Imagine your ideal marketing strategy; TV Campaign’s, launch events for new products and lots of giveaways for you adorning fans. Really amazing isn’t it? Now imagine how much that would cost on average, quite a lot right? Now calculate 10% of that figure and you should come up with a figure closer to what you actually have to spend this year. A sad but honest reality of what most marketing departments have to endure as a result of budget cuts.
It’s no secret that marketing is the first on the chopping block for any company looking at where they can save money. The decision makers have to make sure that they can operate the “essential departments”, so they look at marketing as the black sheep of the family. Then they justify it by saying that all the marketing they did in the past will get them enough customers over the next year. Meanwhile you just want to shake them and say “no, no, no we need to maintain a consistent presence.” Well don’t start attacking your CEO just yet, your budget cut could be used to your advantage, to grow awareness and prove your resourcefulness. Here are 5 steps to do this:
Find out the ROI on each marketing activity
First you need to analyze what’s working and what isn’t. Here you are basically finding out which marketing activities are more profitable than others. You can find this out by simply asking your customers what has been persuading them to buy from you. There might be multiple reasons you have been attracting customers, but finding out the main reasons is a good indicator of what has been effective and what hasn’t. Here is a simple equation that can help you figure it out.
ROI = (Incremental Profit – Campaign Cost) / Campaign Cost
Don’t forget to take other statistics into consideration as well that can help in long-term profits. It’s a lengthy process but will prove to be beneficial in the long run in designing your new plans.
Cut the slack
After identifying the marketing activities convert the most, you will be able to see which are the least effective. Activities that have long-term returns are just as important as the ones that yield short-term returns, so make sure you don’t confuse effective with slower. If the activity is not converting at all, then it’s taking up money that could be used elsewhere. You might have a billboard somewhere that you think is helping with brand awareness, but on closer inspection, you might realize that people aren’t affected by it at all.
Focus on what works
Now you can focus your resources on the more effective strategies that bring in the highest ROI. Look at the activities that can still be achieved with the budget given. Sometimes the highest ROI might be the most expensive project, but you will have to use your discretion based on your needs. Your best bet is to try to use the methods that yield the highest ROI at the lowest cost possible.
Create better relationships with your customers
The best way to understand how to serve your customers is by creating better relationships with them. Create more avenues for them to communicate with you directly and respond to their concerns. In this way, you can adjust the company’s offerings to better appease them and help them feel appreciated for a minimal cost. Thanks to the internet, you can engage with potential customers from the comfort of your office. Social Media is your friend.
Use Effective Content Marketing
The key word here is “effective.” Most businesses are posting videos, photos and blogs under the belief that they are doing content marketing, but it isn’t driving potential customers to actually buying, so it’s ineffective. Create content that solves your customers’ problems and appeals to their emotions so they can seek you out to find the solutions they are looking for. Telling your brand story via emotive content, that specifically solves these problems is a great way to craft effective and cost-efficient content.
Now imagine the company that profits grew because of your ideas and action despite having a smaller budget. This would surely prove your marketing muscle and how important you are to the company which can put you in a position for promotions in the future.
Learn how to create emotive content that connects, by clicking here: email@example.com where you can email us to get direct access to all the content we publish on how to effectively tell your business’ brand story.