At the heart of every successful MSP business is a carefully designed IT marketing budget. Your budget should allow you to engage your target market at every stage of the sales funnel. How you disperse your funds according to your marketing priorities can make a huge difference in your business success.
How to Optimize Your Marketing Budget
Whether your business is a start-up or well established, you need to optimize your IT marketing budget for your needs. Here are a few tips on what to consider when deciding how much to put toward your budget for the best return on your investment:
- How much to put toward your marketing budget – There’s no clear-cut answer to how much you should spend on marketing. Every business is different. The Small Business Administration (SBA) recommends seven to eight percent of your revenue if you make less than $5 million, and split this amount between building your brand and promoting your business. When you develop your budget, you can base it on your projected revenue for the year.
- Develop a marketing plan – Before setting up your marketing budget, develop a basic marketing plan. This helps you make informed decisions about the funds you should set aside for various marketing strategies throughout the year. You can refer back to your plan when trying to decide whether to buy advertising, outsource your marketing, participate in events, ramp up digital marketing, or update your website.
Also, look at what your competitors are doing, and don’t be afraid to make some changes to your current marketing budget. In today’s digital world, new digital marketing and advertising options appear all the time. Take advantage of all the latest technologies to market your business.
- Analyze marketing priorities – The budget you create depends on the stage of your business. If your business is new, allocate more money toward brand awareness and lead generation. This includes content marketing for blogs, social media, and YouTube. Track the leads you get from these platforms and determine which ones are offering the best ROI. You can adjust your budget to put more funds toward the platforms that work for you.
- Keep customer experience in mind – Customers expect positive, consistent experiences when making purchases. No matter what your marketing budget, ensure that you consider your customers. They expect superb customer service, informational content, fast responses to their questions, and individualized attention.
Allocate funds for tracking and responding to your target audience and delivering relevant content for the best customer experience. This includes optimization and interaction on mobile devices, social platforms, site searches, and email. All of these things should be included in your marketing budget. Positive customer experiences build your brand and trust for increased sales.
Determine a realistic IT marketing budget for your business based on your marketing plan. Taking the time to analyze and develop your marketing budget will create value for your brand, generating quality leads and improved sales.