Complete guide to determine your marketing budget in 2018
Are you searching for the answer that how much to spend on marketing every year? Well, there is as such no answer to this question. Often when someone asks you, “What part of your business makes you the most profits” what you say? Are you still thinking about the answer? Without any hesitation say your marketing department.
Marketing is an essential component of doing a thriving business; without advertising, news of your success, your product would never reach your target spectators shell, and you would miss the chance to make a mark. On the other hand, few businesses big or small trust and respect their marketing hard work enough to correctly allot enough budgets for effective marketing campaigns.
Even if you have the finest idea on the planet but without any marketing strategy how you’re going to connect with an audience. That’s where promotion and advertising come in.
While the marketing business is filled with plans and thoughts, it’s easy to get confused by all the things that help you to grow your business. Eventually, it all comes down to the preparation and financial plan.
So let’s pull back the curtain and let’s discuss some scenarios about latest eCommerce marketing trends that you actually expect for your bucks spend.
This open guide will help you help you examine your complete revenue and draft and suitable budget
plan for your eCommerce business’s marketing needs.
Which Marketing Strategies to Choose For Getting The Finest Results?
According to the latest survey of digital marketers, respondents stated various marketing techniques that generate the best ROI. Email marketing, social media marketing, organic SEO techniques, and content marketing technologies and automation are proving the most effective marketing plans to accomplish improved results.
Which Social Media Channels Should You Invest In?
If you are thinking about which social media platform is best for marketing then there are no direct investment valuations related to this specific study, it does show notable drifts among the foremost social channels. According to reports, there is a huge surge in social media platform till 2020.
While Facebook is still expected the king of social media platforms with over 90% of social media users. Instagram is surely expected to grow in the upcoming time by 2020.
Other social networks with baked in marketing features, such as Twitter, will endure having comparatively little penetration, glancing around 33 percent of users by 2020. These statistics suggest an importance should be made on Facebook and Instagram Social Media Channels for advertising.
What Does It All Mean?
Well, these surveys from a variety of sources are done over a number of years to give you a reasonable viewpoint, and right framework.
The outcome of every survey and reports will differ from one other and results of each survey are not always constant. This contradiction signifies the diversity of e-commerce needs and the changing the marketing strategy that goes together with it. Highlights from the above studies are as follows:
Marketing Costs Are Increasing
More money is being spent on digital marketing as compared to traditional advertising channels
Overall marketing budgets are in between 7% – 12% of total profits
B2Cs business generally spend more on advertising and promotion as compared to B2Bs
Startup and small businesses spend more on marketing as a fraction of their entire income
Bringing all this data together from various credible sources in the marketing community will surely help you manage how much to spend on advertising and where you need to apply to get top results from your investments.
Track Retention Rate Over Time
It’s good to check what you are gaining from your business from time to time to avoid loses in future. IT is a well saying that what we measure we can celebrate! If you want to know what your investments are paying off then check your retention rate, over time, and get a clear picture of the results. To calculate the retention rate for your business, you need to know the following:
The retention Rate Formula is: ((CE-CN)/CS)) X 100
CS signifies the number of customers at the start of a particular period
CN signifies the number of new customers through the given period
CE signifies the number of customers at the completion of a period
Do some mathematics of your business and understand the process completely.
Choose the Right Marketing Budget For Your Business
A marketing budget is an important part of balancing your business: but spending too much is not a good choice that breaks the bank, but spending too less often is not a good choice at all. Little budget means little product marketing. Setting a strong plan along with a good budget, whether it’s a fixed amount or some percentage of revenue, makes it easier for you to allocate funds and measure the outcomes of your promotions. A combination of research, understandings and a marketing plan will put you on the right path.
Give Emphasis to the Value of the Customer
Retaining a customer is also a difficult job and it’s important to know how much you are investing to attain a new customer or hold them. Well, the investment will differ from one customer to another. But you need to think outside the box to know how much you can earn in future from your customers on an ongoing basis.
This continuing view reflects what products or services they buy in future and for how often and for how long. For this, you need to understand the viewpoint of your customers and look for ways to improve your customer services so you can acquire and retain customers.
Lastly, to conclude this session I can say that we all heard the phrase, “Spend money to make money”
and same goes well with the marketing. The key thing is to make certain you spend a marketing financial
plan that your company can manage to pay for and use that budget in the top places to generate a high
ROI. If any case you find some trends or points in this writes up different from yours then don’t get panic
as marketing budgets differ from business to business, but optimistically the info given will help you to
select what your exclusive marketing budget should be to stand ahead from the crowd.