With the New Year on the horizon, the season is abuzz possibility and potential. What better time to take stock of your business goals and set a marketing budget for the future?
Taking a holistic look at your marketing efforts in 2021 can help you shape your company’s marketing strategy going forward. However, we know this is no small task. From digital analytics to brand awareness to emerging trends, there are many factors to weigh. To help simplify things, we’ve outlined three tips to help business leaders start creating a marketing budget for the New Year.
Reflect and Review
Let’s start by taking a good look at the past 12 months. What has been successful in your marketing strategy? What needs improvements or re-tooling? Have new opportunities opened up or have your business goals shifted? Where are customers stalling in your sales funnel? This is the perfect opportunity to take a step back, look at the big picture and ensure your marketing strategy is aligned with your business goals.
Reconnect With Your Customers
Next, let’s take a look at your customers. How have their habits changed over the year? For example, are they gravitating toward a new social media platform or turning toward print as a reprieve from digital overload? Are they facing any new obstacles or challenges? Being in tune with your customers’ experiences will help you stay connected to them, ensuring you’re speaking their language and addressing relevant pain points. This will also give you valuable insight as to where to direct your marketing spend to get the highest ROI.
Name Your Price
Okay, now for the question you’ve all been waiting for. How much should you spend? Typical marketing budgets fall around 13% of revenue, with variations based on B2B and B2C services. And a good rule of thumb for small businesses (with revenues less than $5 million) is investing 7 – 8% of revenue into your marketing budget — assuming you have margins in the range of 10 – 12%. This includes brand development — like sales collateral, social media and website content — and other methods of promoting your business, such as advertisements and marketing campaigns.
We know setting a marketing budget can feel like a daunting task, especially with the hustle and bustle of the holiday season, but Design At Work is here to help. We know what it takes to develop an integrated marketing strategy to help your small business reach its goals. So, what are you waiting for? Drop us a line to see how we can help set you up for success in the New Year.