If you are in marketing, you’ve most likely heard the dreaded phrase “budget cuts.” Maybe your marketing efforts haven’t been as effective or sales just aren’t coming in the way they should. You know marketing spend is important, but how do you decide what to cut?
Cut the Most Expensive
When trying to meet budgets, people often start by cutting the most expensive marketing items on the list. This method seems like the easiest choice, but don’t forget to factor in ROI. If you eliminate marketing based solely on how much it costs you, you might accidentally cut the marketing channel that brings in 60% of your revenue.
Cut Multiple Channels
Sometimes, people remove multiple marketing channels in order to meet their budget. It may seem like a wise choice to simply your focus to one or two marketing avenues, but not everyone uses the same media. People also respond differently to each marketing channel. They may delete your email but take the mailer to the store. Try to keep a variety of options open.
Cut the List
Instead of eliminating the most expensive marketing channel or getting rid of multiple channels, try looking at your data list. On average, 30% of marketing lists only make up 10% of sales. Identifying and removing the lowest performers from your list frees up your budget and allows you to focus your marketing efforts on your best customers.
Data marketing analytics can help you identify what your customers are responding to and which clients are responsible for the majority of your sales. This information allows you to see higher returns on your marketing because you are targeting the right people. Invest in understanding what’s working and make the most of your new marketing budget.