Budgeting is a crucial part of any marketing strategy. A quick look at 10 ways that enable you to use data for crafting profitable marketing plans.
Creating a marketing strategy isn’t just about rolling out advertisements— marketing has evolved with the times. No longer are businesses confined to print and radio advertising, but they now also have a multitude of online options to choose from, like pay-per-click (PPC) advertising, paid search, and paid social marketing.
Bear in mind that no marketing strategy has ever succeeded without the complex mix of data analysis and smart budgeting decisions. Marketers can use data to identify problems or issues in campaigns and budgeting. Data are also a fundamental factor in understanding SEO, developing software, and interpreting customer feedback, among other aspects of online marketing.
Data complexity is one of the biggest challenges for marketers right now. Marketers face the tough challenge of data-driven decision-making to craft the most profitable and effective marketing plan possible.
Planning ahead: Budgeting in the context of marketing strategies
What makes a successful marketing campaign lies in the money it reels in for the company. You can tell that your promotional strategies are working when traffic and direct sales are rising. This can be determined by your return on investment (ROI), that is, when the money you invested returns a profit.
This is why budgeting is a key element of any marketing strategy. No successful business sets goals without first considering if they can afford to take them on. Whether you’re a start-up or a long-time business, your current budget influences your future financial goals and gains.
Learning how to wisely allocate your resources can both save and earn you a lot of money. Businesses that don’t consider their budget when crafting a marketing plan may find themselves in over their heads, spending too much on unnecessary things without getting the necessary kickback. Businesses may also end up in debt and with lower customer satisfaction if they fail to plan their budget smartly.
Using data to cash in on your investments
One way to plan your marketing budget wisely is to base it on data. A data-driven approach to crafting marketing strategies can help you make smarter budgeting decisions.
Because of the growing benefits of using big data to bolster marketing strategies, expenses spent on analytics are expected to climb 200% over the next three years. Marketers can use a wide array of information to create suitable marketing and budgeting plans. This includes data analysis about their audience, competitors, and their own past business efforts.
All these data-crunching can seem daunting at first, but there are simple ways to explain how using data can help you make better marketing and budgeting decisions. The 10 tips below will teach you how to use data to craft a profitable marketing plan:
1. Identify your financial goals
First, set your financial goals, both long-term and short-term. How much revenue do you want and how many sales would it take to reach it? How do these objectives tie in with your brand vision and values? Although a good measure of business success is profit, don’t forget to stay grounded in your company’s mission and your consumers’ needs.
To identify your financial goals, look back at your previous short-term and long-term goals and how much of these you have achieved. Also, take into consideration your current financial standing before making any grand projections of your business in the future.
2. Refer to your sales funnel
Knowing where your consumers stand is a fundamental part of marketing strategies. This refers to a sales funnel, a series of steps someone has to make to purchase your product. An example of this would be asking yourself how much money you spend on acquiring new customers and if your efforts pay off.
You can use analytics software to set up funnels that show the process that your audience goes through before deciding to buy your product. This can help you prioritize your budgeting decisions to focus on boosting conversion rates.
3. Review past campaigns
Using analytics, you can also review past marketing or SEO campaigns to see where you succeeded and failed. An example of this is comparing data from your various modes of advertising. This can help you see what’s most effective, in terms of reach and conversion.
4. Check out the competition
You can also use data on your competitors to find out what marketing strategy is most profitable in your industry. Check out your competition’s advertising methods, and investigate how much they invest in certain areas. This can help influence your own budgeting planning process, in terms of focusing on what works for your industry.
5. List down your projected costs
When setting a marketing budget, you need to outline your projected operational costs. Data on previous expenditures and present prices of services like web hosting, professional fees, ad pricing are crucial to correctly calculating your projected costs.
6. Set an achievable schedule
One aspect of creating a marketing strategy is setting an achievable timeline. The amount of time you will spend developing a campaign can also influence the budget planning process. Generally, the less time you spend, the less money you’ll spend too; an overdue project is likely to go over the budget.
Ensure that when scheduling, you’re giving enough leeway for your team to prioritize important aspects of the campaign and respond to unexpected situations. You can use information from past marketing plans (that is, resource availability vis-a-vis the time needed to complete planning), to determine how much time you usually spend. Then base your new timeline on this, considering new factors, if any.
7. Use scenario-building tools
If you’re daunted by the amount of data you have to consolidate and interpret when budgeting, you can use scenario-building tools to run multiple budget scenarios. Scenario-building tools will show you various virtual spending situations that can assist you in your real-life budget planning process.
Using this data-driven approach to budgeting, you’ll be sure to make better budgeting decisions with regard to choosing the best budget scenario that will drive maximum ROI.
8. Focus on the right platforms
Speaking of what works in your industry, make sure you’re investing in the right platforms. The proper platform depends on the product you offer and the market you cater to. What marketing strategy reels in the most conversion or leads for your business? Is it e-mail marketing or is it social media and PPC?
For example, collecting data regarding social media use, that is, who uses which platform, how much time they spend on a specific site, and other sorts of granular data can help you determine where to place your advertisements. Promoting on a website that your market regularly visits turns a bigger profit than on platforms irrelevant to your consumers.
9. Consider predictive analytics
You can also utilize the power of predictive analytics which uses historical data and machine learning to foresee your brand’s future performance. It sounds complicated, but you can actually use analytics tools to help you make sense of the vast amounts of data.
Based on your own historical data, predictive analytics can help you detect future business and security risks, optimize campaigns, and improve budgeting decisions.
10. Measure your performance regularly
Aside from trying to predict your brand’s performance, you can also use analytics to tell how your users are currently responding to your campaign. Using social media analytics and social media listening, you’ll be able to see how your audience perceives your brand. This information can help you optimize your campaign to respond to user feedback and reach your target goals.
A data-driven approach to budgeting decisions can help propel your business forward by utilizing the best mix of resource allocation to drive maximum ROI. Don’t let the complexity of data analysis and analytics scare you into thinking that they’re too hard to understand and analyze. In a world where data is considered as the next oil by business leaders, you’ll be glad to have analytics in your arsenal.
by Kimberly Grimms
source: Search Engine Watch