around this concept, a marketer must understand the dynamics of their funnel. Take a deep dive into how new potential customers enter in the top of the funnel, how much you need to invest to find those prospects and help them move through the revenue cycle …
With this model in place, marketers can run scenarios that show how the budget translates into more leads, opportunities, and wins down the funnel. (They can also quantify the impact budget cuts will have.) At most companies, any significant investment must be supported by a business case that shows it will deliver a “hurdle rate”, or minimum rate of return. If you can make that case, the CFO generally approves it. Of course, some types of activities — demand generation comes to mind — are easier to tie to ROI than others, such as brand-building or PR. But no matter what the activity, make “worst case”, “expected case”, and “best case” assumptions to show the range of possible outcomes.
Sales Renewal’s insight:
The author does a nice job explaining some of the ways to do a marketing investment analysis, and even makes a plea to treat marketing just like other business investments, even capital spending (are you listening FASB?)
We ourselves have tried to contribute to this change in mindset, for example, we’ve presented real-life data that shows the more you invest in marketing, the more your leads increase and costs per sale or lead decrease to larger growth (here).
We even offer a quick, low-cost service, a Marketing Investment Analysis, that will help you figure out what a rationale marketing investment in your business should be.
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A Better Way to Calculate the ROI of Your Marketing Investment
“Marketers have access to data [today] that allows them to track individuals’ various interactions with a brand before their purchase, and better understand what role each interaction … played in the eventual sale.
This approach, called “attribution modeling, ” allows companies to attribute appropriate credit to each online and offline contact and touch point in a customer’s purchase cycle, and understand its role in the revenues that ultimately result.
Developing an attribution model is a gradual process. You can’t get there all at once. There are four key stages in the journey:”
Sales Renewal’s insight:
The authors lay out an excellent road map, but like most things in life, the devil is in the details. Sales Renewal, as Growth Spurt readers know, focuses on small businesses and the details are particularly devilish for them since they don’t have the technical & financial resources of the big boys.
Almost all small businesses rely on Google Analytics (GA) for the authors’ Step 1 because it’s free and will tell them what marketing activity to credit for bringing the visitor to the site (ad click, natural search, etc), which pages they clicked through, and whether in the end they converted into a lead or sale. The challenge small businesses face therefore isn’t “data in different databases” but the limits of GA.
For example, imagine a visitor who comes to a site by clicking an online ad, clicks thru pages 1, 2 & 3 and then purchases something. So using a simple attribution model, you might think GA will credit the ad campaign for the sale. It turns out, however, that it does not: if takes more than 30 minutes for them to click from page 2 to page 3, GA loses track and considers the page 3 click to be an entirely new session. GA will report 2 different visitors (the first who came from the ad, the second who magically started out on page 3) and so does not attribute the sale to the ad click.
Sales Renewal’s business model (sharing the risk & reward) makes us very big believers in ROI-focused marketing but it’s a very challenging thing to do, especially for small businesses. That’s one of the reasons, for instance, that we’ve been developing our SR Analytics system for 6 years.
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How Much Time Does SEO Really Take?
Getting started [with seo] is relatively easy, but in order to be successful in an especially competitive environment, you need to dedicate yourself to the strategy. You’ll have to acquire new skills…
The common solution for this is to simply hire an in-house SEO expert who can handle all these tasks. If you can’t, it’s on you to handle them all yourself. Either way, the cost can be prohibitive, especially if you’re an emerging small business. Likewise, spending all those hours doing it yourself can tie you up, preventing you from pursuing more productive activities that can’t be outsourced.
Before you make a decision, you need to know one thing: how much time does SEO actually take?
Sales Renewal’s insight:
How do you look at SEO? Does it seem like a daunting process? A set-and-forget item to check off your list?
Many small business owners believe they can “do” SEO themselves. But before you make that decision, please read this article. You might just gain a new appreciation for those who do SEO full time.
Consider the (what may appear to be) straight-forward process setting up on-page optimization (10-40 hours) and monitoring and troubleshooting on an ongoing basis (3-12 hours/week). Then there is content development, which could be something you can get away with spending a couple hours a week. Or, it could turn into a nearly full-time job (3-50 hours/week).
Off-page optimization opens up an entirely new realm of responsibilities and processes, from dabbling in looking for linkbuilding opportunities to following a well-thought-out relationship building program (5-25 hours/week).
Then there’s the additional work related to SEO for local businesses, like customer reviews (up to 15 hours/week), and then measuring and analyzing all you do to be sure it’s effective (1-2 hours/week).
Putting it all together, the author’s bottom line is sobering:
“Even for the small range of organizations I examined here (small to mid-sized businesses), you can see the vast range of potential time spent on an SEO campaign. Added up, it amounts to anywhere between 12 and 104 hours per week. If you put in 12 hours a week, don’t expect to climb to a top position anytime soon. On the other end of the spectrum, if you want the best results as fast as possible, you may need to hire employees, contractors, or an agency.”
Given this cost (in time and opportunity), we believe that the most cost-effective way to “do” SEO is to work with a specialist. That’s why, whether you’re a JointSourcing or Marketing Essentials client, we will work with our SEO partners to be sure your business receives the SEO attention it deserves.
Learn more about Sales Renewal’s Search Engine Optimization services.
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New Survey Shows Engineers Most Likely to Look Online for Information
Analysis of TREW Marketing and ENGINEERING.com new survey on how engineers find information online. Engineers love online information over others.
Sales Renewal’s insight:
Marketing to engineers? Be sure you pay attention to online and digital marketing, as online is a valuable source of information for engineers.
More survey results:
- The way engineers most often interact with e-newsletters is scanning subject lines.
- Engineers most often consume work-related content on their desktop computer throughout the workday; mobile devices are used most often when they’re on the go and commuting.
- In viewing webcasts, features engineers prefer most are real-world examples and images and diagrams.
- Online resources such as websites and search engines are the most valuable source of information versus offline sources such as conferences or publications.
- Engineers have the highest trust in content written by an engineering expert at a vendor company, followed by industry analysts and editorial pieces in an industry print or online publication.
- Most engineers use social media in their personal life where they may stumble upon work-related articles, but nearly a third say they use social media for work.
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The Perfect Equation: 5 Tips For Successful Content Marketing
The equation for online marketing is simple: quality content + promotion of content = more customers.
Sales Renewal’s insight:
We’ve read it before, but it’s worth repeating: Inbound marketing starts and ends with quality content. And although it may seem simple, there is a lot of hard work that goes into this equation.
It’s worth reviewing the five basic tips:
- Understand that the goal of content is provide value to your reader. If your message isn’t informing or educating, readers most likely are looking elsewhere. And the content should fit the channel. For example, news release content should be objective, newsworthy, clear and to-the-point.
- Keep conversions in mind. The end result of the equation is, of course, more customers. So while creating content of value for readers is important, creating content that helps in the path to prospects becoming customers is just as important. (“Conversion optimization” to be technical.)
- Always use SEO best practices. In order for the content to be visible within the search engines, it must be optimized.
- Integrate varying forms of media, with options like Video, images, podcasts, recorded webinars, downloads and presentations.
- Go mobile. Enough said.
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Google’s Local Snack Pack Shake-Up: What You Need to Know
Google recently shook up the local results in its SERPs, killing the local 7-packs in favor of a 3-pack that resembles the mobile experience. This post tells you everything you need to know about the change and what it means for your local marketing.
Sales Renewal’s insight:
Did your local listing make the cut?
As you can see from the example in the image (and yes, both our local florists made the cut!), Google has made some pretty big changes to the map and listings that show up for local searches. SEO experts say this is the biggest change to SERPs (search engine results pages) since the Pigeon update in July 2014.
If you’ve ever searched for a local business, chances are you’re familiar with what is often called the “Map Pack” results, or the businesses and map results Google shows when someone does a local search – “florist mendon ma” for example. These recent “Snack Pack” changes include a reduction in the number of Map Pack results from 5-7 to 3. And, much of the previously visible information, like business address and phone number, has been removed.
As with most changes Google makes, speculation abounds as to why, but a streamlined view, better alignment between the desktop and mobile experience, and – the biggie – positioning to become a money maker are three well-founded explanations.
Staying in or Moving into the Top 3 Positions
While the impact of these changes are still unknown and a clear “how to” has yet to be determined, local businesses are advised to continue to optimize for local search as they had been doing: website optimized for search; good quality link building; citations and directories; and focusing on customer reviews.
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How to Use Facebook to Promote Your Business
Using Facebook to promote your business
Sales Renewal’s insight:
We recommend a full Facebook marketing strategy for any business, and there are a number of things to keep in mind while using Facebook as a means of promotion. This article provides a checklist to go through to make sure you are effectively using Facebook to achieve results.
Though some of these tips are obvious, others tend to be overlooked when it comes to Facebook marketing. For instance, many people do not understand the importance of engaging with followers. Facebook provides a quick and easy way for customers to ask questions and connect with businesses in a way that was not previously possible. By engaging with your followers on Facebook, you can provide answers, as well as make your audience feel important by replying directly to comments/concerns. This added connection increases public image and can leave an excellent impression on your audience.
Other great tips from this post include posting relevant, thoughtful news/information, using advertising to reach a larger audience, rewarding followers with deals or campaigns, and measuring insights to follow up on success.
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Marketing as Architect of the New Buyer Journey
A look at the impact on new buyer expectations and behaviors-and the challenges and opportunities for brands and marketing.
Sales Renewal’s insight:
A typical, simplified view of the customer journey (buyer’s funnel” shows three stages – Awareness (of a need or an issue that needs solving); Consideration (of the alternatives); and Purchase (of the best solution for the need).
But rarely is the customer journey a straight path from Awareness to Purchase, as so aptly demonstrated in this graphic from Forrester Research via Percolate.com. There are twists and turns throughout the journey which present both obstacles – and opportunities.
Understanding this non-linear path to purchasing further reinforces the importance of key concepts and creating relevant content for different stages of the customer journey.
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8 Social Media Marketing Mistakes to Avoid (Infographic)
Whether it’s oversaturating your content or missing the point of social networks, newer marketers make many mistakes.
Sales Renewal’s insight:
Many new marketers make mistakes with social media. Some try to take on too much too soon, while others do not promote adequate content. This infographic from Digital Marketing Philippines shares the top 8 social media marketing mistakes and how to avoid them. Some takeaways from this infographic include:
- Not having a social media marketing strategy – Failing to have a strategy can mean posting blindly, which in turn will fail to engage your audience. Having distinct goals and using a social media calendar can help you become more organized and increase your success.
- Creating too many social accounts too soon – You should focus on only a couple of social media platforms at first, then grow when you have successfully engaged your followers. This can prevent you from abandoning your social media accounts altogether.
- Using irrelevant hashtags – Using hashtags is important for increasing visibility, but overuse can be displeasing to your followers. Try to limit hashtags by using sensible ones that are directly related to your post.
- Forgetting to proofread your posts – This is a big one. Nothing looks more unprofessional than typos due to a lack of proofreading. Take a moment to read over your posts before posting. This way you will gain the respect of your followers.
It is easy to make mistakes, especially when you are just starting out. But following these suggestions can help you to reduce your risk of social media meltdown and improve your online presence.
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Cost of Marketing: What Is the Average Budget?
As today’s savvy businesspeople know, to have a strong business people have to know who you are and what you offer. You need good marketing. The first step is a marketing budget to help you figure out practical steps to achieve those goals. But, how much should you spend?
Sales Renewal’s insight:
We agree, this is the best way to think of your marketing budget if you’re a small business:
“Allocating a specified percentage of sales revenue is one of the most popular methods for developing a marketing budget. The average allocation usually ranges between 9-12% of the annual budget, while the smallest businesses may go as low as 2%. … The main advantage to using a percentage of sales is that the marketing budget will increase, or decrease, with the sales revenue of the company. The marketing budget will never spin out of control and deplete sales revenue.”
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