Are you working on your marketing budget for next year?
I know it’s only August but this is the time to start planning. This is the time to figure out your strategy and budget for 2022.
So where do you start?
First off, analyze where you are at now with your goals. Are you where you need to be to reach them? Do you have enough marketing initiatives the rest of the year to help you get there?
This is when making a budget and a plan ahead of time helps you without the stress of scrambling to fit in all the things the last quarter of the year.
Here are 5 simple steps to start planning a marketing budget for next year
Step 1: Look at the Big Picture
A marketing budget is essential for your business at any stage. Analyze your spending for each year and the ROI for each marketing initiative.
This is when a spreadsheet comes in really handy. Here is a simple example to calculate your ROI:
Simply divide the total amount spent on marketing by the number of leads generated. For example, if you spend $100,000 on marketing and generate 1,000 leads, your cost is $100 per lead. If you don’t know your cost per lead, the next best option is to look at what other similar companies are achieving.
Tracking your spending for all things marketing is key to determine your strategy for each year, your cost per lead, and whether or not it’s a success. It is important to know what to keep doing that is worth your spending and what isn’t. Plus, this gives you a chance to try something new or add something new to the mix as well.
Step 2: How much should you allocate?
In the simplest terms, your marketing budget should be a percentage of your revenue. A common rule of thumb is that B2B companies should spend between 2 and 5% of their revenue on marketing. For B2C companies, the proportion is often higher—between 5 and 10%.*
Step 3: Set Goals
It’s good to focus on just a few goals each year. Here are a few you could use:
- Earning more sales
- Increasing leads
- Earning more subscribers
- Increasing brand awareness
- Increase traffic to your website
- And more
If you’re launching a whole new brand in 2020 or your products will be available for a new ERP, increasing brand awareness would need to be an important goal. Maybe you have a new marketing resource so you can increase your content creation. Maybe you want to collaborate more with other ISVs so joining The ISV Society would be a great way to do that.
Step 4: Understand your market
This is when having a buyer’s persona as well as frequent surveys, polls, and marketing outreach to your existing customers comes in handy.
Knowing what social media platform they use, what their pain points are, what keywords are they putting into Google to search, and what media outlets are cost-effective.
How do your customers like to be communicated with, what marketing medium is their go-to?
Step 5: What strategies do you want to use?
An essential component of preparing a 2022 marketing budget is choosing your strategies. You don’t need to be 100% sure about the strategies you want to use, but you should have an idea of which strategies seem to be the best fit for your business.
It is so important to give yourself some time to get it done. You don’t have to do it all at once. Maybe start by dedicating an hour a week and then in October 2 hours a week depending on where you are at.
Take a small amount of time each week to really analyze your data, measuring your goals, strategize about the effectiveness of your marketing now, and brainstorm ideas for next year.
It does take time but it is so worth it in the end. It is better than just flying by the seat of your pants. Throwing money everywhere without being sure if it is effective or going to help towards your goals is not a good feeling or good business decision.